10-QPeriod: Q2 FY2026

ROYAL CARIBBEAN CRUISES LTD Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 28, 2026For Securities:RCL

Summary

Royal Caribbean Cruises Ltd. (RCL) reported its second-quarter 2026 results, showing a solid financial performance despite a slight dip in net income compared to the prior year. Total revenues increased by 6.5% to $4.8 billion, driven by a 4.9% capacity growth and higher onboard spending per passenger. The company successfully managed increased operating expenses, which rose by 11.6%, largely due to expanded capacity, higher crew payroll, and increased fuel costs. Net income attributable to Royal Caribbean Cruises Ltd. for the quarter was $1.128 billion, a decrease from $1.210 billion in Q2 2025, resulting in diluted EPS of $4.20 compared to $4.41 in the prior year. For the first six months of 2026, total revenues grew by 8.8% to $9.3 billion, with Net Income attributable to Royal Caribbean Cruises Ltd. increasing to $2.070 billion from $1.940 billion in the same period last year, and diluted EPS rising to $7.68 from $7.10. The company maintained strong operating cash flow generation and has a robust fleet expansion plan, with $16.5 billion in ships on order. Significant debt financing was undertaken in February 2026 to refinance existing notes, and the company ended the period with substantial liquidity, including $0.9 billion in cash and cash equivalents and $6 billion in undrawn revolving credit facility capacity.

Key Highlights

  • 1Total revenues for Q2 2026 increased 6.5% to $4.8 billion, driven by capacity growth and higher onboard spending.
  • 2Net income attributable to RCL for Q2 2026 was $1.128 billion, with diluted EPS of $4.20. This is a decrease from Q2 2025's $1.210 billion net income and $4.41 EPS.
  • 3For the first six months of 2026, net income attributable to RCL increased to $2.070 billion from $1.940 billion in H1 2025, with diluted EPS rising to $7.68 from $7.10.
  • 4Operating cash flow remained strong, with $3.7 billion generated in the first six months of 2026.
  • 5The company has a significant fleet expansion pipeline with $16.5 billion in ships on order, expected to deliver through 2032.
  • 6Liquidity remains robust with $0.9 billion in cash and $6 billion in undrawn revolving credit capacity as of June 30, 2026.
  • 7A lawsuit related to the Helms-Burton Act regarding Cuban operations resulted in a Supreme Court remand, with the company having previously released a significant portion of the associated loss contingency.

Frequently Asked Questions

The increase in total revenues for Q2 2026 was primarily driven by a 4.9% capacity growth due to the addition of new ships like Star of the Seas and Celebrity Xcel, along with higher onboard spending per passenger.

In February 2026, RCL issued $2.5 billion in senior notes to refinance existing debt. The company ended the period with strong liquidity, holding $0.9 billion in cash and cash equivalents and maintaining $6 billion in undrawn revolving credit facility capacity.

Royal Caribbean has a substantial fleet expansion plan with $16.5 billion worth of ships on order, scheduled for delivery through 2032, which will add significant capacity and further diversify its offerings.

The company is involved in a lawsuit related to the Helms-Burton Act concerning Cuban operations. While the U.S. Supreme Court has remanded the case, the outcome remains uncertain. However, the company previously released a significant portion of the loss contingency associated with this matter.