Royal Caribbean Cruises ( (RCL) ) has released its Q4 earnings. Here is a breakdown of the information Royal Caribbean Cruises presented to its investors.
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Royal Caribbean Group, a leading global cruise company, reported strong financial results for 2024, surpassing expectations with earnings per share (EPS) of $10.94 and adjusted EPS of $11.80. The company attributed its success to robust close-in demand and strong onboard revenue. Looking ahead, Royal Caribbean is optimistic about 2025, with adjusted EPS forecasted to reach between $14.35 and $14.65, even as it faces challenges related to foreign exchange and fuel rates.
Key highlights from the earnings report include a significant increase in Gross Margin Yields by 23.8% as-reported and Net Yields by 11.6% in Constant Currency for the year. Total revenues reached $16.5 billion, with a net income of $2.9 billion. The company also reported an adjusted EBITDA of $6.0 billion. The fourth quarter saw net income of $0.6 billion, with net yields increasing by 7.3% in constant currency, driven by higher pricing and onboard revenue.
Royal Caribbean continues to innovate and expand its offerings, as demonstrated by the launch of Celebrity River Cruises, which aims to capture a greater share of the global vacation market. The company has committed to an initial order for 10 new river cruise ships, expected to sail in 2027. This strategic move is part of Royal Caribbean’s broader effort to enhance customer engagement and leverage its loyalty programs across its brands.
The company’s management remains confident about future growth, highlighting a record start to the WAVE season and strong booking trends. With moderate capacity growth and cost discipline, Royal Caribbean is poised for a 23% growth in adjusted earnings in 2025. The company also plans significant capital expenditures, including the delivery of new ships and the development of private destinations.
In conclusion, Royal Caribbean Group is well-positioned for continued success in the coming year, driven by its strategic initiatives and strong financial performance. The company remains committed to delivering exceptional vacation experiences and shareholder returns, as it navigates the evolving landscape of the global cruise industry.
