Royal Caribbean Q1 EPS $3.60 Beats Estimates as Revenue Rises 11%
Royal Caribbean reported Q1 adjusted EPS of $3.60, beating forecasts, and revenue rose 11% year-over-year to $4.5 billion. The company issued full-year EPS guidance of $17.10–$17.50, completed $836 million in share repurchases and saw net yield growth of 3.6% despite Middle East disruptions.
1. Q1 Financial Performance
Royal Caribbean delivered adjusted EPS of $3.60 versus a $3.22 consensus, with revenue of $4.5 billion up 11% year-over-year. Net yields increased 3.6% on a reported basis and 2.0% in constant currency, while the company carried 2.5 million guests at a 109% load factor.
2. Full-Year Guidance and Capital Returns
The cruise line issued full-year adjusted EPS guidance of $17.10 to $17.50, reflecting a $0.62 per share headwind from higher fuel costs at current prices. During Q1, it completed $836 million in share repurchases and projects Q2 EPS of $3.83 to $3.93 with net yields up about 0.9%.
3. Operational and Market Developments
Middle East conflicts prompted a temporary pause and repositioning of two TUI Cruise ships to the Mediterranean for mid-May sailings, while bookings for Mediterranean and West Coast Mexico routes initially slowed but have since rebounded. Digital adoption now exceeds 90% app usage and over half of onboard revenue is booked pre-sail, with core Caribbean deployments and private destinations driving demand.