Q2 2025 Royal Caribbean Cruises Ltd Earnings Call Transcript
Key Points
- Royal Caribbean Group (RCL) exceeded second-quarter expectations due to stronger-than-expected close-in demand and lower interest costs.
- The company increased its earnings guidance for the year, expecting adjusted earnings per share to grow 31% year over year.
- Net yield grew 5.2%, surpassing guidance by 70 basis points, driven by strong demand across all key itineraries.
- Bookings have accelerated, with strong demand for new ships like Star of the Seas and Celebrity Xcel.
- The company is expanding its portfolio with new ships and exclusive destinations, enhancing its competitive position in the global vacation market.
- The third quarter is expected to see a lower capacity growth of 3% due to the late delivery of Star of the Seas.
- Net cruise costs, excluding fuel, are expected to rise by 6% to 6.5% in the third quarter, partly due to the timing of new ship deliveries.
- The company faces potential headwinds from geopolitical uncertainties, which previously led to a wider guidance range.
- There is a risk of over-demand for the new Royal Beach Club, which may require dynamic pricing to manage.
- The ramp-up of new destinations and ships may initially impact yields due to operational ramp-up periods.
(video playing)
Good morning. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Royal Caribbean Group second-quarter 2025 earnings call.
(Operator Instructions)
I would now like to introduce 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 2025 earnings call. Joining me here in Miami are Jason Liberty, our Chief Executive Officer; Naftali Holtz, our 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. Please refer
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