Today, Carnival Corporation released Q2 2025 results, and they were nothing short of exemplary. The cruise operator exceeded their own expectations and reached their end-of-2026 targets a full 18 months early. This is now the 8th consecutive quarter of record numbers and growth for the company, and there’s no sign of it slowing down. Let’s take a look at how Carnival Corporation exceeds expectations… Again!
Results Summary
One might say that Carnival’s second quarter earning results have a certain glow about them! I joined the quarterly earnings call with CEO Josh Weinstein and CFO David Bernstein, and both are clearly excited about the quarter and full-year impact.
Below are six bullets highlighted in the Q2 2025 earnings release:
- Exceeded 2026 SEA Change financial targets 18 months early, with adjusted return on invested capital (“ROIC”) and adjusted EBITDA per available lower berth day reaching the highest levels in nearly two decades.
- Improved second quarter net income by nearly $475 million and adjusted net income more than tripled
compared to 2024, outperforming March guidance by $185 million. - Delivered record second quarter revenues of $6.3 billion with record net yields significantly outperforming March guidance due to strength in both close-in demand and onboard revenues.
- Cumulative advanced booked position for 2026 is in line with 2025 record levels and at historical high prices.
- Achieved all-time high customer deposits of $8.5 billion.
- Extended and upsized its revolver capacity to $4.5 billion in June, a 50 percent increase.
As a result, the stock popped in early morning trading on June 24, 2025. Investors clearly like what they’re seeing and hearing – and how could they not? Carnival continues to produce record after record earnings with little sign of slowing down.
Carnival Rewards Loyalty Program
Josh introduced the new Carnival Rewards sharing that it’s an industry-first, tying benefits and status to spending on Carnival and co-branded credit card. David called out the fact that the new program will be cash-flow positive from day one.
Most airlines introduced similar types of loyalty programs years ago and we know how beneficial those programs turned out to be.
The brand sees a opportunity to significantly increase lifetime customer value with the program being a “strategic differentiator” for Carnival.
It was clear on today’s call, the brand has ZERO intention of making changes to the program based on the negative guest feedback received over the past week. Carnival Rewards is here to stay, and loyal cruisers will need to spend a significant amount of money with the brand every two years to prove that loyalty. And that’s music to investors’ ears.
Check out our complete coverage of Carnival Rewards. Do you see this being a strategic differentiator for Carnival? Or is it a program other cruise lines will quickly model? Let us know in the comments.
Celebration Key
Celebration Key finally got it’s day in the sun on the earnings call. Both Josh and David spoke to the new exclusive destination that Carnival will be launching this July. We’ve created multiple videos about this new exclusive destination and have separate coverage of everything cruisers can expect in this new destination.
Paradise Collection
Josh also spoke to investments being made in other private destinations Half Moon Cay and Mahogany Bay. As previously announced, both private destinations will receive updates and upgrades, along with new branding/names: RelaxAway, Half Moon Cay and Isla Tropicale, respectively.
RelaxAway, Half Moon Cay
RelaxAway, Half Moon Cay is adding a pier that will allow Carnival to berth two ships. Plus, that the brand will also still be able to operate tender operation at the port, further increasing potential capacity. In the Q&A, Josh shared that they’ll be able to double the output – and more! Yes, you read that right, with the changes being made to Half Moon Cay, you’ll soon see more than double the guests than today.
Isla Tropicale
Josh mentioned there won’t be enhancements on the marine side for the port with it already being able to accommodate two ships today. What will change, however, is the beach! The brand will double the beachline to help cruisers spread out even more. In addition, they’re adding a beach club and pool.
The brand sees further sees further revenue opportunities with each of these locations branding the entire collection as the Paradise Collection.
Looking Ahead
It’s a great day to be a cruise line CEO. Carnival’s news sent cruise stocks up across the board. As of the time of this writing, Carnival Stock is up 8% on the day. With record revenue, a new rewards program designed to drive even more spend, and investments in private destinations that keeps more spend inside the cruise operator’s own pockets, it’s no wonder why investors are responding.
Could $30 a share be on the horizon for Carnival Corporation? We’re long on Carnival and are hoping to finally see our investments pay off!
This article is in no way deemed to be investment advice. We are cruise nerds, not financial analysts. Some of the statements Carnival made today are forward looking. Nothing in this post should be used to make any sort of financial decision.