Carnival Corporation plc (CUK) Q4 2024 Earnings Report

Carnival Corporation reported a strong Q4 2024, capping a year of operational momentum and leverage de-risking. Revenue for the quarter was $5.94 billion with net income of $303 million and GAAP EPS of $0.23, marking a YoY revenue rise of roughly 10% and a year-end trajectory toward new margin highs. The company posted a full-year yield increase of 11% in 2024, driven by higher ticket prices and robust onboard spending, contributing to EBITDA of $6.1 billion and cash from operations near $6.0 billion. Management highlighted a favorable demand environment that enabled record bookings and a progressive deleveraging path, with net debt to EBITDA at 4.3x by year-end 2024 (a meaningful improvement from 2023) and ROIC at 11%, comfortably above cost of capital. Strategic initiatives, notably the SeaChange program (targeting EBITDA per ALBD and ROIC), are on track to deliver a 50% uplift in EBITDA per ALBD from the 2023 baseline and a 12% ROIC target by 2026, with early progress achieved in 2024. Looking ahead, Carnival guides to a 2025 yield increase of over 60 cents per share versus 2024 and expects 2025 net income above $2.3 billion, influenced by higher prices, onboard spend, and improved cost discipline, though offset by higher dry-dock activity and destination-related costs associated with Celebration Key. Management also signaled continued investments in destinations (Celebration Key, Relax Away Half Moon Key) and non-newbuild CapEx to sustain multi-year growth, while acknowledging regulatory and macro uncertainties that could influence costs and demand.