01—Abstract
Summary
Summary of the 10-Q filed March 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Carnival Corporation & plc (CCL) reported a return to profitability for the three months ended February 28, 2026, with a net income of $258 milliona ($0.19 diluted EPS) compared to a net loss of $78 million ($0.06 diluted EPS) in the prior year period.
Total revenues increased by 6.1% to $6.17 billionb, driven by a 5.0% rise in passenger ticket revenue and an 8.3% increase in onboard and other revenues. This performance was bolstered by favorable foreign currency translation impacts and stronger onboard spending. The company demonstrated solid operational cash flow generation, with net cash provided by operating activities increasing to $1.3 billion from $0.9 billion in the prior year.
This improvement was attributed to increased earnings and positive working capital changes, although partially offset by the non-recurrence of gains from debt extinguishment. Despite significant debt repayments ($945 millionc) and dividend payments ($208 million) in the financing activities section, Carnival maintained a strong liquidity position with $1.4 billion in cash and cash equivalents and $4.5 billion available under its revolving credit facility.
02—Key points
Key Highlights
- Net income turned positive at $258 million for the quarter, a significant improvement from a net loss of $78 million in the prior year.
- Total revenues grew 6.1% year-over-year to $6.17 billion, driven by increases in both passenger ticket and onboard/other revenues.
- Operating income rose by $64 million to $607 million, reflecting improved revenue generation and cost management.
- Cash flow from operations strengthened, reaching $1.3 billion, up from $0.9 billion in the prior year period.
- Customer deposits increased significantly to $7.47 billion, indicating strong future booking trends.
- Interest expense decreased by 23% to $291 million due to lower average interest rates and reduced total debt.
- The company reported compliance with all debt covenants as of February 28, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed March 27, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.17B$5.81B | +6.1% |
| SG&A Expenses | $924.00M$848.00M | +9.0% |
| Operating Income | $607.00M$543.00M | +11.8% |
| Net Income | $258.00M-$78.00M | +430.8% |
| EPS (Basic) | $0.19$-0.06 | +416.7% |
| EPS (Diluted) | $0.19$-0.06 | +416.7% |
| Shares Outstanding (Basic) | 1.38B1.31B | +5.3% |
| Shares Outstanding (Diluted) | 1.39B1.31B | +6.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of the revenue increase?
The primary drivers of the revenue increase were a 5.0% rise in passenger ticket revenues, attributed to higher ticket prices and favorable foreign currency translation, and an 8.3% increase in onboard and other revenues, driven by higher onboard spending and favorable foreign currency impacts.
How has the company's debt situation evolved?
Carnival Corporation & plc made significant principal repayments of long-term debt, totaling $945 million in the quarter. Interest expense decreased by 23% due to lower average interest rates and a reduction in total debt. The company maintained compliance with its debt covenants.
What is the current liquidity position of the company?
As of February 28, 2026, Carnival Corporation & plc had $5.9 billion in liquidity, comprising $1.4 billion in cash and cash equivalents and $4.5 billion available under its multicurrency revolving credit facility. The company also has $10.9 billion in undrawn export credit facilities.
Are there any significant legal proceedings that could materially impact the company?
The company is involved in several legal proceedings, including a Helms-Burton Act case and class-action lawsuits related to COVID-19. However, management believes the ultimate outcome of these matters will not have a material impact on its consolidated financial statements.
06—Continue