Carnival Corp’s (CCL) strong cruise portfolio, value proposition over competitors, and cost management was reflected in solid fiscal fourth quarter as the cruise operator beat on both the top- and bottom-line, set upbeat guidance, and reinstated its dividend after being suspended for nearly 6 years.
“2025 was a truly phenomenal year. We set new records across our business and achieved investment grade leverage metrics. These milestones reflect the collective strength of our cruise line portfolio and confidence in our long-term future,” said Carnival Corporation CEO Josh Weinstein.
Led by strong close-in demand and cost management, Carnival (CCL) earned an adjusted profit of $0.34 per share, more than double from a year earlier and 9 cents above expectations. Adjusted EBITDA set a record high of $1.5B with adjusted EBITDA margins up nearly 300 basis points year-over-year.
Revenue also set records for the quarter, climbing 6.6% to $6.3B, but $40M short of Wall Street’s expectations. However, the combination of record revenue with cost management drove the company’s gross margin yield up 16% from the same quarter last year.
Adjusted cruise costs per available lower berth day (ALBD) excluding fuel increased less than 1% and 2.7 points better than the previous quarter, while fuel consumption declined 5.6%.
Looking ahead to FY26, the company has already achieved its highest booked occupancy at roughly two-thirds booked at higher prices in both North America and Europe, and achieved record booking volumes for 2027 sailings, as well.
Net yields are expected to be up ~2.5% in FY26, and up ~3.0% after adjusting for the company’s new loyalty program and the impact of the close-in redeployment of FQ1 voyages from the Arabian Gulf.
Adjusted cruise costs per ALBD are expected to be up 3.25% excluding fuel (in constant currency).
For the fiscal first quarter, Carnival (CCL) expects net yields to be up 1.6%, and adjusted cruise costs excluding fuel to be up 5.9%.
After struggling for direction in the wake of FQ4 results, shares of Carnival Corp (CCL) are back in the green with a gain of more than 3% and giving a boost to rivals Royal Caribbean (RCL), Norwegian Cruise Line (NCLH), and Viking Holdings (VIK).