Royal Caribbean Cruises .(RCL) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 EPS was $2.70, with Adjusted EPS at$ 2.71, exceeding guidance due to strong pricing and lower costs[1] - Total revenues for the first quarter reached $4.0 billion, with Net Income of$ 0.7 billion, compared to $0.4 billion in the same period last year[7] - Total revenues for the quarter ended March 31, 2025, were$ 3,999 million, an increase of 7.3% compared to $3,728 million in the same quarter of 2024[48] - Net income attributable to Royal Caribbean Cruises Ltd. for the quarter was$ 730 million, up from $360 million in the prior year, representing a 102.8% increase[48] - Adjusted EPS for the quarter was$ 2.70, compared to $1.35 in the same quarter of 2024, reflecting a 100% year-over-year growth[48] - Net income for the three months ended March 31, 2025, was$ 736 million, compared to $364 million in the same period of 2024, representing a 102% increase[55] - Adjusted net income attributable to Royal Caribbean Cruises Ltd. for Q1 2025 was$ 744 million, up from $478 million in Q1 2024, marking a 55.7% increase[66] - Adjusted EBITDA for Q1 2025 was$ 1,402 million, compared to $1,174 million in Q1 2024, indicating an increase of 19.4%[63] Operational Metrics - Load factor for the first quarter was 109%, with a 9% increase in guests served, totaling 2.2 million[8] - Passenger cruise days increased to 13,768,332 in Q1 2025, up from 13,149,708 in Q1 2024, indicating a growth of 4.7%[51] - Occupancy rate for the quarter was 108.8%, compared to 107.0% in the same quarter of the previous year[51] - Customer deposits increased to$ 838 million in Q1 2025, compared to $729 million in Q1 2024, showing a 15% growth[55] - Adjusted gross margin per passenger cruise day (PCD) for Q1 2025 was$ 237.96, compared to $230.96 in Q1 2024, indicating a 3% increase[59] Guidance and Future Outlook - Full year 2025 Adjusted EPS guidance increased to a range of$ 14.55 to $15.55, reflecting a year-over-year growth of approximately 28%[6] - Net Yields are expected to increase by 2.5% to 4.5% for the full year, with Gross Margin Yields up 13.9% in the first quarter[6] - The company is targeting a 20% compound annual growth rate in Adjusted EPS by the end of 2027 under its Perfecta Program[37] - Return on Invested Capital (ROIC) is aimed to be 17% or higher by the end of 2027[37] Capital Expenditures and Liquidity - The company anticipates capital expenditures of approximately$ 5 billion for 2025, primarily for new ship orders and land-based initiatives[21] - As of March 31, 2025, the company's liquidity position was $4.5 billion, including cash and undrawn credit facilities[17] - The company repurchased approximately 1.0 million shares during the quarter, with$ 759 million remaining for future repurchases[19] Expenses and Cash Flow - Fuel expenses for the second quarter are projected at $286 million, with consumption of 428,000 metric tons, 59% of which is hedged[16] - Total cruise operating expenses for Q1 2025 were$ 2,079 million, a slight decrease from $2,086 million in Q1 2024[61] - Net cash provided by operating activities for Q1 2025 was$ 1,627 million, compared to $1,328 million in Q1 2024, an increase of 22.5%[55] Assets and Liabilities - Total assets as of March 31, 2025, were$ 37,452 million, an increase from $37,070 million as of December 31, 2024[53] - Current liabilities increased to$ 10,300 million as of March 31, 2025, compared to $9,817 million at the end of 2024[53] New Initiatives - The company is set to debut new ships and destinations, including Star of the Seas and Royal Beach Club Paradise Island, enhancing its competitive position[11] - The company reported a comprehensive income of$ 837 million for the quarter, up from $417 million in the same quarter of 2024[48]