No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in Carnival surged on Friday as the cruise line operator reinstated dividend payments and reported a jump in annual profits.
Pre-tax profit for the year to November 30 soared 45% to a record $2.77bn. Net income rose 44% to $2.76bn and 63% on an adjusted basis to $3.08bn. The company expects 2026 adjusted net income to grow by 12%.
Revenue rose 6.4% to $26.62bn - also a record and a quarterly payout of 15cents a share was declared.
Chief Financial Officer David Bernstein said: "We have reached a meaningful turning point, surpassing the investment grade leverage metric threshold with a net debt to adjusted earnings before interest, tax, depreciation and amortisation ratio of 3.4x for 2025, representing a nearly one turn improvement from 2024 and successfully completing our $19bn refinancing plan in less than a year.
"These efforts strengthened our balance sheet by simplifying our capital structure, reducing interest expense and debt, optimizing our future debt maturities and enhancing our financial flexibility. In total, we have reduced our debt by over $10bn since our peak less than three years ago."
"These efforts and our strong continued operating performance, resulted in multiple credit rating upgrades throughout the year, culminating in reaching investment grade with Fitch and being one notch away with a positive outlook from S&P."
Reporting by Frank Prenesti for Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.