Carnival reports \u201cphenomenal\u201d $1.9BN third quarter
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More upbeat news from the cruise sector: Industry giant Carnival Corporation today reported financial results for the third quarter 2025 and provided an updated outlook for the full year and an outlook for the fourth quarter 2025.<\/p>\n
For the full year 2025, the company expects:<\/p>\n
\u201cThis was a phenomenal quarter delivering all-time high net income and our tenth consecutive quarter of record revenues,\u201d said CEO Josh Weinstein. \u201cStrong demand and onboard spending drove a 4.6% improvement in net yields (in constant currency), all of which was achieved on a same ship basis.\u201d<\/p>\n
\u201cAdjusted return on invested capital reached 13% for the first time in nearly 20 years, a clear testament to the continued improvement in our operational execution\u2014driven not only by consistently strong performance from Carnival Cruise Line and AIDA, but also great advancement across the rest of our portfolio of world class brands,\u201d Weinstein added.<\/p>\n
\u201cEven with our rapid progress, we believe we have ample opportunity to increase same ship net yields and further close the unbelievable price-to-value gap versus land based vacation alternatives, pushing margins and returns even higher over time,\u201d he said.<\/p>\n
\u201cWith our current refinancing strategy nearly complete, we\u2019ve continued taking decisive actions to strengthen our balance sheet by simplifying our capital structure, reducing interest expense and managing our future debt maturities,\u201d commented CFO David Bernstein. \u201cThis year alone, we\u2019ve opportunistically refinanced over $11 billion of debt and prepaid another $1 billion. With that and today\u2019s redemption notice for all our outstanding convertible notes\u2014which if converted will be settled with a mix of cash and equity\u2014we\u2019re closing in on our near-term target of reaching investment grade leverage metrics. Our focus is now on driving our net debt to adjusted EBITDA ratio to under 3x as we continue boosting our financial strength.\u201d<\/p>\n
During the quarter, the company continued its refinancing strategy to reduce interest expense and manage its maturity towers, while reducing secured debt by nearly $2.5 billion. The company successfully issued two senior unsecured notes: $1.2 billion at 4.125 percent due in 2031 and $3.0 billion at 5.75 percent due in 2032. In addition, the company entered into a $400 million loan. The combined proceeds from these financings, together with cash on hand, were used to repay over $5 billion of debt. These transactions reflect the company\u2019s continued focus on strengthening its capital structure and enhancing its financial flexibility.<\/p>\n
During the quarter, Moody\u2019s upgraded the company\u2019s credit rating and maintained a positive outlook. The company believes this is a reflection of its improved leverage metrics and its strong momentum.<\/p>\n
The company ended the quarter with $26.5 billion of total debt. As of August 31, 2025, the company\u2019s debt maturities for the fourth quarter of 2025 and full year 2026 are $0.3 billion and $1.4 billion. The company achieved a 3.6x net debt to adjusted EBITDA ratio as of August 31, 2025, an improvement from 4.7x as of August 31, 2021.<\/p>\n
To take a deeper dive into what\u2019s behind the numbers, you can access a transcript of today\u2019s earnings call with analysts HERE<\/a><\/p>\n<\/p>\n The post Carnival reports \u201cphenomenal\u201d $1.9BN third quarter<\/a> appeared first on Marine Log<\/a>.<\/p>\n<\/div>\n