Carnival (CCL) Q3 FY2026 Earnings Call: Q&A Summary

Q: Robin Farley from UBS asked if the company has interest in acquiring inclusive resort chains.

A: CEO Josh Weinstein stated the company is laser-focused on the cruise business and improving the cruise experience, noting that their land-based assets are ancillary to the cruise product.

Q: Robin Farley from UBS asked for clarification on the 2027 booking outlook regarding price and occupancy levels.

A: CEO Josh Weinstein clarified that 2027 occupancy and price levels are higher year-over-year.

Q: James Hardiman from Citi asked how the company is seeing strong bookings despite macro and geopolitical headwinds.

A: CEO Josh Weinstein explained that consumers increasingly view vacations as sacrosanct and that the company offers a strong value proposition that works in both good and bad economic times.

Q: James Hardiman from Citi asked about the shift toward European deployment and the outlook for Caribbean capacity.

A: CEO Josh Weinstein noted that Northern Europe is a growing part of the business with longer seasonality, while the Caribbean remains a core, long-term part of the portfolio.

Q: Brandt Montour from Barclays asked if there are differences in customer booking patterns compared to last year.

A: CEO Josh Weinstein noted that while every crisis is different, the company has seen a strong double-down on European travel for 2027, particularly for the third quarter.

Q: Brandt Montour from Barclays asked if the company is considering fuel hedging given recent volatility.

A: CEO Josh Weinstein stated they do not believe hedging is worth the cost, preferring to focus on reducing fuel consumption, which is down 26% since 2019.

Q: Amanda Douglas from JPMorgan asked about 2027 yield puts and takes and current onboard spending trends.

A: CEO Josh Weinstein stated that onboard spending has accelerated and remains strong, and the company feels good about the 2027 trajectory.

Q: Trey Bowers from Wells Fargo asked if the company is considering expanding capacity growth given its investment-grade status.

A: CEO Josh Weinstein said capacity growth is fixed for the next half decade at one to two ships per year.

Q: Trey Bowers from Wells Fargo asked if the Q1 2027 yield performance will follow the exit rate of Q3 and Q4.

A: CEO Josh Weinstein declined to provide specific guidance for Q1 2027, noting it has a different profile.

Q: Xian Siew from BNP Paribas asked about the impact of Caribbean capacity changes and private destination attendance.

A: CEO Josh Weinstein explained that marine infrastructure at Celebration Key and RelaxAway is fully built out, allowing for higher throughput year-over-year.

Q: Xian Siew from BNP Paribas asked about the cost outlook for 2027.

A: CFO David Bernstein stated there is nothing notable to drive costs one way or the other, and the company will continue to focus on efficiency and sourcing savings.

Q: Patrick Scholes from Truist Securities asked about the drivers of onboard revenue growth and the contribution of Celebration Key.

A: CFO David Bernstein noted that onboard revenue is broad-based across all brands and categories, and declined to break out Celebration Key specifically.

Q: Steve Wieczynski from Stifel asked if the 20% earnings growth target through 2029 remains realistic.

A: CEO Josh Weinstein expressed confidence in the roadmap, noting that the company is focused on operational improvements and cost innovation.

Q: Steve Wieczynski from Stifel asked if the company expects a negative yield-cost spread to start 2027.

A: CEO Josh Weinstein declined to answer, stating only that he expects performance to fit into the PROPEL target algorithm.

Q: Ben Chaiken from Mizuho Securities asked about the shift in European itineraries toward cooler weather experiences.

A: CEO Josh Weinstein explained that Northern Europe is a high-demand destination for North Americans and a backyard for European brands, making it a key part of their strategy.

Q: Ben Chaiken from Mizuho Securities asked if 2026 included one-time costs in the range of 130 to 150 basis points.

A: CFO David Bernstein confirmed it was a little over 1 point, noting that next year will see five ships in dry dock compared to two this year.

Q: Conor Cunningham from Melius Research asked about the normalized CapEx profile for the company.

A: CFO David Bernstein stated that 2026 CapEx is $2.4 billion and expects a step-up in that number for the next few years.

Q: Conor Cunningham from Melius Research asked if the European deployment shift provides a mix benefit to ADR.

A: CFO David Bernstein and CEO Josh Weinstein stated they optimize deployment to maximize both revenue and profit, rather than focusing on specific regional ADR comparisons.

Q: Elizabeth Dove from Goldman Sachs asked about the potential for further expansion of private destinations.

A: CEO Josh Weinstein said that while small improvements are possible for RelaxAway and Isla Tropicale, Celebration Key phase two is possible but premature to discuss.

Q: Elizabeth Dove from Goldman Sachs asked about the timeline for decelerating cost growth.

A: CEO Josh Weinstein noted that the company is already pulling some operational efficiencies forward and will provide more specific guidance in the future.

Q: Assia Georgieva from Infinity Research asked if 2027 yield improvement could exceed the 2% historical benchmark.

A: CEO Josh Weinstein declined to provide specific guidance for 2027.