Carnival's Q2 Earnings & Revenues Top Estimates, FY25 View Up

Carnival Corporation & plc CCL reported impressive second-quarter fiscal 2025 (ended May 31, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.

This upside was primarily backed by sustained demand strength and robust onboard revenues.

The company surpassed its 2026 SEA Change financial targets 18 months ahead of schedule, with adjusted EBITDA per ALBD growing 52% and adjusted ROIC increasing more than 12.5% in less than two years. Moreover, it also met its third 2026 SEA Change commitment to cut carbon intensity by 20% from the 2019 level. This strong financial outlook underscores the company's operational efficiency and strategic growth initiatives.

Moving ahead, the company aims to continue focusing on its strategy to deliver same-ship, high-margin revenue growth amid favorable booking position, to position for robust revenue visibility and profitability in 2026 and beyond.

CCL’s Q2 Earnings & Revenues

In the quarter under review, the company reported adjusted earnings per share (EPS) of 35 cents, beating the Zacks Consensus Estimate of 24 cents by 45.8%. In the year-ago quarter, CCL posted an adjusted EPS of 11 cents.

Revenues in the quarter totaled $6.33 billion, beating the consensus mark of $6.21 billion by 2%. The metric also increased 9.5% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Carnival Corporation Price, Consensus and EPS Surprise

Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote

During the quarter, passenger ticket revenues amounted to $4.1 billion, up from $3.75 billion reported in the prior-year quarter. Our estimate for passenger ticket revenues was $3.96 billion.

Onboard and other revenues increased to $2.22 billion from $2.03 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was pegged at $2.21 billion.

Carnival’s Financials

Adjusted net income in the quarter amounted to $470 million, significantly up 250.7% year over year from $134 million. The uptick was attributable to higher ticket prices, increased onboard spending and favorable timing of expenses between the quarters.

Adjusted EBITDA totaled $1.51 billion, up from $1.2 billion reported in the prior-year quarter.

CCL’s Balance Sheet

As of May 31, 2025, cash and cash equivalents were $2.15 billion compared with $1.21 billion as of Nov. 30, 2024. Carnival ended the quarter with liquidity of $5.17 billion. Total debt (current and long-term) as of May 31 was $27.3 billion compared with $27.48 billion as of Nov. 30, 2024.

Bookings Update of Carnival

Carnival continues to capitalize on robust demand, with its cumulative advanced booked position for the remainder of 2025 remaining strong, thanks to robust occupancy and favorable pricing (on cc basis). The company’s strategic yield management approach has driven record-high cumulative advance bookings, with pricing at historical peaks for each quarter and occupancy levels aligning with last year’s records. 

Additionally, the booked position for 2026 is in line with 2025 record levels, with historical high prices. With the booking curve extending further than ever before, CCL remains well-positioned for long-term growth.

Total customer deposits as of May 31 were $8.08 billion compared with $7.3 billion reported in the preceding quarter.

CCL Unveils Q3 View & Raises Fiscal 2025 Outlook

For third-quarter fiscal 2025, Carnival expects adjusted EBITDA to be approximately $2.87 billion. It expects adjusted net income to be about $1.8 billion. The company expects adjusted EPS to be nearly $1.30.

For fiscal 2025, the company now anticipates adjusted EBITDA to be approximately $6.9 billion (up from the previous expectation of about $6.7 billion), reflecting more than 10% growth year over year. Adjusted net income is now anticipated to be about $2.69 billion, up from the previously expected value of $2.49 billion. CCL now expects adjusted EPS to be approximately $1.97, up from $1.83 expected earlier.

CCL’s Zacks Rank and Stocks to Consider

Carnival Corporation currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Consumer Discretionary sector.

Manchester United plc MANU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

The company has a trailing four-quarter earnings surprise of 56.4%, on average. The stock has gained 10.3% in the year-to-date period. The Zacks Consensus Estimate for Manchester United’s fiscal 2026 sales and EPS implies growth of 9.6% and 56.6%, respectively, from the year-ago levels.

Pursuit Attractions and Hospitality, Inc. PRSU currently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has tumbled 32% year to date.

The Zacks Consensus Estimate for Pursuit Attractions’ 2025 sales indicate a decline of 64.6% but and the EPS indicate growth of 800%, from the year-ago levels.

Atour Lifestyle Holdings Limited ATAT currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 3.9%, on average. The stock has moved up 21.1% in the year-to-date period.

The Zacks Consensus Estimate for Atour Lifestyle’s 2025 sales and EPS indicates an increase of 30.5% and 25.6%, respectively, from the year-ago levels.

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This article originally published on Zacks Investment Research (zacks.com).

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