Royal Caribbean Trims 2026 Capex Outlook as Ship Spending Stays Heavy

Royal Caribbean now expects approximately $4.7 billion of capital expenditures in 2026, down from about $5 billion earlier in the year. The spending is concentrated in new ships and land-based destinations, projects that can expand capacity but require cash well before they generate revenue.

The company reported second-quarter net income of $1.1 billion, or $4.20 per share, and said demand and pricing remained healthy. Capacity growth from ships including Star of the Seas and Celebrity Xcel helped lift first-half revenue. The same expansion explains why capital spending and financing remain central to the investment case.

Royal Caribbean had scheduled debt maturities of roughly $0.9 billion in 2026, $2.7 billion in 2027 and $3.4 billion in 2028 as of June 30. That schedule does not imply distress, but it limits the room for weak execution. Delivery delays, cost inflation or softer onboard spending could reduce the cash available for debt reduction.

The constructive case is straightforward: new capacity enters service into a market with record pricing, allowing revenue growth to absorb the investment. The risk is that a capital-heavy order book meets a downturn or higher financing costs. Investors should track net yields, booking strength and free cash flow after ship deliveries, not simply the headline reduction in the capex forecast.