Carnival Corporation Announces Second-Quarter Earnings, 2026 SEA Change Program
Carnival Corporation & plc announced on Monday its second-quarter 2023 earnings, adjusted third-quarter forecast and the cruise company’s focus on the 2026 SEA Change Program.
For the second quarter, Carnival’s adjusted EBITDA was $681 million and revenue reached $4.9 billion, a new record. The company also saw continued demand acceleration, with total bookings reaching a new all-time high for all future sailings.
Total customer deposits reached $7.2 billion, surpassing the previous record of $6 billion by over $1 billion, a 26 percent increase compared to the last quarter. The second quarter ended with Carnival reporting $7.3 billion of liquidity following the prepayment of more than $1 billion in near-term, variable-rate debt.
“These financial targets are anchored on optimizing capital allocation through measured capacity growth and will set our course back to strong profitability and investment grade leverage metrics,” Weinstein said.
As for the adjusted third-quarter forecast, projections show profit will be marginally below estimates as the cruise operator battles higher labor and fuel costs while spending more on marketing, according to CEO Josh Weinstein.
High labor costs, port expenses and a slower-than-expected drop in inflation forced the cruise company to raise its cost forecast for the third quarter. Carnival also lowered its annual loss forecast based in part on higher ticket prices.
“We are gaining momentum with continued strength in demand,” Weinstein continued. “We are excited about all the opportunities ahead and the potential to create outsized value for our shareholders as we work towards our 2026 targets.”
In addition, Carnival also introduced its SEA Change Program, a set of key performance targets designed to reflect the achievement of important goals over three years ending in 2026.
The program updated milestones in sustainability, EBITDA and adjusted Return on Invested Capital (RoIC), with the company expecting to approach investment-grade leverage metrics by the end of 2026.