Can Royal Caribbean Afford Its Spending Bill

Cruise operator Royal Caribbean Group (RCL) has been spending heavily on its ships. Over the twelve months to June 2026, the company spent $7.2 billion on ships and other equipment. Three years earlier, that figure stood at $1.4 billion. Take a guess: what share of its sales goes on that bill now?

How Big Is Royal Caribbean's Spending Bill?

Over the twelve months to June 2026, Royal Caribbean spent 39% of its sales on ships and equipment. Three years earlier, that outlay was 12%. The company's spending has grown far faster than its sales. The quarter to June 2026 was a heavy one: the company spent 227% more than in the same quarter a year earlier.

Can Royal Caribbean Pay For It?

During the quarter to June 2026, Royal Caribbean spent more than its business brought in. The bill came to 147% of the cash the business brought in, compared with 48% in the same quarter a year earlier. As the last six quarters show, the company's spending comes in lumps.

The cash left after the spending has been negative in two of the last four quarters, including the quarter to June 2026. In the same quarter a year earlier, the business still had cash left over. During its heaviest spending quarters, the business no longer covers the bill on its own. Even over the last twelve months, the spending was slightly more than the business brought in.

Royal Caribbean does have credit to fall back on. In July, the company enlarged its revolving credit line. Its own cash is small, however. At the end of June, it held $0.9 billion in cash and short-term investments against $23.5 billion of debt.

What Has The Spending Bought So Far?

Over the twelve months to June 2026, Royal Caribbean's sales were 56% higher than three years earlier. The company spent $14.6 billion over those three years, and its business now brings in $3.6 billion more cash a year than it did. The extra cash would take about four years to equal what was spent. Not all of the growth came from the spending, however.

What Must Go Right For Royal Caribbean

On the July 28, 2026 call, management said the company keeps investing in the ships its guests already know. Alongside those vessels, the new Legend of the Seas brought the Icon Class of ships to Europe for the first time. Management also noted that bookings for 2026 and 2027 are in line with prior years, at record pricing. Yet it added that consumers are becoming more deliberate about their spending, even though they still prioritize quality leisure time. Royal Caribbean needs those record prices to hold while it keeps paying for its ships.

Management now expects to spend about $4.7 billion in calendar 2026, down from an earlier forecast of $5.0 billion. With about $3.2 billion spent in the first half, that leaves roughly $1.5 billion for the second half. Royal Caribbean's cash left after the spending was negative in the quarter to June 2026. This metric is the figure to watch in each quarterly report.

Does This Mean You Should Act On RCL?

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