RCL Reports Q2 Earnings

Guides Q3 $1.35 v $1.42e, Adj EBITDA $2.88B - - Guides Q3 ALBDs 24.9M, Net yields (cc) +1.2%, Adj Cruise Costs (ex-fuel at cc) +2.8%, Capacity +1.5% y/y - - Affirms FY26 $2.22 v $2.22e, Adj Net $3.07B, Cuts Adj EBITDA $7.11B (prior: $2.21, Adj Net +$3.07B y/y, Adj EBITDA $7.19B) - - Cuts FY26 Net Yields +1.75% (cc), Increases Adj Cruise Costs (ex-fuel at cc) +2.4%, Raises Capacity +1.0% y/y (prior: Net Yields +3.25%, Adj Cruise Costs (ex-fuel at cc) +2.3%, Capacity +0.9% y/y) - - For the remainder of 2026, newbuild capital expenditures are $0.6B and non-newbuild capital expenditures are $1.3B.

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. - - - Cash and cash equivalents $2.24B v $1.42B q/q - - Total customer deposits balance $8.46B v $8.5B y/y - - Adj EBITDA $1.58B v $1.51B y/y - - Passenger cruise days (" PCDs ") 25.7M v 25.3M y/y - - ALBD 24.7M v 24.2M y/y, +6% (capacity) - - Occupancy 104% v 104% y/y - - Passengers 3.4M v 3.4M y/y - - - Customer deposits reached an all-time high of $9.0 billion on flat capacity growth over the next twelve months, surpassing the prior year's record by over $450 million, a further reflection of demand momentum and reinforcing the company's strong cash flow profi - - - 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 a re on track for record net yields in the second half of 2026 " - " 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" - - 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 "