Royal Caribbean reported fourth-quarter EPS of $2.80 on an adjusted basis, falling just short of the consensus estimate of $2.81. This represents a 72% increase from the prior year’s adjusted EPS of $1.63, driven by strong onboard revenue and improved gross margin yields, which rose 9.2% as reported. Total revenue for the quarter reached $4.3 billion, while adjusted EBITDA climbed to $1.5 billion. Load factor stood at 108%, reflecting robust demand despite incremental itinerary changes in China that trimmed net yield growth by roughly 30 basis points.

For the full year, RCL delivered net income of $4.3 billion, or $15.61 per share, with adjusted EPS of $15.64 versus the guided $15.00 range. Total revenues were $17.9 billion and adjusted EBITDA reached $7.0 billion. Gross margin yields increased 8.5% as reported, while net yields rose 3.8% on an as-reported basis. Cruise costs per available passenger cruise day declined modestly, with gross cruise costs down 0.6%. The company’s liquidity position remained strong at $7.2 billion as of year-end, supporting continued share repurchases and debt repayments.

Looking ahead, Royal Caribbean expects adjusted EPS of $17.70 to $18.10, reflecting a compound annual growth rate of 23% over the first two years of its Perfecta financial program. Net yield growth is forecast between 2.1% and 4.1% as reported, offset slightly by ongoing China itinerary modifications. Capacity will expand by 6.7%, driven by four new ships entering service between late 2025 and 2026. The company also announced two firm orders for its next-generation Discovery Class vessels, with options for four more, and commitment to add ten new river cruise ships by 2031—moves designed to broaden the vacation ecosystem and capture incremental market share.