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The call presented strong operational and financial outperformance: record revenue metrics, solid yield and booking momentum (including strong early 2027 bookings), meaningful cost management wins, improved fuel efficiency and a stronger leverage profile that enabled material share repurchases and continued investment in fleet and destinations. These positives were partially offset by transitory but meaningful headwinds from the prolonged Middle East conflict that pressured yields—primarily in Europe—elevated fuel and travel costs, and produced short‑term demand disruption. Management characterizes the yield impact as temporary and emphasized durable structural improvements (commercial capabilities, disciplined fleet strategy, destination assets, and permanent cost savings). Given the breadth and magnitude of operational and balance-sheet gains relative to the described transitory disruptions, the overall tone is constructive.
Management updated full‑year June guidance to EPS $2.22 (up $0.01 from prior guidance due to share repurchases) after a strong Q2: net income $569M (up >20% YoY) that beat March guidance by $100M (~$0.07/share), yields +2.2% in Q2 and a normalized full‑year yield growth assumption of ~2.25% (a ~100 bp downward revision vs prior guidance, ~$0.14/share, largely tied to Middle East‑related disruption in Europe), while cruise costs ex‑fuel per ALBD are now expected to be up ~1.3% on a normalized basis (Q2 costs were essentially flat YoY and outperformed March cost guidance by ~2.5 points/250 bps, contributing ~$0.05/share and with $0.06/share of cost savings embedded in the full‑year view). Other operational favorability (~$0.08/share) came from depreciation, fuel consumption (>5% improvement YoY), fuel mix and net interest, and the net fuel/currency impact on guidance is <$0.01/share. Key balance‑sheet and commercial metrics: customer deposits reached a record $9.0B, 93% of capacity for the year is booked at record prices with less inventory vs. last year, adjusted net debt/EBITDA improved to 3.1x (from 3.4x YE25), EBITDA is forecasted >$7B, and the company has repurchased >17M shares for ~$450M of an authorized $2.5B buyback while returning about $1.3B to shareholders this year (buybacks + dividends).
Carnival reported a record quarter with records across revenues, yields, EBITDA, net income, and customer deposits (customer deposits reached an all-time high of $9.0 billion). Q2 net income was $569 million, more than 20% higher year-over-year.
The company beat its March guidance by $100 million driven by commercial execution and cost efficiency; Q2 net income exceeded guidance by $100 million (~$0.07 per share). Full-year EPS guidance was modestly raised to $2.22, reflecting share repurchases.
Yields were up 2.2% year-over-year in Q2 (the twelfth consecutive quarter of record yields). Management reported bookings for 2027 running ahead of last year, with European 2027 bookings up in the mid‑teens at higher prices and overall pricing/occupancy at record levels for 2027.
Cruise costs excluding fuel per ALBD were essentially flat year-over-year in Q2, outperforming March cost guidance by ~250 basis points. Management implemented multiple cost initiatives expected to provide a $0.06 per share structural benefit to full-year guidance.
Fuel efficiency improved by more than 5% year-over-year (building on prior year's >6% gain). Fuel consumption improvements, fuel mix, and depreciation gains contributed to operational favorability in the quarter.
Net debt / adjusted EBITDA improved from 3.4x at year-end 2025 to 3.1x at the end of Q2 2026. The company repurchased over $450 million of stock (17M+ shares) under an authorized $2.5 billion buyback and is returning ~$1.3 billion to shareholders this year including dividends.
Management forecasts over $7.0 billion of EBITDA for the year despite recent disruptions, supporting continued investment, deleveraging and shareholder returns.
Carnival placed orders for 3 new Princess ships (deliveries 2035, 2038, 2039) bringing the order book to 10 ships (including 5 for Carnival Cruise Line and 2 for AIDA). The company is accelerating mid-life modernization programs (AIDA evolution progress; Holland America Evolution program for 6 ships starting in fall 2027) to drive revenue and potential cabin additions.
Investments in destinations: Celebration Key peer extension increases flexibility (accommodating up to 4 ships / ~13,000 guests per day; expected ~3.5M visitors in 2027), RelaxAway Half Moon Cay new pier increases capacity to over 12,000 guests/day, Isla Tropicale upgrades, and Paradise Collection expected to welcome >9M guest visits next year. ~85% of Caribbean itineraries call on at least one exclusive destination.
Greetings, and welcome to the Carnival Corporation Q2 26 Earnings Results. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Beth Roberts, Senior Vice President of Investor Relations. Thank you, Beth. Please go ahead.
Thank you. Good morning, and welcome to our Second Quarter 26 Earnings Conference Call. I am joined today by our CEO, Joshua Ian Weinstein our CFO, David Bernstein and our Chair, Mickey Arison. Before we begin, please note that some of our remarks on this call will be forward looking. Therefore, I will refer you to today's press release and our filings with the SEC for additional information on factors and risks that could cause actual results to differ from our expectations. We will be referencing certain non GAAP financial measures, including yields, cruise costs without fuel, EBITDA, net income and related statistics for all, which are on a net basis or adjusted as defined. Unless otherwise stated. A reconciliation to U.
S. GAAP is included in our earnings press release and our investor presentation. References to ticket prices, yields and cruise costs without fuel are in constant currency unless we know otherwise. Please visit our corporate website where our earnings press release and investor presentation can be found. With that, I would like to turn the call over to Joshua.
Thanks, Beth and good morning, everyone. Once again, we delivered another quarter of outperformance. Demonstr...