Carnival Reports Record $3.1B Net Income for 2025, Returns to Profitability
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Strong Recovery: Carnival achieved a record adjusted net income of $3.1 billion and over $26 billion in revenue for 2025, marking a successful post-pandemic turnaround, with expectations for continued revenue growth solidifying its market leadership.
- Significant Debt Reduction: The company has cut more than $10 billion in debt since the pandemic peak, achieving a net debt to adjusted EBITDA ratio of 3.4x, which has led to an investment-grade rating from Fitch, enhancing financial stability and allowing for dividend reinstatement.
- Attractive Stock Valuation: Despite a 23% increase in stock price this year, Carnival trades at about 12x forward earnings, down from over 16x last year, indicating that the stock remains appealing and not overvalued in the current market context.
- Strong Customer Demand: The 2026 booking position aligns with this year's figures, and record customer deposits in the latest quarter indicate robust consumer demand for Carnival cruises, further supporting the company's growth potential going forward.
Analyst Views on CCL
Wall Street analysts forecast CCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCL is 35.76 USD with a low forecast of 29.44 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 30.720
Low
29.44
Averages
35.76
High
40.00
Current: 30.720
Low
29.44
Averages
35.76
High
40.00
About CCL
Carnival Corporation is a global cruise and leisure travel company. The Company has a portfolio of cruise lines, including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn. The Company's segment includes NAA cruise operations, Europe cruise operations (Europe), Cruise Support and Tour and Other. Its Cruise Support segment includes its portfolio of port destinations and exclusive islands as well as other services, all of which are operated for the benefit of its cruise brands. In addition to its cruise operations, it owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which complements its Alaska cruise operations. Its Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. Its tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
