Royal Caribbean Group Q4 FY2025 earnings call

Jason Liberty highlighted 2025 as an outstanding year with record 9.4 million vacations, ~$18B total revenue, 33% earnings growth, strong balance sheet, and investments in Celebrity River Cruises (10 additional ships by 2031), Royal Caribbean's new Discovery class ships, and loyalty program Points Choice. Naftali Holtz discussed fourth quarter results: net yields grew 2.5%, total revenue up 13%, adjusted EPS $2.80; full-year 2025: total revenue up 8.8%, adjusted EBITDA up 17.6% to over $7B, adjusted EPS up 33% to $15.64. Operational highlights include launch of Royal Caribbean Star of the Seas, Celebrity XL, Celebrity River Cruises, Royal Beach Club Paradise Island; investment in AI and disruptive technology for guest experience and operational efficiency.

No detailed segment-wise financial performance with absolute terms and revenue contribution % provided in the transcript.

2026 capacity expected to be up 6.7% year-over-year. Yield growth expected 1.5% to 3.5%. Adjusted earnings per share expected $17.70 to $18.10, a 14% year-over-year increase. Expected operating cash flow over $7B, invest $5B in strategic initiatives.

Q: Matthew Boss asked about acceleration into 2026 and portfolio differentiation A: Jason Liberty and Naftali Holtz responded discussing growth in demand, loyalty programs, and portfolio differentiation to capture market share Q: Steve Wieczynski asked about Caribbean performance and 2026 yield guidance A: Jason Liberty responded discussing strong Caribbean demand, pricing trends, and yield guidance within moderate growth expectations Q: James Hardiman asked about organic vs inorganic growth A: Jason Liberty and Michael Bayley responded discussing yield contributions from new and like-for-like hardware, and Royal Beach Club ramp-up Q: Lizzie Dove asked about net yield cadence A: Naftali Holtz responded discussing factors like dry dock timing, Royal Beach Club ramp-up, and deployment mixes affecting net yield cadence Q: Robin Farley asked about new ship order and cruise costs A: Michael Bayley and Naftali Holtz responded discussing Discovery class ship innovation and cost management tied to scale and technology utilization Q: Brandt Montour asked about industry rationality A: Jason Liberty responded discussing rational industry activities and price integrity Q: Conor Cunningham asked about close-in booking strength A: Jason Liberty and Michael Bayley responded discussing short product focus and yield management tied to AI and guest experience Q: David Katz asked about River cruise commitment A: Jason Liberty and Naftali Holtz responded discussing strong demand for River cruises from existing customers and market expansion potential