Key Takeaways from Q2‘26 Results

Research evidence excerpt

Key Takeaways from Q2‘26 Results

Deutsche Bank

Research

European High Yield Company Date

23 June 2026 Consumer Services, Leisure Carnival Corporation

& Gaming

Key Takeaways from Q2'26 Results

Ricardo Chinchilla

Carnival Corporation reported adjusted EBITDA of $1.58 billion (+4.9% versus Research Analyst

+44-207-541-6172 $1.51 billion in Q2'25) on revenue of $6.66 billion (+5.3% versus $6.33 billion in

Q2'25). Adjusted EBITDA was ahead of our forecast ($1.48 billion adjusted

EBITDA), management's guidance (~$1.48 billion adjusted EBITDA), and

consensus expectations (~$1.49 billion adjusted EBITDA). Management reported

results exceeded expectations, primarily driven by: (1) lower-than-projected

cruise costs of +1.8% (versus guidance of ~4.0%) owing to cost discipline and

favorable timing of expenses between quarter, (2) higher-than-anticipated yield

growth of +4.3% (versus guidance of ~3.7%) attributable to resilient close-in

demand and robust onboard spending; and (3) favorable fuel consumption.

Figure 1: Carnival Corporation Snapshot

Source: Company Filings and Deutsche Bank

Management indicated that CCL's H2'26 booked position surpasses the prior

year's levels, achieving historical price highs (constant currency). This occurred

despite sustained geopolitical volatility, which predominantly affected booking

trends for European deployments, particularly in the Mediterranean, due to

proximity to the Middle Eastern conflict. CCL's current booking stands at 93% for

the year, with reduced inventory compared to the previous year.

Management reports continued strong bookings for 2027 and beyond, extending

the company's booking curve. Since the onset of Q2, booking volumes and pricing

for future sailings have consistently surpassed prior-year levels. This strength is