Earnings Beat and Strategic Vindication#

Third Quarter Results Exceed Expectations Through Demand Strength and Cost Control#

RCL (Royal Caribbean) delivered a resounding third quarter earnings beat on October 28, 2025, reporting adjusted earnings per share of $5.75 on revenues of $5.1 billion—results that management attributed primarily to close-in demand outpacing expectations and disciplined cost management that came in approximately 200 basis points better than guidance. The company simultaneously raised its full-year 2025 adjusted earnings per share guidance to $15.58 to $15.63, representing approximately 32 percent year-over-year growth from the prior-year baseline and signaling that management retains confidence in sustained demand strength and operational execution capabilities despite intermittent macroeconomic uncertainty and geopolitical pressures affecting discretionary travel spending globally. Net income for the quarter reached $1.6 billion, with adjusted EBITDA of $2.3 billion generating a margin profile of 44.6 percent—a testament to the operating leverage embedded in Royal Caribbean's cost structure once sufficient capacity utilization is achieved. The company delivered cruise vacations to 2.5 million passengers in the quarter, a seven percent year-over-year increase despite capacity growth of only 2.9 percent, demonstrating that the company's portfolio of brands and destination experiences continues to attract incremental demand at premium pricing levels that exceed inflationary cost pressures.