Royal Caribbean Cruises Ltd.

and only mode. After the speaker presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1 on your telephone keypad. I would now like to introduce Blake Vanyer, Vice President, Investor Relations. Mr. Vanyer, the floor is yours.

Good morning, everyone, and thank you for joining us today for our first quarter 2025 earnings call. Joining me here in Miami are Jason Liberty, our Chief Executive Officer, Naftali Holtz, our Chief Financial Officer, and Michael Bailey, President and CEO of the Royal Caribbean Brand. Before we get started, I'd like to note that we will be making forward-looking statements during this call. These statements are based on management's current expectations and are subject to risks and uncertainties. A number of factors could cause actual results to differ materially from our current expectations. Please refer to our earnings release issued this morning as well as our filings with the SEC for a description of these factors. We do not undertake to update any forward-looking statements as circumstances change. Also, we will be discussing certain non-GAAP financial measures, which are adjusted as defined, and a reconciliation of all non-GAAP items can be found on our investor website and in our earnings release. Unless we state otherwise, all metrics are on a constant currency adjusted basis. Jason will begin the call by providing a strategic overview and update on the business. Naftali will follow with a recap of our first quarter, the current booking environment, and our outlook for 2025. We will then open the call for your questions. With that, I'm pleased to turn the call over to Jason.

Thank you, Blake, and good morning, everyone. I am pleased to share our strong first quarter results and updated outlook for the year. During the first quarter, we delivered over 2 million unforgettable vacations at exceptional guest satisfaction scores and achieved financial results that exceeded our expectations. Likewise, wave season was the best in our company's history, putting us in a strong book position for the remainder of the year and for 2026. Clearly, consumers continue to choose our vacations because we consistently deliver the best experiences and provide value to our guests. As we look across the current macro landscape, we recognize that there is heightened uncertainty. However, research, including the direct surveying of our customers, continue to show that the propensity to cruise remains encouraging. The combination of the world-class experiences we deliver, continued strong secular tailwinds, and the persistent value gap to land-based vacation positions us well to navigate the current environment. I'll touch more on this in a little bit. We are certainly not immune to macro volatility, but what we're seeing on the ground in our bookings and the real-time spending occurring on our ships is that consumers are still prioritizing experiences, planning to spend more on them this year, and are seeking value that we are well-positioned to offer. At this point, it's still too early to determine how exactly the current macro environment could impact the broader economy or consumer behavior. What I want to emphasize is that we are focused on what we can control, delivering the best vacation experiences for our guests, optimizing revenue, managing costs, and executing on our long-term strategies. Over the past several years, we have taken decisive steps to strengthen our balance sheet and we continue to do so. We are in a very strong financial position, investment-grade balance sheet, strong cash flow generation, robust liquidity, and minimal near-term maturities, and we remain focused on maintaining financial flexibility. We are confident in our growth strategy and the incredible opportunity ahead of us, continuing to win a greater share of the growing $2 trillion vacation market as we further progress DELIVERING THE VACATION OF A LIFETIME INTO A LIFETIME OF VACATIONS. WE ALSO CONTINUE TO INVEST IN THE FUTURE OF OUR FLEET, OUR PRIVATE DESTINATION PORTFOLIO, AND THE GUEST EXPERIENCE. WE DO THIS ALL WITH THE BEST TALENT, AND I WANT TO THANK THE ENTIRE RURAL CRIMEA GROUP TEAM FOR THEIR PASSION, DEDICATION, AND COMMITMENT TO DELIVERING THE BEST VACATION EXPERIENCES RESPONSIBLY AND FOR DRIVING STRONG FINANCIAL RESULTS. Now moving to our results and outlook. We are very pleased with our first quarter results, which exceeded our expectations. Yields grew 5.6%, and we saw better-than-expected close-in bookings across all itineraries. Adjusted earnings per share of $2.71 in the first quarter was 23 cents higher than our guidance. Better revenue and favorable timing of expenses contributed to the better-than-expected earnings performance. Naftali will elaborate more on the first quarter results shortly. Now I'll provide some insight into the demand environment and wave season. During the first quarter, bookings outpaced last year across all products, resulting in the best wave season in the company's history. In the month of April, bookings for 2025 are outpacing last year, with close-in bookings trending particularly well. Our book position is in line with prior years at higher APDs. Onboard spending and pre-cruise purchases continue to exceed prior years, driven by increased participation in onboard activities and experiences at higher prices. All commercial channels are generating quality demand with particular strength and are direct to consumer channels. As always, we continue to possess a nimble and flexible sourcing model both geographically and demographically, with the ability to source quality demand all over the globe. We continue to be thrilled by the reception of our spectacular new ships, the enthusiasm for Star of the Seas, our second icon class ship, and Celebrity XL, the latest addition to the edge class lineup, have exceeded expectations, driving strong pricing and load factors. As we look at our current and potential consumers, we remain encouraged. While broader consumer spending moderated, vacation spend continued to grow as consumer sentiment around leisure vacations remained positive. Our customers continued to be engaged and excited about vacations. In research fielded in April, 7 out of 10 consumers told us that they intend to spend the same or more on leisure travel over the next 12 months. with spend on travel continuing to outpace major material purchases. And for 9 out of 10 consumers surveyed, value for money is crucial when making vacation plans. And this is where we continue to excel. Furthermore, when financial concerns impact lifestyle or spending, travel is not the first place consumers indicate they will pull back. Cruisers are more financially secure more likely to protect their travel budgets during times of uncertainty. We are very well positioned to deliver great vacations from multiple locations close to home for millions of people in the U.S., offering them extraordinary value through a range of itinerary options from three to ten days from Florida, Texas, California, the Northeast, and the Northwest. Our vacation experiences remain an attractive value proposition and leading guest satisfaction compared to other vacation alternatives. Consumers recognize that our brands offer superior value for money versus alternative options. That value is made up of our unique ability to give guests the opportunity to visit a variety of destinations in one trip, the convenience of having everything in one place, plus our high-quality onboard amenities and services and pricing that includes meals, accommodations, and entertainment. Now, let me provide an update on our outlook for 2025. Let me note that our guidance ranges are expanded compared to those we would typically provide and are based on current demand trends while also considering the complexity of the macro environment based on what we know today. Capacity is expected to grow 5.5% in 2025, driven by the introduction of Star of the Seas and Celebrity Excel, as well as the full year benefit of ICON, Utopia, and Silver Ray. Yield growth is expected to be in the range of 2.6% to 4.6%, supported by the incredible appeal of our new ships, the performance across our existing fleet, and the continued success of our private destinations. Full year adjusted earnings per share guidance is now expected to grow approximately 28% and be in the range of $14.55, to $15.55. We are benefiting from better than expected first quarter performance and favorable foreign exchange and fuel rates. While we remain cognizant of macroeconomic uncertainties, recent booking trends, discipline cost management, and a strong balance sheet positions us well to deliver another year of strong earnings growth and cash generation. Our proven formula, of moderate capacity growth, moderate yield growth, and strong cost control continues to drive superior financial performance. And we remain focused on executing our perfective performance program, targeting a 20% compound annual growth rate in adjusted earnings per share through 2027, and return of invested capital in the high teens. We are relentlessly focused on delivering and innovating the best vacation experiences on the planet. And a key differentiator for us is our powerful commercial flywheel, where each guest experience fuels deeper loyalty and more engagement, which enables us to give guests the vacation experiences they want so they keep coming back. It starts with our exceptional portfolio brands, each a category leader, designed to cater to the diverse needs of our global guest base. We amplify that strength with industry-leading ships, exclusive private destinations, and continuous innovation that elevates every aspect of the guest journey. Over the next three years, we will introduce seven game-changing new ships, including Star of the Seas and Celebrity XL in 2025. We'll launch Celebrity River in 2027 and expand from two to seven exclusive destinations. We deepen customer relationships through data, personalization, and a frictionless experience that makes planning and enjoying a vacation seamless. Our unified loyalty programs connect all our brands under one ecosystem, encouraging repeat travel and unlocking more opportunities to engage across ocean and river cruising, along with our exclusive destinations. The ecosystem is working. Members of our loyalty programs accounted for nearly 40% of our bookings last year, with cross-brand bookings increasing. Loyalty members are more likely to book direct spend 25 percent more per trip than non-members on the digital front bookings and our app have doubled so far this year and loyalty members are more likely to book in the app than non-loyalty members over the last 10 years we've improved the rate at which guests rebook within three months by 1.7 times and increased net promoter score by 15 points These results have translated into 50 plus percent net yield growth over that time period, and we're just getting started. Looking ahead, we are incredibly energized by the momentum we're building. These ambitious initiatives reinforce our flywheel and strengthening our ecosystem as we turn the vacation of a lifetime into a lifetime of vacations. I am incredibly proud of the teams at the Royal Caribbean Group for their passion, and relentless focus on delivering great vacation experiences for our guests. We are executing from a position of strength, and I remain optimistic about our ability to capitalize on the many opportunities that lie ahead. And with that, I will turn the call over to Naftali. Naft?