Carnival Corporation plc reported a robust QQ3 2024 quarter with a clear rebound in revenue, gross margin and profitability as the cruise industry continued its recovery from the pandemic pause. Revenue of $7.896 billion rose 15.2% year over year and 36.6% quarter over quarter, while net income of $1.735 billion (+61.6% YoY; +1785.9% QoQ) and EPS of $1.37 (diluted $1.26) underscored a favorable demand backdrop and improved yield dynamics. Gross profit reached $3.593 billion with a gross margin of 45.5%, and operating income of $2.178 billion (operating margin ~27.6%), supported by an EBITDA of $2.825 billion and a solid EBITDAR ratio of 0.358. The quarter confirms the positive earnings trajectory as occupancy and pricing momentum materialize across Carnival’s multi-brand fleet.
However, Carnival remains net-levered, with total debt of $30.273 billion and net debt of approximately $28.751 billion, yielding a debt-to-capitalization of 0.771 and a debt-to-equity ratio of 3.38. Cash and cash equivalents were about $1.522 billion at period-end, with free cash flow of $628 million for the quarter, and a negative working capital dynamic that contributes to a compressed liquidity profile (current ratio 0.269, quick ratio 0.229). While operating cash flow was $1.205 billion in the quarter, Carnival’s balance sheet continues to reflect the capital-intensive nature of the asset-light but debt-heavy leisure cruise model. The company generated meaningful operating cash flow and free cash flow, which provides runway to deleverage over time, albeit at a measured pace given leverage and refinancing considerations.
Management commentary is not captured in the provided transcript data; as a result, this analysis emphasizes quantitative outcomes and qualitative interpretation from the reported results and industry context. Investors should monitor capacity deployment, pricing discipline, onboard revenue productivity, fuel costs and hedges, refinancing risk, and liquidity metrics as core drivers of the forward investment thesis.