ROYAL CARIBBEAN CRUISES LTD
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
RCL$327.16+1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0000884887-25-000095
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0000884887-25-000142
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 122 previous paragraphs and 148 current paragraphs.
78 unchanged; 35 reworded; 31 added; 7 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the six months ended June 30, 2025 was $1.94 billion and $1.95 billion, compared to Net Income and Adjusted Net Income of $1.2 billion and $1.4 billion, respectively, for the six months ended June 30, 2024.
Current report
•In May 2025, we amended our two revolving credit facilities, bringing our aggregate revolving credit capacity to $6.4 billion, and extended the termination date of one of the revolving credit facilities from October 2026 to October 2030.
Current report
(4)For 2024, represents property and equipment impairment charges related to certain construction in progress assets which we determined would no longer be completed. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).
Current report
(5)Represents gain on sale of noncontrolling interest of Floating Docks and Grand Bahama Shipyard. These amounts are included in Other income within our consolidated statements of comprehensive income (loss).
Current report
(4)For 2024, represents property and equipment impairment charges related to certain construction in progress assets. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).
Current report
(1)For 2024, represents property and equipment impairment charges related to certain construction in progress assets. This amount is included in Other operating within our consolidated statements of comprehensive income (loss).
Current report
(2)These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).
Current report
•$167 million driven by 5.8% capacity growth as a result of the additions of Utopia of the Seas and Silver Raycompared to same period in 2024, and
Current report
•$71 million driven by 5.8% capacity growth as a result of the additions of Utopia of the Seas and Silver Raycompared to same period in 2024; and
Current report
Total Cruise operating expenses for 2025 increased $131 million to $2.3 billion from $2.2 billion in 2024. The increase was primarily due to the 5.8% increase in capacity noted above which increased cruise operating expenses by $125 million in 2025 compared to the same period in 2024.
Current report
Equity investment income for 2025 increased $51 million, to $107 million from $57 million in 2024. The increase in income was primarily due to an increase in income from TUI Cruises, one of our equity investments.
Current report
Other comprehensive income (loss)
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Total revenues for 2025 increased $0.7 billion to $8.5 billion from $7.8 billion in 2024.
Current report
Passenger ticket revenues comprised 69.6% of our 2025 total revenues. Passenger ticket revenuesfor 2025 increased by $0.5 billion, or 9.4% to $5.9 billion from $5.4 billion in 2024. The increase was primarily due to:
Current report
•an increase of $274 million driven by yield growth as a result of higher load factors and higher pricing on both existing ships as well as the benefit of new ships, compared to the same period in 2024; and
Current report
•an increase of $239 million driven by 4.4% capacity growth as a result of the additions of Utopia of the Seas and Silver Raycompared to the same period in 2024.
Current report
The remaining 30.4% of 2025 total revenues was comprised of Onboard and other revenues, which increased $186 million, or 7.7% to $2.6 billion in 2025 from $2.4 billion in 2024. The increase was primarily due to:
Current report
•a $106 million increase driven by an 4.4% capacity growth as a result of the additions of new ships noted above compared to the same period in 2024; and
Current report
•a $79 million increase driven by yield growth as a result of higher load factors and higher pricing on both existing ships and new ships in 2025 compared to the same period in 2024.
Current report
Total Cruise operating expenses for 2025 increased $153 million to $4.4 billion from $4.2 billion in 2024. The increase was primarily due to:
Current report
•the increase in capacity noted above increased cruise operating expenses by $186 million, offset by:
Current report
•a decrease of $29 million reduced fuel expenses in 2025 compared to the same period in 2024.
Current report
Marketing, Selling and Administrative Expenses
Current report
Marketing, selling and administrative expenses for 2025 increased $70 million, or 7%, to $1.1 billion from $1.0 billion in 2024. This increase primarily relates to an increase in payroll and benefits expense driven by increased headcount and higher spending on marketing in 2025 compared to the same period in 2024.
Current report
Other Income (Expense)
Current report
Interest expense, net of interest capitalized for 2025 decreased $244 million, to $0.5 billion from $0.7 billion in 2024. The decrease was primarily due to the $133 million loss on extinguishment of debt in 2024 compared to an immaterial amount during the same period in 2025. Additionally, lower interest expense resulting from extinguishment and refinancing of certain indebtedness at lower rates compared to the same period in 2024.
Current report
Equity investment income for 2025 increased $58 million, to $155 million from $97 million in 2024. The increase in income was primarily due to an increase in income from TUI Cruises, one of our equity investments.
Current report
Depreciation and Amortization Expenses
Current report
Depreciation and amortization expenses for 2025 increased $49 million, or 6.3%, to $829 million from $780 million in 2024. The increase was primarily due to the additions of Utopia of the Seas and Silver Raycompared to the same period in 2024.
Current report
Other comprehensive income (loss)
Removed paragraphs (7)
Previous report
Revenues
Previous report
Cruise Operating Expenses
Previous report
Revenues
Previous report
•$77 million driven by 3.0% capacity growth as a result of the additions of Utopia of the Seas and Silver Raycompared to same period in 2024.
Previous report
•$36 million driven by 3.0% capacity growth as a result of the additions of Utopia of the Seas and Silver Raycompared to same period in 2024; and
Previous report
Other Comprehensive (loss) income
Previous report
In addition, during 2024, we entered into an agreement with Meyer Turku Oy and Chantiers de l'Atlantique to build a fourth Icon-class ship for delivery in 2027 and a sixth Edge-class ship for delivery in 2028. The agreements are contingent upon completion of certain conditions precedent including financing.
Reworded paragraphs (35)
Previous wording
•a discussion of our results of operations for the quarter ended March 31, 2025, compared to the same period in 2024; and
Current wording
•a discussion of our results of operations for the quarter and six months ended June 30, 2025, compared to the same period in 2024; and
Previous wording
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other (income) expense, and (ii) restructuring charges and other initiative expenses. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted EBITDA is provided below under Results of Operations.
Current wording
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other income, (ii) equity investment impairment, recovery of losses, and other, (iii) restructuring charges and other initiative expenses, and (iv) impairment losses. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted EBITDA is provided below under Results of Operations.
Previous wording
Adjusted Gross Margin represent Gross Margin, adjusted for payroll and related, food, fuel, other operating, and depreciation and amortization expense. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.
Current wording
Adjusted Gross Margin represents Gross Margin, adjusted for payroll and related, food, fuel, other operating, and depreciation and amortization expense. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.
Previous wording
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents net income less net income attributable to noncontrolling interest, excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense; (ii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition; and (iii) restructuring charges and other initiative expenses. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is provided below under Results of Operations.
Current wording
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents net income less net income attributable to noncontrolling interest, excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense, (ii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition, (iii) restructuring charges and other initiative expenses, (iv) equity investments impairment, recovery of losses, and other, (v) impairment losses, and (vi) gain on sale of noncontrolling interest. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is provided below under Results of Operations.
Previous wording
Gross Margin Yield represent Gross Margin per APCD.
Current wording
Gross Margin Yields represent Gross Margin per APCD.
Previous wording
Net Cruise Costsand Net Cruise Costs Excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses, and onboard and other expenses and, in the case of Net Cruise Costs Excluding Fuel, fuel expenses (each of which is described above under the Description of Certain Line Items heading). In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs Excluding Fuel to be the most relevant indicators of our performance. A reconciliation of Gross Cruise Costs to Net Cruise Costs and Net Cruise Costs Excluding Fuel is provided below under Results of Operations. For the periods presented, Net Cruise Costs and Net Cruise Costs Excluding Fuel excludes restructuring and other initiative expenses.
Current wording
Net Cruise Costsand Net Cruise Costs Excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses, and onboard and other expenses and, in the case of Net Cruise Costs Excluding Fuel, fuel expenses (each of which is described above under the Description of Certain Line Items heading). In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs Excluding Fuel to be the most relevant indicators of our performance. A reconciliation of Gross Cruise Costs to Net Cruise Costs and Net Cruise Costs Excluding Fuel is provided below under Results of Operations. For the periods presented, Net Cruise Costs and Net Cruise Costs Excluding Fuel excludes impairment losses, and restructuring charges and other initiative expenses.
Previous wording
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the first quarter of 2025 was $730 million and $744 million, compared to Net Income and Adjusted Net Income of $360 million and $478 million, respectively, for the first quarter of 2024.
Current wording
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the second quarter of 2025 was $1.21 billion and $1.20 billion, compared to Net Income and Adjusted Net Income of $854 million and $882 million, respectively, for the second quarter of 2024.
Previous wording
Significant items for the quarter ended March 31, 2025 include:
Current wording
Significant items for the quarter and six months ended June 30, 2025 include:
Previous wording
•Total revenues, increased $271 million for the quarter ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to an increase in capacity, ticket prices and onboard spending in 2025, compared to same period in 2024.
Current wording
•Total revenues increased $428 million and $699 million for the quarter and six months ended June 30, 2025 as compared to the same periods in 2024. The increase was primarily due to an increase in capacity, ticket prices and onboard spending in 2025, compared to same period in 2024.
Previous wording
•Total cruise operating expenses, increased $23 million for the quarter ended March 31, 2025 as compared to the same period in 2024. The increase was primarily due to an increase in capacity in 2025 compared to the same period in 2024.
Current wording
•Total cruise operating expenses, increased $131 million and $153 million for the quarter and six months ended June 30, 2025 as compared to the same periods in 2024. The increase was primarily due to an increase in capacity in 2025 compared to the same periods in 2024.
Previous wording
For further information regarding the debt transaction discussed above, refer to Note 6. Debtto our consolidated financial statements under Item 1. Financial Statements.
Current wording
For further information regarding the debt transactions discussed above, refer to Note 6. Debtto our consolidated financial statements under Item 1. Financial Statements.
Previous wording
Operating results for the quarter ended March 31, 2025 compared to the same periods in 2024 are shown in the following tables (in millions, except per share data):
Current wording
Operating results for the quarters and six months ended June 30, 2025 compared to the same periods in 2024 are shown in the following tables (in millions, except per share data):
Previous wording
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd, were calculated as follows (in millions, except per share data):
Current wording
We reported Net Income attributable to Royal Caribbean Cruises Ltd., Adjusted Net Income attributable to Royal Caribbean Cruises Ltd., Earnings per Share and Adjusted Earnings per Share as shown in the following table (in millions, except per share data. Certain amounts may not add due to use of rounded numbers):
Previous wording
(4)Diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of $15 million for the three months ended March 31, 2025, and $19 million for the three months ended March 31, 2024, respectively. Refer to Note 4. Earnings Per Share to our consolidated financial statements under Item 1. Financial Statements for further information.
Current wording
(6)Diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of $1 million and $16 million for the quarter and for the six months ended June 30, 2025, respectively, and $19 million and $38 million for the quarter and six months ended June 30, 2024, respectively. Refer to Note 4. Earnings Per Share to our consolidated financial statements under Item 1. Financial Statements for further information.
Previous wording
(5)Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $5 million, and $19 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(7)Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $1 million and $6 million for the quarter and six months ended June 30, 2025, respectively, and $19 million and $38 million for the quarter and six months ended June 30, 2024, respectively.
Previous wording
EBITDA and Adjusted EBITDA were calculated as follows (in millions):
Current wording
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin were calculated as follows (in millions, except APCD and per APCD data. Certain amounts may not add due to use of rounded numbers; reported EBITDA, Adjusted EBITDA, and per APCD and Margin amounts are calculated from the underlying dollar amounts):
Previous wording
(1) These amounts are included in Other expense within our consolidated statements of comprehensive income (loss).
Current wording
(1)These amounts are included in Other expense within our consolidated statements of comprehensive income (loss).
Previous wording
(2) Represents net non-operating expense. The amount excludes income tax expense, included in the EBITDA calculation above.
Current wording
(2)Represents net non-operating income. The amount excludes income tax expense, included in the EBITDA calculation above.
Previous wording
Gross Margin Yields and Net Yields were calculated by dividing Gross Margin and Adjusted Gross Margin by APCD as follows (in millions, except APCD and Yields):
Current wording
Gross Margin Yields and Net Yields were calculated by dividing Gross Margin and Adjusted Gross Margin by APCD as follows (in millions, except APCD and Yields. Certain amounts may not add due to use of rounded numbers; reported Adjusted Gross Margin and Yields are calculated from the underlying dollar amounts):
Previous wording
Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs Excluding Fuel were calculated as follows (in millions, except APCD and costs per APCD):
Current wording
Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs excluding Fuel were calculated as follows (in millions, except APCD and costs per APCD. Certain amounts may not add due to use of rounded numbers; reported Gross Cruise Costs, Net Cruise Costs, Net Cruise Costs excluding Fuel, and per APCD amounts are calculated from the underlying dollar amounts):
Previous wording
Total revenues for 2025 increased $271 million to $4 billion from $3.7 billion in 2024.
Current wording
Total revenues for 2025 increased $428 million to $4.5 billion from $4.1 billion in 2024.
Previous wording
Passenger ticket revenues comprised 69% of our 2025 total revenues. Passenger ticket revenuesfor 2025 increased by $202 million, or 7.9% to $2.7 billion from $2.5 billion in 2024. The increase was primarily due to:
Current wording
Passenger ticket revenues comprised 70.5% of our 2025 total revenues. Passenger ticket revenuesfor 2025 increased by $312 million, or 10.8% to $3.2 billion from $2.9 billion in 2024. The increase was primarily due to:
Previous wording
•$33 million driven by yield growth as a result of higher load factors and higher pricing on both existing ships and new hardware in 2025 compared to the same period in 2024.
Current wording
•$144 million driven by yield growth as a result of higher load factors and higher pricing on both existing ships and new hardware in 2025 compared to the same period in 2024.
Previous wording
The remaining 31% of 2025 total revenues was comprised of Onboard and other revenues, which increased $69 million, or 5.8% to $1.3 billion in 2025 from $1.2 billion in 2024. The increase was primarily due to:
Current wording
The remaining 29.5% of 2025 total revenues was comprised of Onboard and other revenues, which increased $116 million, or 9.5% to $1.3 billion in 2025 from $1.2 billion in 2024. The increase was primarily due to:
Previous wording
•$125 million driven by yield growth as a result of higher load factors and higher pricing on both existing ships and new hardware in 2025 compared to the same period in 2024; and
Current wording
•$45 million driven by yield growth as a result of higher load factors and higher pricing on both existing ships and new hardware in 2025 compared to the same period in 2024.
Previous wording
Interest expense, net of interest capitalized for 2025 decreased $175 million, to $249 million from $424 million in 2024. The decrease was primarily due to the 2024 loss on extinguishment of debt of $116 million, compared to $10.2 million inducement expense on the partial settlement of our 2025 Convertible notes in 2025. Additionally, interest expense decrease of $51 million in 2025 compared to the same period in 2024, due to proactive refinancing of certain indebtedness.
Current wording
Interest expense, net of interest capitalized for 2025 decreased $70 million, to $228 million from $298 million in 2024. The decrease was primarily due lower interest expense resulting from the extinguishment and refinancing of certain indebtedness at lower rates compared to the same period in 2024. Additionally, loss on extinguishment of debt of $17 million in 2024 compared to none in during the same period in 2025.
Previous wording
Other comprehensive income was$107 million in 2025 compared of $57 million for the same period in 2024. The increase of $50 million was primarily due to a Gain on cash flow derivative hedges in 2025 of $128 million compared to $44 million in 2024, mostly as a result of a significant increase in the fair value of our FX forward swaps in 2025 compared to 2024.
Current wording
Other comprehensive incomewas $283 million in 2025 compared to$20 million for the same period in 2024. The increase of$263 million, was primarily due to a Gain on cash flow derivative hedges of$309 million in 2025 compared to$13 million in 2024, mostly as a result of a significant increase in the fair value of our FX forward swaps in 2025 compared to 2024.
Previous wording
Cash flow generated from operations provides us with a significant source of liquidity. Net cash provided by operating activitieswas $1.6 billion and $1.3 billion for the three months ended March 31, 2025, and 2024, respectively. Cash flows from operating activities increased $0.3 billion primarily driven by an increase in operating income.
Current wording
Cash flow generated from operations provides us with a significant source of liquidity. Net cash provided by operating activitieswas $3.4 billion and $2.9 billion for the six months ended June 30, 2025, and 2024, respectively. Cash flows from operating activities increased $0.5 billion primarily driven by an increase in operating income.
Previous wording
Net cash used in investing activities was $0.4 billion for the three months ended March 31, 2025, compared to $0.3 billion for the same period in 2024. Cash flows used in investing activities were primarily attributable by an increase in capital expenditures of $0.2 billion during 2025, compared to the same period in 2024.
Current wording
Net cash used in investing activities was $1.1 billion for the six months ended June 30, 2025, compared to $2.5 billion for the same period in 2024. The decrease of $1.3 billion in Cash flows used in investing activities was primarily attributable capital expenditures related to the delivery of Utopia of the Seas and Silver Ray in 2024, compared to no ship deliveries during the same period in 2025.
Previous wording
Net cash used in financing activitieswas $1.2 billion for the three months ended March 31, 2025, compared to $1.1 billion for the same period in 2024. The change of $0.1 billion was primarily attributable to cash used of $389 million related to payment of dividends and purchase of treasury stock, offset by a decrease of $187 million primarily related to net repayment of debt, and a decrease of $102 million of premium on repayments of debt in 2025 compared to the same period in 2024.
Current wording
Net cash used in financing activitieswas $1.9 billion for the six months ended June 30, 2025, compared to $0.5 billion for the same period in 2024. The change of $1.4 billion was primarily attributable to a net decrease in debt proceeds of $939 million, and $589 million related to payment of dividends and purchase of treasury stock, offset by a decrease of $102 million of premium on repayments of debt in 2025 compared to the same period in 2024.
Previous wording
Our future capital commitments consist primarily of new ship orders. As of March 31, 2025, the aggregate expected cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was $7.9 billion, of which we had deposited $1.0 billion. Approximately 36.5% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at March 31, 2025. Refer to Note 8. Commitments and Contingenciesand Note 11. Fair Value Measurements and Derivative Instrumentsto our consolidated financial statements under Item 1. Financial Statements for further information.
Current wording
Our future capital commitments consist primarily of new ship orders. As of June 30, 2025, the aggregate expected cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was $12.1 billion, of which we had deposited $1.4 billion. Approximately 50.2% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at June 30, 2025. Refer to Note 8. Commitments and Contingenciesand Note 11. Fair Value Measurements and Derivative Instrumentsto our consolidated financial statements under Item 1. Financial Statements for further information.
Previous wording
(3)Amounts are based on contractual installment and delivery dates for our ships on order. Included in these figures are $5.1 billion in final contractual installments, which have committed financing with sovereign guarantees covering approximately 80% of the cost of the ships on order for our Global Brands. Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent.
Current wording
(3)Amounts are based on contractual installment and delivery dates for our ships on order. Included in these figures are $8.3 billion in final contractual installments, which have committed financing with sovereign guarantees covering approximately 80% of the cost of the ships on order for our Global Brands. Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent.
Previous wording
We have significant contractual obligations of which our debt service obligations and the capital expenditures associated with our ship purchases represent our largest funding needs. As of March 31, 2025, we had $6.1 billion of committed financing for our ships on order. As of March 31, 2025, our obligations due through March 31, 2026 primarily consisted of $1.4 billion related to debt maturities, $0.9 billion related to interest on debt and $2.5 billion related to progress payments on our ship orders and, based on the expected delivery date, the final installments payable due upon the delivery of Star of the Seas and Celebrity Xcel. We have historically relied on a combination of cash flows provided by operations, draw-downs under our available credit facilities, the incurrence of additional debt and/or the refinancing of our existing debt and the issuance of additional shares of equity securities to fund our obligations.
Current wording
We have significant contractual obligations of which our debt service obligations and the capital expenditures associated with our ship purchases represent our largest funding needs. As of June 30, 2025, we had $7.8 billion of committed financing for our ships on order. As of June 30, 2025, our obligations due through June 30, 2026 primarily consisted of $938 million related to debt maturities, $887 million related to interest on debt and $4.6 billion related to progress payments on our ship orders and, based on the expected delivery date, the final installments payable due upon the delivery of Star of the Seas and Celebrity Xcel. We have historically relied on a combination of cash flows provided by operations, draw-downs under our available credit facilities, the incurrence of additional debt and/or the refinancing of our existing debt and the issuance of additional shares of equity securities to fund our obligations.
Previous wording
As of March 31, 2025, we had liquidity of $4.5 billion, including cash and cash equivalents of $0.4 billion, and $4.1 billion of undrawn revolving credit facility capacity.
Current wording
As of June 30, 2025, we had liquidity of $7.1 billion, including cash and cash equivalents of $0.7 billion, and $6.4 billion of undrawn revolving credit facility capacity.
Previous wording
Our export credit facilities and our non-export credit facilities, and certain of our credit card processing agreements contain covenants that require us, among other things, to maintain a fixed charge coverage ratio, limit our net debt-to-capital ratio, and to maintain minimum liquidity. As of March 31, 2025, we were in compliance with our financial covenants and we estimate that we will be in compliance for at least the next twelve months.
Current wording
Our export credit facilities and our non-export credit facilities, and certain of our credit card processing agreements contain covenants that require us, among other things, to maintain a fixed charge coverage ratio, and limit our net debt-to-capital ratio. As of June 30, 2025, we were in compliance with our financial covenants and we estimate that we will be in compliance for at least the next twelve months.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
(3)These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).
Current report — wording carried from elsewhere
Other comprehensive income (loss)was $176 million in 2025 compared to a loss of $(37) million for the same period in 2024. The increase of $213 million was primarily due to a Gain on cash flow derivative hedges of $181 million in 2025 compared to loss of $(31) million in 2024, mostly as a result of a significant increase in the fair value of our FX forward swaps in 2025 compared to 2024.
Current report — wording carried from elsewhere
In this section, references to 2025 refer to the six months ended June 30, 2025 and references to 2024 refer to the six months ended June 30, 2024.
Current report — wording carried from elsewhere
(1) In July 2025, we took delivery of Star of the Seas.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
(3) These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).
Previous report — wording carried elsewhere
(1) These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).