Carnival PLC (CCL)

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Carnival touts record income in third quarter as lifts annual guidance

(Alliance News) - Carnival PLC & Corp on Monday reported record-high income during the third quarter of its current financial year, driven by strong demand and onboard spending, and upgraded its full-year guidance.

The Miami, Florida-based cruise operator said pretax income for the three months that ended August 31 was USD1.86 billion, rising 6.9% from USD1.74 billion a year earlier.

Total revenue for the third quarter grew 5.8% to USD8.15 billion from USD7.70 billion.

"This was a phenomenal quarter delivering all-time high net income and our tenth consecutive quarter of record revenues. Strong demand and onboard spending drove a 4.6% improvement in net yields (in constant currency), all of which was achieved on a same ship basis," said Chief Executive Officer Josh Weinstein.

Shares in Carnival were down 2.5% at 2,003.00 pence in London on Monday afternoon. The stock has risen 65% over the past year.

Carnival reported record third-quarter customer deposits totalling USD7.1 billion.

Weinstein added: "Since May, booking trends have continued to strengthen with higher booking volumes than last year and far outpacing capacity growth. This momentum affirms the success of our brands' demand generation efforts and the amazing experiences we continue to deliver, driving excess demand and ongoing pricing strength.

"With nearly half of 2026 booked, which is in line with 2025 record levels (at the same time last year) but now at historical high prices (in constant currency) for both our North America and Europe segments, we have built a strong base of business for next year.

"Looking further ahead, 2027 is already off to a great start, achieving record booking volumes during the third quarter."

Carnival also upgraded its full-year guidance for adjusted net income as a result of improved net yields and effective cost and balance sheet management. The firm now expects nearly 55% growth on-year, which is USD235 million higher than the guidance provided in June.

Adjusted earnings before interest, tax, depreciation and amortisation for the full year is expected at around USD7.05 billion, up 15% from 2024.

For the fourth quarter, adjusted net income is expected to improve 60% on-year. Net yields at constant currency are anticipated up around 4.2% from 2024, unchanged from Carnival's prior expectations.

Fourth-quarter adjusted Ebitda is projected at around USD1.34 billion, against USD2.99 billion in the third quarter.

Weinstein continued: "Even with our rapid progress, we believe we have ample opportunity to increase same ship net yields and further close the unbelievable price-to-value gap versus land based vacation alternatives, pushing margins and returns even higher over time."

By Emily Parsons, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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