Royal Caribbean Group Q4 FY2024 earnings call

• 2024 was an exceptional year with record vacations, high customer satisfaction, and return to investment grade balance sheet.
• Announced Celebrity River Cruises starting in 2027 with an initial order of 10 ships, seeing river cruising as a growth opportunity aligning with their strategy.
• 2025 outlook includes 5% capacity growth with new ships like Star of the Seas and Celebrity Xcel, yield growth 2.5%-4.5%, and adjusted EPS $14.35-$14.65.
• Continued innovation in digital and AI capabilities, with over 300 new digital capabilities in 2024, and AI integrated into guest journey.
• Expansion of private destination portfolio, including Perfect Day Mexico, Royal Beach Clubs in Paradise Island and Cozumel.

In 2024, Royal Caribbean Group delivered a record 8.6 million memorable vacations, achieved an 11.6% net yield growth, generated over $5 billion of operating cash flow, and returned the balance sheet to investment grade metrics. The introduction of Celebrity River Cruises was announced as a new growth opportunity, with an initial order for 10 transformative ships starting in 2027.

• 2025 expects 5% capacity growth with new ships, yield growth 2.5%-4.5%, adjusted EPS $14.35-$14.65 including $0.65 FX and fuel headwind.
• First quarter 2025: capacity up 3%, net yields up 4.75%-5.25%, net Cruise Costs excluding fuel up in range.
• 2025 CapEx guidance $5B, with $3.4B new build and $1.6B non-new build, including private destination investments.

Q: Comment on yields and guidance, and river market entry.

A: Jason Liberty discussed yield guidance considering tough comps and strong booking activity, and on river market, Celebrity will elevate the product with cutting edge design.

Q: About river market ramp, berthing rights, and Silversea entry.

A: Jason Liberty mentioned 10 ships with initial order, berthing in place, and Silversea could potentially enter river market.

Q: On CapEx and free cash flow, and river market berthing rights.

A: Naftali Holtz discussed CapEx guidance and Jason Liberty on berthing rights secured.

Q: On EPS guide, buybacks, and river market demographics.

A: Jason Liberty on EPS guide not including buybacks, and river market targeting younger cohort.

Q: On strong start to 2025, market share, and river market build cost.

A: Jason Liberty on strong demand across markets and river build cost comparison.

Q: On private destination pricing, volume, and loyalty program.

A: Michael Bayley on private destination pricing and Jason Liberty on loyalty program success.