RCL Stock Forecast & Price Target

Royal Caribbean Group has demonstrated a robust financial performance, with Return on Capital (ROC) increasing from 13.80% to 15.40% over the last twelve months (LTM) and a projected further increase to 18.03% in the near-term. The company's net sales revenue rose 12.10% year-over-year, reaching $17.18 billion, while Economic Profit (EP) surged 31.64% to $1.57 billion, indicating strong profitability and operational efficiency. Additionally, for FY2025, Royal Caribbean anticipates a net yield increase of 3.5% to 4.0%, alongside a significant rise in revenue forecast to $7.56 billion, further underscoring the positive growth trajectory.

Royal Caribbean's stock outlook appears negative due to several financial headwinds affecting its earnings forecasts. The company has revised its FY25 adjusted EPS targets to a modest increase, while FY26 guidance indicates potential revenue stagnation from pressure on net yields and structural unit cost headwinds stemming from new private island destinations. Furthermore, adverse weather impacts and the closure of key destinations significantly hinder earnings, emphasizing the challenges Royal Caribbean faces in maintaining profitability amidst ongoing operational difficulties.