OneSpaWorld Raises Revenue Floor to $1.033 Billion as Phillips 66 Cuts Debt

Key Facts

OneSpaWorld raised the low end of its fiscal 2026 revenue forecast to $1.033 billion from $1.018 billion, while keeping the high end at $1.038 billion, according to results published on October 28. It also raised its adjusted EBITDA estimate to a range of $138–140 million from $130–140 million. The revisions followed record third-quarter revenue of $276.5 million, up 7% from $258.5 million a year earlier. Net income reached a record $28.2 million, up 16% year over year, while adjusted EBITDA rose 12% to $39.2 million. The chief executive said the quarter marked the "22nd consecutive record quarter" of year-over-year growth in revenue and adjusted EBITDA.

OneSpaWorld attributed revenue growth to a 3.3% increase in average guest spending, fleet expansion as new ships entered service in 2026, and higher volumes. Those factors contributed $8.2 million, $7.0 million and $4.3 million, respectively, according to the company statement. Pre-booked revenue added $6.9 million to quarterly revenue at shipboard health and wellness centers on ships included in the company's ship count. The company forecast fourth-quarter revenue of $248 million to $253 million, while analysts' average estimate was $252.8 million, slightly above the midpoint of the company's range. The picture combines a higher annual forecast with improved quarterly revenue and earnings, and a subsequent quarterly outlook whose range is around analysts' estimates.

On shareholder returns, OneSpaWorld's board approved a new share repurchase program of up to $100 million on October 20, and the company later announced a 25% increase in its quarterly cash dividend to $0.0625 per share. The dividend is payable on December 2 to shareholders of record on November 18, 2026. In morning trading after the results announcement on October 28, the company's shares rose more than 11.3% to $27.78. The stock had closed at $24.95 on October 27, compared with $23.99 the previous day, according to EL7 data. These moves came alongside the company's quarterly results and revised annual outlook.

Phillips 66 reported earnings of $5.616 billion in the third quarter, compared with $3.847 billion in the second quarter, and adjusted earnings of $5.619 billion. The company cut total debt by $2.0 billion to $18.5 billion and net debt by $3.8 billion to $12.7 billion during the quarter ended September 30. Adjusted pretax income in its refining segment rose to $6.060 billion from $3.086 billion in the previous quarter. The company attributed the segment's improvement mainly to higher realized margins and volumes, saying margins were particularly affected by wider market spreads for refined products. The chief executive said the company "delivered strong operating performance in the third quarter" and was executing its financial and operating commitments.

Phillips 66's refining capacity utilization was about 98%, and processing inputs in the Central Corridor reached a record 848,000 barrels per day. Distillate yield was also 41%, a quarterly record, according to the company. Alongside debt reduction, Phillips 66 returned $2.777 billion to shareholders during the quarter, including $2.273 billion through share repurchases and $504 million through dividends. The chief executive said the company aims to return more than 50% of operating cash flow, excluding working capital, to shareholders. The stock rose 2% in premarket trading after the results announcement, before closing at $268.53 on October 27, compared with $288.85 in the previous session, according to EL7 data.

Phillips 66 expects initial flows from the Coastal Bend expansion to begin in the fourth quarter of 2026, with the project reaching capacity of 350,000 barrels per day in early 2027. The company also targets starting up the Western Gateway project in 2029. Those dates put the expansion projects among the company's upcoming operational milestones, alongside refining results and debt reduction. OneSpaWorld's upcoming milestones include its cash dividend payment on December 2, while markets await its forecast fourth-quarter revenue of $248 million to $253 million. The companies' results show different paths this quarter: growth in shipboard services revenue and guest spending at OneSpaWorld, and improved refining margins and lower debt at Phillips 66.