Q4 2025 Carnival Corp and Carnival PLC Earnings Call Transcript
Key Points
- Carnival PLC (CUK) delivered historical fourth-quarter highs for revenues, yields, operating income, and EBITDA, achieving record results for the full year 2025.
- The company reported a 60% increase in net income over 2024, reaching an all-time high of over $3 billion.
- Full-year yields improved by more than 5.5% over the previous year, surpassing initial guidance by almost 1.5 points.
- Carnival PLC (CUK) successfully managed costs, bringing unit costs in over 1 point better than initial guidance, despite inflation and higher dry dock expenses.
- The company reinstated its dividend at an initial rate of $0.15 per quarter, reflecting confidence in cash generation and structural improvements to the balance sheet.
- Carnival PLC (CUK) faces heightened volatility and geopolitical uncertainties, impacting deployment changes and yield forecasts.
- The company anticipates a 3.25% increase in cruise costs without fuel per ALBD for 2026, driven by inflation, higher advertising expenses, and dry dock costs.
- The Caribbean market is experiencing a 14% increase in non-Carnival Corporation capacity growth, posing challenges for pricing and occupancy.
- Despite strong performance, consumer sentiment in the U.S. has been low, potentially affecting future booking behavior.
- The implementation of Carnival Cruise Line's new loyalty program will impact yields negatively in 2026, with a 0.2 point decrease expected.
Greetings and welcome to the Carnival Corporation & plc fourth-quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Beth Roberts, Senior Vice President, Investor Relations. Thank you, Beth. You may begin.
Thank you. Good morning, and welcome to our fourth quarter 2025 earnings conference call. I'm joined today by our CEO, Josh Weinstein; our CFO, David Bernstein; and our Chair, Micky Arison. Before we begin, please note that some of our remarks on this call will be forward-looking. Therefore, I will refer you to today's press release and our filings with the SEC for additional information on factors and risks that could cause actual results to differ from our expectations.
We will be referencing certain non-GAAP financial measures, including yields, cruise costs without fuel, EBITDA, net income, ROIC and related statistics for all, which are on a net basis or adjusted as
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