Royal Caribbean Group

Strong Q2 performance + capital return (good) - Reported Q2 revenue +6% YoY with net yields +1.2% (about 100 bps above guidance). - Adjusted EPS exceeded guidance by $0.33 (management cites better-than-expected close-in demand and onboard revenue, plus cost timing and JV/balance sheet items). - Returned >$600M to investors via dividends and share repurchases in the quarter ($404M dividends and 0.8M shares repurchased). $805M remaining on the authorization.

2026 outlook raised in tone; key forecast numbers reiterated (good with detail) - Full-year net yield growth guidance maintained at 1.75%–2.25%; despite geopolitical drag on parts of Europe, they expect continued yield growth across key products including the Caribbean. - Capacity expected +6.6% for 2026, targeting ~9% total revenue growth (yields + capacity). - Adjusted EPS for 2026 expected $17.73–$17.87 (~+14% YoY at the midpoint framework described), implying continued strong earnings growth. - Q3 guidance: capacity +8.5% YoY, net yields roughly flat, adjusted EPS $6.26–$6.36 (double-digit YoY growth).

Demand is strong; onboard spending momentum and record pricing (surprising/opportunity) - Management emphasizes “flywheel is accelerating”: demand supported by digital/loyalty execution, with guest Net Promoter Scores averaging low-to-mid 70s. - Close-in demand remains strong, reflecting consumers booking nearer departure (flexibility/ease), and they report book position is in line with prior years at record pricing for 2026 and 2027. - Onboard spending: referenced as a key indicator—~180,000 people on any given day spending on ships; onboard revenue and pre-cruise purchases exceed prior years, including higher beverage and shore excursion spend.