1. CUK reports record revenues of $26.6 billion for FY 2025. 2. Adjusted net income expected to rise to $3.5 billion in FY 2026. 3. Dividend reinstated at $0.15 per share, reflecting renewed confidence. 4. Proposed unification aims to streamline governance and enhance liquidity. 5. Record booking volume for 2026 indicates strong demand continuation.
FAQ
Why Very Bullish?
Strong earnings and outlook significantly improve CUK's market position, similar to past recovery following crisis.
How important is it?
Key financial results and strategic developments significantly influence investor perception and CUK's stock attractiveness.
Why Long Term?
Expectations of growth and dividends suggest sustained positive trends, mirroring performance in the post-COVID recovery phase.
Carnival Corporation & plc Reports Record Full Year Adjusted Net Income and Reinstates Dividend
Carnival Corporation & plc (NYSE: CUK) delivered impressive financial results for the fourth quarter and full year 2025, demonstrating robust performance in a challenging economic environment. The company reported record adjusted net income of $3.1 billion and a full year revenue of $26.6 billion, enabled by effective cost management and strong demand.
Financial Highlights for 2025
- Net Income: $2.8 billion with adjusted net income of $3.1 billion, a growth of over 60%.
- Record Revenues: $26.6 billion achieved on strong net yields, outperforming previous guidance.
- Operating Income: All-time high of $4.5 billion, an increase of 25% year-over-year.
- Adjusted EBITDA: $7.2 billion, up by over $1 billion compared to the previous year.
- Return on Invested Capital (ROIC): Exceeds 13%.
- Debt Metrics: Net debt to adjusted EBITDA ratio at 3.4x and recognized as investment grade by Fitch.
- 2026 Projections: Expected adjusted net income of $3.5 billion, surpassing 2025 results.
Executive Insights
Josh Weinstein, CEO of Carnival Corporation, highlighted the exceptional performance of 2025, stating, “We set new records across our business, achieved investment grade leverage metrics, and reinstated our dividend. These milestones reflect the collective strength of our cruise line portfolio and confidence in our long-term future.”
Weinstein emphasized the robust demand and effective management that significantly contributed to the company's success, asserting, “We're well positioned to capitalize on a tremendous runway to continue driving yield improvement and exceptional returns.”
Fourth Quarter Performance
In the fourth quarter of 2025, Carnival reported:
- Net Income: $422 million (or $0.31 diluted EPS), a nearly 40% increase from 2024.
- Adjusted Net Income: $454 million (or $0.34 adjusted EPS), more than 140% above the previous year.
- Revenues: Achieved a record of $6.3 billion, marking an increase of nearly $400 million year-over-year.
The company also reported gross margin yields were up 16% compared to 2024, while customer deposits for the fourth quarter reached a record of $7.2 billion.
Outlook for 2026
Carnival Corporation anticipates a successful 2026, predicting:
- Adjusted Net Income: Expected to rise by approximately 12% from record 2025 levels.
- Net Yields: Up about 2.5% in constant currency compared to 2025.
- Cruise Costs: Expected increase of around 3.25% per available lower berth day (ALBD) excluding fuel.
The first quarter of 2026 is projected to show a 1.6% increase in net yields compared to 2025.
Dividend Reinstatement Announcement
Following the successful execution of a $19 billion refinancing plan, Carnival Corporation announced the reinstatement of its quarterly dividend, declaring an initial amount of $0.15 per share, payable on February 27, 2026. CFO David Bernstein remarked, “This decision highlights confidence in our future performance and continued commitment to delivering value.”