Carnival Boosts Profit Forecast After Record Q1
Carnival Corporation & plc has raised its profit forecast following a strong first quarter that delivered record revenue, driven by high demand for cruising. The company reported first-quarter revenues of $5.8 million, which marked an increase of $400 million compared to the same period in 2024. Operating income nearly doubled to $543 million, and adjusted EBITDA surged 38 percent year-over-year to reach $1.2 billion. These impressive results were fueled by a successful wave season during which higher pricing was achieved due to limited 2025 inventory available for sale. According to Carnival, pricing is currently at historical highs for each quarter, while occupancy levels have remained aligned with record performance seen in 2024. The booking curve has extended further out than ever before, indicating that travelers are planning their cruises further in advance.
Carnival’s strong performance in the first quarter has led the company to predict that the second quarter will see further improvements. The corporation expects net yields to increase by 4.4 percent year-over-year and anticipates a 10 percent rise in adjusted EBITDA, which is projected to reach around $1.3 billion for the quarter. These positive indicators have driven Carnival to adjust its profit forecast for the rest of the year upward. The company now expects net yields to be 4.7 percent higher over 2024—a half-point increase compared to its previous guidance. In addition, Carnival has boosted its adjusted net income forecast by more than 30 percent compared to 2024, with an expected adjusted EBITDA of approximately $6.7 billion, outperforming earlier estimates.
The upward revision in profit forecasts comes despite ongoing macroeconomic and geopolitical challenges, with Carnival acknowledging that external factors continue to pose risks. Nevertheless, the company remains confident in its strategy and operational resilience. Carnival’s Chief Executive Officer, Josh Weinstein, stated that while the company is not entirely immune from the heightened volatility in the global landscape, it is still on track to deliver a stellar year across its cruise brands. He noted that the improved first-quarter yield results, combined with reduced interest expense resulting from recent successful refinancings, have been key factors in driving the enhanced profit outlook.
Weinstein also reaffirmed the December yield guidance for the remainder of 2025, citing the unprecedented booking curve, record prices in constant currency, and robust onboard spending as evidence of strong market momentum. These factors, along with Carnival’s proven ability to remain resilient during challenging times, have positioned the company to capitalize on continued growth in the cruise industry. As travelers increasingly seek memorable vacation experiences at sea, Carnival’s strategic adjustments and operational improvements are expected to secure its competitive edge. The company’s latest financial performance underscores its commitment to delivering value to its shareholders while providing guests with an exceptional cruising experience. With its strong profit forecast and a healthy pipeline of bookings, Carnival Corporation is poised to navigate the evolving market landscape and achieve sustainable growth throughout the remainder of 2025.
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