Royal Caribbean Set for Record-Breaking 2025 with Strong Earnings and River Cruise Expansion

Royal Caribbean Set for Record-Breaking 2025 with Strong Earnings and River Cruise Expansion

Impressive Earnings Growth Expected

Royal Caribbean (RCL) is projecting a 23% increase in adjusted earnings for 2025, driven by strong demand, higher prices, and new offerings in the river cruise sector. The company anticipates adjusted earnings of $14.35 to $14.65 per share, exceeding analysts’ expectations of $14.41.

WAVE Season Kicks Off with Record Bookings

The company’s “WAVE” season, a critical period for driving early-year cruise bookings, is off to a record start. Despite higher prices, bookings are in line with last year’s, signaling sustained demand for cruises.

New River Cruise Offerings to Drive Future Growth

In a bid to expand its portfolio, Royal Caribbean will launch Celebrity River Cruises in 2027. The new river cruise offerings are expected to create a fresh growth avenue for the company, with an initial order of 10 ships. This move is poised to challenge Viking Holdings (VIK), a leader in river cruises, which saw its stock drop 3% following the announcement.

Fourth-Quarter Performance Exceeds Expectations

In the fourth quarter, Royal Caribbean reported a 13% revenue increase to $3.76 billion, slightly below analysts’ estimates. However, the company posted adjusted earnings of $1.63 per share, surpassing the anticipated $1.50.

Rising Costs Reflect Growing Demand

While revenue grew, net cruise costs (excluding fuel) climbed 13.4%, outpacing last year’s 6.2% increase. This highlights the rising operational costs that come with expanding and maintaining a fleet of modern, large ships.

Looking Ahead to a Strong 2025

CEO Jason Liberty expressed confidence in the company’s growth trajectory, with bookings continuing to accelerate, marking the best five booking weeks in Royal Caribbean’s history. The strong momentum sets the stage for another successful year in 2025.

“Royal Caribbean Set for Record-Breaking 2025 with Strong Earnings and River Cruise Expansion” “Royal Caribbean Set for Record-Breaking 2025 with Strong Earnings and River Cruise Expansion”