Royal Caribbean Raises 2025 Guidance, Flags Near‑Term Headwinds

Royal Caribbean reported third-quarter 2025 adjusted EPS of $5.75, modestly beating estimates, with revenue up 5.2% to $5.14 billion while net yields rose about 2.4% but revenue narrowly missed consensus. Management raised full-year adjusted EPS guidance to roughly $15.58–$15.63 (midpoint ~$15.61) and outlined longer-term targets as it expands exclusive destinations and digital/AI initiatives. The company set Q4 adjusted EPS guidance below analysts’ estimates, and shares fell in early trading after management flagged possible near-term softness from adverse weather, the extended Labadee closure, moderate near-term yield growth and increased capital spending. Royal Caribbean reported operational gains — capacity up ~3%, roughly 2.5 million vacations sold (up ~7%) and high guest satisfaction — but free cash flow weakened to about -$989 million. Investors expressed concern about cash generation and debt reduction even as management stresses long-term investment in ships, destinations and technology to sustain demand.