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Fueled by record high bookings despite historically high prices, Carnival Corporation (NYSE:CCL) reported strong fiscal second quarter results, driving shares up as much as 10% to a 4-month-high.
The impressive results led the company to hike its full year guidance once again. Net income is expected to increase by 40% versus earlier guidance for a 30% gain, and adjusted EBITDA of $6.9B versus March’s guidance of $6.6B to $6.7B.
“Our strong results, booked position and outlook are a testament to the success of our ongoing strategy to deliver same-ship, high-margin revenue growth. We continue to set ourselves up well for 2026 and beyond, with so much more potential to take our margins, returns and results even higher over time,” CEO Josh Weinstein said, adding that Carnival (NYSE:CCL) has already exceeded its 2026 SEA Change financial targets 18 months early.
SEA Change targets aim to increase Sustainability, increase EBITDA, and Adjusted ROIC.
For the reported quarter, Carnival (NYSE:CCL) earned an adjusted profit of $0.35 per share, more than triple from a year ago and $0.11 better than expected. This was achieved through higher ticket prices, higher onboard spending, and the timing of expenses between quarters. Revenue set a record high of $6.3B, up 9.5% from last year and $120M above expectations.
Cruise costs per available lower berth day (“ALBD”) were down 0.3% while adjusted cruise costs excluding fuel per ALBD were up 3.5% due to higher dry-dock days.
For the current quarter, Carnival (CCL) net yields are expected to increase 3.5% and a 7.0% increase in adjusted cruise costs excluding fuel per ALBD due to higher operating expenses for its new Celebration Key destination, increased ad spending, and impacts of lower 2025 capacity and favorable one-time items in 2024.
Carnival’s (CCL) results are driving up shares in the sector with Royal Caribbean (RCL) higher by 3%, Norwegian Cruise LInes (NCLH) up 6%, and Viking Holdings (VIK) higher by 3.6%.