<div id="readability-page-1"><div>Royal Caribbean Cruises Ltd., a leading global cruise company, has released its 2025 10-K report, showcasing a year of robust financial performance, strategic growth initiatives, and a focus on expanding its market presence. The report highlights the company's efforts to enhance its fleet, expand its exclusive destinations, and invest in technological advancements, all while navigating various industry challenges and risks. Financial Highlights <ul><li>Total Revenues: $17,935 million, an increase of $1.5 billion or 8.8% from 2024, driven by strong ticket revenue and growth of onboard performance.</li><li>Gross Margin: $7,133 million, reflecting an 8.5% increase in Gross Margin Yields as-reported.</li><li>Operating Income: $4,910 million, representing 27.4% of total revenues, up from 24.9% in 2024.</li><li>Net Income attributable to Royal Caribbean Cruises Ltd.: $4,268 million, or $15.61 per diluted share, compared to $2,877 million, or $10.94 per diluted share in 2024.</li><li>Adjusted Net Income attributable to Royal Caribbean Cruises Ltd.: $4,286 million, or $15.64 per diluted share, compared to $3,237 million, or $11.80 per diluted share in 2024.</li></ul> Business Highlights <ul><li>Global Brands and Fleet: The company operates three global cruise brands: Royal Caribbean, Celebrity Cruises, and Silversea, with a combined fleet of 69 ships and an aggregate capacity of approximately 179,720 berths as of December 31, 2025. The fleet offers itineraries to over 1,000 destinations worldwide.</li><li>New Ship Orders: Royal Caribbean has four ships on order, including the third Icon-class ship, Legend of the Seas, expected in 2026, and the seventh Oasis-class ship expected in 2028. Celebrity Cruises has one Edge-class ship on order, Celebrity Xcite, expected in 2028.</li><li>Expansion of Private Destinations: The company plans to expand its exclusive private destinations from three to eight by 2028, including the Perfect Day and Royal Beach Club collections.</li><li>Celebrity River Cruises Launch: In 2025, Celebrity Cruises announced the launch of Celebrity River Cruises, with an initial order of 10 ships and plans to expand to 20 vessels by 2026.</li><li>Geographical Market Penetration: The company continues to focus on increasing market penetration in North America, Europe, and Asia/Pacific, with market penetration rates showing growth potential, particularly in Asia/Pacific.</li><li>Technological Advancements: The entire fleet is equipped with Starlink for enhanced connectivity, and the company is investing in digital capabilities to improve customer experiences and operational efficiencies.</li><li>Environmental Initiatives: The company is committed to achieving net zero emissions by 2050 through its Destination Net Zero strategy, which includes modernizing the fleet with energy-efficient and alternatively fueled vessels.</li><li>Employee and Workforce Development: The company employs approximately 108,000 people globally, with a focus on attracting, developing, and retaining talent through competitive compensation and development opportunities.</li><li>Future Outlook: The company is focused on strategic expansion initiatives, including new ship orders and private destination developments, to capture additional market share in the growing global vacation industry.</li></ul> Strategic Initiatives <ul><li>Expansion of Vacation Ecosystem: In 2025, the company expanded its vacation ecosystem by taking delivery of two new ships, Star of the Seas and Celebrity Xcel, and acquiring the port of Costa Maya. It also announced the launch of Celebrity River Cruises in 2027 and the expansion of its private destination portfolio with Royal Beach Club Santorini.</li><li>Capital Management: The company maintained a strong balance sheet, achieving investment-grade ratings across all major credit rating agencies. It managed debt maturities effectively and returned $2.0 billion in capital to shareholders through dividends and share repurchases. The company repurchased 1.8 million shares of common stock in 2025 and declared dividends totaling $3.50 per share throughout the year. Additionally, the company issued $1.5 billion in senior notes to finance new ship deliveries at lower costs.</li><li>Future Outlook: For 2026, the company expects a 6.7% increase in capacity with the full year operation of Star of the Seas and Celebrity Xcel, and the delivery of Legend of the Seas. It plans to expand its portfolio of exclusive land-based destinations to eight by 2028. The company anticipates capital expenditures of approximately $5 billion in 2026, primarily for new ship orders. It has committed financing arrangements covering 80% of the cost for ships on order, excluding Celebrity River Cruises. The company aims to continue its strategic focus on growth and enhancing shareholder value through disciplined capital management.</li></ul> Challenges and Risks <ul><li>Market and Operational Risks: The company operates in the global vacation industry, which exposes it to competition from both cruise lines and land-based vacation alternatives. The company's strategy includes expanding into new markets and investing in new ventures, which may not always be successful and could strain resources.</li><li>Macroeconomic and Geopolitical Risks: Adverse economic conditions could reduce demand for cruises, impacting operating results and financial condition. Rising operating costs due to inflationary pressures and geopolitical factors could affect profitability. The company is also vulnerable to disruptions from terrorist attacks, wars, and disease outbreaks, which could lead to decreased demand and increased operating costs.</li><li>Reputation and Operational Disruptions: The company is exposed to risks from incidents on ships and negative media coverage, which could damage its reputation and sales. Natural disasters and climate events could disrupt operations and affect profitability. Sustainability initiatives could lead to increased costs and reputational risks if stakeholder expectations are not met.</li><li>Supply Chain and Capacity Risks: The reliance on shipyards and suppliers for newbuild and ship upgrade programs presents risks of delays and increased costs. An increase in global cruise capacity could depress prices and impact profitability. The unavailability of ports of call due to geopolitical developments or environmental regulations could affect operations.</li><li>Sales Channel and Acquisition Risks: The company relies on travel advisors for bookings, and disruptions in this channel could impact sales. Co-investments with third parties and potential acquisitions carry inherent risks, including integration challenges and unforeseen liabilities.</li><li>Financial and Cybersecurity Risks: Financial risks include the potential inability to obtain sufficient financing or capital, which could impact operations and growth. Changes in tax status or regulations could adversely affect financial results. The company is also exposed to cybersecurity risks, which could lead to operational disruptions and reputational damage.</li><li>Management Strategies: Management is focused on addressing these risks through strategic investments in fleet modernization, sustainability initiatives, and expanding market presence. The company is also enhancing its technological capabilities to improve customer experiences and operational efficiencies.</li><li>Market Risk Management: The company is exposed to fluctuations in foreign currency exchange rates, fuel prices, and interest rates, which could materially impact financial results. The company uses hedging strategies to mitigate some of these risks but remains vulnerable to market volatility.</li></ul>SEC Filing: ROYAL CARIBBEAN CRUISES LTD [ RCL ] - 10-K - Feb. 11, 2026</div></div>

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Royal Caribbean Cruises Ltd. has released its 2025 10-K report, highlighting strong financial performance with total revenues of $17.935 billion, an 8.8% increase from 2024. Key figures include a gross margin of $7.133 billion and net income of $4.268 billion. The company plans to expand its fleet and private destinations, with new ship orders and the launch of Celebrity River Cruises. Future outlook includes a 6.7% capacity increase in 2026 and a commitment to achieving net zero emissions by 2050. However, the company faces market, operational, and macroeconomic risks.

ROYAL CARIBBEAN CRUISES LTD SEC 10-K Report