Royal Caribbean Raises Outlook, Shares Dip on Costs

Royal Caribbean Cruises reported strong second-quarter 2025 results, with adjusted earnings per share of $4.38 surpassing expectations, though revenues of $4.54 billion narrowly missed analyst estimates. Net income reached $1.21 billion, up 10% year-over-year, fueled by robust demand and accelerated last-minute bookings. The company raised its full-year 2025 profit outlook to a range of $15.41 to $15.55 per share. Despite these positive results, shares fell by up to 7% in premarket trading due to costs from new ship launches and high operating expenses. Load factors climbed to 110% thanks to increased capacity, and management reported improved free cash flow and a significant reduction in long-term debt. Wall Street remains cautious about profit outlook and cost pressures, even as Royal Caribbean outperforms the broader market year-to-date.