01—Abstract
Summary
Summary of the 10-Q filed June 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Carnival Corporation & plc (CCL) reported a significant turnaround in its financial performance for the six months ended May 31, 2025, compared to the same period in the prior year.
The company generated a net income of $486 milliona, a substantial improvement from a net loss of $123 million in the prior year, driven by strong revenue growth across both its North America and Europe segments. Total revenues increased to $12.1 billion from $11.2 billion, primarily fueled by higher passenger ticket prices and increased onboard spending, alongside a modest capacity expansion. While the company has made strides in improving profitability and strengthening its balance sheet through debt management and refinancing activities, it continues to carry a substantial debt load.
Liquidity remains robust, with significant cash reserves and substantial borrowing capacity available under its credit facilities. Management is focused on navigating ongoing market trends, including fuel price volatility and increasing environmental regulations, while continuing to execute its fleet optimization and growth strategies.
02—Key points
Key Highlights
- Net income for the six months ended May 31, 2025, was $486 million, a significant improvement from a net loss of $123 million in the prior year's comparable period.
- Total revenues increased by 8.5% to $12.1 billion for the six months ended May 31, 2025, compared to $11.2 billion in the prior year, driven by higher ticket prices and onboard spending.
- Occupancy percentage remained strong at 104% for both the three and six-month periods, indicating robust demand.
- Operating expenses increased by 2.0% to $7.7 billion for the six months, largely due to capacity increases and higher onboard costs, but were partially offset by lower fuel prices and gains on ship sales.
- The company significantly reduced its interest expense, net of capitalized interest, to $718 million for the six months, down from $921 million in the prior year, due to decreased debt levels and lower average interest rates.
- Carnival Corp & plc ended the period with $2.1 billion in cash and cash equivalents and $3.0 billion available under its revolving credit facility, demonstrating solid liquidity.
- The company actively managed its debt, issuing $4.1 billion and repaying $5.1 billion in long-term debt during the first six months of 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Carnival Corp kept $0.09.
- Revenue$6.33B100.0%
- Cost of revenue−$3.89B61.4%
- Gross profit$2.44B38.6%
- Operating costs−$1.51B23.8%
- Operating income$934.0M14.8%
- Interest, other & tax−$369.0M5.8%
- Net income$565.0M8.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed June 26, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $6.33B$5.78B | +9.5% |
| Cost of Revenue | $3.89B$3.80B | +2.3% |
| Gross Profit | $2.44B$1.98B | +23.1% |
| SG&A Expenses | $816.00M$789.00M | +3.4% |
| Operating Expenses | $5.39B$5.22B | +3.3% |
| Operating Income | $934.00M$560.00M | +66.8% |
| Net Income | $565.00M$92.00M | +514.1% |
| EPS (Basic) | $0.43$0.07 | +514.3% |
| EPS (Diluted) | $0.42$0.07 | +500.0% |
| Shares Outstanding (Basic) | 1.31B1.27B | +3.6% |
| Shares Outstanding (Diluted) | 1.40B1.27B | +10.1% |
05—Questions
Frequently Asked Questions
What is the overall financial performance for the current reporting period?
Carnival Corporation & plc reported a strong financial recovery for the six months ended May 31, 2025. Net income was $486 million, a significant turnaround from a net loss of $123 million in the same period last year. Total revenues grew to $12.1 billion from $11.2 billion, driven by higher ticket prices, increased onboard spending, and a slight capacity expansion.
How has the company's debt situation evolved?
The company continues to carry substantial debt. However, it has actively managed its debt profile by issuing $4.1 billion and repaying $5.1 billion in long-term debt during the first six months of 2025. Interest expense, net of capitalized interest, decreased significantly to $718 million from $921 million year-over-year due to lower debt levels and reduced interest rates. Liquidity remains strong, with $2.1 billion in cash and equivalents and $3.0 billion available under its credit facilities.
What are the key drivers behind the revenue growth?
Revenue growth was primarily driven by an increase in passenger ticket prices due to strong demand, higher onboard spending by guests, and a modest increase in available lower berth days (ALBDs), which represents capacity. Occupancy rates remained high at 104% for both the three and six-month periods.
Are there any significant expenses that investors should be aware of?
Operating expenses increased slightly by 2.0% to $7.7 billion for the six months, attributed to capacity expansion and higher onboard costs. However, these were partially offset by lower fuel prices and gains from the sale of ships. Investors should also note the ongoing impact of environmental regulations, such as the EU Emissions Trading System, which is expected to increase costs over time.
06—Continue