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We are a vacation industry leader, owning and operating three global cruise vacation brands: Royal Caribbean, Celebrity Cruises and Silversea (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands").
Margins and capital returns are both well above average: 27.38% operating margin, ROIC at 15.90%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 8.8%, steady but not accelerating. Free cash flow declined 38% despite revenue growth, conversion is weakening.
Free cash flow declined 38% versus the prior year, cash generation momentum has weakened. Net debt of $21.37B represents 17.3x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$18.39B
▲ +8.8% YoY
Net Income (TTM)
$4.48B
▲ +48.3% YoY
Op. Margin
27.88%
▲ +2.5pp YoY
ROIC
13.06%
▲ +1.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.37B
▼ -38.1% YoY
Op. Cash Flow (TTM)
$6.67B
▲ +22.8% YoY
Net Debt
$21.28B
Cash & Equiv.
$512M
5Y CAGR: +53.2%
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