Carnival Projects $0.20 EPS Boost from Fuel and FX Tailwinds
Carnival expects fuel and currency tailwinds to boost fiscal 2026 EPS by approximately $0.20, with fuel prices contributing $0.17 and foreign exchange adding $0.03 per share. The company forecasts adjusted net income of $3.45 billion (up over 12%) and adjusted EBITDA of $7.6 billion while cruise costs ex-fuel rise 3.25%.
1. Fuel and Currency Tailwinds
Carnival forecasts a $0.20 per share earnings tailwind in fiscal 2026, with $0.17 from lower fuel prices and $0.03 from favorable foreign exchange translation across its global operations.
2. Fiscal 2026 Earnings Outlook
The company projects adjusted net income of about $3.45 billion, a year-over-year increase of over 12%, and adjusted EBITDA of roughly $7.6 billion compared to $7.2 billion in fiscal 2025.
3. Rising Operational Costs
Cruise costs excluding fuel per available lower berth day are expected to increase by approximately 3.25% in fiscal 2026, while regulatory expenses for emissions allowances and new taxes may reduce earnings by about $0.11 per share.
4. Valuation Relative to Peers
Shares have outperformed the industry gain of 10.9% over the past three months, trading at a forward P/E of 12.24 versus the broader industry average of 16.65, indicating a valuation discount despite upward EPS revisions.