Royal Caribbean Sees Adjusted Q4 Earnings of $3.48 to $3.58 Per Share
Key Facts
Royal Caribbean set a range for adjusted earnings per share of $3.48 to $3.58 in the fourth quarter of 2026, according to a company statement published via PR Newswire. The guidance is based on current fuel prices, interest rates and foreign exchange rates, along with the operating factors cited in the statement. The statement did not include a comparison with analyst consensus, so it does not establish that the outlook came in below market estimates. The guidance follows a third quarter in which results exceeded the company’s prior guidance. Strong performance in that quarter also lifted the company’s full-year earnings outlook, although fuel costs and currencies partly limited the improvement.
The company reported adjusted earnings of $6.57 per share in the third quarter and said the result exceeded its previous guidance. It attributed the performance to strong demand for close-in bookings and lower costs due to the timing of expenses. Revenue was $5.6 billion, up 9% year over year, while fleet occupancy reached 112%. These figures show performance in the period preceding the new outlook, while differences in expense timing remain a factor in assessing quarterly costs. The company said net yield rose 0.9% as reported, or 0.6% in constant currency, in the third quarter.
The company linked the increase in net yield to better-than-expected demand for close-in bookings in Europe and the Caribbean. That factor was reflected in recent results, alongside higher occupancy and revenue compared with the previous year. But the company’s statement also said expense timing contributed to lower costs in the third quarter, distinguishing some profitability factors from direct demand indicators. In its annual outlook, Royal Caribbean raised its 2026 adjusted earnings per share range to $17.85–$17.95. It attributed the increase to a stronger-than-expected third quarter, partly offset by higher fuel costs and foreign exchange rates.
The company expects net cruise costs, excluding fuel, per available passenger cruise day to decline in the fourth quarter compared with the same period in 2025; the statement gave the decline range as 1.5% to 1.0%. The company includes a fuel expense of $379 million in its fourth-quarter forecast. It said 58% of expected consumption is covered by hedging swaps, based on consumption of 463 thousand metric tons. These figures show the size of the fuel expense and the portion hedged in the assumptions underpinning the outlook. The quarterly earnings range is based on the company’s current assumptions for fuel, interest rates and currencies.
On future demand, Royal Caribbean said bookings for 2027 cruises were up by a high double-digit percentage compared with the previous year, from its last earnings call through October 27, 2026. It added that bookings were running ahead of historical levels and at higher prices. Separately, the company expects to close its investment in Sandals and Beaches in early 2027, subject to customary closing conditions and regulatory approvals. These points provide the company’s indicators on bookings for next year and the targeted timing for completing the investment. The company had scheduled its third-quarter earnings call for October 27, 2026, at 10 a.m. Eastern time.
Chief Executive Jason Liberty said some travelers are postponing trips until the following year or choosing the Caribbean instead of Europe, as the cost of a trip rises when air travel to ports is included. He added that travelers “are either postponing their trips to next year or choosing the Caribbean instead of Europe.” This geographic shift relates to the company’s comments on strong close-in bookings in Europe and the Caribbean, with choices varying according to the cost of reaching ports. The company is thus presenting its third-quarter performance and annual outlook alongside its fourth-quarter forecast range and indicators for 2027 bookings. Fuel, currency and interest-rate assumptions are expected to remain part of the basis for the company’s announced outlook.