01—Abstract
Summary
Summary of the 10-Q filed September 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Carnival Corporation & plc reported a solid third quarter and nine-month performance, demonstrating revenue growth and improved profitability.
Total revenues for the three months ended August 31, 2025, reached $8.15 billiona, a 3.2% increase over the prior year, driven by higher passenger ticket prices and onboard spending, despite a slight decrease in capacity. For the nine months ended August 31, 2025, total revenues were $20.29 billion, up 6.3% year-over-year, reflecting sustained demand and capacity expansion. Net income for the quarter rose to $1.85 billion, or $1.33 per diluted share, compared to $1.74 billion, or $1.26 per diluted share, in the prior year.
The nine-month net income was $2.34 billionb, or $1.71 per diluted share, an increase from $1.61 billion, or $1.21 per diluted share, in the same period last year. The company also managed its debt effectively, with significant debt repayments and issuances aimed at optimizing its capital structure, leading to a reduction in overall debt and interest expense.
02—Key points
Key Highlights
- Total revenues increased by 3.2% to $8.15 billion for the three months ended August 31, 2025, driven by higher ticket prices and onboard spending.
- Net income for the three months ended August 31, 2025, increased to $1.85 billion, or $1.33 per diluted share, up from $1.74 billion, or $1.26 per diluted share, in the prior year.
- Nine-month total revenues grew 6.3% to $20.29 billion, reflecting strong demand and capacity additions.
- Nine-month net income rose to $2.34 billion, or $1.71 per diluted share, an improvement from $1.61 billion, or $1.21 per diluted share, in the prior year.
- The company actively managed its debt, repaying $10.7 billion in long-term debt and issuing $8.6 billion during the nine months ended August 31, 2025, reducing total debt and interest expenses.
- Liquidity remains strong with $6.3 billion in total liquidity, comprising $1.8 billion in cash and cash equivalents and $4.5 billion available under its revolving credit facility.
- Operating expenses saw an increase of 1.9% for the quarter, largely due to higher onboard costs and foreign currency translation, partially offset by lower fuel prices and capacity reductions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Carnival Corp kept $0.23.
- Revenue$8.15B100.0%
- Cost of revenue−$4.38B53.8%
- Gross profit$3.77B46.2%
- Operating costs−$1.50B18.4%
- Operating income$2.27B27.9%
- Interest, other & tax−$419.0M5.1%
- Net income$1.85B22.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed September 29, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $8.15B$7.90B | +3.3% |
| Cost of Revenue | $4.38B$4.30B | +1.9% |
| Gross Profit | $3.77B$3.59B | +4.9% |
| SG&A Expenses | $779.00M$763.00M | +2.1% |
| Operating Income | $2.27B$2.18B | +4.3% |
| Net Income | $1.85B$1.74B | +6.7% |
| EPS (Basic) | $1.41$1.37 | +2.9% |
| EPS (Diluted) | $1.33$1.26 | +5.6% |
| Shares Outstanding (Basic) | 1.31B1.27B | +3.6% |
| Shares Outstanding (Diluted) | 1.40B1.40B | +0.2% |
05—Questions
Frequently Asked Questions
What is Carnival's revenue performance for the quarter and year-to-date?
For the three months ended August 31, 2025, Carnival reported total revenues of $8.15 billion, a 3.2% increase compared to the prior year. For the nine months ended August 31, 2025, total revenues were $20.29 billion, a 6.3% increase year-over-year. These increases were primarily driven by higher passenger ticket prices and increased onboard spending by guests, with a slight capacity decrease for the quarter but a marginal capacity increase year-to-date.
How has Carnival's profitability changed?
Carnival's net income has shown significant improvement. For the three months ended August 31, 2025, net income was $1.85 billion, or $1.33 per diluted share, up from $1.74 billion, or $1.26 per diluted share, in the same period of 2024. Over the nine-month period, net income rose to $2.34 billion, or $1.71 per diluted share, compared to $1.61 billion, or $1.21 per diluted share, in the prior year. This reflects strong revenue growth and effective cost management.
What is the company's current debt and liquidity position?
Carnival has actively managed its debt, undertaking significant refinancing activities with $10.7 billion in debt repayments and $8.6 billion in new debt issuances during the first nine months of 2025. This has resulted in a reduction in total debt and lower interest expenses. The company maintains a strong liquidity position, with $6.3 billion available as of August 31, 2025, including $1.8 billion in cash and cash equivalents and $4.5 billion available under its revolving credit facility.
Are there any significant changes in operating expenses?
Consolidated operating expenses for the three months ended August 31, 2025, increased by 1.9% to $4.4 billion. This rise was primarily due to higher onboard and other cost of sales, increased payroll and port expenses, and unfavorable foreign currency translation. These were partially offset by lower fuel prices, reduced fuel consumption, and a capacity decrease.
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