Royal Caribbean Group Reports Strong Q3 Profits and New Destination Announcement

On October 28, 2025, Royal Caribbean Group (NYSE: RCL) revealed impressive third-quarter earnings, with a notable Earnings per Share (EPS) of $5.74, and an Adjusted EPS of $5.75. These robust results surpassed expectations largely due to unexpectedly high demand and effective cost management during the quarter. Thanks to this stellar performance, the company has raised its full-year 2025 Adjusted EPS guidance to a range of $15.58 to $15.63, indicating a remarkable year-over-year growth of 32%.

President and CEO Jason Liberty expressed optimism regarding the company’s growth trajectory. He stated, "We continue to see strong momentum across our business, powered by accelerated demand, growing loyalty, and guest satisfaction that is at all-time highs." This positive feedback loop is primarily driven by an innovative fleet of ships, unique destinations, and premium brand experiences. Royal Caribbean also aims to achieve significant growth targets with their established Perfecta program, designed for sustained expansion through 2027.

In terms of performance metrics, the load factor in Q3 was an impressive 112%, with gross margin yields climbing 3.8%. The company welcomed 2.5 million guests during this quarter, marking a 7% increase compared to the previous year, all while maintaining high levels of guest satisfaction. Significant financial figures indicated robust revenues totaling $5.1 billion, with adjusted EBITDA reaching $2.3 billion.

Looking Ahead: High Hopes for 2026

Liberty also emphasized confidence in future bookings. The company is seeing remarkable results for 2026, with rates surpassing previous years and high engagement in pre-cruise purchases. He mentioned, "Looking ahead, we see strong momentum across our portfolio of brands." Exciting innovations like the forthcoming launches of Star of the Seas and Celebrity Xcel promise to raise the bar for the cruise experience even higher.

One key announcement was the unveiling of Royal Beach Club, set for Santorini in summer 2026. This exclusive destination promises to meld the iconic volcanic beaches of the Greek island with the company’s signature guest experiences. Guests can expect an Ultimate Santorini Day, filled with activities rich in local culture and stunning sightseeing opportunities.

As part of expanding their portfolio of unique land-based destinations, Royal Caribbean aims to increase its offerings from two to eight options by 2028. The announcement is not just a testament to their growth strategy but also emphasizes the importance of creating engaging experiences that resonate well with guests and enrich local communities.

Financials at a Glance

Amidst the growth, Royal Caribbean also effectively managed its operating costs. The company reported a rise in Gross Cruise Costs per Available Passenger Cruise Days (APCD) by 2.7% when compared to the same time frame the previous year. Notably, the increase in costs was lower than projected, indicating strong operational discipline.

As for future expectations, net yields are projected to grow by 3.5% to 4.0% on both an as-reported and constant currency basis. Additionally, adjusted EPS is expected to see a similar growth trajectory. This continued growth indicates positive company health, despite challenges faced like adverse weather conditions and temporary closures at key destinations, including the exclusive Labadee in Haiti.

Conclusion

In summary, Royal Caribbean Group's strong Q3 results and the announcement of an exclusive Santorini destination highlight the company's robust financial health and commitment to enhancing guest experiences. With an eye on growth and innovation, they are not just reshaping vacations but setting a new industry standard. The strategic expansions reflect a positive outlook for both travelers and investors alike, as Royal Caribbean positions itself firmly in the booming $2 trillion vacation market.