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Royal Caribbean (RCL.N) said on Tuesday that 2025 was shaping up “to be another great year”, with a near 23 per cent jump expected in adjusted earnings, sending the cruise operator’s shares up more than 5 per cent in premarket trading.
The company forecast its annual profit largely above Wall Street expectations, as it expects to benefit from higher bookings this year at record prices and the introduction of river cruises to its vacation offerings.
Sea-based vacations have sustained strong demand as cruise operators invest millions of dollars in introducing new ships and voyages to private destinations.
A record 19 million Americans are expected to go on cruise vacations this year, a 4.5 per cent rise compared to 2024, travel group AAA forecast on Monday.
Royal Caribbean carried 2.2 million passengers in the fourth quarter, 11.3 per cent more than a year ago.
The company now expects full-year adjusted earnings per share of $14.35 to $14.65, compared with analysts’ average expectation of $14.41, according to data compiled by LSEG.
It said its WAVE season — a period at the start of the year when cruise companies offer deals and promotions to drive bookings — was off to a record start, with travelers bookings cruises in line with the prior years but at higher rates.
Royal Caribbean plans to expands its offerings with the launch of Celebrity River Cruises, a river cruise vacation that will begin taking bookings this year. It has committed to an initial order of 10 ships and plans to sail in 2027.
Its fourth-quarter revenue rose to $3.76 billion from $3.33 billion a year earlier. Analysts on average had expected $3.77 billion.
It posted adjusted earnings of $1.63 per share, above analysts’ estimates of $1.50.
Its net cruise costs, excluding fuel, increased 13.4 per cent, compared with a 6.2 per cent rise a year earlier.
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