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Royal Caribbean Cruises Ltd.
S&P 500
$70.2B
Market Cap
17.9
P/E
0.76
PEG
16.2%
ROCE
47.7%
ROE
2.15
D/E
27.4%
OPM
-24.8%
% from 52W High
25
α RS
🔍 RCL is showing a high-conviction setup because it matches 15 of 39 tracked screener presets and large_cap_quality preset's Backtest win rate is 58.2% over 90 days. Net: Partial signal stack, not a recommendation. ? Conviction Backtest
Sources
Conviction 15/39 · Backtest win rate 58.2%
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Currency-adjusted total returns for RCL including FX impact
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Ratio Health
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About

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of December 31, 2025, it operated 69 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$4.8B
+6% YoY
Adjusted EBITDA
$1.8B
EBITDA margin 38%
Net Income
$1.1B
-8% YoY
Adjusted EPS
$4.21
-4% YoY; beat guidance by $0.33
What Went Right
  • Q2 adjusted EPS of $4.21 came in $0.33 above guidance, and FY adjusted EPS guidance was raised to $17.73-$17.87.
  • Booking position is at record prices for 2026 and 2027, with 2027 pacing ahead of historical levels.
  • More than 50% of onboard revenue is now purchased pre-cruise; repeat guest mix is up YoY.
What to Watch
  • Prolonged Middle East conflict is weighing on European yields and makes Q3 net yields roughly flat, a ~2pt headwind.
  • Mahahual, Mexico development timeline is slipping due to extended government and community stakeholder engagement.
  • Guests are booking closer in and Caribbean competitors have stepped up promotions, creating potential pricing pressure.
Management Guidance
  • Q3 2026: adjusted EPS $6.26-$6.36, net yields roughly flat, net cruise costs ex fuel down 1.1%-1.6% cc, capacity up 8.5%.
  • FY 2026: adjusted EPS $17.73-$17.87 (+14%), total revenue +9%, net yields +1.75%-2.25% cc, net cruise costs ex fuel flat cc.
  • Q4 2026 yield growth is expected to re-accelerate on easier comps, deployment mix and dry-dock timing (~2pt benefit).
  • Perfecta targets remain intact: 20% EPS CAGR 2024-2027 and high-teens ROIC by 2027.
Investor Lens
The thesis is stronger after this call: RCL beat Q2 by $0.33, raised FY EPS guidance, and continues to book at record prices for 2026 and 2027. Q3's flat yields are largely a temporary geopolitical/deployment blip, and Q4 plus early 2027 momentum support the Perfecta targets. The key risks are the duration of the Middle East impact and the Mahahual timeline, but the balance sheet, liquidity and capital-return posture remain solid.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: EPS $4.21 beat by $0.33
Revenue
Revenue rose 6% YoY to $4.8B on 5% capacity growth and 2.4 million guests (+6%). Net yields grew 1.2% constant currency, 100bps above guidance, led by stronger close-in Caribbean demand. Deployment mix: Caribbean 57% of FY capacity; Europe 14% (28% in Q3).
Profitability
Net income was $1.1B vs $1.2B a year ago; adjusted EPS was $4.21 vs $4.38 but beat guidance by $0.33. Adjusted EBITDA was $1.8B (38% margin), and operating cash flow was $1.9B.
Margins
Adjusted EBITDA margin was 38%. Net cruise costs excluding fuel rose 3.9% cc, ~90bps better than expected due to cost timing. Full-year net cruise costs excluding fuel are expected to be flat cc, with fuel expense guided to $1.3B at 58% hedging.
Balance Sheet
Liquidity was $6.9B with leverage below 3x. RCL increased revolver capacity by $250M to $6.6B, paid $404M in dividends and repurchased 0.8m shares in Q2; $805M remains under the buyback authorization.
Key Risks
Middle East conflict: prolonged disruption is modestly hurting Europe sailings and makes Q3 yields flat; management kept FY yield guidance unchanged. Mahahual, Mexico development is taking longer because of government stakeholder engagement, potentially shifting Western Caribbean plans. Close-in booking behavior and Caribbean promotions from peers were flagged as pricing risks.
Outlook
Q3 adjusted EPS is guided to $6.26-$6.36 with net yields roughly flat. FY adjusted EPS is raised to $17.73-$17.87 (+14%), with revenue +9%, net yields +1.75%-2.25% cc, and Q4 yield growth expected to re-accelerate.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Second quarter results surpassed expectations with strong revenue, yield, and EPS growth. Robust demand, record pricing, and high guest satisfaction support an improved full-year outlook, despite geopolitical headwinds in Europe. Capital returns and investments in technology and destinations continue.
Q1 2026 Q1 2026 2026-04-30
First quarter revenue and earnings exceeded expectations, driven by strong demand, record guest satisfaction, and robust onboard spending. Despite geopolitical headwinds impacting Mediterranean and Mexico itineraries, guidance remains for double-digit revenue and earnings growth, with continued investment in new ships, destinations, and digital initiatives.
Q4 2025 Q4 2025 2026-01-29
Record 2025 results featured strong demand, 33% EPS growth, and $2B returned to shareholders. 2026 guidance calls for double-digit revenue growth, 6.7% capacity increase, and 14% higher adjusted EPS, supported by new ships, exclusive destinations, and digital innovation.
Q3 2025 Q3 2025 2025-10-28
Third quarter results exceeded expectations with strong demand, yield growth, and record guest satisfaction. Full-year adjusted EPS is projected at $15.58-$15.63, with 2026 earnings expected to have a $17 handle, supported by robust bookings and disciplined cost control.
Q2 2025 Q2 2025 2025-07-29
Second quarter results surpassed expectations with strong yield and EPS growth, driven by robust close-in demand and disciplined cost management. Full-year guidance was raised, with continued investments in new ships, private destinations, and digital innovation supporting long-term growth and margin expansion.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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