Royal Caribbean Cruises (RCL) Q3 2024 earnings summary

Executive summary

• Q3 2024 results exceeded expectations, with Adjusted EPS of $5.20, driven by strong demand, higher onboard revenue, and disciplined cost control.

• Net income for Q3 2024 was $1.1 billion, up from $1.0 billion in Q3 2023, with total revenues rising 17% to $4.9 billion.

• Achieved a fully unsecured capital structure and reduced diluted share count by 5.1 million through convertible note exchanges.

• Announced expansion of private destinations, including Perfect Day Mexico (2027), Silversea’s hotel in Chile (2025), and new Royal Beach Clubs.

• Occupancy reached 111% in Q3 2024, reflecting strong demand and higher load factors.

Financial highlights

• Adjusted EBITDA for Q3 2024 was $2.1 billion, with a 44.0% margin, up from $1.7 billion and 41.5% in Q3 2023.

• Net yield growth was 7.9% year-over-year, reaching $293.46 per APCD.

• Q3 2024 diluted EPS was $4.21; Adjusted EPS was $5.20, up from $3.85 in Q3 2023.

• Net cruise costs excluding fuel per APCD were $118.12, up from $113.57 in Q3 2023.

• Operating cash flow YTD was $3.9 billion, with liquidity of $3.9 billion at quarter-end.

Outlook and guidance

• Full-year 2024 Adjusted EPS guidance raised to $11.57–$11.62, reflecting 71% year-over-year growth.

• Full-year net yield expected to rise 10.8%–11.3% in constant currency; Q4 net yield growth of 5.1%–5.6% expected.

• Q4 2024 Adjusted EPS guidance is $1.40–$1.45, including a $0.24 per share impact from Hurricane Milton and higher stock compensation.

• 2025 earnings expected to start with a $14 handle, with capacity growth projected at 5% and continued strong demand.

• 2024 capital expenditures expected at $3.4 billion, mainly for new ships.