Carnival Corporation (NYSE: CCL) stock will cruise to higher price points in 2025 because it is outperforming its guidance, exhibits robust business momentum, produces ample cash flow, and reduces its debt faster than expected. The combination has the company on track to reach its goals a full year ahead of forecasts, which is critical because of the debt ratings. The company lost its investment-grade ratings in 2020 because of the pandemic’s impact and is within reach of reclaiming them.
Among the highlights from the record-setting first quarter of 2025 is accelerated debt reduction. The company not only paid down $5.5 billion in debt but also restructured some of its remaining load, extending the time to maturity and reducing the rates. This resulted in millions in annual interest expense savings, which will likely be used to reduce debt further as the year progresses.
