Well, Carnival reported earnings, and the stock at one point sold off more than six percent on the news. This after a key quarterly earnings forecast trailed estimates, adding to worries that a travel slow down has spread to even the most robust corner of the market. However, Carnival did boost full year profit expectations, beating Wall Street's view, suggesting any slow down may prove transitory. Do you want to point out too, the stock is down about fifteen percent so far here in twenty twenty five.

Well, Carnival reported earnings, and the stock at one point sold off more than six percent on the news. This after a key quarterly earnings forecast trailed estimates, adding to worries that a travel slow down has spread to even the most robust corner of the market. However, Carnival did boost full year profit expectations, beating Wall Street's view, suggesting any slow down may prove transitory. Do you want to point out too, the stock is down about fifteen percent so far here in twenty twenty five.

Let's get some context and more detail around.

Let's get some context and more detail around.

The company's quarterly update. Great to have back with us, Josh Weinstein. He's president, CEO, and chief Climate Officer of Carnival Corporation, and he joins us from Carnival's headquarters in Miami.

The company's quarterly update. Great to have back with us, Josh Weinstein. He's president, CEO, and chief Climate Officer of Carnival Corporation, and he joins us from Carnival's headquarters in Miami.

Josh, great to be talking with you. How are you very well?

Josh, great to be talking with you. How are you very well?

Thank you?

Thank you?

How are you doing doing okay?

How are you doing doing okay?

Trying to keep up with everything that's coming at us on a daily basis, And I kind of want to start there because there is a lot coming at anyone who's running a big company like yours today, whether it's out of Washington, whether it's out of how the consumer is feeling, how would you describe the cruise business and how it compares from your last quarterly update, what has changed at all, because I know you have been very optimistic and it seems like you're still optimistic about the business based on the releases.

Trying to keep up with everything that's coming at us on a daily basis, And I kind of want to start there because there is a lot coming at anyone who's running a big company like yours today, whether it's out of Washington, whether it's out of how the consumer is feeling, how would you describe the cruise business and how it compares from your last quarterly update, what has changed at all, because I know you have been very optimistic and it seems like you're still optimistic about the business based on the releases.

Yeah. Yeah, absolutely.

Yeah. Yeah, absolutely.

So the thing that's changed from December to today is, well, we just completed our first quarter and instead of yields being up four point seven percent, which is what we guided to, they were up seven point three percent. And so clearly things went very very well in the first quarter. Consumers love to cruise, and we've got eight brands that are purposely tied to particular demographics, particular national markets, and it serves us very very well. And so what we see is enough strength in that first quarter that we can raise our yields for the year, for our full year guidance, and that's basically saying that we're content to keep four percent plus yields for the remaining three quarters of the year despite the fact that there is you know, geopolitical macroeconomic uncertainty, which certainly wasn't on the radar when we came up with our guidance to begin with in December.

So the thing that's changed from December to today is, well, we just completed our first quarter and instead of yields being up four point seven percent, which is what we guided to, they were up seven point three percent. And so clearly things went very very well in the first quarter. Consumers love to cruise, and we've got eight brands that are purposely tied to particular demographics, particular national markets, and it serves us very very well. And so what we see is enough strength in that first quarter that we can raise our yields for the year, for our full year guidance, and that's basically saying that we're content to keep four percent plus yields for the remaining three quarters of the year despite the fact that there is you know, geopolitical macroeconomic uncertainty, which certainly wasn't on the radar when we came up with our guidance to begin with in December.

And yet investors seem to be at least initially disappointed over your second quarter even a forecast. Your forecast was one point three to two billion in the second quarter, and as it expected one point three to five billion.

And yet investors seem to be at least initially disappointed over your second quarter even a forecast. Your forecast was one point three to two billion in the second quarter, and as it expected one point three to five billion.

Should they be disappointed?

Should they be disappointed?

You know what, I guess I'll answer by saying, our December guidance was basically saying we're going to be about was it a buck seventy give or take for the year? On EPs we just came out with guidance said buck eighty three. We all performed on revenue yields on board on board trends are really really healthy with our with our consumers. So I would argue that we should be higher than where we were in December since our results are better than where we were in December.

You know what, I guess I'll answer by saying, our December guidance was basically saying we're going to be about was it a buck seventy give or take for the year? On EPs we just came out with guidance said buck eighty three. We all performed on revenue yields on board on board trends are really really healthy with our with our consumers. So I would argue that we should be higher than where we were in December since our results are better than where we were in December.

But that's really up to h up to the street.

But that's really up to h up to the street.

Our job is to deliver and hopefully over deliver, which is what we did in the first quarter.

Our job is to deliver and hopefully over deliver, which is what we did in the first quarter.

So Josh, let's talk a little bit more that consumer because in the press release you noted that Carnival's not completely immune from heightened macroeconomic and geopolitical volatility, and you're still taking up earnings expectations for the year. You remain on track to have another stellar year across the entire brand of cruises. Why are we hearing then from airlines that consumers are pulling back? Why are we not seeing that in your business?

So Josh, let's talk a little bit more that consumer because in the press release you noted that Carnival's not completely immune from heightened macroeconomic and geopolitical volatility, and you're still taking up earnings expectations for the year. You remain on track to have another stellar year across the entire brand of cruises. Why are we hearing then from airlines that consumers are pulling back? Why are we not seeing that in your business?

Well, I think there's a couple of things to differentiate. First of all, airlines aren't just for holidays. Airlines are business travel. It is holidays, it's conferences, it's government travel. We are really holidays, We are vacations. So we're in a different bucket than where than where airlines are.

Well, I think there's a couple of things to differentiate. First of all, airlines aren't just for holidays. Airlines are business travel. It is holidays, it's conferences, it's government travel. We are really holidays, We are vacations. So we're in a different bucket than where than where airlines are.

You know, we came in to twenty twenty.

You know, we came in to twenty twenty.

Five the best book position we've ever been in at higher prices. We came out at the end of the first quarter still being in line with record occupancy percentage and price is still nicely higher. We're eighty percent book for the year, and so we have relatively limited inventory to sell when it comes to twenty twenty five. At the same time, our guests and our brands aren't just focused on in year. You know, we just came out of the first quart of the wave period, which is considered the traditional big push for selling, and we set a record for the most volume we've ever done during wave for future years out, so people aren't just thinking about the short term. They're thinking about the long term, which is exactly what we're doing as a company.

Five the best book position we've ever been in at higher prices. We came out at the end of the first quarter still being in line with record occupancy percentage and price is still nicely higher. We're eighty percent book for the year, and so we have relatively limited inventory to sell when it comes to twenty twenty five. At the same time, our guests and our brands aren't just focused on in year. You know, we just came out of the first quart of the wave period, which is considered the traditional big push for selling, and we set a record for the most volume we've ever done during wave for future years out, so people aren't just thinking about the short term. They're thinking about the long term, which is exactly what we're doing as a company.

But are you noticing any change in the tone of the bookings, the pace of the bookings, or perhaps even people canceling because of their own uncertainty. I understand there's this difference between discretionary spend and business spend, but after all, discretionary is discretionary, and that's often the first thing to go if people are feeling uncertain.

But are you noticing any change in the tone of the bookings, the pace of the bookings, or perhaps even people canceling because of their own uncertainty. I understand there's this difference between discretionary spend and business spend, but after all, discretionary is discretionary, and that's often the first thing to go if people are feeling uncertain.

Yeah, you know, we haven't seen any noticeable change in trends on cancelations. Certainly, as we mentioned on the call. You know, there were ups and downs over the first quarter. There's ups and downs all the time, but we got through our period at pretty much the highest point that you can get at, at least for us in our history, and we feel good about.

Yeah, you know, we haven't seen any noticeable change in trends on cancelations. Certainly, as we mentioned on the call. You know, there were ups and downs over the first quarter. There's ups and downs all the time, but we got through our period at pretty much the highest point that you can get at, at least for us in our history, and we feel good about.

The position that puts us in.

The position that puts us in.

Like I said onboard spending, you know, it's up about ten percent year over year in the first quarter. That's an acceleration of year over year performance versus where we were in the fourth quarter, and at least into the first couple of weeks of March. With cruises that have ended, we really haven't seen a slowdown in that consumer behavior, that onboard spending. And so you know, at the end of the day, people in good times and bad times, they take holiday, they.

Like I said onboard spending, you know, it's up about ten percent year over year in the first quarter. That's an acceleration of year over year performance versus where we were in the fourth quarter, and at least into the first couple of weeks of March. With cruises that have ended, we really haven't seen a slowdown in that consumer behavior, that onboard spending. And so you know, at the end of the day, people in good times and bad times, they take holiday, they.

Take a break. They need a break.

Take a break. They need a break.

You could argue in bad times they need that break even more than they do in the good times.

You could argue in bad times they need that break even more than they do in the good times.

And that's what cruising is. It's a break.

And that's what cruising is. It's a break.

It's a way to relax, to get away from things, enjoy time with friends and family. That's what people pay for now. And when you line up cruise versus other vacation alternatives, frustrating as it is for me as a CEO of a cruise company, we're a great value. And the fact is if people are getting concerned, if there's uncertainty, noise in the background, people are searching for more value for their money, and that's exactly what we do. So it plays very well into our strength.

It's a way to relax, to get away from things, enjoy time with friends and family. That's what people pay for now. And when you line up cruise versus other vacation alternatives, frustrating as it is for me as a CEO of a cruise company, we're a great value. And the fact is if people are getting concerned, if there's uncertainty, noise in the background, people are searching for more value for their money, and that's exactly what we do. So it plays very well into our strength.

So just for the record, I could go on a cruise for about a month right now because I need a break.

So just for the record, I could go on a cruise for about a month right now because I need a break.

But we'd love to have you. We'd love to have you.

But we'd love to have you. We'd love to have you.

Having said that, what about in terms of pricing, are you guys able to maintain pricing? Nothing changing in that regard, either for the first quarter or even for the outlook for the second quarter.

Having said that, what about in terms of pricing, are you guys able to maintain pricing? Nothing changing in that regard, either for the first quarter or even for the outlook for the second quarter.

Yeah, you know, so, like I said, the first quarter, you know, our yields year over year, we're up over seven percent, and over a two year period, we're talking about twenty four percent higher yields.

Yeah, you know, so, like I said, the first quarter, you know, our yields year over year, we're up over seven percent, and over a two year period, we're talking about twenty four percent higher yields.

Yeah, for the first quarter.

Yeah, for the first quarter.

When we look at the rest of the year queues two through four, we're projecting a little bit over four percent yield improvement year over year for that nine month period remainder of the year. So you know, look, it's hard going, right, It's not like anything is easy, and we got to work hard.

When we look at the rest of the year queues two through four, we're projecting a little bit over four percent yield improvement year over year for that nine month period remainder of the year. So you know, look, it's hard going, right, It's not like anything is easy, and we got to work hard.

Our brands work hard.

Our brands work hard.

To make that become a reality, and they do it good revenue management techniques, through the great advertising that they're doing, and then ultimately delivering onboard experiences that people want to pay for. And then they get off of our ships and they tell their friends and family how amazing it is, and we get more.

To make that become a reality, and they do it good revenue management techniques, through the great advertising that they're doing, and then ultimately delivering onboard experiences that people want to pay for. And then they get off of our ships and they tell their friends and family how amazing it is, and we get more.

Hey, one of the things we wanted to ask you is something that in late February, the US Commerce Secretary of Howard Lutnik, he made some comments about how US based cruise companies Josh should be paying taxes even on ships that are registered abroad.

Hey, one of the things we wanted to ask you is something that in late February, the US Commerce Secretary of Howard Lutnik, he made some comments about how US based cruise companies Josh should be paying taxes even on ships that are registered abroad.

We saw your.

We saw your.

Stock, along with everybody in the major creuse space, sell off on his words, even though analysts indicated the worry may be overblown.

Stock, along with everybody in the major creuse space, sell off on his words, even though analysts indicated the worry may be overblown.

They said, we've heard this before over the years. Is it overblown? Are you talking with a Trump administration about this?

They said, we've heard this before over the years. Is it overblown? Are you talking with a Trump administration about this?

And if there was a US registration change, what would that mean for you guys?

And if there was a US registration change, what would that mean for you guys?

So clearly we're operating in the confines of US laws as well we should shipping. International shipping is based on very specific tax regimes that are set up in the US and all over the world, and effectively it's based on reciprocet.

So clearly we're operating in the confines of US laws as well we should shipping. International shipping is based on very specific tax regimes that are set up in the US and all over the world, and effectively it's based on reciprocet.

Uh.

Uh.

So we feel like we're we're in a good place. We're doing what we should be doing. Having said that, anything out of the administration, including Secretary Lutnik, we certainly take seriously, and we're working hard to understand what the concerns are and and and how we can address them. If any there's really nothing, there's nothing to report on from my perspective as far as you know what that.

So we feel like we're we're in a good place. We're doing what we should be doing. Having said that, anything out of the administration, including Secretary Lutnik, we certainly take seriously, and we're working hard to understand what the concerns are and and and how we can address them. If any there's really nothing, there's nothing to report on from my perspective as far as you know what that.

Means or where things could be going.

Means or where things could be going.

But we'll we'll we'll stay on our guard and do whatever we need to do to make sure we're we're staying on the right side of policy.

But we'll we'll we'll stay on our guard and do whatever we need to do to make sure we're we're staying on the right side of policy.

Josh, why don't you register in the US? Is it regulatory reasons, is it tax reasons, is it labor reasons? Is it all of the above. Why don't you register in the US?

Josh, why don't you register in the US? Is it regulatory reasons, is it tax reasons, is it labor reasons? Is it all of the above. Why don't you register in the US?

Yeah, it's just not that simple.

Yeah, it's just not that simple.

You don't just take a ship and all of a sudden, ship you can't just switch to US registry. It's it's just not that simple. And and really it's a it's.

You don't just take a ship and all of a sudden, ship you can't just switch to US registry. It's it's just not that simple. And and really it's a it's.

A it's a.

A it's a.

People to go to school for classes for this right about international shipping and what what it means, how it works. And it's been in place for much longer than I've been alive, and so you know, we could we can do a separate session on that, but but suffice it to say, it's a regime that is that is well founded, and it's where we are right now, all right, So.

People to go to school for classes for this right about international shipping and what what it means, how it works. And it's been in place for much longer than I've been alive, and so you know, we could we can do a separate session on that, but but suffice it to say, it's a regime that is that is well founded, and it's where we are right now, all right, So.

It's not something that we should think about. I mean, it can be done, though, right, What is the it in terms of registering in the United States?

It's not something that we should think about. I mean, it can be done, though, right, What is the it in terms of registering in the United States?

It's honestly not that simple based on how US law works, It's just not that simple.

It's honestly not that simple based on how US law works, It's just not that simple.

Okay.

Okay.

Would that be a conversation though, then to have with the Trump administration Josh and say, listen, guys, if it was simpler, I mean, they're all about making things simpler, right, efficient.

Would that be a conversation though, then to have with the Trump administration Josh and say, listen, guys, if it was simpler, I mean, they're all about making things simpler, right, efficient.

Is there a conversation to be had.

Is there a conversation to be had.

Oh, we're happy to talk to the administration truly.

Oh, we're happy to talk to the administration truly.

Okay, okay, hey listen.

Okay, okay, hey listen.

One of the things we wanted to talk to you about in a big way, and I've seen it firsthand, is the island destinations that you guys have and it seems to be a continued, you know, move for you guys and expansion. You open Celebration Key this July. This is in Grand Bahama Island. How do these island destinations? We've talked to you about it, but it continues to be something we find really interesting. How does it fit into the North American cruise strategy and how important it is I always think about to the top line, the profitability picture.

One of the things we wanted to talk to you about in a big way, and I've seen it firsthand, is the island destinations that you guys have and it seems to be a continued, you know, move for you guys and expansion. You open Celebration Key this July. This is in Grand Bahama Island. How do these island destinations? We've talked to you about it, but it continues to be something we find really interesting. How does it fit into the North American cruise strategy and how important it is I always think about to the top line, the profitability picture.

Yeah.

Yeah.

So for us, what we're doing with Celebration Key, which opens in July, it's a bit of a first for us. Even though we have a wonderful footprint around the Caribbean, we've really we've we've built and created these destinations really as a service to our brands and something that's supportive of and really supplemental to what brands are doing and leading with with a cruise experience that makes them so loved. What we're doing with Celebration Key, which doesn't even exist yet, and yet it's captivated the audience and captivated the imagination of carnival cruisers and others. Is we want to also lead with destination as a driver of consideration, of a driver for people saying I need to go on Carnival Cruise Line because I'll get to go to Celebration Key or because I'll get to go to relax Away half Moon Key because it's the only way to get there. And so we believe that there's a tremendous amount of untapped value there in revenue generation, as well as the fact that these destinations are built close to the United States. Hence we consume less fuel in order to get there, which saves money is obviously good for the planet.

So for us, what we're doing with Celebration Key, which opens in July, it's a bit of a first for us. Even though we have a wonderful footprint around the Caribbean, we've really we've we've built and created these destinations really as a service to our brands and something that's supportive of and really supplemental to what brands are doing and leading with with a cruise experience that makes them so loved. What we're doing with Celebration Key, which doesn't even exist yet, and yet it's captivated the audience and captivated the imagination of carnival cruisers and others. Is we want to also lead with destination as a driver of consideration, of a driver for people saying I need to go on Carnival Cruise Line because I'll get to go to Celebration Key or because I'll get to go to relax Away half Moon Key because it's the only way to get there. And so we believe that there's a tremendous amount of untapped value there in revenue generation, as well as the fact that these destinations are built close to the United States. Hence we consume less fuel in order to get there, which saves money is obviously good for the planet.

Hey listen, twenty seconds left here. What is your most popular destination? Where do most people want to go and what kind of trip?

Hey listen, twenty seconds left here. What is your most popular destination? Where do most people want to go and what kind of trip?

Woll we carry thirteen million people last year. They want they want to go to a lot of places. I'd say, if you're going to ask me what's my top that I've ever been to, I got to say, you got to go on a cruise to Alaska and you got to go with Princess Hall in America or a Carnival because they do it in an amazing way and QNR for those who are looking for the for the luxury end.

Woll we carry thirteen million people last year. They want they want to go to a lot of places. I'd say, if you're going to ask me what's my top that I've ever been to, I got to say, you got to go on a cruise to Alaska and you got to go with Princess Hall in America or a Carnival because they do it in an amazing way and QNR for those who are looking for the for the luxury end.

But if you want to see.

But if you want to see.

The Great State, the only way to do it is with a great brand that can take you on both c and with our land experiences. Because we've got hotels and motor coaches and glass dome railcars and you name it, we got it up in Alaska.

The Great State, the only way to do it is with a great brand that can take you on both c and with our land experiences. Because we've got hotels and motor coaches and glass dome railcars and you name it, we got it up in Alaska.

I just want to go somewhere where I get a cocktail with like a little umbrella in it.

I just want to go somewhere where I get a cocktail with like a little umbrella in it.

I just I'm that we also serve cocktails with umbrella when we go to Alaska.

I just I'm that we also serve cocktails with umbrella when we go to Alaska.

Josh, thank you so much. Always appreciate the time you give us. Be well, Be well.

Josh, thank you so much. Always appreciate the time you give us. Be well, Be well.

Josh Weinstein, President, CEO, and Chief Climate Office of Carnival Corporation, joining us from Carnival's headquarters in Miami.

Josh Weinstein, President, CEO, and Chief Climate Office of Carnival Corporation, joining us from Carnival's headquarters in Miami.