Two Long-Term Investment Stocks Worthy of Permanent Ownership
In a remarkable turnaround for the cruise industry, Carnival Corporation, the world's largest cruise company, reported record-breaking revenues of $6.3 billion in Q2 2025. This impressive figure surpassed the company's own guidance and tripled its adjusted net income, marking a significant milestone in its recovery from the pandemic-induced shutdowns.
The resurgence of the cruise industry is not limited to financial success. Carnival is also attracting a younger demographic and first-time cruisers, a trend that bodes well for the future of the company.
One of the key factors contributing to Carnival's success is its proactive approach to managing its debt load. In May 2023, the company refinanced $993 million of debt, a move expected to save over $20 million in annual interest expenses through 2026.
Occupancy rates on Carnival's ships have consistently been above pre-pandemic levels, with Q2 2025 seeing an impressive 104% occupancy rate. This strong demand is reflected in the company's bookings for 2025, which are at an all-time high in both pricing and occupancy. Early bookings for 2026 are also showing similar strength.
Carnival's financial performance has been consistently robust. In fiscal year 2024, the company's revenue reached an unprecedented $25 billion, a 15% increase year over year. The company also achieved its first annual profit since the pandemic in 2024, reporting a $1.9 billion profit.
However, Carnival's stock has yet to fully recover, facing challenges due to its debt burden. Despite these challenges, the company's customer deposits hit an all-time high of $8.5 billion, a testament to the confidence customers have in Carnival's future.
While the specifics of the 2025 refinancing deal, including the investment bank involved and the interest rate, are not publicly available, it is clear that Carnival's strategic decisions are paying off, positioning the company for continued growth and success in the years to come.
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