Empire State Review Contributor 
MIAMI, Fla. — Carnival Corporation has reported a remarkable financial performance for the second quarter of 2025, achieving record revenues and profits that exceeded analyst expectations. The cruise line operator’s success is attributed to strong consumer demand and effective strategic initiatives, positioning the company ahead of its long-term financial goals.
Record-Breaking Financial Results
For the quarter ending May 31, 2025, Carnival reported a net income of $565 million, a significant increase from $92 million in the same period the previous year. Adjusted net income more than tripled to $470 million, or $0.35 per share, surpassing the anticipated $0.24 per share. Revenue rose to a record $6.33 billion, up from $5.78 billion in Q2 2024, driven by robust last-minute bookings and increased onboard spending.
CEO Josh Weinstein highlighted the company’s performance, stating, “Our amazing team delivered yet another phenomenal quarter, more than tripling adjusted net income driven by record net yields and strong close-in demand.”
Surpassing Long-Term Financial Targets
Carnival’s impressive Q2 results have led the company to exceed its 2026 SEA Change financial targets 18 months ahead of schedule. Key achievements include a 52% increase in adjusted EBITDA per available lower berth day (ALBD) and an adjusted return on invested capital (ROIC) exceeding 12.5%, the highest levels in nearly two decades.
Strong Demand and Booking Trends
The company reported a 3% year-over-year increase in passengers to 3.4 million and a 4% rise in passenger cruise days to 25.3 million. Net yields in constant currency grew by 6.4%, outperforming the projected 4.4%. Customer deposits reached an all-time high of $8.5 billion, reflecting strong booking momentum for both 2025 and 2026 at historically high prices.
Weinstein noted, “Close-in demand and onboard spending levels were incredibly strong for second-quarter sailings, and our booking curve continues to be the furthest out on record.”
Enhanced Financial Outlook
Buoyed by its Q2 performance, Carnival has raised its full-year 2025 guidance. The company now expects adjusted net income of approximately $2.69 billion, or $1.97 per share, up from the previous forecast of $2.49 billion, or $1.83 per share. Adjusted EBITDA is projected at $6.9 billion, an increase from the earlier estimate of $6.7 billion.
Strategic Investments and Sustainability Initiatives
Carnival is investing $600 million in the development of Celebration Key, a new private resort in Grand Bahama set to open in July 2025. This initiative aligns with the industry’s trend of enhancing exclusive destinations to boost passenger experience and revenue.
In terms of sustainability, the company has achieved a 20% reduction in carbon intensity from 2019 levels, meeting its 2026 SEA Change commitment ahead of schedule. Additionally, fuel consumption per ALBD decreased by over 6%, contributing to operational efficiencies.
Market Response and Industry Impact
Following the earnings announcement, Carnival’s stock surged by nearly 10%, becoming the top performer in the S&P 500 on the day. The positive results also lifted shares of competitors, including Norwegian Cruise Line Holdings and Royal Caribbean Group, indicating a broader investor confidence in the cruise industry’s recovery.
Carnival’s strong performance underscores the resilience of the travel sector and the effectiveness of its strategic initiatives in attracting passengers and enhancing operational efficiency.
