EX-99.1 2 a20262qearningsrelease8-k.htm EX-99.1 Document Exhibit 99.1 CARNIVAL CORPORATION DELIVERS RECORD SECOND QUARTER REVENUES, NET YIELDS AND ADJUSTED NET INCOME Accelerates shareholder returns, surpassing $450 million in stock repurchases MIAMI (June 23, 2026) - Carnival Corporation (NYSE: CCL) announced financial results for the second quarter 2026 and provided an updated outlook. • Net income 1 of $537 million with record adjusted net income 2,3 of $569 million, up over 20 percent compared to the prior year. • Record revenues 3 of $6.7 billion with record net yields 2,3 (in constant currency), demonstrating continued demand strength. • Reached all-time high customer deposits of $9.0 billion, up over $450 million compared to the prior year record. • Booked position for the remainder of 2026 ahead of prior year at historically high prices, with demand for 2027 and beyond continuing to exceed prior-year levels. “We achieved another quarter of record results, marking our twelfth consecutive quarter of record net yields and delivering over 20 percent more to the bottom line, overcoming extreme geopolitical headwinds and nearly 30 percent higher fuel costs. Continued commercial execution and a step up in our cost efficiency efforts enabled us to exceed our March guidance by $100 million. These results reflect the strong demand for our portfolio of world-class cruise lines and the continued progress we are making across the business,” said Carnival Corporation’s Chief Executive Officer Josh Weinstein. Second Quarter 2026 Results • D iluted EPS of $0.39 and adjusted EPS 2 of $0.41, up over 15 percent compared to the prior year despite a $0.06 ($73 million) unfavorable impact from fuel prices and currency rates. • Record adjusted EBITDA 2,3 of $1.6 billion. • Gross margin yields down 3.9 percent driven by higher fuel prices. Record net yields (in constant currency) up 2.2 percent. • Cruise costs per available lower berth day (“ALBD”) increased 6.0 percent driven by higher fuel prices. Adjusted cruise costs excluding fuel per ALBD 2 (in constant currency) were in line with prior year due to sharpened cost discipline. • Fuel consumption per ALBD improved 5.6 percent, reflecting the company’s efforts and investments to continuously reduce fuel consumption, which helped partially mitigate a nearly 30 percent increase in fuel prices. Advance Sales “Our booked position for the second half of 2026 is higher than last year, at historically high prices (in constant currency), despite navigating more than a full quarter of extreme geopolitical volatility that primarily impacted booking trends for our European deployments, particularly in the Mediterranean region, which were closest in proximity to the conflict in the Middle East. For those deployments, we leaned into the substantial occupancy advantage we had strategically built to deliberately prioritize pricing integrity. We are now 93 percent booked for the year with less inventory remaining for sale than this time last year and are on track for record net yields in the second half of 2026,” Weinstein said. “Looking further out, demand for 2027 and beyond remains strong. Since March, booking volumes and prices for these future sailings have been running ahead of prior year levels, including a substantial increase in bookings for our European deployments next year. These trends reinforce our confidence in the longer-term demand environment.” “Our booking curve remains the furthest out on record, reflecting the power of our world-class portfolio of cruise lines, the durability of our demand generation efforts and the exceptional vacation experiences we deliver. Continued strength in demand is also reflected in higher second quarter onboard revenues, increased pre-cruise onboard sales and record customer deposits," Weinstein noted. Customer deposits reached an all-time high of $9.0 billion on flat capacity growth over the next twelve months, surpassing the 1 Net income attributable to Carnival Corporation. 2 See “Non-GAAP Financial Measures” and “Constant Currency.” 3 Second quarter record. prior year’s record by over $450 million, a further reflection of demand momentum and reinforcing the company’s strong cash flow profile. 2026 Outlook “Our second quarter operational outperformance and accelerated cost efficiency efforts have offset the transitory moderation shaped by the prolonged conflict in the Middle East, which is incorporated into our second-half outlook. As conditions continue to normalize, we expect to benefit from the strong demand, pricing and operational improvements embedded throughout our business. Recent booking trends already suggest that we are beginning to see a reversal of these headwinds, reinforcing our confidence in both the near-term outlook and the long-term earnings power of the business,” Weinstein added. For the full year 2026, the company expects: • Net yields up approximately 3.2 percent compared to record 2025 levels. Net yields (in constant currency) up approximately 1.75 percent, 2.25 percent after reflecting the impact of the summer 2025 close-in decision to redeploy away from the previously planned first quarter 2026 Arabian Gulf voyages and the impacts of loyalty program accounting for Carnival Cruise Line. • Adjusted cruise costs excluding fuel per ALBD up approximately 3.7 percent. Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 2.4 percent, 1.3 percent after reflecting the timing of certain expenses between the years, partial year operating expenses from two exclusive destinations and over 30 basis points for certain elevated logistics costs as a result of disruption from the Middle East conflict. • The net impact of fuel prices and currency on the company’s June guidance compared to prior guidance was less than $0.01 per share. The company’s guidance reflects the current spot prices of fuel. See sensitivities for fuel costs included below. See “Guidance” for additional information on the company’s 2026 outlook, “Non-GAAP Financial Measures,” “Reconciliation of Forecasted Data” and “Constant Currency.” Capital Allocation “Our strong cash flow growth enabled us to launch our current share buyback program, repurchasing over $450 million of stock to date, reinforcing our commitment to accelerate shareholder returns. At the same time, we continued to responsibly invest in return-generating programs across our fleet and exclusive destinations, while further strengthening our financial position. We achieved a net debt to adjusted EBITDA 1 ratio of 3.1x—more than half a point improvement from just one year ago. The continued momentum of our financial performance was recognized by Moody's with a credit rating upgrade and a continued positive outlook,” commented Carnival Corporation’s Chief Financial Officer David Bernstein. During the quarter, the company distributed $207 million in dividends, bringing the year to date total to $414 million. Other Recent Highlights • Completed the unification of the company’s dual-listed structure under a single corporate entity and shifted its legal incorporation to Bermuda (learn more here). • Ordered three new LNG ships for Princess Cruises scheduled to be delivered in 2035, 2038 and 2039, introducing the Voyager class that will become the largest ships in Princess’ fleet (learn more here). • Continued rolling out its successful fleet modernization program by adding a second cruise line with Holland America Line’s Evolution Program aimed at enhancing guest experience through expanded onboard offerings and reimagined key spaces (learn more here). • AIDAbella became the third ship to complete upgrades as part of AIDA Evolution, the cruise line’s modernization program (learn more here). • Paradise Collection destination enhancements: ◦ Welcomed over two million guests to Celebration Key since its opening in July 2025 and completed its pier extension, allowing four ships to dock simultaneously and significantly increasing arrival capacity. ◦ Completed its new pier at RelaxAway, Half Moon Cay, allowing two cruise ships to dock simultaneously while continuing its tender operations (learn more here). ◦ Renamed Mahogany Bay to Isla Tropicale and completed a new 48,000-square-foot recreational area, including a new feature pool complete with a swim-up bar, splash pad and a variety of additional cabanas, daybeds and loungers (learn more here). • Star Princess named among the Best New Cruise Ships in the World by Condé Nast Traveler’s 2026 Hot List (learn more here). 1 See “Non-GAAP Financial Measures” and “Constant Currency.” • Recognized on TIME’s World’s Growth Leaders 2026 list of top-performing public companies based on growth, financial strength and stock performance (learn more here). Guidance (See “Non-GAAP Financial Measures,” “Reconciliation of Forecasted Data” and “Constant Currency”) 3Q 2026 Full Year 2026 Year over year change Current Dollars Constant Currency Current Dollars Constant Currency Net yields Approx. 1.3% Approx. 1.2% Approx. 3.2% Approx. 1.75% Adjusted cruise costs excluding fuel per ALBD Approx. 2.8% Approx. 2.8% Approx. 3.7% Approx. 2.4% 3Q 2026 Full Year 2026 ALBDs (in millions) (a) 24.9  97.4  Capacity growth compared to prior year 1.5  % 1.0  % Fuel consumption in metric tons (in millions) 0.7  2.7  Fuel cost per metric ton consumed (excluding emission allowances) $ 812  $ 713  Fuel expense (including emission allowances expense) (in billions) $ 0.62  $ 2.12  Depreciation and amortization expense (in billions) $ 0.74  $ 2.91  Interest expense, net of capitalized interest and interest income (in billions) $ 0.27  $ 1.07  Adjusted EBITDA (in billions) Approx. $2.88 Approx. $7.11 Adjusted net income (in billions) Approx. $1.86 Approx. $3.07 Adjusted earnings per share - diluted Approx. $1.35 Approx. $2.22 Weighted-average shares outstanding - basic 1,372 1,377 Adjusted weighted-average shares outstanding - diluted 1,377 1,384 (a)    See “Notes to Statistical Information.” Currencies (USD to 1) 3Q 2026 Full Year 2026 AUD $ 0.71  $ 0.70  CAD $ 0.71  $ 0.72  EUR $ 1.16  $ 1.16  GBP $ 1.34  $ 1.34  Sensitivities (impact to adjusted net income in millions) 3Q 2026 Remainder of 2026 1% change in net yields $ 60  $ 111  1% change in adjusted cruise costs excluding fuel per ALBD $ 27  $ 58  10% change in fuel cost per metric ton (excluding emission allowances) $ 56  $ 102  100 basis point change in variable rate debt —  $ 14  1% change in currency exchange rates $ 10  $ 17  Capital Expenditures For the remainder of 2026, newbuild capital expenditures are $0.6 billion and non-newbuild capital expenditures are $1.3 billion. These future capital expenditures will fluctuate with foreign currency movements relative to the U.S. Dollar. In addition, these figures do not include potential stage payments for ship orders that the company may place in the future. Conference Call The company has scheduled a conference call with analysts at 10:00 a.m. EDT today to discuss its earnings release. This call can be listened to live and additional information including the company’s earnings presentation and debt maturities schedule can be obtained on its website at www.carnivalcorp.com . Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn. Carnival Corporation trades under the ticker symbol CCL on the NYSE and is included in the S&P 500. Additional information can be found on www.carnivalcorp.com , www.aida.de , www.carnival.com , www.costacruises.com , www.cunard.com , www.hollandamerica.com , www.pocruises.com , www.princess.com , and www.seabourn.com . To learn more about Carnival Corporation’s purpose and its commitment to sustainability, go to Our Impact. MEDIA CONTACT INVESTOR RELATIONS CONTACT Jody Venturoni Beth Roberts +1 469 797 6380 +1 305 406 4832 Cautionary Note Concerning Factors That May Affect Future Results Some of the statements, estimates or projections contained in this document are “forward-looking statements” that involve risks, uncertainties and assumptions with respect to us, including statements concerning future results, operations, strategy, outlooks, plans, goals, reputation, cash flows, liquidity and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like “will,” “may,” “could,” “should,” “would,” “believe,” “depends,” “expect,” “goal,” “aspiration,” “anticipate,” “forecast,” “project,” “future,” “intend,” “plan,” “estimate,” “target,” “indicate,” “outlook,” and similar expressions of future intent or the negative of such terms. Forward-looking statements include, but are not limited to, statements that relate to our outlook and financial position, as well as, statements regarding: • Pricing • Adjusted net income • Booking levels • Adjusted EBITDA • Occupancy • Adjusted EBITDA per ALBD • Interest, tax and fuel expenses • Adjusted EBITDA margin • Currency exchange rates • Adjusted earnings per share • Goodwill, ship and trademark fair values • Net debt to adjusted EBITDA • Liquidity and credit ratings • Net yields • Investment grade leverage metrics • Adjusted cruise costs per ALBD • Shareholder returns • Adjusted cruise costs excluding fuel per ALBD • Estimates of ship depreciable lives and residual values • Adjusted ROIC Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial position. These factors include, but are not limited to, the following: • Events and conditions around the world, including geopolitical uncertainty, war and other military actions, pandemics, inflation, higher interest rates and other general concerns impacting the ability or desire of people to travel could lead to a decline in demand for cruises as well as have significant negative impacts on our financial condition and operations. • Incidents concerning our ships, guests or the cruise industry may negatively impact the satisfaction of our guests and crew and lead to reputational damage. • Adverse weather conditions or an increase in the frequency and/or severity of adverse weather conditions could have a material impact on our business and results of operations. • Our targets, goals, aspirations, initiatives, public statements and disclosures, including those related to sustainability matters, may expose us to risks that may adversely impact our business. • Cybersecurity incidents and data privacy breaches, as well as disruptions and other damages to our principal and other offices, information technology operations and system networks and failure to keep pace with developments in technology may adversely impact our business operations, the satisfaction of our guests and crew and may lead to fines, penalties and reputational damage. • Our debt requires a significant amount of cash to service and our ability to generate sufficient cash depends on many factors, some of which may be beyond our control. Our financial condition and operations could be adversely impacted if we are unable to service our debt or satisfy our covenants. • Increases in fuel costs, changes in the types of fuel consumed and availability of fuel supply may adversely impact our scheduled itineraries and costs. • The loss of key team members, our inability to recruit or retain qualified shoreside and shipboard team members and increased labor costs could have an adverse effect on our business and results of operations. • We rely on suppliers who are integral to the operations of our businesses. These suppliers and service providers may be unable to deliver on their commitments, which could negatively impact our business. • Fluctuations in foreign currency exchange rates may adversely impact our financial results. • Our investments in port destinations and exclusive islands may expose us to additional risks. • Overcapacity and competition in the cruise and land-based vacation industry may negatively impact our cruise sales, pricing and destination options. • Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments may adversely impact our business operations and the satisfaction of our guests. • Changes in and non-compliance with laws and regulations under which we operate, such as those relating to health, environment, safety and security, data privacy and protection, anti-money laundering, anti-corruption, economic sanctions, trade protection measures, labor and employment, and tax may be costly and lead to litigation, enforcement actions, fines, penalties and reputational damage. • Factors associated with sustainability and the impact of greenhouse gases and other emissions on the environment could have a material impact on our business and operating results. The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood. There may be additional risks that we consider immaterial or which are unknown. Additional information about the factors that may affect future results is contained in our most recent Annual Report on Form 10-K as well as our other filings with the SEC, all of which are available on the SEC's website at www.sec.gov . Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this document, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based. Forward-looking and other statements in this document may also address our sustainability progress, plans, and goals (including emissions and environmental-related matters). In addition, historical, current, and forward-looking sustainability-related statements may be based on standards and tools for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions and predictions that are subject to change in the future and may not be generally shared. CARNIVAL CORPORATION LTD. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data)     Three Months Ended May 31, Six Months Ended May 31,   2026 2025 2026 2025 Passenger ticket $ 4,273  $ 4,104  $ 8,296  $ 7,936  Onboard and other 2,390  2,224  4,532  4,202  Total Revenues 6,663  6,328  12,828  12,139  Cruise and tour operating expenses: Commissions, transportation and other 778  780  1,650  1,631  Onboard and other 697  671  1,316  1,271  Payroll and related 699  640  1,383  1,280  Fuel 595  468  992  933  Food 389  372  771  726  Other operating 1,067  955  2,054  1,813  Total Cruise and tour operating expenses 4,225  3,886  8,165  7,653  Selling and administrative expense 863  816  1,786  1,663  Depreciation an