Carnival Corporation Shatters Records, Achieves Phenomenal Growth in Second Quarter 2025
Carnival Corporation plc has once again shattered records and achieved phenomenal growth in its second quarter 2025 earnings, marking the eighth consecutive quarter of record revenues on rev yields. The company's CEO, Josh Weinstein, took to the stage during the quarterly conference call to address investors and analysts, proudly declaring that they have now met and exceeded both their 50% EBITDA per ALBD growth target and their 12% return on invested capital (ROIC) target, a full 18 months ahead of schedule.
Weinstein highlighted that this achievement is no small feat, given that these are both the highest levels the company has seen in nearly 20 years. In addition to surpassing their EBITDA and ROIC targets, Carnival also met its third 2026 commitment to reduce carbon intensity by 20% as compared to 2019.
The company's financial results were equally impressive, with year-over-year increases in EBITDA (26%), operating income (67%), and net income (over 300%). Yields grew by almost 6.5%, beating guidance by a significant 200 basis points. Ticket and onboard sales both outperformed expectations, reaffirming the strength of Carnival's consumer base.
Weinstein also took the opportunity to address the ongoing conflict in the Middle East, expressing hopes for a quick and peaceful resolution and acknowledging that the situation may have an impact on their business in the coming days and weeks. However, he emphasized that the company has not yet seen any discernible effects from the conflict.
Carnival's performance is all the more remarkable given the challenges facing the cruise industry as a whole. Despite these headwinds, the company continues to demonstrate its resilience and adaptability, driving growth and profitability through its focus on commercial execution.
Weinstein concluded his remarks by expressing his pride in Carnival's global team, who have worked tirelessly to achieve this remarkable performance. He also hinted at future plans for setting new targets, saying "we have so much more potential to take our margins returns and results even higher", leaving investors eagerly awaiting further updates from the company.
