Royal Caribbean raises full-year outlook as third-quarter diluted EPS hits $6.45

Royal Caribbean Cruises Ltd. (RCL) reported third-quarter diluted earnings of $6.45 per share and raised its full-year Adjusted EPS guidance, the company said Tuesday in a filing with the Securities and Exchange Commission.

The results cover the quarter ended Sept. 30, 2026. The company said the figures were released in a press release attached to its 8-K.

Here's how the company did:

• Diluted EPS: $6.45 vs. $5.74 a year earlier
• Adjusted EPS: $6.57 vs. $5.75 a year earlier
• Revenue: $5.59 billion vs. $5.14 billion a year earlier
• Adjusted EBITDA: $2.54 billion vs. $2.29 billion a year earlier

Total revenue rose 9% from a year earlier. Capacity was up 8%, and the company carried 2.7 million guests, a 9% increase. Load factor was 112%.

Net Yields, a measure of pricing after commissions, transportation and onboard costs, rose 0.9% as reported and 0.6% in constant currency. Gross Margin Yields decreased 0.8% as reported.

Net cruise costs excluding fuel per available passenger cruise day fell 1.9% as reported. The company said the decline was due to the timing of expenses that shifted into the fourth quarter.

Adjusted EBITDA margin was 45.4%, up from 44.6% a year earlier.

“Our third quarter results reflect continued strong consumer demand for our vacation experiences and the accelerated momentum across our industry leading brands,” said Chairman and CEO Jason Liberty.

The company now expects full-year Adjusted EPS of $17.85 to $17.95. The higher range reflects the third-quarter performance, partly offset by higher fuel costs at current at-the-pump rates and by currency exchange rates.

For 2026, revenue is expected to grow 9%. Net yields are expected to rise about 2.7% as reported and about 2.1% in constant currency.

For the fourth quarter, the company expects Adjusted EPS of $3.48 to $3.58 and net yields up 4.4% to 4.9% as reported. Net interest expense, excluding loss on extinguishment of debt, is expected to be $255 million to $265 million.

The company does not forecast fuel prices. Its fourth-quarter guidance includes $379 million of fuel expense, 58% hedged via swaps, at forecast consumption of 463,000 metric tons. Third-quarter bunker pricing, net of hedging, was $778 per metric ton.

The company expects 2026 capacity to rise 5.0% as reported and 6.6% in constant currency. Capacity is expected to change about 4.5% in 2027, 6.0% in 2028 and 6.5% in 2029.

In September, the company announced an agreement to acquire a 50% interest in Sandals and Beaches Resorts. The portfolio includes 18 resorts across the Caribbean and three under development, as well as more than 1,000 acres of undeveloped land in the Caribbean.

The investment is expected to close in early 2027, subject to customary closing conditions and regulatory approvals. It will be accounted for under the equity method, with results reported on a one-quarter lag. The company said its share of earnings is expected to be immediately accretive.

The filing does not give a purchase price for the stake.

“Demand for our leading vacation experiences remains strong, and while it is still early, 2027 bookings are pacing ahead of historical levels at higher rates,” Liberty said.

Since the last earnings call, booking volumes have increased in the mid-teens across all of its channels. Bookings for 2027 sailings are up in the high teens.

Liquidity was $7.4 billion as of Sept. 30, including cash and undrawn revolving credit capacity. During the quarter, the company issued $1.25 billion of 5.550% senior unsecured notes due 2034.

The company used the proceeds to repay part of its floating-rate term loan facilities and debt maturing in 2027.

In October, the company entered into a $400 million delayed-draw term loan with Export Development Canada, Canada's export credit agency. It also increased its revolving credit facility by $50 million, to a total capacity of $6.65 billion.

For the first nine months, the company repurchased $1.035 billion of common stock and paid $1.075 billion in dividends. Capital expenditures for 2026 are expected to be about $4.6 billion, predominantly for the new ship order book and land-based destination initiatives.