RCL · Royal Caribbean Cruises Ltd.

Royal Caribbean Group's first quarter 2026 results significantly exceeded guidance, driven by stronger-than-expected revenue from higher pricing and close-in demand, particularly in onboard revenues, alongside lower non-fuel costs and improved joint venture performance. Net Yields grew 3.6% as-reported (2.0% constant currency), outpacing expectations, while Gross Cruise Costs per APCD fell 1.0% and NCC ex Fuel per APCD rose only 0.6% as-reported. Load factor reached 109% with capacity up 8% YoY, serving 2.5 million guests, up 12%. Management highlighted a record WAVE season and resilient demand, with bookings now pacing ahead of last year despite temporary moderation in Mediterranean and West Coast Mexico itineraries due to geopolitical events and air travel disruptions; these have since recovered. The company returned $1.1 billion to shareholders, including $836 million in share repurchases, leaving $1.0 billion authorized. Full-year guidance was raised to Adjusted EPS of $17.10-$17.50, reflecting 11% growth, offset partially by higher fuel costs ($1.3 billion expected, $0.62 per share above prior) and TUI Cruises impacts, but bolstered by lower non-fuel costs and buybacks. Q2 outlook shows Net Yields up ~0.9% as-reported amid higher exposure to affected itineraries, with NCC ex Fuel per APCD up 4.9-5.4% due to drydocks and crew costs; Adjusted EPS guided to $3.83-$3.93. Liquidity stood at $6.9 billion as of March 31, supported by $2.5 billion in new senior notes issued in February to extend maturities and refinance debt. Capital expenditures are set at ~$5 billion, focused on new ships like Legend of the Seas (Q2 delivery) and Icon VI/VII orders, plus private destinations. CEO Jason Liberty emphasized strong brand appeal, revenue acceleration, and cost management, positioning for double-digit growth under the Perfecta program targeting 20% earnings CAGR through 2027.