Royal Caribbean Cruises Ltd.

First-quarter adjusted EPS was $3.60, which was $0.37 above the midpoint of guidance and 33% above last year. Revenue increased 11% year over year, net yield grew 2%, and adjusted EBITDA was approximately $1.7 billion with a 38% margin, more than 300 basis points higher year over year. Operating cash was $1.8 billion, up 13%, and the company returned $1.1 billion of capital via dividends and share repurchases. For 2026, the company now expects revenue to grow roughly double digits, net yield to rise 1.5% to 2.5%, capacity to grow 6.7%, and adjusted EPS of $17.10 to $17.50. Q2 adjusted EPS is guided to $3.83 to $3.93, with Q2 capacity up 4.9%, net yields up about 0.2% in constant currency, and net cruise costs excluding fuel up 4.6% to 5.1%.

Jason Liberty emphasized that demand remains strong across the portfolio, with record WAVE season, strong booking volumes, and onboard spending well above prior years. He framed the business as well positioned because of its differentiated brands, destinations, loyalty ecosystem, and growing use of technology and AI. His tone was confident and optimistic, but he acknowledged near-term pressure from Middle East-related disruptions, especially on Mediterranean and Mexico itineraries and fuel costs.

Naftali Holtz highlighted that Q1 adjusted EPS of $3.60 beat guidance by $0.37, helped by better-than-expected revenue, lower costs, and stronger joint venture performance. He said adjusted EBITDA was about $1.7 billion, the margin was 38%, and operating cash was $1.8 billion; liquidity ended at $6.9 billion with leverage below 3x. He also detailed 2026 cost and fuel assumptions, including net cruise costs excluding fuel being approximately flat for the full year, fuel expense of $1.35 billion, 59% hedged for the remainder of 2026, and full-year EPS guidance of $17.10 to $17.50 including a $0.62 fuel headwind and a $0.12 TUI headwind.

Analysts focused on whether the stronger Q4 yield outlook implies that only the Mediterranean and Mexico were dragging the full-year yield guide, and management agreed the year has a 'smiley face' shape with the strongest period later in the year and little Med exposure in Q4. Questions also centered on whether the booking slowdown from the Middle East conflict had reversed; Jason Liberty said the company has 'turned the corner,' bookings have rebounded in recent weeks, and there is no sign of a 2027 impact. Other questions covered Perfect Day Mexico, where management said the project is back on track after resolving environmental issues and remains targeted for a soft opening in Q4 2027 and full opening in 2028.