Carnival Corp Ltd. 10-K Summary: Fiscal Year Ended November 30, 2025
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended November 30, 2025, for Carnival Corporation & plc, the world's largest global cruise company. The company operates a dual-listed company (DLC) structure with listings on the New York Stock Exchange (CCL, CUK) and the London Stock Exchange. In December 2025, the Boards recommended unifying the DLC structure into a single entity, Carnival Corporation Ltd., incorporated in Bermuda, with Carnival plc as a wholly-owned subsidiary. The company operates eight cruise lines: AIDA, Carnival Cruise Line, Costa, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn. During 2025, the P&O Cruises (Australia) brand was sunset and folded into Carnival Cruise Line.
Key Financial Metrics
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenues | $26.6 billion | $25.0 billion | +6.4% |
| Operating Income | $4.5 billion | $3.6 billion | +25.4% |
| Net Income | $2.8 billion | $1.9 billion | +44.1% |
| Diluted EPS | $2.02 | $1.44 | +40.3% |
| Operating Cash Flow | $6.2 billion | $5.9 billion | +5.0% |
| Total Debt (Gross) | $27.4 billion | $28.2 billion | -2.8% |
| Liquidity | $6.4 billion | $5.7 billion (est.) | Includes $1.9B cash + $4.5B revolver |
| Passengers Carried | 13.6 million | 13.5 million | +0.9% |
| Occupancy Rate | 105% | 105% | Flat |
Note: Liquidity as of Nov 30, 2025, includes $1.9 billion in cash and cash equivalents and $4.5 billion available under the revolving credit facility.
Material Changes vs. Prior Period
- Revenue Growth: Driven by a 5.8% increase in passenger ticket revenues ($17.4B) due to higher ticket prices and a 1.0% capacity increase. Onboard and other revenues rose 7.5% to $9.2B, fueled by higher guest spending.
- Profitability Expansion: Operating income reached an all-time high of $4.5 billion. This was achieved despite a 2.0% increase in operating expenses, primarily due to significant reductions in fuel costs (lower prices and improved efficiency) and higher gains on ship sales.
- Debt Reduction: The company completed a $19 billion refinancing plan in December 2025, reducing total debt by over $10 billion since its peak in January 2023. Interest expense decreased 23% to $1.3 billion due to lower rates and reduced debt principal.
- Segment Performance: North America operating income increased 25% to $3.3 billion, while Europe operating income rose 25% to $1.7 billion.
Guidance, Outlook, and Risks
Outlook and Strategy: Management expects to continue driving commercial excellence and disciplined newbuild strategies. The company has reinstated its quarterly dividend, declaring an initial $0.15 per share payment in February 2026. The proposed unification and redomiciliation to Bermuda are expected to streamline governance and reduce administrative costs.
Key Risks and Contingencies:
- Regulatory & Environmental: The EU Emissions Trading System (ETS) cost $91 million in 2025 and is expected to rise to approximately $170 million in 2026. Future IMO regulations on net-zero emissions and fuel standards remain uncertain.
- Geopolitical & Operational: Risks include geopolitical instability, pandemics, adverse weather, and supply chain disruptions. The company notes that fuel costs and availability remain volatile.
- Legal: A lawsuit regarding alleged "trafficking" in confiscated Cuban property (Havana Docks Corp.) is currently under Supreme Court review. The company believes the outcome will not be material. Other pending class actions in Australia and Italy regarding COVID-19 are also monitored.
- Debt Covenants: The company is in compliance with all debt covenants, including a minimum interest coverage ratio of 2.5 to 1.0.
Investor Verification Checklist
- Dividend Sustainability: Verify the cash flow coverage of the newly reinstated $0.15 quarterly dividend against future capital expenditure commitments ($11.8 billion in newbuilds through 2033).
- Refinancing Terms: Review the specific interest rates and maturity profiles of the $19 billion refinancing completed in December 2025 to assess long-term interest rate exposure.
- Regulatory Cost Impact: Monitor the actual cost impact of the EU ETS in 2026 (projected at $170 million) and potential new IMO fuel regulations.
- Unification Approval: Track shareholder and regulatory approval for the proposed DLC unification and Bermuda redomiciliation scheduled for Q2 2026.
- Ship Accounting Estimates: Note the prospective change in ship useful life estimates from 30 to 35 years effective December 1, 2025, and its impact on future depreciation.