Download PDF

1. Company Snapshot

1.a. Company Description

Carnival Corporation & plc operates as a leisure travel company.Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names.The company also provides port destinations and other services, as well as owns and owns and operates hotels, lodges, glass-domed railcars, and motor coaches.


It sells its cruises primarily through travel agents, tour operators, vacation planners, and websites.The company operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia, and internationally.It operates 87 ships with 223,000 lower berths.


Carnival Corporation & plc was founded in 1972 and is headquartered in Miami, Florida.

Show Full description

1.b. Last Insights on CCL

Breaking News: Carnival Corporation & plc has shown significant recovery and growth, bouncing back from pandemic lows. Recent years have seen soaring revenue. The company's ability to adapt and thrive in a changing environment is notable. Carnival's growth story is compelling, with potential for long-term success. Analysts are optimistic, some recommend buying the stock for its growth potential. Recent earnings releases have shown positive trends. Carnival's future prospects are being closely watched. Recommendations to buy have been given by several analysts.

1.c. Company Highlights

2. Carnival Corporation's Strong Q4 2025 Earnings: A Sign of Continued Growth

Carnival Corporation & plc reported a robust fourth quarter 2025, with revenues, yields, operating income, and EBITDA reaching historical highs. The company achieved a net income of $454 million, nearly 2.5x the prior year, and exceeded September guidance by $154 million or $0.11 per share. The actual EPS came out at $0.34, beating estimates of $0.2479. For the full year 2025, the company delivered over $3 billion to the bottom line, a 60% increase over 2024, and an all-time high net income.

Publication Date: Dec -20

📋 Highlights
  • Record Financial Performance:: Q4 2025 net income reached $454M, 2.5x prior year, with full-year 2025 net income exceeding $3B (+60% YoY).
  • 2026 Guidance:: EBITDA projected at $7.6B, with $350M+ bottom-line growth YoY and 2.5% yield growth ($0.35/share) from higher ticket prices/onboard spending.
  • Debt Reduction & Refinancing:: Net debt/EBITDA ratio at 3.4x (investment-grade), $10B debt reduction since 2023 peak, and $19B refinancing completed.
  • Strategic Unification:: Carnival plc to become wholly-owned UK subsidiary of Carnival Corporation by Q2 2026, streamlining governance and reducing costs.
  • Cost & Yield Management:: 3.25% cruise cost increase (3.5% normalized) in 2026, but 1.1% cost mitigation from efficiencies, alongside 3% normalized yield growth.

Guidance for 2026

The company is guiding for a 2.5% yield growth in 2026, worth over $0.35 per share, driven by an increase in ticket prices and higher onboard spending. Cruise costs without fuel per ALBD are expected to be up approximately 3.25%, or 2.5% normalized for certain items. The company expects to deliver over $350 million more to the bottom line year-over-year and generate over $7.6 billion of EBITDA in 2026. Analysts estimate next year's revenue growth at 4.2%, indicating a continued upward trend.

Deleveraging and Refinancing Progress

Carnival has reached an investment-grade net debt to adjusted EBITDA ratio of 3.4x as of the end of the fiscal year 2025 and successfully completed its $19 billion refinancing plan in less than a year. The company is resuming its dividend at an initial rate of $0.15 per quarter and targets a net debt-to-EBITDA ratio under 3x in the longer term. The company has also made significant progress in deleveraging and refinancing, reducing debt by over $10 billion since the peak less than 3 years ago.

Valuation Metrics

With a P/E Ratio of 14.8, P/B Ratio of 3.33, and EV/EBITDA of 10.63, Carnival Corporation's valuation metrics indicate a relatively stable position. The company's ROE of 25.45% and ROIC of 10.88% demonstrate its ability to generate returns on equity and invested capital. The Net Debt / EBITDA ratio of 4.14 is expected to decrease as the company continues to deleverage.

Operational Highlights

The company reported strong yield growth, driven by improved commercial execution, revenue management, and brand messaging. Carnival's focus on maximizing revenue per available berth day (REVPAR) rather than occupancy rates has contributed to its success. The company's new private island, Celebration Key, has hosted 1 million guests, with ticket premiums in line with expectations. As Josh Weinstein, CEO, noted, the company is seeing a net benefit from capacity moving from Europe to the Caribbean, which aligns with its strategic approach.

Cost Management

Carnival is working to optimize its expenses and find efficiencies through the use of AI and other tools. A recent listing and corporate simplification effort is expected to yield cost savings of a few million dollars upfront and ongoing. The company's cost mitigation initiatives are expected to contribute to its bottom line, with a 1.1% cost mitigation from efficiencies and other initiatives.

3. NewsRoom

Card image cap

Versor Investments LP Decreases Position in Carnival Corporation $CCL

Feb -10

Source: defenseworld.net

Card image cap

Phemex introduces 24/7 TradFi futures trading with 0-Fee Carnival, creating an all-in-one trading hub

Feb -09

Source: globenewswire.com

Card image cap

Could Carnival Stock Help You Become a Millionaire?

Feb -07

Source: fool.com

Card image cap

Carnival Corporation (CCL) Is a Trending Stock: Facts to Know Before Betting on It

Feb -05

Source: zacks.com

Card image cap

Holland America Line Opens Nearly Three Dozen 2027-2028 Voyages Across Hawaii, Mexico, Panama Canal and Pacific Coast

Feb -05

Source: prnewswire.com

Card image cap

Caribbean Capacity Surges, Can Carnival Defend Yields in 2026?

Feb -04

Source: zacks.com

Card image cap

Don't You Dare Buy the Cheapest Cruise Line Stock

Feb -04

Source: fool.com

Card image cap

Stock Of The Day: Is The Carnival Rally Over Already?

Feb -03

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.39%)

6. Segments

North America and Australia

Expected Growth: 5.5%

Carnival Corporation & plc's 5.5% growth in North America and Australia is driven by increasing demand for luxury and premium cruise experiences, particularly among baby boomers and Gen Xers. Strong brand recognition, strategic partnerships, and investments in digital marketing also contribute to growth. Additionally, the rise of short and weekend cruises, as well as the introduction of new, innovative ships, further boost demand in these regions.

Europe

Expected Growth: 5.2%

Strong demand for Mediterranean and Northern European itineraries, driven by increased consumer spending and a growing middle class, contributed to Carnival Corporation & plc's 5.2% growth in Europe. Additionally, the company's strategic investments in new ships and onboard amenities, as well as its efforts to enhance the overall customer experience, have also supported this growth.

Tour and Other

Expected Growth: 4.8%

The 4.8% growth in Tour and Other segment of Carnival Corporation & plc is driven by increasing demand for cruise travel, expansion into new markets, and strategic partnerships. Additionally, the company's efforts to enhance customer experience through digitalization and onboard amenities, as well as its focus on sustainability and environmental initiatives, contribute to the segment's growth.

Cruise Support

Expected Growth: 4.5%

Cruise Support from Carnival Corporation & plc's 4.5% growth driven by increasing demand for experiential travel, rising middle-class disposable income, and growing popularity of cruise vacations among baby boomers and Gen X. Additionally, Carnival's strategic investments in digitalization, ship refurbishments, and itinerary diversification are enhancing the customer experience, driving bookings and revenue growth.

7. Detailed Products

Carnival Cruise Line

Carnival Cruise Line is a global cruise line that operates a fleet of over 25 ships, offering a range of itineraries to the Caribbean, Bahamas, Mexico, Alaska, and Europe.

Princess Cruises

Princess Cruises is a premium cruise line that operates a fleet of 19 ships, offering luxurious amenities and itineraries to destinations around the world.

Holland America Line

Holland America Line is a premium cruise line that operates a fleet of 14 ships, offering mid-size ship experiences to destinations in the Caribbean, Alaska, Europe, and beyond.

Seabourn Cruise Line

Seabourn Cruise Line is an ultra-luxury cruise line that operates a fleet of 5 intimate ships, offering all-inclusive, boutique-hotel style experiences to destinations around the world.

P&O Cruises (Australia)

P&O Cruises (Australia) is a leading cruise line in Australia, operating a fleet of 3 ships, offering short and long cruises to destinations in Australia, New Zealand, and the South Pacific.

Costa Cruises

Costa Cruises is a European-based cruise line that operates a fleet of 12 ships, offering Mediterranean-inspired cruises to destinations in Europe, the Caribbean, and South America.

AIDA Cruises

AIDA Cruises is a German-based cruise line that operates a fleet of 13 ships, offering a unique, laid-back cruise experience to destinations in Europe, the Caribbean, and South America.

P&O Cruises (UK)

P&O Cruises (UK) is a leading cruise line in the UK, operating a fleet of 7 ships, offering a range of itineraries to destinations in Europe, the Caribbean, and beyond.

8. Carnival Corporation & plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Carnival Corporation & plc faces moderate threat from substitutes, as customers have limited alternatives for cruise vacations. However, the rise of land-based vacations and staycations could pose a threat.

Bargaining Power Of Customers

Carnival Corporation & plc has a high bargaining power of customers, as customers have many options for cruise vacations and can easily switch to competitors.

Bargaining Power Of Suppliers

Carnival Corporation & plc has a low bargaining power of suppliers, as the company has a strong negotiating position due to its large scale of operations.

Threat Of New Entrants

Carnival Corporation & plc faces a low threat of new entrants, as the cruise industry has high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

Carnival Corporation & plc operates in a highly competitive industry, with intense rivalry among existing players, including Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 82.25%
Debt Cost 5.36%
Equity Weight 17.75%
Equity Cost 16.65%
WACC 7.36%
Leverage 463.40%

11. Quality Control: Carnival Corporation & plc passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Travel + Leisure

A-Score: 6.5/10

Value: 7.6

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Expedia

A-Score: 5.3/10

Value: 3.8

Growth: 6.6

Quality: 7.1

Yield: 1.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Advance Auto Parts

A-Score: 5.0/10

Value: 9.4

Growth: 1.4

Quality: 4.1

Yield: 5.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Tripadvisor

A-Score: 4.7/10

Value: 7.1

Growth: 4.1

Quality: 6.4

Yield: 0.0

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Carnival

A-Score: 4.6/10

Value: 5.4

Growth: 6.4

Quality: 5.0

Yield: 0.0

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Norwegian Cruise Line

A-Score: 3.7/10

Value: 6.2

Growth: 5.1

Quality: 4.5

Yield: 0.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.35$

Current Price

33.35$

Potential

-0.00%

Expected Cash-Flows