Carnival Corporation & plc Delivers Record-Breaking Results, Outshining Expectations
Carnival Corporation & plc, the global leader in cruise vacations, has concluded its fourth quarter of 2024 with a resounding success. The company's latest conference call transcript reveals a remarkable performance that outperformed even the most optimistic expectations.
Josh Weinstein, the CEO of Carnival Corporation & plc, took pride in acknowledging the outstanding efforts of his team, describing them as "the best in all of travel and leisure." This dedication has yielded impressive results, with the company achieving record revenues alongside favorable forward indicators such as record booking trends and customer deposits. The fourth quarter saw a significant improvement in net income, exceeding $250 million year-over-year, with an additional $125 million better than expected.
The quarterly performance was marked by strong closing demand across the portfolio, pushing yields, per diems, EBITDA, and operating income to new highs. The company's full-year revenues hit an all-time high of $25 billion, producing a cash flow from operations of almost $6 billion. The robust demand led to a 11% yield increase for the year, with most of the growth attributed to higher prices.
The CEO emphasized that this growth was broad-based, with prices increasing in all major brands and trades between mid-single digit to mid-teen percentages. Onboard spending levels accelerated sequentially each quarter throughout the year. Notably, unit costs came in 100 basis points better than original guidance for the year, as the company identified and executed additional cost savings initiatives and benefited from an easing inflationary environment.
This translated to a significant $700 million pickup to the bottom line compared to December guidance and substantial step-change improvements in two key financial metrics – EBITDA per ALBD and ROIC. As part of its 2026 SEA Change targets, Carnival Corporation & plc aimed for a 50% increase in EBITDA per ALBD from the 2023 starting point and an ROIC of 12%, both of which would be new highs for the company.
After just one year down, with two to go, Carnival Corporation & plc has already surpassed 80% of the way toward achieving these targets. The company's ROIC ending 2024 at 11%, comfortably above its cost of capital, signifies that it is delivering long-term value for its shareholders as it lays the foundation for further growth in 2025 and beyond.
The CEO also highlighted that 2025 appears to be shaping up as another banner year, with yield growth exceeding 4% and unit cost growth delivering more than $400 million incrementally to the bottom line. Booking trends accelerated during the quarter, despite less inventory for sale compared to the same time last year. Furthermore, booking volumes for 2026 continue to break records, reflecting sustained demand even for further-out sailings.
In conclusion, Carnival Corporation & plc's latest results demonstrate its remarkable ability to consistently outperform expectations and position itself for continued success in an increasingly competitive industry. The company's commitment to innovation, cost savings initiatives, and a customer-centric approach has enabled it to achieve unprecedented heights of revenue and profitability."
