Q4 2025 Royal Caribbean Cruises Ltd Earnings Call Transcript
Key Points
- Royal Caribbean Group (RCL) delivered a record 9.4 million vacations in 2025 with high customer satisfaction scores.
- The company achieved nearly $18 billion in total revenue and a 33% earnings growth, while expanding margins and reducing leverage.
- RCL returned $2 billion to shareholders through dividends and share buybacks in 2025.
- The company is expanding its Celebrity River Cruises fleet to 20 vessels by 2031, making it one of the largest European river cruise operators.
- RCL's new Discovery class ships and enhancements to its loyalty program are expected to drive future growth and guest engagement.
- There are concerns about increased Caribbean capacity and its impact on pricing, especially for close-in bookings.
- The company faces yield headwinds due to deployment shifts and itinerary modifications, particularly in the first half of 2026.
- RCL's net cruise costs, excluding fuel, are expected to be flat to up 1% in 2026, with cost headwinds related to private destination ramp-ups.
- The expansion of the European Union Emissions Trading System in 2026 will increase costs related to European itineraries.
- The company is experiencing higher dry dock costs in 2026, impacting yield comparisons, especially in the second 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 fourth-quarter and full-year 2025 earnings call. (Operator Instructions)
I would 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 fourth quarter 2025 earnings call. Joining me here in Miami are Jason Liberty, our Chairman and 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 to
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