"Operating margins expanded 250 basis points year-over-year, and the company delivered 5.5% yield improvement (revenue per passenger day) despite consumer sentiment readings hitting near-historic lows. CEO Josh Weinstein framed this resilience during the recent earnings call: The disconnect between consumer sentiment and actual booking behavior continues to reinforce what we've said for a long time. Demand for our cruise lines is proving far more resilient than traditional macro indicators would suggest."
"Carnival Corporation (NYSE:CCL) is delivering profitability metrics not seen since 2006. The company's return on invested capital (ROIC) hit 13% in fiscal 2025, the highest level in 19 years, while generating $2.76 billion in net income on $26.62 billion in revenue. The 10.4% net margin represents a stunning recovery from the pandemic's devastation, when the company hemorrhaged $10.24 billion in fiscal 2020 alone."
Carnival achieved a 13% ROIC in fiscal 2025, with $2.76 billion net income on $26.62 billion revenue and a 10.4% net margin. EBITDA reached $6.91 billion, the highest in company history, and operating margins expanded 250 basis points with a 5.5% yield improvement. Management is guiding $3.45 billion net income for fiscal 2026 and bookings are two-thirds complete at historical high prices, with customer deposits at $6.1 billion. However, total debt remains $26.8 billion—about 2.3 times pre-pandemic levels—and the current ratio is 0.32, indicating weak short-term liquidity. The 10.4% margin contrasts with a $10.24 billion fiscal 2020 loss.
Read at 24/7 Wall St.
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