RCL Filings — Royal Caribbean Cruises Ltd - FilingSpy
RCL
Royal Caribbean Cruises Ltd
A cruise company that operates vacation ships under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, sailing to destinations on all seven continents. It was founded in 1968 by three Norwegian shipping firms who picked the name "Royal" to signal high service standards and appeal to Americans. Its Icon of the Seas is the largest cruise ship ever built, with the biggest water park at sea and an ice-skating rink on board.
Net income fell 6.8% to $1.1B as higher crew and fuel costs offset a 6.5% revenue gain.
Profitability dipped even as more passengers sailed. rose 6.5% to $4.8 billion on 4.9% capacity growth, but fell 6.8% to $1.1 billion as crew payroll and fuel costs each rose $76 million, pushing down 2.2 points to 27.0%. The quarter shows costs growing faster than revenue, a shift from the that defined the past two years.
Key takeaways
fell 6.8% to $1.1 billion, or $4.20 per diluted share, from $1.2 billion a year ago, as a $264 million increase in cruise operating expenses outweighed the $294 million gain.
rose 6.5% to $4.8 billion, driven by 4.9% capacity growth from the addition of Star of the Seas and Celebrity Xcel, with onboard spending up 11% including $83 million from higher per-passenger spending.
contracted 2.4 points to 47.3%, the first decline since Q1 2022, as cruise operating expenses rose 11.6% — nearly double the growth rate — led by $76 million in higher crew payroll and $76 million from higher fuel rates per metric ton.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 6.5% on capacity growth, but net income fell to $1.1B from $1.2B on higher costs.
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Total revenues rose $294 million, or 6.5%, to $4.8 billion in Q2 2026, driven by 4.9% capacity growth from the addition of Star of the Seas and Celebrity Xcel.
Onboard and other revenues increased $149 million, or 11%, to $1.5 billion, including $83 million from higher per-passenger onboard spending.
fell 1.7% to $1.3 billion, and narrowed 2.2 points to 27.0%, as marketing, selling, and administrative expenses continued to rise alongside the larger fleet.
turned negative at negative $877 million, down from positive $910 million a year ago, as on new ships consumed more cash than the $1.9 billion in generated during the quarter.
The U.S. Supreme Court vacated the 11th Circuit's reversal of the Havana Docks judgment in May 2026 and remanded the case, reopening a liability the company had released approximately $124 million of in 2024.
What changed
The trend that had persisted since early 2022 reversed this quarter: fell 2.4 points to 47.3%, after reaching a record 49.7% in Q2 2025 and 49.5% in Q1 2026, as cost growth of 11.6% outpaced growth of 6.5%.
swung to negative $877 million from positive $910 million a year ago, confirming the concern flagged in prior quarters that the $5 billion capital expenditure plan would pressure cash generation as newbuild spending accelerated.
The Havana Docks case took a new turn: the U.S. Supreme Court vacated the 11th Circuit's 2024 reversal on May 21, 2026, and remanded the case, meaning the $112 million judgment the company had released from its balance sheet is now back in play.
rose 20.7% to $21.3 billion, up from $17.6 billion in Q2 2025, reflecting the $2.5 billion senior notes issuance in February 2026 and marking a reversal from the debt reduction trend that had brought long-term debt down from $21.3 billion at year-end 2022 to $17.6 billion by mid-2025.
What to watch
Whether the 11th Circuit's reconsideration of the Havana Docks case on remand results in a reinstated liability, and whether the company must re-record any portion of the $124 million it released in 2024.
Q3 2026 , to assess whether the 2.4-point decline to 47.3% in Q2 is a one-quarter cost event or the start of a trend as crew and fuel costs continue to rise faster than .
Full-year , given the negative $877 million result in Q2 and the $4.7 billion capital expenditure plan for 2026, to see whether the full-year figure can exceed the $1.2 billion reported in 2025.
Whether the $1.50 quarterly and ongoing share repurchases are sustained alongside the rising debt load, which reached $21.3 billion in this quarter.
Total cruise operating expenses rose $264 million, or 11.6%, to $2.5 billion, with $76 million from higher crew payroll and $76 million from higher fuel rates per metric ton.
attributable to Royal Caribbean fell to $1.1 billion in Q2 2026 from $1.2 billion in Q2 2025, while six-month net income rose to $2.1 billion from $1.9 billion.
Liquidity stood at $6.9 billion as of June 30, 2026, including $0.9 billion in cash and $6 billion in undrawn capacity.
Full-year 2026 are expected to be approximately $4.7 billion, excluding Partner Brands ships.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of our market risks, refer to Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our exposure to market risks since the date…
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For a discussion of our market risks, refer to Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our exposure to market risks since the date of our 2025 Annual Report.
Havana Docks Helms-Burton case was remanded to the 11th Circuit after a May 2026 Supreme Court ruling vacated the prior reversal.
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Havana Docks Corporation alleges the company trafficked in the expropriated Havana Cruise Port Terminal under the Helms-Burton Act and seeks statutory remedies including , interest, and fees.
A December 2022 final judgment awarded the plaintiff approximately $112 million in damages and attorneys' fees, and the company recorded a charge of about $130 million including post-judgment interest and defense costs.
The 11th Circuit reversed the lower court's judgment in October 2024, and the company released approximately $124 million of the previously recorded for the year ended December 31, 2024.
The U.S. Supreme Court granted certiorari on October 3, 2025, and on May 21, 2026 vacated the 11th Circuit's ruling that Havana Docks' concession interest expired in 2004, remanding the case for consideration of unresolved defenses.
The company states the litigation outcome is inherently unpredictable and offers no assurance of a favorable final result.
The company is also routinely involved in cruise-industry claims, most of which are covered by insurance, and believes their net outcome will not have a material adverse impact.
There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussions of the Company’s risk factors under Part I, Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended Decem…
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There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussions of the Company’s risk factors under Part I, Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
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