Executive Summary
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.
Key Performance Indicators
QoQ: 288.93% | YoY:34.11%
QoQ: 1 785.87% | YoY:61.55%
QoQ: 1 857.14% | YoY:61.18%
Key Insights
Revenue (Q3 2024): $7.896B; YoY +15.20%, QoQ +36.59%
Gross Profit: $3.593B; YoY +22.50%, QoQ +81.19%
Operating Income: $2.178B; YoY +34.11%, QoQ +288.93%
Net Income: $1.735B; YoY +61.55%, QoQ +1785.87%
EPS (diluted): $1.26; YoY +61.18%, QoQ +1857.14%
EBITDA: $2.825B; EBITDA margin ~35.78%
Gross Margin: 45.50%
Operating Margin: 27.58%
Net Margin: 22.0%
Interest Coverage: 5.12x
Cash Flow (Operating): $1.205B; Free Cash Flow: $0.628B
Cash & Equivalents: ~$1.522B; Net Debt: $28.751B
Total Debt: ...
Financial Highlights
Revenue (Q3 2024): $7.896B; YoY +15.20%, QoQ +36.59%
Gross Profit: $3.593B; YoY +22.50%, QoQ +81.19%
Operating Income: $2.178B; YoY +34.11%, QoQ +288.93%
Net Income: $1.735B; YoY +61.55%, QoQ +1785.87%
EPS (diluted): $1.26; YoY +61.18%, QoQ +1857.14%
EBITDA: $2.825B; EBITDA margin ~35.78%
Gross Margin: 45.50%
Operating Margin: 27.58%
Net Margin: 22.0%
Interest Coverage: 5.12x
Cash Flow (Operating): $1.205B; Free Cash Flow: $0.628B
Cash & Equivalents: ~$1.522B; Net Debt: $28.751B
Total Debt: $30.273B; Debt/Capitalization: 0.771; Debt/Equity: 3.38
Current Ratio: 0.269; Quick Ratio: 0.229; Cash Ratio: 0.124
Share Count (weighted avg dil): 1.399B; EPS (GAAP): $1.37; FCF per share: $0.495
Valuation Signals: P/E ~2.98; P/FCF ~33.02; EV/EBITDA ~17.08
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.90B |
15.20% |
36.59% |
| Gross Profit |
3.59B |
22.50% |
81.19% |
| Operating Income |
2.18B |
34.11% |
288.93% |
| Net Income |
1.74B |
61.55% |
1 785.87% |
| EPS |
1.37 |
61.18% |
1 857.14% |
Key Financial Ratios
operatingProfitMargin
27.6%
operatingCashFlowPerShare
$0.95
freeCashFlowPerShare
$0.5
Management Commentary
No QQ3 2024 earnings call transcript data were provided in the input. As a result, no management quotes or thematic highlights from call commentary could be extracted.
Forward Guidance
No explicit forward guidance was included in the provided data for QQ3 2024. Given the quarter’s operating strength and the ongoing industry recovery, the following scenarios are presented:
- Base Case: Revenue and EBITDA sustain momentum into the peak/summer season with continued demand recovery, modestly higher yields, and stable onboard spend. Expect gradual deleveraging supported by free cash flow generation; monitoring indicators include load factor (occupancy), per-passenger yields, onboard revenue per passenger, fuel costs (bunker) and hedging effectiveness, and fleet utilization.
- Bull Case: Sustain elevated demand with higher-than-expected pricing power and stronger onboard monetization, enabling faster debt reduction, improved liquidity ratios, and potential partial fleet renewal efficiency gains.
- Bear Case: A material downshift in consumer travel budgets or macro weakness/shocks reduces occupancy and yields, constraining cash generation and delaying deleveraging. Liquidity could tighten if refinancing markets deteriorate or if working capital needs rise amid a high debt burden.
Key factors investors should monitor: (1) occupancy/load factors and pricing power (yield per passenger), (2) onboard revenue diversification and per-guest spend, (3) fuel price sensitivity and hedging position, (4) fleet deployment, modernization CAPEX cadence, and (5) refinancing maturities and debt maturation profile versus cash flow generation.