Carnival Corporation Reports Record Earnings and Reinstates Dividends Amid Strong Demand

Carnival Corporation Reports Record Earnings and Reinstates Dividends

Carnival Corporation & plc, one of the world’s largest cruise companies, has announced its remarkable financial performance for the fourth quarter and the full year of 2025. The company reported a full-year net income of $2.8 billion, which marks a significant increase in adjusted net income to $3.1 billion, signifying growth of over 60% from the prior year. This surge can be attributed to robust demand and effective cost management strategies that have been implemented over the past year.

One of the standout highlights was the record revenues totaling $26.6 billion, aligned with unprecedented net yields, exceeding expectations set forth previously. Carnival's operating income reached a peak of $4.5 billion, an impressive 25% rise from the previous year, coupled with a record adjusted EBITDA of $7.2 billion, which reflects an increase of over $1 billion compared to the prior fiscal year.

Josh Weinstein, CEO of Carnival Corporation, attributes these successes to the entire workforce's dedication to ensuring excellent guest experiences and maintaining financial discipline. According to Weinstein, "2025 was a truly phenomenal year. 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."

For the fourth quarter of 2025 alone, Carnival reported a net income of $422 million, leading to a diluted earnings per share (EPS) of $0.31, which is nearly a 40% increase compared to 2024. The adjusted net income reached $454 million, demonstrating a stellar growth of more than 140% compared to the previous year. These results were driven in part by strong last-minute demand and prudent cost management.

Another integral element of Carnival's achievements lies in its impressive booking volumes, particularly for the upcoming years. The company has maintained its highest booking levels for 2026, indicating a strong pipeline for future revenues. Weinstein recognized that bookings outpaced expectations leading up to the holiday seasons, hinting at a favorable outlook for the forthcoming wave season, a critical period in the cruise industry.

Looking ahead, Carnival anticipates adjustments to net income for 2026 to exceed $3.5 billion, which would surpass the records set in 2025. The forecast for the first quarter of 2026 indicates a potential growth in net yields of approximately 1.6% over the record levels seen in 2025, adding to the momentum the company currently enjoys.

These exceptional financial results enable Carnival to propose a revitalization in shareholder returns by reinstating a quarterly dividend of $0.15 per share, with payment scheduled for late February 2026. The CFO, David Bernstein, expressed confidence in the company’s future performance, describing this decision as a commitment to delivering value to shareholders.

In addition to its financial achievements, Carnival is undergoing strategic changes to its corporate structure with plans to unify its dual-listed framework and move its legal incorporation to Bermuda. This initiative is expected to streamline governance and enhance the company's overall value proposition for its shareholders, further solidifying its competitive edge in the cruise industry.

With a strong operational performance, a healthy balance sheet, and a commitment to creating memorable experiences for its guests, Carnival Corporation is well-positioned for sustained growth and long-term shareholder value in the coming years. The company's vibrant cruise line portfolio, alongside exclusive destinations, continues to present ample opportunities for yield improvement and expansion. As Carnival sails into the future, its focus remains steadfast on delivering happiness and unforgettable experiences to all its guests around the globe.