Q2 2026 Royal Caribbean Cruises Ltd Earnings Call Transcript
Key Points
- Royal Caribbean Group (RCL) reported second quarter results that exceeded expectations, with revenue growing 6% year-over-year and earnings 8% higher than guidance.
- The company returned over $600 million of capital to investors through dividends and share repurchases.
- Demand for vacation experiences continues to strengthen, driven by a healthy experience-seeking consumer and exceptional execution, with Net Promoter Scores averaging in the low to mid-70s.
- Onboard spending and pre-cruise purchases continue to exceed prior years, supported by digital channels and personalized guest experiences.
- The introduction of new experiences like the Legend of the Seas and the Royal Beach Club has been well-received, showcasing the company's ability to expand its fleet and destinations.
- The ongoing conflict in the Middle East has modestly weighed on bookings, particularly impacting third-quarter Mediterranean sailings.
- Yield growth for Europe sailings this summer is more modest due to geopolitical tensions, reaffirming yield guidance for the year at 1.75% to 2.25%.
- The development timeline for the Mahahual, Mexico project is expected to be affected due to ongoing community engagement and government processes.
- Net cruise costs per APCD excluding fuel were up 3.9% year-over-year, although this was better than expected.
- The company faces deployment mix changes and global events that have created yield headwinds in the third quarter.
Good morning. My name is Morgan and I'll be your conference operator today. At this time, I would like to welcome everyone to the Royal Caribbean Group second quarter 2026 earnings call. (Operator Instructions)
I would now like to introduce Mr. Blake Vanier, Vice President of Investor Relations. Mr. Vanier, the floor is yours.
Good morning, everyone, and thank you for joining us today for our second quarter 2026 earnings call. Joining me here in Miami are Jason Liberty, our Chairman and Chief Executive Officer; Naftali Holtz, our Executive Vice President and Chief Financial Officer; and Michael Bayley, President and CEO of the Royal Caribbean brand.
Before we get started, I'd like to note that we will be making forward-looking statements during this call. These statements are based on management's current expectations and are subject to risks and uncertainties. A number of factors could cause actual results to differ materially from our current expectations.
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