Royal Caribbean Group today reported 2024 Earnings per Share of $10.94 and Adjusted EPS of $11.80.

The company said these results were better than the company’s guidance due to stronger pricing on close-in demand and continued strength in onboard revenue, partially offset by higher stock-based compensation expense driven by an increase in the company’s stock price during the fourth quarter.

The strong demand for the company’s vacation experiences continues to accelerate into 2025 with Adjusted EPS expected to be in the range of $14.35 to $14.65 per share. The guidance range includes a headwind of $0.65 related to foreign exchange and fuel rates, compared to the last earnings call.

“2024 was exceptional, thanks to our incredible team’s flawless execution, which drove elevated demand across our leading brands, the early achievement of our Trifecta goals, and meaningful progress on our strategic priorities,” said Jason Liberty, president and CEO, Royal Caribbean Group. “2025 is shaping up to be another great year, with expected adjusted earnings growth of 23%, as our commercial and vacation experiences flywheel continues to accelerate the growing preference for our leading brands, the most innovative ships and world-class private destinations,” added Liberty. “We are never satisfied with the status quo, and we are obsessed with delivering the best vacation experiences in the world and driving exceptional shareholder returns. Today’s launch of Celebrity River Cruises is an example of our commitment to deliver on that promise and ultimately capture a greater share of the $2 trillion global vacation market.”

Full Year 2024 Results:

• Gross Margin Yields increased 23.8% as-reported. Net Yields increased 11.6% in Constant Currency (11.5% as-reported).
• Gross Cruise Costs per Available Passenger Cruise Day (“APCD”) increased 4.6% as-reported. Net Cruise Costs (“NCC”), excluding Fuel, per APCD increased 6.8% in Constant Currency (6.8% as-reported).
• Total revenues were $16.5 billion, Net Income was $2.9 billion or $10.94 per share, Adjusted Net Income was $3.2 billion or $11.80 per share, and Adjusted EBITDA was $6.0 billion.
  Full Year 2025 Outlook:
• WAVE season bookings are off to a record start, with booked load factors in line with prior years and at higher rates.
• Net Yields are expected to increase 2.5% to 4.5% in Constant Currency and 1.8% to 3.8% as-reported.
• NCC, excluding Fuel, per APCD are expected to be flat to up 1.0% in Constant Currency and (0.3%) to 0.7% as-reported.
• Adjusted EPS is expected to be in the range of $14.35 to $14.65.

Fourth Quarter 2024 Results

Net Income for the fourth quarter of 2024 was $0.6 billion or $2.02 per share compared to Net Income of $0.3 billion or $1.06 per share for the same period in the prior year. Adjusted Net Income was $0.4 billion or $1.63 per share for the fourth quarter of 2024 compared to Adjusted Net Income of $0.3 billion or $1.25 per share for the same period in the prior year. The company also reported total revenues of $3.8 billion and Adjusted EBITDA of $1.1 billion.

Gross Margin Yields increased 13.8% as-reported, and Net Yields increased 7.3% in Constant Currency (7.0% as-reported) when compared to the fourth quarter of 2023. Load factor for the quarter was 108%. Net Yield growth exceeded the company’s guidance mainly due to higher pricing across all key products and better onboard revenue.

Gross Cruise Costs per APCD increased 7.2% as-reported, compared to 2023. NCC, excluding Fuel, per APCD increased 13.5% in Constant Currency (13.4% as-reported), when compared to 2023, and includes 340 bps related to higher stock-based compensation expense driven by the increase in stock price, compared to prior guidance.

Update on Bookings

The company continues to be encouraged by the demand and pricing environment for its vacation experiences. Close-in demand in the fourth quarter remained strong on both a rate and volume basis. Bookings have accelerated since the last earnings call, resulting in the best five booking weeks in the company’s history. Booked load factors continue to be in line with prior years, and at higher rates. Guest spending onboard and pre-cruise purchases continue to exceed prior years driven by greater participation at higher prices, due to the company’s robust commercial engine.

“Our strong booked position allows us to optimize our yield profile and drive margin expansion and strong financial returns,” said Naftali Holtz, Chief Financial Officer, Royal Caribbean Group. “Our formula for success – moderate capacity growth, moderate yield growth, and strong cost discipline – is expected to deliver 23% adjusted earnings growth in 2025.”

First Quarter 2025

Net Yields are expected to increase 4.75% to 5.25% in Constant-Currency (3.9% to 4.4% as-reported) compared to 2024. The expected yield growth in the first quarter is benefiting from a higher load factor related to new hardware.

NCC, excluding Fuel, per APCD, is expected to increase 1.6% to 2.1% in Constant-Currency (1.3% to 1.8% as-reported) compared to 2024.
Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects first quarter Adjusted EPS to be in the range of $2.43 to $2.53.