RCL Stock Forecast & Price Target

Royal Caribbean Group has demonstrated significant financial improvement, with Return on Capital (ROC) increasing from 13.80% to 15.40% over the last twelve months and projected to rise to 18.03% in the near term. Additionally, net sales revenue rose by 12.10% year-over-year, climbing from $15.33 billion to $17.18 billion for the twelve months ending June 2025. The company also reported a substantial increase in Economic Profit (EP), growing 31.64% year-over-year from $1.19 billion to $1.57 billion over the same period, underscoring its strong performance and positive outlook.

Royal Caribbean's financial outlook is negatively impacted by several factors, including an anticipated $0.05 reduction in FY25 earnings per share (EPS) guidance due to adverse weather and political unrest at Labadee. The company has revised its FY25 unit cost guidance down approximately 40 basis points and anticipates "anemic" cost growth for FY26, despite the upcoming significant capacity expansions and the introduction of new private destinations. Additionally, the impending delivery of new ships is expected to pressure yields in the latter half of FY25, creating further challenges for the company to achieve its financial targets.