10-QPeriod: Q3 FY2025

CARNIVAL CORP Quarterly Report for Q3 Ended Aug 31, 2025

Filed September 29, 2025For Securities:CCL

Summary

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 billion, 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 billion, 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.

Financial Highlights

47 data points
Beta

Revenue

$8.15B

46.2% Gross Margin

Net Income

$1.85B

22.7% Net Margin

EPS (Diluted)

$1.33

Total Assets

$50.83B

Cash & Equivalents

$1.76B

Free Cash Flow

$736.00M

Financial Statements
Beta
Revenue$8.15B
Cost of Revenue$4.38B
Gross Profit$3.77B
SG&A Expenses$779.00M
Operating Income$2.27B
Net Income$1.85B
EPS (Basic)$1.41
EPS (Diluted)$1.33
Shares Outstanding (Basic)1.31B
Shares Outstanding (Diluted)1.40B

Key Highlights

  • 1Total 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.
  • 2Net 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.
  • 3Nine-month total revenues grew 6.3% to $20.29 billion, reflecting strong demand and capacity additions.
  • 4Nine-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.
  • 5The 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.
  • 6Liquidity 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.
  • 7Operating 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.

Frequently Asked Questions

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.

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.

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.

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.