Royal Caribbean Group (RCL) reported third-quarter Adjusted EPS of $6.57 and raised its full-year Adjusted EPS outlook to $17.85 to $17.95, from the $17.73 to $17.87 range it had set after the second quarter.

The cruise operator said the beat reflected strong close-in demand and lower costs due to timing. The increase in earnings expectations also absorbed higher-than-anticipated fuel costs, based on current at-the-pump rates, and currency exchange rates.

Net income was $1.7 billion, or $6.45 a share, compared with $1.6 billion, or $5.74 a share, a year earlier. Adjusted net income was $1.8 billion. Adjusted EBITDA was $2.5 billion.

Total revenue was $5.6 billion, up 9% from the year-earlier third quarter. That growth rate was faster than the 6% year-over-year increase recorded in the second quarter, when revenue was $4.8 billion. Capacity rose 8% and the company carried 2.7 million guests, a 9% increase. Load factor was 112%.

Net yields increased 0.9% as-reported and 0.6% in constant currency versus the third quarter of 2025. The company said net yield growth exceeded its guidance, primarily on better-than-expected close-in demand in Europe and the Caribbean. Gross margin yields decreased 0.8% as-reported.

Costs moved the other way from the second quarter. Gross cruise costs per available passenger cruise day decreased 0.7% as-reported. Net cruise costs excluding fuel per APCD decreased 1.9% as-reported and 1.8% in constant currency. The company attributed the better-than-expected cost performance to the timing of expenses that shifted into the fourth quarter.

Chairman and Chief Executive Jason Liberty said the results reflected continued strong consumer demand and momentum across the company’s brands. Since the last earnings call, he said, booking volumes increased in the mid-teens across all major channels, with bookings for 2027 sailings up in the high teens. He said 2027 bookings are pacing ahead of historical levels at higher rates and that, based on the forward fuel curve, the company remains on track for its Perfecta goals of a 20% Adjusted EPS CAGR from 2024 through 2027, or a $20-handle in 2027.

For the full year 2026, the company expects revenue to grow 9% year over year. Net yields are expected to increase approximately 2.7% as-reported and approximately 2.1% in constant currency. Net cruise costs excluding fuel per APCD are expected to increase approximately 0.4% as-reported and be approximately flat in constant currency.

For the fourth quarter, the company expects Adjusted EPS of $3.48 to $3.58. Net yields are expected to be 4.4% to 4.9% as-reported and 4.2% to 4.7% in constant currency versus 2025, which the company said is driven by strong demand, a more favorable year-over-year comparison, deployment mix, and the timing of dry docks. Total revenue is expected to grow 9%. Net cruise costs excluding fuel per APCD are expected to decrease 1.5% to 1.0% as-reported.

Bunker pricing, net of hedging, for the third quarter was $778 per metric ton, with consumption of 446,000 metric tons. Based on current fuel prices, the company has included $379 million of fuel expense in fourth-quarter guidance. Forecasted consumption of 463,000 metric tons is 58% hedged via swaps. Full-year 2026 fuel expense is guided at $1,345 million on 1,763,000 metric tons.

In September the company announced an agreement to acquire a 50% interest in Sandals and Beaches Resorts, expanding its platform into all-inclusive resorts. The investment is expected to close in early 2027, subject to customary closing conditions and regulatory approvals. The company said its share of earnings from Sandals and Beaches is expected to be immediately accretive, with 2027 contribution dependent on the timing of the close, and that the expected contribution will be incorporated into 2027 guidance upon closing.

As of September 30, 2026, liquidity was $7.4 billion, including cash and cash equivalents and undrawn revolving credit facility capacity. During the quarter the company issued $1.25 billion of 5.550% senior unsecured notes due 2034. In October it entered a $400 million delayed-draw term loan with Export Development Canada and increased its revolving credit facility by $50 million, to $6.65 billion of capacity. Full-year 2026 capital expenditures are expected to be approximately $4.6 billion.