10-KPeriod: FY2025

ROYAL CARIBBEAN CRUISES LTD Annual Report, Year Ended Dec 31, 2025

Filed February 11, 2026For Securities:RCL

Summary

Royal Caribbean Cruises Ltd. (RCL) reported a strong financial performance for the year ended December 31, 2025. The company saw significant growth in total revenues, reaching $17.9 billion, an increase driven by robust ticket sales and enhanced onboard revenue performance. This growth was supported by capacity expansion, including the delivery of two new ships, Star of the Seas and Celebrity Xcel, and the continued development of its private destination portfolio. RCL achieved a Net Income of $4.3 billion and an Adjusted EBITDA of $7.0 billion, demonstrating solid profitability. The company also maintained a strong balance sheet and returned $2.0 billion to shareholders through dividends and share repurchases. The company is strategically investing in fleet modernization and expansion, with 12 ships on order, including new classes of ships and an expansion into river cruising. RCL is also focused on sustainability initiatives, aiming for net-zero emissions by 2050. Despite ongoing global economic uncertainties and regulatory developments, RCL's diversified brand portfolio, focus on innovation, and strategic investments in guest experiences position it for continued growth.

Financial Highlights

52 data points
Beta

Revenue

$17.93B

49.4% Gross Margin

Net Income

$4.27B

23.8% Net Margin

EPS (Diluted)

$15.61

Total Assets

$41.62B

Cash & Equivalents

$825.00M

Free Cash Flow

$1.24B

Financial Statements
Beta
Revenue$17.93B
Cost of Revenue$9.08B
Gross Profit$8.85B
SG&A Expenses$2.22B
Operating Income$4.91B
Net Income$4.27B
EPS (Basic)$15.75
EPS (Diluted)$15.61
Shares Outstanding (Basic)271.00M
Shares Outstanding (Diluted)274.00M

Key Highlights

  • 1Total revenues reached a record $17.9 billion, up 8.8% from the previous year, driven by strong ticket and onboard revenues.
  • 2Net Income attributable to Royal Caribbean Cruises Ltd. was $4.3 billion, a significant increase from $2.9 billion in 2024, with Adjusted Net Income also showing strong growth.
  • 3The company took delivery of two new ships: Star of the Seas and Celebrity Xcel, further expanding its fleet capacity and product offerings.
  • 4RCL expanded its private destination portfolio with the opening of Royal Beach Club Paradise Island and the acquisition of Port of Costa Maya.
  • 5The company declared and paid a growing quarterly dividend, returning $2.0 billion to shareholders through dividends and share repurchases.
  • 6Capacity increased by 5.5% with new ship deliveries, contributing to yield growth and higher occupancy rates (109.7%).
  • 7Strategic investments in fleet expansion continue, with 12 ships on order, including new generation and river cruise vessels.

Frequently Asked Questions

Revenue growth in 2025 was primarily driven by a 5.5% increase in capacity due to the addition of new ships like Star of the Seas and Celebrity Xcel, as well as a full year of operations for recently delivered vessels. Additionally, yield growth, resulting from higher load factors and improved ticket pricing across the fleet, significantly contributed to the revenue increase.

Royal Caribbean has a comprehensive sustainability strategy called 'SEA the Future,' aiming for net-zero emissions by 2050 and a net-zero capable ship by 2035. Key initiatives include modernizing the fleet with energy-efficient and alternatively fueled vessels, investing in energy efficiency programs, developing alternative fuel solutions, and optimizing supply chains. They also have programs focused on waste management and partnerships to promote ocean conservation.

RCL is significantly expanding its fleet with 12 ships on order across its global and partner brands, including new Icon-class and Oasis-class ships for Royal Caribbean, and an Edge-class ship for Celebrity Cruises. Furthermore, Celebrity Cruises is launching a significant river cruise business with an initial order of 20 ships. The company is also growing its portfolio of private land-based destinations, which is expected to expand from 3 to 8 by 2028.

RCL maintained a strong balance sheet and achieved investment-grade ratings across all three major credit rating agencies. The company generated $6.5 billion in operating cash flow and returned $2.0 billion to shareholders in 2025 through dividends and share repurchases. They also managed debt maturities and maintained a strong liquidity position of $7.2 billion as of December 31, 2025.