Record Bookings and Rising Yields: How Far Can CCL's Profit Cruise?

Carnival Corporation & plc CCL continues to power ahead, steering its financial comeback with precision. In the third quarter of 2025, the world’s largest cruise operator posted record revenues of $8.15 billion and net income of $2 billion. Earnings per share were $1.43, beating the Zacks Consensus Estimates of $1.32, as yields surged 4.6% year over year on strong close-in demand and robust onboard spending.CEO Josh Weinstein highlighted that bookings are running ahead of capacity growth, with pricing at record levels across both North America and Europe. Nearly half of 2026 sailings are already sold at higher prices, underlining Carnival’s strengthened pricing power. The company’s portfolio diversification — spanning Alaska, Europe and its new Caribbean destination, Celebration Key — is paying dividends. The debut of Celebration Key has been met with glowing reviews, adding premium pricing and brand momentum.Operational efficiency remains another win. Carnival beat cost guidance by 1.5 percentage points and lifted its full-year outlook for the third time in 2025. Its net debt-to-EBITDA ratio now stands at 3.6x, edging toward investment-grade territory.With ROIC hitting 13%, its highest in nearly two decades, Carnival’s profitability journey appears far from over. As it tightens costs, grows yields and leverages record bookings, the company’s next challenge lies in sustaining momentum once capacity growth flattens — testing just how far this profit cruise can sail.RivalsRiding the Same Tide: Royal Caribbean and Norwegian Cruise LineWhile Carnival’s profit wave is impressive, rivals Royal Caribbean Group RCL and Norwegian Cruise Line Holdings NCLH are also navigating strong waters. Royal Caribbean continues to set industry benchmarks with record yields and forward bookings fueled by its Icon-class ships and expanding Perfect Day private-island destinations. Its innovative fleet and strong onboard revenue streams have pushed margins and cash flow to all-time highs, keeping pressure on Carnival to sustain yield growth.Norwegian Cruise Line, meanwhile, is emphasizing premium experiences and disciplined capacity management to boost per-passenger revenues. Despite higher operating costs, its new Prima-class vessels and targeted deployment strategy are enhancing pricing power and onboard spend. Both RCL and NCLH share Carnival’s focus on yield optimization and efficiency gains, but the latter’s scale advantage and destination development strategy — notably Celebration Key — give it a unique edge in capturing long-term profitability and shareholder returns.CCL’s Price Performance, Valuation and EstimatesShares of Carnival have gained 17.8% in the past six months against the industry’s decline of 0.8%.Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 11.22X, significantly below the industry’s average of 16.19X.P/E (F12M)Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for CCL’s fiscal 2025 and 2026 earnings implies a year-over-year uptick of 51.4% and 11.7%, respectively. EPS estimates for fiscal 2025 have increased in the past 30 days.Image Source: Zacks Investment ResearchCCL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks