Carnival Corporation & plc, the largest global cruise company, reported its first quarter 2025 earnings, revealing a significant rise in financial performance. The company achieved record revenues of $5.8 billion, an increase of over $400 million compared to the previous year. Net yields increased 7.3% year-over-year, outperforming guidance by 270 basis points, driven by strong demand and onboard spending.

Operating income for the quarter was $543 million, nearly double the $276 million reported in the same period last year. Adjusted EBITDA also set a record at $1.2 billion, marking a 38% increase compared to the prior year and exceeding previous guidance by $165 million. The adjusted net income stood at $174 million, significantly better than the December guidance by $173 million.

Carnival’s cruise costs per available lower berth day (ALBD) saw a slight decrease of 0.3%, while its adjusted cruise costs excluding fuel increased by 1% year-over-year. Total customer deposits reached a first-quarter record of $7.3 billion, reflecting increased ticket prices and pre-cruise onboard sales.

Looking ahead, net income guidance for 2025 is expected to exceed $2.5 billion, an increase of $185 million from previous estimates, driven by the favorable yield and interest expense expectations. The full-year net yield forecast has been revised up to approximately 4.7%, 0.5 percentage points better than earlier guidance, while cruise costs excluding fuel per ALBD is projected to increase by about 3.8%.

In line with its refinancing efforts, Carnival successfully managed $5.5 billion in debt, leading to an annualized interest savings of $145 million. The company’s total debt at the end of the quarter was reported at $27 billion, with confidence in achieving investment-grade leverage metrics by 2026.