Carnival posts record Q1 revenues, boosts FY earnings outlook

(Sharecast News) - Cruise operator Carnival lifted its full-year earnings outlook on Friday as it reported record revenues for the first quarter, citing outperformance across the board. Revenues came in at $5.8bn, up more than $400m on the same period a year earlier, while operating income nearly doubled to a record $543m.

Adjusted earnings before interest, tax, depreciation and amortisation rose 38% from the prior year to a record $1.2bn, outperforming December guidance by $165m.

Carnival also hailed record net yields, which significantly outperformed December guidance due to strong close-in demand and continued strength in onboard revenue.

Carnival said it experienced "another early start to a successful wave season, continuing to execute on its proven yield management strategy".

Having entered the year with less 2025 inventory available for sale, it achieved higher prices at constant currency than last year on bookings taken during the first quarter for the remainder of 2025.

The company now expects 2025 adjusted net income to be up more than 30% on the previous year and $185m higher than the guidance it provided in December. This was put down to improved revenue and interest expense expectations.

Meanwhile, adjusted EBITDA is expected to be $6.7bn for the full year, up nearly 10% on 2024 and also better than December guidance.

Chief executive Josh Weinstein said: "Our first quarter was truly characterised by outperformance. This was across the board and led by incredibly strong demand throughout our portfolio including exceptional close-in demand that exceeded expectations for both ticket prices and onboard spending.

"While we are not completely immune from the heightened macroeconomic and geopolitical volatility since providing our December guidance, we are still taking up our earnings expectations for the year and we remain on track to have another stellar year across our cruise brands.

"This raise incorporates our increased first quarter yield results and reduced interest expense thanks to our recent successful refinancings. We are also affirming our December yield guidance for the remainder of 2025, as our booking curve continues to be the farthest out on record, at record prices (in constant currency), onboard spending is robust and we have proven to be incredibly resilient."