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Record Bookings and Rising Yields: How Far Can CCL's Profit Cruise?
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Key Takeaways
Carnival posted record Q3 revenues of $8.15B and net income of $2B, with EPS beating estimates.
Bookings outpace capacity growth, with nearly half of 2026 sailings already sold at higher prices.
Carnival lifted its full-year outlook as ROIC hit 13% and debt metrics moved toward investment grade.
Carnival Corporation & plc (CCL - Free Report) continues to power ahead, steering its financial comeback with precision. In the third quarter of 2025, the world’s largest cruise operator posted record revenues of $8.15 billion and net income of $2 billion. Earnings per share were $1.43, beating the Zacks Consensus Estimates of $1.32, as yields surged 4.6% year over year on strong close-in demand and robust onboard spending.
CEO Josh Weinstein highlighted that bookings are running ahead of capacity growth, with pricing at record levels across both North America and Europe. Nearly half of 2026 sailings are already sold at higher prices, underlining Carnival’s strengthened pricing power. The company’s portfolio diversification — spanning Alaska, Europe and its new Caribbean destination, Celebration Key — is paying dividends. The debut of Celebration Key has been met with glowing reviews, adding premium pricing and brand momentum.
Operational efficiency remains another win. Carnival beat cost guidance by 1.5 percentage points and lifted its full-year outlook for the third time in 2025. Its net debt-to-EBITDA ratio now stands at 3.6x, edging toward investment-grade territory.
With ROIC hitting 13%, its highest in nearly two decades, Carnival’s profitability journey appears far from over. As it tightens costs, grows yields and leverages record bookings, the company’s next challenge lies in sustaining momentum once capacity growth flattens — testing just how far this profit cruise can sail.Rivals
Riding the Same Tide: Royal Caribbean and Norwegian Cruise Line
While Carnival’s profit wave is impressive, rivals Royal Caribbean Group (RCL - Free Report) and Norwegian Cruise Line Holdings (NCLH - Free Report) are also navigating strong waters. Royal Caribbean continues to set industry benchmarks with record yields and forward bookings fueled by its Icon-class ships and expanding Perfect Day private-island destinations. Its innovative fleet and strong onboard revenue streams have pushed margins and cash flow to all-time highs, keeping pressure on Carnival to sustain yield growth.
Norwegian Cruise Line, meanwhile, is emphasizing premium experiences and disciplined capacity management to boost per-passenger revenues. Despite higher operating costs, its new Prima-class vessels and targeted deployment strategy are enhancing pricing power and onboard spend. Both RCL and NCLH share Carnival’s focus on yield optimization and efficiency gains, but the latter’s scale advantage and destination development strategy — notably Celebration Key — give it a unique edge in capturing long-term profitability and shareholder returns.
CCL’s Price Performance, Valuation and Estimates
Shares of Carnival have gained 17.8% in the past six months against the industry’s decline of 0.8%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 11.22X, significantly below the industry’s average of 16.19X.
P/E (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CCL’s fiscal 2025 and 2026 earnings implies a year-over-year uptick of 51.4% and 11.7%, respectively. EPS estimates for fiscal 2025 have increased in the past 30 days.
Image: Bigstock
Record Bookings and Rising Yields: How Far Can CCL's Profit Cruise?
Key Takeaways
Carnival Corporation & plc (CCL - Free Report) continues to power ahead, steering its financial comeback with precision. In the third quarter of 2025, the world’s largest cruise operator posted record revenues of $8.15 billion and net income of $2 billion. Earnings per share were $1.43, beating the Zacks Consensus Estimates of $1.32, as yields surged 4.6% year over year on strong close-in demand and robust onboard spending.
CEO Josh Weinstein highlighted that bookings are running ahead of capacity growth, with pricing at record levels across both North America and Europe. Nearly half of 2026 sailings are already sold at higher prices, underlining Carnival’s strengthened pricing power. The company’s portfolio diversification — spanning Alaska, Europe and its new Caribbean destination, Celebration Key — is paying dividends. The debut of Celebration Key has been met with glowing reviews, adding premium pricing and brand momentum.
Operational efficiency remains another win. Carnival beat cost guidance by 1.5 percentage points and lifted its full-year outlook for the third time in 2025. Its net debt-to-EBITDA ratio now stands at 3.6x, edging toward investment-grade territory.
With ROIC hitting 13%, its highest in nearly two decades, Carnival’s profitability journey appears far from over. As it tightens costs, grows yields and leverages record bookings, the company’s next challenge lies in sustaining momentum once capacity growth flattens — testing just how far this profit cruise can sail.Rivals
Riding the Same Tide: Royal Caribbean and Norwegian Cruise Line
While Carnival’s profit wave is impressive, rivals Royal Caribbean Group (RCL - Free Report) and Norwegian Cruise Line Holdings (NCLH - Free Report) are also navigating strong waters. Royal Caribbean continues to set industry benchmarks with record yields and forward bookings fueled by its Icon-class ships and expanding Perfect Day private-island destinations. Its innovative fleet and strong onboard revenue streams have pushed margins and cash flow to all-time highs, keeping pressure on Carnival to sustain yield growth.
Norwegian Cruise Line, meanwhile, is emphasizing premium experiences and disciplined capacity management to boost per-passenger revenues. Despite higher operating costs, its new Prima-class vessels and targeted deployment strategy are enhancing pricing power and onboard spend. Both RCL and NCLH share Carnival’s focus on yield optimization and efficiency gains, but the latter’s scale advantage and destination development strategy — notably Celebration Key — give it a unique edge in capturing long-term profitability and shareholder returns.
CCL’s Price Performance, Valuation and Estimates
Shares of Carnival have gained 17.8% in the past six months against the industry’s decline of 0.8%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 11.22X, significantly below the industry’s average of 16.19X.
P/E (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CCL’s fiscal 2025 and 2026 earnings implies a year-over-year uptick of 51.4% and 11.7%, respectively. EPS estimates for fiscal 2025 have increased in the past 30 days.
Image Source: Zacks Investment Research
CCL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.