Royal Caribbean Group (RCL) wrapped up 2025 with solid fourth-quarter results that show cruise demand isn't just holding steady—it's accelerating into next year. The company posted adjusted earnings of $2.80 per share, matching expectations, while revenue came in at $4.259 billion, just shy of the $4.262 billion consensus. GAAP earnings hit $2.76 per share, up from $2.02 the year before.

Net income climbed to $0.8 billion from $0.6 billion, and adjusted EBITDA reached $1.5 billion. Quarterly revenue jumped from $3.761 billion in the prior-year period, powered by a load factor of 108%—meaning ships were fuller than mathematically possible thanks to creative cabin configurations. Gross Margin Yields increased 9.2%, while Net Yields rose 3.1% year-over-year.

Cost discipline played a supporting role. Net Cruise Costs, excluding fuel, per available passenger cruise day declined 5.8% compared with the fourth quarter of 2024, giving the company more breathing room on margins.

Another Banner Year

For full-year 2025, Royal Caribbean delivered GAAP earnings of $15.61 per share and adjusted earnings of $15.64. Total revenue rose to $17.935 billion from $16.484 billion in 2024, while net income reached $4.3 billion and adjusted EBITDA hit $7.0 billion. Operating cash flow for the year totaled $6.465 billion.

The company carried 9.45 million passengers at a full-year occupancy rate of 109.7%. Gross Margin Yields increased 8.5%, and Net Yields were up 3.8%. Net Cruise Costs excluding fuel per available passenger cruise day edged down slightly on a constant-currency basis.

Here's where things get interesting: Royal Caribbean's Cyber Sales and the kickoff of WAVE season—the industry term for the January-to-March booking bonanza—produced the "highest seven booking weeks in the company's history." The result? About two-thirds of 2026 capacity is already booked, and those bookings are coming in at record rates. Onboard and pre-cruise spending also topped prior years, with nearly 50% of 2025 onboard revenue locked in before passengers even stepped on the ship.

Cash Position and Buybacks

Liquidity stood at $7.2 billion as of Dec. 31, 2025, including cash and undrawn revolver capacity. Cash and equivalents totaled $825 million.

During the fourth quarter, the company repurchased 1.8 million shares for $504 million, wrapping up a $1 billion buyback program. There's still $1.8 billion remaining under current authorization, giving management flexibility to keep returning cash to shareholders.

Looking Ahead

Royal Caribbean guided for first-quarter 2026 adjusted earnings between $3.18 and $3.28 per share, comfortably above the $2.92 analyst estimate. For the full year, the company expects adjusted earnings of $17.70 to $18.10 per share, beating the $17.66 consensus. That outlook is underpinned by 6.7% higher capacity and continued yield growth.

Management flagged a 30-basis-point headwind from itinerary modifications in China and noted potential risks from tariffs, fuel prices, currency fluctuations, and interest rates. Still, the tone was optimistic.

"WAVE is off to a great start and we continue to see strong and growing preference for our leading brands and differentiated vacation experiences. We expect another strong year of financial performance with both revenue and earnings growing double digits, and we remain on track to achieve our Perfecta goals by 2027," said Jason Liberty, Chairman and CEO of Royal Caribbean Group.

Fleet Expansion Plans

Beyond the quarterly numbers, Royal Caribbean is doubling down on growth. Celebrity River Cruises, part of the Royal Caribbean portfolio, announced commitments for 10 additional river ships, expanding its fleet to 20 vessels by 2031. The brand also opened bookings for its 2028 European deployment, which features an 80% increase in destinations compared to its inaugural 2027 season. Celebrity Cruises is headquartered in Miami.

Royal Caribbean also struck deals with Chantiers de l'Atlantique for its new Discovery Class ships. The company placed two firm orders with options for four more. The first ship is slated to debut in 2029, with a second delivery scheduled for 2032.

Price Action: Royal Caribbean shares surged 8.11% to $315.25 during premarket trading on Thursday.