The Bull Case For Royal Caribbean (RCL) Could Change Following $1.5 Billion Investment Grade Bond Offering

• On October 1, 2025, Royal Caribbean Cruises Ltd. completed a US$1.5 billion offering of 5.375% senior unsecured notes due 2036, with proceeds allocated to funding the delivery of Celebrity Xcel and to redeeming or refinancing existing debt, including revolving credit facilities.
• This move marks Royal Caribbean's return to the investment grade market and underscores its focus on enhancing its financial flexibility to support ongoing fleet expansion.
• We’ll explore how this significant debt financing event supports Royal Caribbean’s commitment to fleet growth and capital structure management.

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Royal Caribbean Cruises Investment Narrative Recap

To be a Royal Caribbean Cruises shareholder, you need to believe in the company’s ability to deliver long-term growth through fleet expansion, enhanced guest experiences, and disciplined balance sheet management. The recent completion of a US$1.5 billion senior notes offering is expected to strengthen financial flexibility, but it does not materially alter the most critical short-term catalysts such as new ship launches or the biggest risk, which remains sensitivity to shifts in consumer discretionary spending.

Among recent company developments, the long-term shipbuilding agreement with Meyer Turku stands out as highly relevant. This partnership secures Royal Caribbean’s access to new ships over the next decade, directly supporting its capacity growth strategy and aligning with the catalysts of launching innovative vessels and boosting revenue per guest.

But while cruise bookings and fleet investments are on the rise, investors should be aware that, if consumer confidence fades...

Read the full narrative on Royal Caribbean Cruises (it's free!)

Royal Caribbean Cruises' narrative projects $22.4 billion revenue and $5.9 billion earnings by 2028. This requires 9.2% yearly revenue growth and a $2.3 billion earnings increase from $3.6 billion today.

Uncover how Royal Caribbean Cruises' forecasts yield a $355.87 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community range from US$140.78 to US$440.34 per share. As the company pursues capacity and revenue growth through its new ship pipeline, expect ongoing debate over how economic headwinds could affect future bookings and margins.

Explore 12 other fair value estimates on Royal Caribbean Cruises - why the stock might be worth as much as 38% more than the current price!

Build Your Own Royal Caribbean Cruises Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Royal Caribbean Cruises research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Royal Caribbean Cruises research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Royal Caribbean Cruises' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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