ROYAL Caribbean Group’s Q2 net yield growth will be negatively impacted by dry dock days, according to a recent Truist equity research report.
The bank holding company met recently with senior management from Royal Caribbean, with executives revealing some of the company’s newer, larger ships will require work in the near future, deferring higher growth until later in the year.
Management characterised this year’s earnings growth as more of a “valley year” when compared with 2027, the report said.
Tailwinds for the quarter will include the launch of Legend of the Seas (pictured) as well as Royal Beach Club Santorini, both scheduled to debut during the northern summer.
Longer-term drivers of growth include the launch of Celebrity River Cruises next year, alongside Perfect Day Mexico, which will begin to benefit Royal Caribbean’s bottom line by 2028.
The company is also expecting the delivery of three new ships in 2028, which it said should provide a meaningful uplift to yields.
Royal Caribbean asserted that approximately 70% of its fuel exposure for Q1 is hedged, and it anticipated being even more opportunistic in the near term given current prices.
Management noted that being aggressive at today’s rates would help provide greater certainty around fuel expenses, supporting its ability to hit multi-year earnings targets.
Royal Caribbean also said it was “very pleased” with performance in the key Caribbean market, despite the region’s extremely competitive environment, and continued to expect underlying net yield growth for FY26. MS
