What changed in this filing

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Item 1. Business

2026-01-27 compared with 2025-01-27 · 225 added, 324 removed, 337 unchanged (62% of the section changed)

Carnival Corporation was incorporated in Panama in 1974 and Carnival plc was incorporated in England and Wales in 2000.

Carnival Corporation and Carnival plc operate a dual listed company (“DLC”), whereby the businesses of Carnival Corporation and Carnival plc are combined through a number of contracts and through provisions in Carnival Corporation’s Articles of Incorporation and By-Laws and Carnival plc’s Articles of Association.

Carnival Corporation and Carnival plc operate a dual listed company whereby the businesses of Carnival Corporation and Carnival plc are combined through a number of contracts and through provisions in Carnival Corporation’s Articles of Incorporation and By-Laws and Carnival plc’s Articles of Association.

The two companies operate as if they are a single economic enterprise with a single executive management team and identical Boards of Directors, but each has retained its separate legal identity.

Carnival Corporation and Carnival plc are both public companies with separate stock exchange listings and their own shareholders.

Together with their consolidated subsidiaries, Carnival Corporation and Carnival plc are referred to collectively in this Form 10-K as “Carnival Corporation & plc,” “company,” “our,” “us” and “we.” We are the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines - AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises and Seabourn.

During 2024, we announced that we will sunset the P&O Cruises (Australia) brand and fold its Australia operations into Carnival Cruise Line in March 2025.

Purpose & Mission, Vision, Values and Priorities

During 2025, we sunset the P&O Cruises (Australia) brand and folded its Australia operations into Carnival Cruise Line.

Following a review of the corporate structure, the Boards of Directors of Carnival Corporation and Carnival plc recommended unifying the dual listed company under a single corporate entity, Carnival Corporation, listed solely on the New York Stock Exchange, with Carnival plc as its wholly-owned UK subsidiary.

Under this plan, Carnival plc shareholders would receive Carnival Corporation shares on a one-for-one basis, and Carnival plc shares and American Depositary Receipts would be de-listed from both the London Stock Exchange and the New York Stock Exchange, respectively.

Carnival Corporation also proposes shifting its legal incorporation from Panama to Bermuda under the name Carnival Corporation Ltd., a jurisdiction widely recognized and aligned with international financial standards.

There will be no material changes to the company’s business fundamentals, including strategy, underlying assets and operations or to the company’s commitment to the vital UK market.

The unification and legal incorporation in Bermuda are expected to preserve key shareholder voting and economic rights.

These proposals will be subject to certain conditions, including the approval of shareholders and receipt of regulatory and UK court approvals.

Carnival Corporation and Carnival plc intend to hold meetings of shareholders in April 2026 to consider the proposals.

Subject to shareholders approving the proposals and the remaining conditions being satisfied, the company intends to complete the unification and legal incorporation in Bermuda in the second quarter of 2026.

More information on the proposed unification and legal incorporation in Bermuda will be included in materials Carnival Corporation and Carnival plc expect to file with the Securities and Exchange Commission (“SEC”), which will be available without charge on the SEC’s website.

Purpose & Mission, Core Values and Priorities

Purpose & Mission

To deliver unforgettable happiness to our guests by providing extraordinary cruise vacations, while honoring the integrity of every ocean we sail, place we visit and life we touch.

As the global leader in the cruise industry, we will lead the way in innovative and sustainable cruising to deliver memorable vacations and build borderless connections.

Culture Essentials (our Core Values)

• Speak Up - Our voice is our strength.

Every one of us, regardless of level or role, speaks up when we have questions, comments, concerns, or new ideas.

If we see something wrong or that does not seem right, we say something and trust our voices will be heard without fear of retaliation.

• Respect & Protect - The health, safety and well-being of our people and the planet are vital.

We choose to take decisive actions to respect and protect every life we touch, the places we sail and the laws that govern us.

• Empower - We and our team members have the time, tools and support we need to do our best work.

We are empowered to take personal ownership and accountability to succeed, and we take pride in our work.

• Improve - Our business is built on forward motion.

We have the courage to dream big, driving innovation and continuous improvement in guest and team member experiences, operations, compliance, sustainability and beyond.

• Listen & Learn - We listen actively and seek to understand before responding, because the more perspectives we have, the better decisions we make.

We value and respect the words and ideas of others, keeping an open mind, and learning from our successes and failures.

• Communicate - We openly share our knowledge, skills and information across brands, functions and the entire company to further our collective success.

Together we champion our purpose & mission, vision, values and company priorities.

Ensure each of our world-class brands owns its space in the vacation market by delivering extraordinary experiences tailored to its guests.

We understand vacation expectations and preferences vary widely among our diverse audience of potential guests.

To fulfill our purpose & mission, and in the process achieve outstanding guest satisfaction levels, industry-leading demand and improved pricing, each of our brands must carve out a distinct identity for delivering cruise experiences.

Our brands must effectively market their uniqueness to existing and potential guests and deliver on their promise across the entire guest journey.

Become travel and leisure’s employer of choice.

We celebrate our diverse team of over 160,000 team members representing approximately 150 countries and are committed to providing a welcoming and inclusive environment where people from different backgrounds, experiences and walks of life can succeed.

We care deeply for our team members and must always cultivate an atmosphere of openness, respect and trust.

We know our team members are at the heart of inspiring unforgettable happiness, so we strive to be the world’s number-one choice for hospitality, travel and leisure careers.

Maintain our commitment to seek excellence in compliance, environmental protection and in looking after the safety, health and well-being of every life we touch.

Achieving our purpose & mission depends on being good corporate citizens and stewards of the environment.

Safeguarding the planet we call home, our guests, the communities we serve, and our Carnival family, and complying with the laws and regulations that govern our business, is vital to our success.

Set the pace with the industry’s smartest solutions that deliver on our sustainability roadmap to 2030.

Our earth, ecosystem and environment are vital to our success.

Without the incredible communities and scenic spaces we operate in, our purpose & mission of inspiring unforgettable happiness would be impossible.

We are determined to lead the way in sustainable cruising by promoting positive climate action, contributing to a circular economy, partnering with the communities we sail to and from and reducing our environmental footprint.

To do this, we are investing in technology upgrades and fleet improvements, piloting alternative fuel types and optimizing itineraries.

Strengthen our balance sheet and deliver long-term shareholder value.

In recent years, travel and leisure has endured volatility unlike anything seen in modern history, including unique obstacles that disproportionately affected the cruise industry.

With our operations now at full strength and the continued support of our guests, team members, investors and other stakeholders, we are focused on our financial fitness.

We are determined to drive revenue, operate effectively and efficiently at scale, generate record levels of cash from operations and invest our capital wisely.

We believe this will allow us to responsibly reduce our debt over time, improve our return on invested capital as well as return to investment-grade leverage metrics.

• Listen & Learn - We listen — actively and inclusively — to make better decisions and learn from our successes and failures.

• Speak Up - We can respectfully share ideas, feedback, concerns and questions with confidence.

• Respect & Protect - We protect what matters — our people, our company and our planet — treating everyone with dignity and respect.

• Always Improving - We always try to do our jobs better and innovate to drive the business forward.

• Better Together - We work collaboratively as a team to successfully deliver on our purpose, mission and goals.

• Guest Obsessed - We put our guests front and center, delighting them at every opportunity.

Ensure each of our world-class cruise lines owns its space in the vacation market.

Different travelers seek different vacation experiences.

That is why our portfolio of world-class cruise lines gives us such a powerful competitive advantage.

With eight distinctive cruise lines operating around the globe, each brand has the opportunity to stand out with a clear, compelling identity that attracts its own unique profile of new and loyal guests.

When we market those differences distinctly and deliver on them throughout the journey, we unlock higher levels of guest satisfaction, drive stronger bookings and demand and generate increased pricing power.

Be Travel & Leisure’s employer of choice.

Our team members are the heart of the unforgettable happiness we deliver to over 13.5 million guests each year.

With a team of more than 160,000 individuals from approximately 150 countries, we proudly reflect the cultural richness of our guests and the global community.

We intentionally cultivate a workplace environment where everyone feels welcomed, included, supported and empowered to succeed, reinforcing our ambition to be the world’s number‑one choice for hospitality, travel and leisure careers.

Stay committed to excellence in compliance, environmental protection and the well-being of every life we touch.

Achieving our Purpose and Mission starts with being responsible corporate citizens and strong stewards of our planet.

That means preserving our environment, caring for our guests, our communities and our team, upholding the laws that govern our business and holding ourselves to the highest standards.

Execute our sustainability roadmap.

We are privileged to explore remarkable cultures and environments around the world—and it is our shared responsibility to honor and help preserve them.

Without the thriving communities, healthy oceans and stunning places we visit, we could not deliver our Purpose and Mission or achieve our other priorities.

That is why it is imperative that we continue to reduce our fuel consumption and carbon footprint, advance a circular economy and strengthen shared‑value partnerships with the communities we sail to and from.

Further strengthen our balance sheet while delivering outsized shareholder returns.

Several years of exceptional performance has significantly strengthened our financial fitness—reducing debt, achieving strong profitability and double‑digit ROIC, surpassing the investment grade threshold and reinstating our dividend.

We are fortifying our position through disciplined cost control and continued deleveraging.

At the same time, our measured investments in newbuilds, major ship midlife refurbishment enhancements across our cruise lines and destination development, and continued focus on commercial excellence, are setting the stage for substantial long‑term growth and value creation.

Global Cruise Industry

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Cruise brands can be broadly classified as offering contemporary, premium and luxury cruise experiences.

The contemporary experience appeals to a broad segment of the cruise vacation industry, including families with children of all ages, features a variety of activities and entertainment venues and historically includes cruises that last seven days or less.

The premium experience emphasizes quality, comfort, style and more destination-focused itineraries.

The contemporary experience appeals to a broad segment of the cruise vacation industry, including families with children of all ages, features a variety of activities and entertainment venues and generally includes cruises that last seven days or less.

The premium experience emphasizes quality, comfort, style and more varied itineraries.

The premium experience generally includes cruises that last from seven to 14 days.

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Passenger Capacity by Ocean Going Vessels

Passenger Capacity as of December 31 (a) (b)

Passenger Capacity as of December 31 (a)

Calendar Year Global Cruise

Industry (c) Carnival

Industry (b) Carnival

Corporation & plc

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2025 764,310 272,460

2024 733,010 269,970

2025 777,700 272,380

2026 801,450 272,380

2027 823,630 277,710

(a) 2025-2027 data is estimated based on announced newbuilds and ship retirements.

(b) In accordance with cruise industry practice, passenger capacity is calculated based on the assumption of two passengers per cabin even though some cabins can accommodate three or more passengers.

(a) In accordance with cruise industry practice, passenger capacity is calculated based on the assumption of two passengers per cabin even though some cabins can accommodate three or more passengers.

(b) Global cruise industry data was obtained from Cruise Industry News.

The global cruise industry is a relatively small part of the global vacation market.

We compete with land-based vacation alternatives throughout the world, such as hotels, resorts (including all-inclusive resorts), theme parks, organized tours, casinos, vacation ownership properties, and other internet-based alternative lodging sites.

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Passenger Capacity Percentage of Total Capacity Number of Cruise Ships

North America and Australia (“NAA”) Segment

Carnival Cruise Line 89,100 (a) 33 % 27

North America Segment

Carnival Cruise Line 94,340 35 % 29

Princess Cruises 54,890 20 % 17

Holland America Line 23,030 8 % 11

P&O Cruises (Australia) 7,230 (a) 3 % 3

Seabourn 2,640 1 % 6

Seabourn 2,640 (a) 1 % 6

174,910 64 % 63

Europe Segment

Costa Cruises (“Costa”)

31,140 12 % 9

AIDA Cruises (“AIDA”)

32,270 12 % 11

P&O Cruises (UK) 24,300 9 % 7

Costa Cruises (“Costa”)

31,140 (b) 11 % 9

P&O Cruises 24,300 9 % 7

Cunard 9,770 4 % 4

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272,380 100 % 94

(a) During 2024, we announced that we will sunset the P&O Cruises (Australia) brand and fold its Australia operations into Carnival Cruise Line in March 2025.

Pacific Encounter and Pacific Adventure will be transferred to Carnival Cruise Line in early 2025 and Pacific Explorer is expected to leave the fleet in February 2025.

(a) Includes Seabourn Sojourn which is expected to leave the fleet in May 2026.

(b) Includes Costa Fortuna which is expected to leave the fleet in September 2026.

We also have a Cruise Support segment that includes our portfolio of leading port destinations and exclusive islands as well as other services, all of which are operated for the benefit of our cruise brands.

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Ships Under Contract for Construction

As of November 30, 2024, we have a total of six cruise ships expected to be delivered through 2033.

As of November 30, 2025, we have a total of seven cruise ships expected to be delivered through 2033.

Our ship construction contracts are with Fincantieri in Italy and Meyer Werft in Germany.

Expected Delivery Date Passenger Capacity

Newbuild (a) February 2030 4,280

Newbuild (a) December 2031 4,280

Carnival Cruise Line

Newbuild April 2027 5,330

Newbuild March 2028 5,330

Carnival Festivale April 2027 5,360

Carnival Tropicale March 2028 5,360

Newbuild July 2029 6,160

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Newbuild June 2033 6,160

Princess Cruises

Star Princess September 2025 4,310

(a) Ships are subject to financing.

Descriptions of Cruise Brands

AIDA is the most recognized brand in the German cruise market.

Its ships visit many beautiful destinations around the world and bring together people of all ages.

AIDA delights guests with excellent service and a variety of extraordinary experiences.

The smile on the bow of the ships represents the unique AIDA attitude on life — relaxed, friendly, colorful, cosmopolitan and uncomplicated.

Carnival Cruise Line is “The World’s Most Popular Cruise Line®” and has provided multi-generational family entertainment at exceptional value to its guests for over 50 years.

Carnival Cruise Line creates an environment where guests can be their most playful selves on ships that are designed to inspire the experience of bringing people together, with limitless opportunities for guests to create their own fun.

During 2024, we announced that we will sunset the P&O Cruises (Australia) brand and fold its Australia operations into Carnival Cruise Line in March 2025.

Pacific Encounter and Pacific Adventure will be transferred to Carnival Cruise Line in early 2025 and Pacific Explorer is expected to leave the fleet in February 2025.

Princess Cruises is The Love Boat®, the brand that introduced the world to the elegance and romance of modern-day cruising and has delivered dream vacations to millions of guests for nearly 60 years in the most sought-after destinations.

Princess combines extraordinary large ship amenities with elite service personalization and simplicity to create meaningful connections and unforgettable moments in the most incredible settings across the globe.

Holland America Line has been exploring the world for over 150 years with expertly crafted itineraries, extraordinary service and genuine connections to destinations.

Holland America Line visits over 100 countries around the world and has shared the thrill of Alaska with guests for more than 75 years with its ideal mid-sized ships.

Guests enjoy extraordinary entertainment at sea and dining venues featuring exclusive dishes by world-famous chefs.

Seabourn, a leader in ultra-luxury cruising, sails to legendary cities and less-traveled ports.

Intimate ships with a yacht-like atmosphere, allow guests to discover the unexpected—about the world and about themselves.

Guests enjoy all ocean-front suites and world-class gourmet dining as they wish.

Seabourn creates moments of surprise and delight known as “Seabourn Moments” in an environment that fosters building meaningful connections with fellow travelers, crew members and the communities they visit.

Seabourn’s fleet includes two purpose-built ultra-luxury expedition ships offering amenities such as submarines, Zodiacs® and kayaks.

For over 75 years, Costa has brought wonder to guests’ lives, allowing them to discover unique destinations and experiences both onboard and onshore.

Costa’s warm hospitality and high-quality onboard services feature a true European touch and Italian passion, setting Costa apart from any other cruise experience.

AIDA is the most recognized brand in the German cruise market.

Its ships visit many beautiful destinations around the world and bring together people of all ages.

AIDA inspires guests with excellent service and a variety of extraordinary experiences.

The smile on the bow of the ships represents the unique AIDA attitude on life — relaxed, friendly, colorful, cosmopolitan and uncomplicated.

P&O Cruises (UK) is Britain’s largest cruise line and its heritage can be traced back over 185 years.

P&O Cruises (UK) welcomes guests to extraordinary travel experiences designed in a distinctively British way - through a blend of discovery, relaxation and exceptional service catered towards British tastes.

P&O Cruises (UK)’s fleet of premium ships deliver authentic travel experiences around the globe, combining style, quality and innovation with a sense of occasion and attention to detail, to create a truly memorable holiday.

For nearly 185 years, the iconic Cunard fleet has perfected the timeless art of luxury ocean travel.

For 185 years, the iconic Cunard fleet has perfected the timeless art of luxury ocean travel.

Cunard’s distinct voyages are meticulously crafted to offer fine dining and bars, unique entertainment, and the famous White Star Service®, comfort and style.

A pioneer in transatlantic journeys and World Voyages, its destinations also include Europe, the Caribbean and Alaska.

Trademarks and Other Intellectual Property

We own, use and/or have registered or licensed numerous trademarks, patents and patent pending designs and technology, copyrights and domain names, which have considerable value and some of which are widely recognized throughout the world.

These intangible assets enable us to distinguish our cruise products and services, ships and programs from those of our competitors.

We own or license the trademarks for the trade names of our cruise brands, each of which we believe is a widely-recognized brand in the cruise industry, as well as our ship names and a wide variety of cruise products and services.

A pioneer in transatlantic crossings and World Voyages, its destinations also include Europe, the Caribbean and Alaska.

For over 150 years, Holland America Line has delivered experiences too good to hurry through — perfecting the art of leisurely travel for guests who seek to explore more than 100 countries and connect with the world and each other.

With nearly 80 years of leadership in Alaska, Holland America offers immersive journeys aboard perfectly sized ships, with fresh, locally sourced cuisine, extraordinary entertainment at sea and a tradition of genuine hospitality.

P&O Cruises is Britain’s largest cruise line and its heritage can be traced back over 185 years.

P&O Cruises welcomes guests to extraordinary travel experiences designed in a distinctively British way - through a blend of discovery, relaxation and exceptional service catered towards British tastes.

P&O Cruises’ fleet of premium ships deliver authentic travel experiences around the world, combining style and quality with a sense of occasion and attention to detail, to create a truly memorable holiday.

For 60 years, Princess Cruises has unlocked the world and inspired discovery through enriching vacations that connect people, places and cultures.

Every journey is designed to spark interaction and create unforgettable experiences both onboard and ashore.

Guests enjoy the perfect balance of elevated comfort and genuine warmth, where interactions with the Princess crew makes every moment feel personal.

With hands-on opportunities to explore and learn, Princess creates unforgettable memories across the most extraordinary destinations on earth.

Seabourn, a leader in ultra-luxury cruising, sails to legendary cities and less-traveled ports.

Intimate ships with a yacht-like atmosphere allow guests to discover the unexpected—about the world and about themselves.

Guests enjoy all ocean-front suites and world-class gourmet dining as they wish.

Seabourn creates moments of surprise and delight known as “Seabourn Moments.” Seabourn’s fleet also includes two ultra-luxury expedition ships purpose-built for immersive and adventurous travel experiences.

Port Destinations and Exclusive Islands

We operate a portfolio of port destinations and exclusive islands enabling us to offer exceptional experiences by creating a wide variety of high-quality destinations that are uniquely tailored to our guests’ preferences.

Our port destinations and exclusive islands welcomed 7.4 million guests in 2025 and 6.5 million in 2024.

In addition, to secure preferential berth access to third-party ports, we enter into berthing agreements and commitments.

Our portfolio of seven owned or operated ports and destinations includes:

• Amber Cove in the Dominican Republic

• Celebration Key, an exclusive destination in The Bahamas

• Grand Turk Cruise Center in Turks & Caicos

• Isla Tropicale in Roatan, an exclusive destination in Honduras (formerly Mahogany Bay)

• Princess Cays, an exclusive island in The Bahamas

• Puerta Maya in Cozumel, Mexico

• RelaxAway, Half Moon Cay, an exclusive island in The Bahamas

During 2025, we introduced the Paradise Collection, which currently includes:

Celebration Key, our newly launched exclusive cruise port destination on the southern coast of Grand Bahama Island, officially opened in July 2025.

Celebration Key welcomes guests to a stunning beach and offers an abundance of features and amenities for our guests.

With a pier extension slated for completion in 2026, Celebration Key will be able to accommodate up to four of our cruise ships simultaneously.

Additionally, its strategic location supports our efforts to design more energy efficient itineraries.

RelaxAway, Half Moon Cay, our highly rated and award-winning exclusive Bahamian destination will be enhanced to lean further into this destination’s natural beauty and pristine appeal.

In addition to its existing tender operations, RelaxAway, Half Moon Cay will feature a newly constructed pier that is expected to open in the summer of 2026 and will allow two cruise ships to dock.

Isla Tropicale (formerly Mahogany Bay), our port destination in Roatan, Honduras will be expanded in 2026 to include a large pool with a swim up bar and cabanas with additional enhancement plans in the future.

Passengers Carried by Principal Source Geographic Areas

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Continental Europe 2,754 2,702 2,590 AIDA and Costa

United Kingdom 1,087 970 660 Cunard and P&O Cruises (UK)

Australia and New Zealand 1,027 940 230 Carnival Cruise Line, P&O Cruises (Australia) and Princess Cruises

United Kingdom 1,108 1,087 970 Cunard and P&O Cruises

Australia and New Zealand 944 1,027 940 Carnival Cruise Line and Princess Cruises

Other 729 754 550

Total 13,627 13,509 12,460

Data for 2022 is not representative of a full year of operations.

Cruise Programs

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Each of our cruise brands establishes pricing for the upcoming seasons which are made available primarily through the internet, although published materials and electronic communications are also used.

Prices vary depending on a number of factors, including the source market, category of guest accommodation, ship, season, duration and itinerary.

We offer a variety of special promotions, including early booking, past guest recognition and travel agent programs.

Prices vary depending on a number of factors, including itinerary, category of guest accommodation, season, duration and brand.

We offer a variety of promotions, including early booking, past guest recognition and travel agent programs.

Our bookings are generally taken several months in advance of the cruise departure date.

Typically, the longer the cruise itinerary, the further in advance the bookings are made.

This lead time allows us to manage our prices in relation to guest demand and the number of available cabins through our revenue management capabilities and other initiatives.

This lead time allows us to actively manage our prices in relation to guest demand and the number of available cabins through our revenue management capabilities and other initiatives.

The cruise ticket price typically includes the following:

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• Most meals, including snacks at numerous venues

• Access to amenities such as swimming pools, water slides, water parks, whirlpools, a health club, and sun decks

• Childcare and supervised youth programs

• Access to onboard amenities such as swimming pools, water slides, water parks, whirlpools, a health club and sun decks

• Entertainment, such as theatrical and comedy shows, live music and nightclubs

• Visits to multiple destinations

We offer value added packages to induce ticket sales to guests and groups and to encourage the advance purchase of certain onboard items.

These packages are bundled with cruise tickets and sold to guests for a single price rather than as a separate package and may include one or more of the following:

• Beverage packages • Internet packages

• Shore excursions • Photo packages

• Air packages • Onboard spending credits

• Specialty restaurants • Service charges

• Visits to multiple ports, including our portfolio of owned or operated ports and destinations

• Childcare and supervised youth programs

We offer our guests a variety of packages to encourage the advance purchase of certain onboard items.

These packages are primarily sold as an incremental bundled package or, for certain of our brands, may be combined with cruise tickets and sold to guests for a single price.

These packages may include one or more of the following:

• Beverage packages

• Internet packages

• Shore excursions

• Photo packages

• Air and other transportation packages

• Onboard spending credits

• Specialty restaurants

• Service charges

Our brands’ payment terms generally require that a guest pay a deposit to confirm their reservation and then pay the balance due before the departure date.

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Onboard and Other Revenues

Onboard and other activities are provided either directly by us or by independent concessionaires, from which we receive either a percentage of their revenues or a fee.

Concession revenues do not have direct expenses because the costs and services incurred for concession revenues are borne by our concessionaires.

In 2025, we earned 34% of our cruise revenues from onboard and other revenue goods and services including:

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• Full-service spas

• Shore excursions

• Shore excursions and experiences

• Specialty restaurants

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• Photo sales

• Laundry and dry-cleaning services

Port Destinations and Exclusive Islands

We operate a portfolio of port destinations and exclusive islands enabling us to offer exceptional experiences to 6.5 million guests by creating a wide variety of high-quality destinations that are uniquely tailored to our guests’ preferences.

In addition, to secure preferential berth access to third-party ports, we enter into berthing agreements and commitments.

We recently announced plans to enhance Half Moon Cay, our highly rated and award-winning exclusive Bahamian destination.

The enhancements will lean further into this destination’s natural beauty and pristine appeal, reinforcing its new name – RelaxAway, Half Moon Cay.

Featuring a newly constructed pier that is expected to open in the summer of 2026, the destination will allow two ships to dock, including Carnival Cruise Line’s largest ships that will be able to visit for the first time.

During 2024, we continued construction on our new exclusive cruise port destination, Celebration Key, which is expected to open in the summer of 2025, with an additional pier opening in the fall of 2026.

Celebration Key, located on the south side of Grand Bahama Island, will welcome guests to a stunning beach and further expands our experience offerings with an abundance of features and amenities for our guests.

Once the additional pier is completed, Celebration Key will be able to accommodate up to four of our cruise ships simultaneously.

Additionally, our investment in Celebration Key will support our efforts to design more energy efficient itineraries based on its location and will be a strategic addition to our current portfolio of six owned or operated ports and destinations:

• Puerta Maya in Cozumel, Mexico

• Grand Turk Cruise Center in Turks & Caicos

• Mahogany Bay in Isla Roatan, Honduras

• Amber Cove in the Dominican Republic

• RelaxAway, Half Moon Cay, an exclusive island in The Bahamas

• Princess Cays, an exclusive island in The Bahamas

Many of these goods and services are available for purchase prior to embarkation and can be purchased individually or as a bundled value added package.

Onboard and other activities are provided either directly by us or by independent concessionaires, from which we receive either a percentage of their revenues or a fee.

Concession revenues do not have direct expenses because the costs and services incurred for concession revenues are borne by our concessionaires.

Marketing Activities

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We proactively gather and evaluate guest feedback about their cruise experiences for valuable insights on key drivers of guest loyalty and satisfaction, with a focus on continuous improvement.

We closely monitor our net promoter scores, which reflect the likelihood that our guests will recommend our brands’ cruise products and services to friends and family, including those new-to-cruise.

During 2024, we increased our marketing and advertising programs, driving even greater demand across our portfolio of world-class cruise lines.

We closely monitor our net promoter scores (“NPS”), which reflect the likelihood that our guests will recommend our brands’ cruise products and services to friends and family, including those new-to-cruise.

During 2025, we increased our marketing and advertising programs, driving even greater demand across our world-class cruise lines as well as our portfolio of port destinations and exclusive islands.

Each of our cruise lines is focused on creating further brand differentiation and clarity around its unique value proposition, executing on a range of carefully targeted, results-driven marketing and advertising programs to reach its optimal market segment of new and loyal guests and travel agent partners.

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We have also invested in new marketing technologies to deliver more engaging and personalized communications, further enhancing their effectiveness.

Collectively through these programs, we have cultivated cruising advocates creating word-of-mouth demand and preference for our brands, ships, itineraries and onboard products and services.

In addition, substantially all of our cruise brands offer guest loyalty and recognition programs that motivate future purchases from our repeat guests.

Collectively through these programs, we have cultivated cruising advocates creating word-of-mouth demand and preference for our brands, ships, itineraries, including our port destinations and exclusive islands and onboard products and services.

In addition, all of our cruise brands offer guest loyalty and recognition programs that motivate future purchases from our repeat guests.

Each brand strategically leverages its catalog of demand-generating rewards and incentives to bring repeat guests back time and again with finely honed offers, such as special fares, onboard activity discounts, complimentary laundry and internet services, expedited ship embarkation and disembarkation and special onboard activities.

Sales Channels

We sell our cruises through travel agents, tour operators, company vacation planners, our websites and onboard future cruise consultants.

We sell our cruises through travel agents, tour operators, company vacation planners, our websites, customer service agents and onboard future cruise consultants.

Our individual cruise brands’ relationships with their travel agent partners are generally independent of each of our other brands.

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Travel agent partners are an integral part of our long-term cruise distribution network and are critical to our success.

We utilize local sales teams to motivate travel agents to support our products and services with competitive pricing, promotional policies

and joint marketing and advertising programs.

We utilize local sales teams to motivate travel agents to support our products and services with competitive pricing, promotional policies and joint marketing and advertising programs.

During 2025, no group of travel agencies under common control accounted for 10% or more of our revenues.

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Our supply base is diverse and many of our suppliers provide goods and services across our portfolio of brands.

We have continued to map our supply chains and evaluate risks, including the categories of products and services sourced and their geographic locations.

We have continued to map and evaluate risks in our supply chain, including the categories of products and services sourced and their geographic locations.

We strive to build strong relationships with our suppliers based on shared values.

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It outlines our expectation that our suppliers will respect and follow applicable laws and regulations and promote ethical decisions in all aspects of their business.

We have also established a Responsible and Sustainable Sourcing Policy (“RSSP”) that builds on existing policies, such as our Business Partner Code of Conduct, and our human rights and environmental policies.

RSSP establishes a framework that helps us monitor compliance with our standards and helps our business partners, including suppliers, meet our requirements for compliance and progress towards industry best practices.

It is designed to ensure that our sourcing practices align with our values of social responsibility and environmental stewardship.

RSSP addresses labor, environmental, business ethics, management systems and health and safety risks.

It also covers sustainability priorities such as sustainable food ingredients, animal welfare and sustainable shore excursions.

In recent years, global supply markets and supply chains have been impacted by certain global events and increased inflation, impacting our operations and profitability.

While we have experienced stabilization in supply markets and easing of inflation, we continue to apply a number of different strategies to mitigate the impact of these challenges on our operations, including extending our demand planning, placing purchase orders earlier to secure supply, leveraging our enterprise scale through corporate-wide agreements, utilizing short-term or long-term contracts as needed, seeking alternative sources, utilizing substitute products and leveraging our supplier relationships.

We also have a Responsible Sourcing Policy (“RSP”) that builds on our Business Partner Code of Conduct and our human rights and environmental practices.

The RSP establishes a framework that helps us monitor compliance with our standards.

It is designed to ensure that our sourcing practices are aligned with our business priorities, core values and sustainability goals.

The RSP also addresses labor, environmental, business ethics, management systems and health and safety risks.

Human Capital Management and Employees

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A team of highly motivated and engaged employees is key to providing extraordinary cruise vacations.

To facilitate the recruitment, development and retention of our valuable employees, we strive to make Carnival Corporation & plc a diverse, inclusive and safe workplace, with opportunities for our employees to grow and develop in their careers.

To facilitate the recruitment, development and retention of our valuable employees, we strive to make Carnival Corporation & plc a workplace that not only attracts top talent but also provides meaningful opportunities for professional growth and development.

Talent Development

We believe in investing in our team members through the training and development of both shoreside and shipboard team members.

We facilitate trainings to ensure that our teams are well-prepared to carry out their individual and collective responsibilities.

For our shipboard team members, our goal is to be a leader in delivering high quality professional maritime training, as evidenced by the Arison Maritime Center.

The Center is home to the Center for Simulator Maritime Training (“CSMART”).

The leading-edge CSMART Academy features the most advanced bridge and engine room simulator technology and equipment available, with the capacity to provide annual professional training for all our bridge, engineering and environmental officers.

CSMART participants receive a maritime training experience that fosters advanced knowledge and skills development, critical thinking and problem solving;

all in a professional learning environment where our corporate culture is reinforced.

CSMART also offers training related to liquefied natural gas (“LNG”) technology as well as an environmental officer training program and additional environmental courses for bridge and engineering officers to further enhance our training on environmental awareness and protection.

Succession Planning

Our Boards of Directors believe that planning for succession is an important function.

Our multi-brand structure enhances our succession planning process.

We continually strive to foster the professional development of management and team members.

As a result, we have developed a very experienced and strong group of leaders, with their performance subject to ongoing monitoring and evaluation, as potential successors to our senior management, including our Chief Executive Officer (“CEO”).

We are committed to excellence through our comprehensive performance management system that aligns individual contributions with our business priorities and fosters the continuous development of our employees.

Our structured approach integrates goal setting, regular check-ins and formal evaluations, enabling both shoreside and shipboard team members to reflect on their growth and receive actionable guidance on performance expectations and career progression.

Managers are equipped to conduct fair, consistent assessments that inform compensation, promotion and succession planning, while reinforcing high standards and a culture of continuous improvement across the organization.

We provide our shoreside team members with a variety of training programs and other personal and professional growth opportunities.

We invest in leadership development programs designed to foster career growth, build strong leaders and retain top talent for advancement across the organization.

Through careful monitoring and evaluation of performance, we cultivate a strong pipeline of experienced leaders who understand the complexities of managing global cruise operations.

This systematic approach to talent development allows us to maintain the expertise needed to navigate the unique challenges of the cruise industry while supporting our commitment to sustainable growth and operational excellence.

Additionally, we have a shoreside leadership development program to foster a high-performance culture, promote integrity, encourage cross-functional exposure and promote ongoing growth.

Our strategic approach to succession is supported by our Boards of Directors and is enhanced by our multi-brand operational structure.

This creates opportunities for leadership development across our organization for potential successors to our senior management, including our Chief Executive Officer (“CEO”).

We also invest in our shipboard team members through various specialized training programs.

Our maritime training initiatives are particularly crucial, encompassing essential areas such as environmental, health and safety protocols, guest service excellence and operational efficiency.

Our Arison Maritime Center — home to the Center for Simulator & Maritime Training Academy (“CSMART”), delivers comprehensive professional maritime training.

The state-of-the-art CSMART Academy features the most advanced bridge and engine room simulator technology and equipment available, with the capacity to provide professional training for all our bridge, engineering and environmental officers.

CSMART participants benefit from a maritime training experience that fosters advanced knowledge and skills development, critical thinking, problem solving and decision making — all within a professional learning environment that reinforces our core values.

Ethics and Compliance

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The main responsibilities of the Global E&C department are to collaboratively:

• Identify, assess, monitor, prevent, detect and report on compliance risk

• Identify, assess, monitor, prevent, detect and report on ethics and compliance risk

• Ensure compliance accountabilities and responsibilities are clear across the company

• Promote a strong culture of ethics and compliance

• Promote a strong commitment to ethics and compliance

• Drive ethics and compliance continuous improvements

To further heighten the focus on ethics and compliance, our Boards of Directors have Compliance Committees, which oversee the Global E&C department and maintain regular communications with our Chief Risk and Compliance Officer.

Trademarks and Other Intellectual Property

These intangible assets enable us to distinguish our cruise products and services, port destinations and exclusive islands, ships, and programs from those of our competitors.

We maintain insurance to cover a number of risks associated with owning and operating our vessels and other non-ship related risks.

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We believe that Panama is an equivalent exemption jurisdiction and that Carnival Corporation currently satisfies the publicly-traded test under the regulations.

Accordingly, substantially all of Carnival Corporation’s income is exempt from U.S.

Accordingly, for fiscal 2025, substantially all of Carnival Corporation’s income is exempt from U.S.

federal income and branch profit taxes.

Regulations under Section 883 list certain activities that the Internal Revenue Service (“IRS”) does not consider to be incidental to the international operation of ships and, therefore, the income attributable to such activities, to the extent such income is U.S.

source, does not qualify for the Section 883 exemption.

Among the activities identified as not incidental are income from the

sale of air transportation, transfers, shore excursions and pre- and post-cruise land packages to the extent earned from sources within the U.S.

Regulations under Section 883 list certain activities that the Internal Revenue Service does not consider to be incidental to the international operation of ships and, therefore, the income attributable to such activities, to the extent such income is U.S.

sourced, does not qualify for the Section 883 exemption.

Among the activities identified as not incidental are income from the sale of air transportation, transfers, shore excursions and pre- and post-cruise land packages to the extent earned from sources within the U.S.

Exemption Under Applicable Income Tax Treaties

We believe that the U.S.

source transportation income earned by Carnival plc and its subsidiaries qualifies for exemption from U.S.

sourced transportation income earned by Carnival plc and its subsidiaries qualifies for exemption from U.S.

federal income tax under applicable bilateral U.S.

income tax treaties.

Additionally, beginning in fiscal 2026, we believe the U.S.

sourced transportation income earned by Carnival Corporation and our other North American cruise ship businesses will qualify for exemption from U.S.

federal income tax under provisions of the U.S.-UK income tax treaty.

State Income Tax

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However, the state of Alaska imposes an income tax on its allocated portion of the total income of our companies doing business in Alaska and certain of their subsidiaries.

UK and Australian Income Tax

Cunard, P&O Cruises (UK) and P&O Cruises (Australia) are divisions of Carnival plc and have elected to enter the UK tonnage tax regime under a rolling ten-year term and, accordingly, reapply every year.

UK Income Tax

Cunard and P&O Cruises are divisions of Carnival plc and have elected to enter the UK tonnage tax regime under a rolling eight-year term and, accordingly, reapply every year.

Companies to which the tonnage tax regime applies pay corporation taxes on profits calculated by reference to the net tonnage of qualifying ships.

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Our UK non-shipping activities that do not qualify under the UK tonnage tax regime remain subject to normal UK corporation tax.

P&O Cruises (Australia) and all of the other cruise ships operated internationally by Carnival plc for the cruise segment of the Australian vacation region are exempt from Australian corporation tax by virtue of the UK/Australian income tax treaty.

Italian and German Income Tax

In December 2024, the European Commission formally approved the Italian tonnage tax rules for 10 years.

In 2025, Costa and AIDA will elect to remain in the Italian tonnage tax regime through 2034.

In 2025, AIDA and Costa elected to remain in the Italian tonnage tax regime through 2034.

Companies to which the tonnage tax regime applies pay corporation taxes on shipping profits calculated by reference to the net tonnage of qualifying ships.

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Subject to certain requirements, the OECD Model Rules provide an exclusion for international shipping income.

The implementation of these rules will affect Carnival plc and its subsidiaries beginning in fiscal 2025 and Carnival Corporation and certain of its subsidiaries beginning in fiscal 2026.

We expect Carnival plc and its subsidiaries will be eligible for the international shipping income exclusion based on their current structure.

Carnival Corporation and certain of its subsidiaries intend to align into a single tax jurisdiction where the international shipping income for its North American brands is also expected to qualify for this exemption.

Carnival plc and its subsidiaries became subject to these rules beginning in fiscal 2025 and Carnival Corporation and its subsidiaries will be subject to the rules beginning in fiscal 2026.

Carnival plc and its subsidiaries are eligible for the international shipping income exclusion based on their current structure.

Effective December 1, 2025, Carnival Corporation and certain of its subsidiaries aligned into a single tax jurisdiction with Carnival plc.

As a result, we do not believe the application of these rules will have a material impact on our consolidated financial statements.

We will continue to monitor the development of the OECD’s rules and evaluate the impact on our business.

In addition to or in place of income taxes, virtually all jurisdictions where our ships call impose taxes, fees and other charges based on guest counts, ship tonnage, passenger capacity or some other measure.

Governmental Regulations

Governmental and Other Regulations

Maritime Regulations

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The IMO’s principal sets of requirements are mandated through its International Convention for the Safety of Life at Sea (“SOLAS”), its International Convention for the Prevention of Pollution from Ships (“MARPOL”) and its International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (“STCW”).

• Flag States:

Our ships are registered, or flagged, in The Bahamas, Bermuda, Italy, the Netherlands, Panama and the UK, which are also referred to as Flag States.

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• National, regional, and other authorities:

We are subject to the decrees, directives, regulations, and requirements of the European Union (“EU”), the UK, the U.S., other countries, and many other authorities, including ports that our ships visit.

We are subject to the decrees, directives, regulations, and requirements of Australia, Canada, the European Union (“EU”), New Zealand, the UK, the U.S., other countries, and many other authorities, including ports that our ships visit.

• Port regulatory authorities (Port State Control):

Our ships are also subject to inspection by the port regulatory authorities, which are also referred to as Port State Control, in the various countries that they visit.

Our ships are also subject to inspection by port regulatory authorities, which are also referred to as Port State Control, in the various countries that they visit.

Such inspections include verification of compliance with the maritime safety, security, environmental, customs, immigration, health and labor requirements applicable to each port, as well as with regional, national and international requirements.

Many countries have joined together to form regional Port State Control authorities.

Our Boards of Directors have Health, Environment, Safety and Security (“HESS”) Committees, which were comprised of six independent directors as of November 30, 2024.

Our Boards of Directors have Health, Environment, Safety and Security (“HESS”) Committees, which were comprised of five independent directors as of November 30, 2025.

The principal function of the HESS Committees is to assist the boards in fulfilling their responsibility to supervise and monitor our health, environmental, safety, security and sustainability policies, programs and initiatives at sea and ashore and compliance with related legal and regulatory requirements.

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We are committed to implementing appropriate measures to manage identified risks effectively.

We have a Chief Maritime Officer to oversee our global maritime operations, including maritime policy, maritime affairs, maritime standards, training, shipbuilding, asset management, health operations, and research and development.

In addition, we have a Chief Risk and Compliance Officer who leads the effort to promote and monitor a strong ethics and compliance culture throughout the company, including all areas of HESS.

In addition, we have a Chief Risk and Compliance Officer who leads efforts to promote and monitor a strong ethics and compliance culture throughout the company, including all areas of HESS.

To help ensure that we are compliant with legal and regulatory requirements and that these areas of our business operate in an efficient and effective manner, we have taken certain actions including, but not limited to:

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• Radio communications

All of our crew undergo regular safety training that meets or exceeds all international maritime regulations, including SOLAS requirements, which are periodically revised.

Additionally, we have implemented and continue to develop policies and procedures that we believe enhance our commitment to the safety of our guests and crew.

SOLAS requires implementation of the International Safety Management Code (“ISM Code”), which provides an international standard for the safe management and operation of ships and for pollution prevention.

The ISM Code is mandatory for passenger vessel operators.

Under the ISM Code, vessel operators are required to:

• Develop and implement a Safety Management System (“SMS”) that includes, among other things, the adoption of safety and environmental protection policies setting forth instructions and procedures for operating vessels safely and describing procedures for responding to emergencies and protecting the environment.

In addition, our SMS includes health and security procedures

• Obtain a Document of Compliance (“DOC”) for the vessel operator, as well as a Safety Management Certificate (“SMC”) for each vessel they operate.

These documents are issued by the vessel’s Flag State and evidence compliance with the ISM Code and the SMS

• Verify or renew DOCs and SMCs periodically in accordance with the ISM Code

All our ships are regularly audited by our various national authorities, and we are required to maintain the relevant certificates of compliance with the ISM Code.

SOLAS requires implementation of the International Safety Management Code (“ISM Code”), which provides an international standard for the safe management and operation of our ships and for pollution prevention.

All our ships are regularly audited by various national authorities, and we are required to maintain the relevant ISM Code compliance certificates.

Maritime Security Regulations

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Maritime Environmental Regulations

We are subject to numerous international, multi-national, national, state and local environmental laws, regulations and treaties that govern air emissions, waste management, and the storage, handling, use and disposal of hazardous substances such as chemicals, solvents and paints.

As a means of managing and improving our environmental performance and compliance, we adhere to standards set by the International Organization for Standardization (“ISO”), an international standard-setting body, which produces worldwide industrial and commercial standards.

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Preventing and Minimizing Pollution

MARPOL includes six annexes, four of which are applicable to our cruise ships, containing requirements designed to prevent and minimize both accidental and operational pollution by oil, sewage, garbage and air emissions and the provision of facilities at ports and terminals for the reception of sewage and sets forth specific requirements related to vessel operations, equipment, recordkeeping and reporting that are designed to prevent and minimize pollution.

MARPOL contains requirements designed to prevent and minimize both accidental and operational pollution by oil, sewage, garbage and air emissions and the provision of facilities at ports and terminals for the reception of sewage and sets forth specific requirements related to vessel operations, equipment, recordkeeping and reporting that are designed to prevent and minimize pollution.

All our ships must carry an International Oil Pollution Prevention Certificate, an International Sewage Pollution Prevention Certificate, an International Air Pollution Prevention Certificate and a Garbage Management Plan.

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The ship’s Flag State issues these certificates, which evidence their compliance with the MARPOL regulations regarding prevention of pollution by oil, sewage, garbage and air emissions.

Certain jurisdictions have not adopted all of these MARPOL annexes but have established various national, regional or local laws and regulations that apply to these areas.

MARPOL requires that discharges of machinery space bilge water pass through pollution prevention equipment that separates oil from the water and monitors the discharged water to ensure that the effluent does not exceed 15 parts per million oil content.

Our ships have oily water separators with oil content monitors installed and maintain a record of certain engine room operations in an Oil Record Book.

In addition, we have voluntarily installed redundant systems on all our ships that monitor processed bilge water a second time prior to discharge to help ensure that it contains no more than 15 parts per million oil content.

This system also provides additional controls to prevent improper bilge water discharges.

MARPOL also requires that our ships have Shipboard Oil Pollution Emergency Plans.

Furthermore, MARPOL addresses air emissions from vessels, establishes requirements for the prevention of air pollution from ships to reduce emissions of sulfur oxides (“SOx”), nitrogen oxides (“NOx”), particulate matter and greenhouse gases (“GHG”) emissions.

It also contains restrictions on the use of ozone depleting substances (“ODS”) and requires the recording of ODS use, equipment containing ODS and the emission of ODS.

MARPOL’s requirements for air emissions from vessels are designed to reduce emissions of sulfur oxides (“SOx”), nitrogen oxides (“NOx”), particulate matter and GHG emissions.

Sulfur Emissions

The IMO adopted a global 0.5% sulfur cap for marine fuel which began in January 2020.

The EU Parliament and Council also adopted 0.5% sulfur content fuel requirement (the “EU Sulfur Directive”).

The options to comply with both the global 0.5% sulfur cap and the EU Sulfur Directive include the installation and use of Advanced Air Quality Systems, or the use of low sulfur or alternative fuels.

MARPOL addresses air emissions from both auxiliary and main propulsion diesel engines on ships and further specifies requirements for Emission Control Areas (“ECAs”) with stricter limitations on sulfur emissions content in these areas, requiring ships to use fuel with a sulfur content of no more than 0.1%, or to use alternative emission reduction methods, such as Advanced Air Quality Systems.

We have Advanced Air Quality Systems on most of our ships, which are aiding in partially mitigating the financial impact from the ECAs and global sulfur requirements.

The IMO has a global 0.5% sulfur cap for marine fuel.

The options to comply with this sulfur cap include the installation and use of Advanced Air Quality Systems, or the use of low sulfur or alternative fuels.

MARPOL further specifies requirements for Emission Control Areas (“ECAs”) with stricter limitations on sulfur emissions content in these areas, requiring ships to use fuel with a sulfur content of no more than 0.1%, or to use alternative emission reduction methods, such as Advanced Air Quality Systems.

We have Advanced Air Quality Systems on most of our ships, which are aiding in compliance with the applicable sulfur requirements.

We use Advanced Air Quality Systems wherever possible subject to local laws and regulations.

Additionally, Advanced Air Quality Systems used with heavy fuel oil (“HFO”) result in as good or better SOx, NOx and particulate emissions compared to marine gasoil (“MGO”) .

Greenhouse Gas Emissions

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The technical measures apply to the design of new vessels and the operational measures apply to all vessels.

The IMO mandates a data collection system (“DCS”) for reporting fuel oil consumption.

The DCS requires ships of 5,000 gross tons and above to provide fuel consumption data to their respective Flag State at the end of each calendar year.

Flag States validate the data and transfer it to a database and the IMO produces a summary annual report.

In January 2023, MARPOL changes in support of the IMO’s GHG emission reduction goals went into effect and include an operational measure called the Carbon Intensity Indicator (“CII”), an annual ship-level CO 2 intensity emissions performance measure, and a technical measure called the Energy Efficiency Existing Ship Index (“EEXI”), a one-off measure similar to the Energy Efficiency Design Index (“EEDI”) for newbuilds, that confirms for a specific condition that a ship meets a target CO 2 emission intensity.

The IMO mandates a data collection system for reporting fuel oil consumption.

In 2023, MARPOL changes in support of the IMO’s GHG emission reduction goals went into effect and include an operational measure called the Carbon Intensity Indicator (“CII”), an annual ship-level CO 2 intensity emissions performance measure, and a technical measure called the Energy Efficiency Existing Ship Index (“EEXI”), a one-off measure similar to the Energy Efficiency Design Index (“EEDI”) for newbuilds, that confirms for a specific condition that a ship meets a target CO 2 emission intensity.

The EEXI has not had a material impact and the impact for CII is uncertain as it remains under review and the enforcement mechanism of the regulation is still to be defined.

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It also includes a target of a 40% reduction in CO 2 emissions intensity by 2030 compared to 2008.

The IMO Strategy includes a range of measures planned for implementation in 2027, including fuel standards and market-based measures that could result in changes to itineraries or increased compliance related costs for which the impact is uncertain and may individually and collectively have a material impact on our profitability.

In April 2025, the IMO drafted the Net Zero Framework, a set of fuel standards and market-based measures that could result in increased compliance-related costs, which may have a material impact on our profitability.

In October 2025, IMO member states voted to postpone the adoption discussions until late 2026.

The one-year postponement introduces additional uncertainty regarding its likelihood for adoption and its final form.

Ballast Water

Ballast water is water used to stabilize ships at sea and maintain safe operating conditions throughout a voyage.

Ballast water can carry a multitude of marine species.

The IMO’s Ballast Water Management Convention governs the discharge of ballast water from ships and requires the installation of ballast water management systems for existing ships.

The convention also sets forth requirements for ballast water exchange, record keeping, and maintaining an approved Ballast Water Management Plan.

The Convention is designed to regulate the treatment of ballast water prior to discharging overboard in order to avoid the transfer of marine species to new environments, as well as establishing other ballast water management practices for monitoring and environmental protection.

The IMO’s Ballast Water Management Convention governs the discharge of ballast water from ships, establishes ballast water management practices for environmental protection and requires the installation of ballast water management systems for existing ships.

The convention also sets requirements for ballast water exchange, record keeping, and maintaining an approved Ballast Water Management Plan.

Federal and State Regulations

The Oil Pollution Act of 1990 (“OPA 90”) established a comprehensive federal liability regime, as well as prevention and response requirements, relating to discharges of oil in U.S.

The major requirements include demonstrating financial responsibility up to the liability limits set by OPA 90 and having oil spill response plans in place.

We have Certificates of Financial Responsibility (“COFR”) that demonstrate our ability to meet the liability limits of OPA 90 and covers releases of hazardous materials.

We are required to maintain Certificates of Financial Responsibility (“COFR”) that demonstrate our financial responsibility up to the liability limits set by OPA 90 and having oil spill response plans in place.

It is possible, however, for our liability limits to be broken, which could expose us to unlimited liability.

As OPA 90 expressly allows coastal states to impose liabilities and requirements beyond those imposed under federal law, many U.S.

states have enacted laws more stringent than OPA 90.

Coastal states also impose liabilities and requirements beyond those imposed under federal law.

Some of these state laws impose unlimited liability for oil spills and contain more stringent financial responsibility and contingency planning requirements.

Most coastal states have also enacted environmental regulations that impose strict liability for removal costs and damages resulting from a discharge of oil or a release of a hazardous substance, similar to OPA 90.

The Clean Water Act (“CWA”) provides the U.S.

Environmental Protection Agency (“EPA”) with the authority to regulate incidental discharges from commercial vessels, including discharges of ballast water, bilge water, gray water, anti-fouling paints and other substances during normal operations within the U.S.

three-mile territorial sea and inland waters.

Pursuant to the CWA authority, the U.S.

National Pollutant Discharge Elimination System was designed to minimize pollution within U.S.

territorial waters.

For our affected ships, the incidental discharge requirements are set forth in EPA’s Vessel General Permit (“VGP”) for discharges incidental to the normal operations of vessels.

The VGP establishes effluent limits for specific discharges incidental to the normal operation of a vessel, many of which apply to our cruise ships.

Most coastal states have also enacted environmental regulations that impose strict liability for removal costs and damages resulting from a discharge of oil or a release of a hazardous substance.

Environmental Protection Agency (“EPA”) has the authority to regulate incidental discharges from commercial vessels, including discharges of ballast water, bilge water, gray water, anti-fouling paints and other substances during normal operations within the regulated waters.

For our affected ships, the incidental discharge requirements are set forth in EPA’s Vessel General Permit (“VGP”), which establishes effluent limits for specific discharges incidental to the normal operation of a vessel.

In addition to the requirements associated with these discharges and more stringent vessel-specific requirements, the VGP includes requirements for inspections, monitoring, reporting and record-keeping.

The National Invasive Species Act (“NISA”) gives the U.S.

Coast Guard (“USCG”) the authority to establish U.S.

ballast water management requirements to prevent the spread of invasive species.

Pursuant to NISA, the USCG issued ballast water

regulations which include requirements for ballast water management (including type-approved ballast water management systems), monitoring, record-keeping and reporting.

In 2018, the Vessel Incidental Discharge Act (“VIDA”) was signed into law and was intended to clarify and streamline discharge requirements for the incidental discharges covered by the VGP and USCG ballast water regulations.

In October 2024, the EPA published the final rule on the VIDA National Standards of Performance.

The VIDA requires the USCG to develop corresponding implementation, compliance and enforcement regulations within two years.

Coast Guard (“USCG”) ballast water regulations.

Until the USCG regulations are final, effective and enforceable, vessels continue to be subject to the existing discharge requirements established in the VGP and the USCG’s ballast water regulations, as well as any other applicable state and local government requirements.

The National Marine Sanctuaries Act provides the National Oceanic and Atmospheric Association with the authority to identify, designate and protect marine areas with special national significance.

There are currently 17 National Marine Sanctuaries and two Marine National Monuments in force, some of which are transited through by our ships.

There are a number of National Marine Sanctuaries and Marine National Monuments in force, some of which are transited through by our ships.

Each area is governed by site-specific requirements that prohibit most discharges from ships.

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The state of California also has environmental requirements significantly more stringent than federal requirements for water discharges and air emissions.

EU and EU Member State Regulations

The EU has adopted a broad range of substantial environmental measures aimed at improving the quality of the environment.

To support the implementation and enforcement of European environmental legislation, the EU has adopted directives on environmental liability and enforcement and a recommendation providing for minimum criteria for environmental inspections.

EU, EU Member State and UK Regulations

The EU has adopted a broad range of substantial environmental measures aimed at improving the quality of the environment and has directives on environmental liability and enforcement and a recommendation providing for minimum criteria for environmental inspections.

The European Commission’s (“EC”) strategy is to reduce emissions from ships.

The EC strategy seeks to implement SOx Emission Control Areas set out in MARPOL, as discussed above via their own Sulfur Directive.

The EC strategy seeks to implement SOx Emission Control Areas set out in MARPOL.

The EC has also implemented regulations aimed at reducing GHG emissions from maritime shipping through a Monitoring, Reporting and Verification regulation, which involves collecting emissions data from ships over 5,000 gross tons to monitor and report GHG emissions on all voyages to, from and between European Union ports.

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The ETS regulates emissions through a “cap and trade” principle, where a cap is set on the total amount of certain emissions that can be emitted.

The maritime shipping sector is included in the scope of ETS effective January 2024 and requires ships to procure emission allowances covering 40% of their 2024 emissions inside EU waters to be surrendered in 2025, 70% of 2025 emissions to be surrendered in 2026 and 100% of annual emissions thereafter, to be surrendered in the following year.

The 2024 cost of the ETS regulations was $46 million.

The FuelEU Maritime regulation, which became effective in January 2025, is a long-term framework designed to reduce maritime emissions by increasing the use of sustainable alternative fuels and, for container and passenger ships (including cruise ships), the use of shore power.

The maritime shipping sector became included in the scope of ETS in 2024, requiring ships to procure emission allowances covering 40% of their 2024 emissions inside EU waters to surrender in 2025, 70% of 2025 emissions to be surrendered in 2026 and 100% of annual emissions thereafter, to be surrendered in the following year.

The cost of the EU ETS regulations in 2025 was $91 million and it is expected to be approximately $170 million in 2026.

In addition, the UK plans to include domestic legs and port calls of ships engaged in international voyages under its national ETS beginning in July 2026.

We do not expect complying with the UK’s national ETS for domestic shipping to have a material impact on our profitability in 2026.

The FuelEU Maritime regulation, which became effective in January 2025, is a framework designed to reduce maritime emissions by increasing the use of sustainable alternative fuels and, for container and passenger ships (including cruise ships), the use of shore power.

The regulation requires compliance with the maximum limits of GHG intensity of energy used on board.

The stringency of these limits increases over time, and there are financial penalties for non-compliance.

The regulation also includes requirements for ships to connect to shore power when at EU ports.

We estimate the 2025 impact of complying with the FuelEU Maritime regulation to be approximately $10 to $15 million.

The ETD is a framework for the taxation of energy products and sets minimum rates of excise duty to encourage a low carbon economy.

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To date, there is no timeline for adoption of these amendments.

Norway has and is considering additional regulations that supersede IMO requirements for certain air emissions from vessels.

For example, all ships operating in the Norwegian World Heritage Fjords (“WHF”) must meet IMO Tier III NOx requirements

by January 1, 2025.

Additionally, Norway has proposed that large ships operating in the WHF may not emit any GHG starting in 2032.

Norway is also currently considering a carbon tax on fuel bunkered by international shipping in Norway.

The exact impact of the Fit for 55 and the Norwegian WHF regulations are uncertain as elements of the proposals have not yet been finalized and enacted and will depend on future deployments.

Maritime Health Regulations

We are committed to providing a healthy environment for all of our guests and crew.

We collaborate with public health inspection programs throughout the world, such as the Centers for Disease Control and Prevention (“CDC”) in the U.S.

We collaborate with public health inspection programs throughout the world, such as the Centers for Disease Control and Prevention in the U.S.

and the SHIPSAN Project in the EU, to ensure that development of these programs leads to enhanced health and hygiene onboard our ships.

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In Australia and most of Europe, we may be obligated to honor our guests’ cruise payments made by them to their travel agents and tour operators regardless of whether we receive these payments.

In addition, the UK plans to include domestic shipping under its national ETS beginning in January 2026.

To date, they have proposed that the domestic legs and port calls of ships engaged in international voyages will be included, consultations with stakeholders is ongoing.

We are, or may in the future become, subject to other laws and regulations which require our compliance, including those addressing antitrust, anti-money laundering, bribery, corruption, data privacy, human rights, securities and sanctions, reporting on sustainability matters, as well as human resources related matters.

Sustainability

We strive to be a desirable workplace and a model global corporate citizen.

Our efforts to ensure the safety and well-being of our guests and crew, protect the environment, create opportunities for our workforce, build strong stakeholder relationships and support the communities we operate in and visit, reflect our core values and are key to our success.

In 2021, we established goals for 2030 which incorporate six focus areas listed below that align with elements of the United Nation’s Sustainable Development Goals and build on the momentum of our successful achievement of our 2020 sustainability goals.

Since then, we have achieved several goals ahead of schedule, accelerated the timeline of others and established intermediate goals.

During 2024, we conducted a comprehensive review of our 2030 sustainability goals to align with our ongoing vision and progress.

This review included revising existing goals, setting new targets, and retiring goals that have already been achieved.

The enhancement of our sustainability road map reflects our adaptive approach to addressing evolving environmental and social challenges, both globally and within the cruise industry.

• Climate Action

• Circular Economy

• Good Health and Well-Being

• Sustainable Tourism

• Biodiversity and Conservation

• Inclusion and Belonging

We voluntarily publish Sustainability Reports that address governance, stakeholder engagement, environmental, labor, human rights, society, product responsibility, economic and other sustainability-related issues and performance indicators.

These reports are not incorporated in this document and can be viewed at www.carnivalcorp.com , www.carnivalplc.com and www.carnivalsustainability.com.

For further information on our 2030 sustainability goals, refer to our Sustainability Report.

We have developed a four-part strategy to help us achieve our climate action goals as follows:

• Fleet optimization:

delivering larger, more efficient ships as part of our ongoing newbuild program, some of which may replace existing ships in our fleet

• Energy efficiency:

continuing to improve our existing fleet’s energy efficiency through investment in projects such as service power packages (or power saver packs), air lubrication systems and expanding shore power capabilities to leverage renewable energy sources while in port, where available

• Itinerary efficiency:

designing more energy-efficient itineraries, focusing on operational execution and investing in port and destination projects in strategic locations

• New technologies and alternative fuels:

investing in a first-of-its-kind lithium-ion battery storage system and assessing carbon capture and storage.

We also support alternative fuels including biofuels such as bio-methane and bio-methanol, as well as synthetic or e-fuels such as e-methane and e-methanol, which we are assessing as future low GHG emission fuel options for our ships

We are working to further reduce our absolute GHG emissions.

We reduced our absolute GHG emissions from ship fuel by approximately 11% as compared to our peak year of 2011 despite capacity growth of nearly 37% over the same period.

Additionally, we are pursuing our aspiration of net zero emissions by 2050, aligned with the revised IMO Strate gy.

Sustainability forms an important element of our business strategy.

Our efforts to promote the safety and well-being of our guests and crew, protect the environment, create opportunities for our workforce, build strong relationships and support the communities we operate in and visit, reflect our core values and are key to our long-term success.

In 2021, we established sustainability goals for 2030, building on the momentum of our successful achievement of our 2020 sustainability goals.

During 2024, we conducted a comprehensive review of our 2030 sustainability goals to align with our ongoing progress.

This review resulted in strategic refinements to our sustainability roadmap, including the revision of existing goals, establishment of new targets and retirement of previously achieved goals.

As part of the process, we also reorganized our sustainability focus areas into two overarching themes, People and Planet.

Our People focus areas include – Well-Being, Inclusion and Belonging and Sustainable Tourism.

Our Planet focus areas include – Climate Action, Circular Economy and Biodiversity and Conservation.

In addition to our 2030 goals, we are pursuing our aspiration of net zero emissions from ship operations by 2050.

Achieving this goal will require energy sources and technologies that do not yet exist at scale.

While fossil fuels are currently the only scalable and commercially viable option for our industry, we are closely monitoring technology developments and pioneering important sustainability initiatives in the cruise industry.

We have leveraged third party studies and partnered with companies and other organizations to help identify and scale new technologies.

For example, we implemented maritime scale battery technology and are working with classification societies and other stakeholders to assess lower GHG emission fuel options for cruise ships and assessing carbon capture and storage technologies.

We have successfully used biofuel as a replacement for fossil fuel on 6 ships.

The certified biofuels used offer environmental benefits compared to using fossil fuels alone through their lifecycle GHG reductions.

These biofuels can be used in existing ship engines without modifications to the engine or fuel infrastructure, including on ships already in service.

To provide a path to net zero emissions, alternative low GHG emission fuels will be necessary for the maritime industry;

Additionally, to provide a path to net zero emissions, alternative low GHG emission fuels will be necessary for the maritime industry;

however, there are significant supply and cost challenges that must be resolved before viability is reached.

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In our view, a commitment to achieve an absolute greenhouse gas emission reduction pathway without a clear understanding of how this will be achieved is not aligned with our approach to goal setting.

While we continue to pursue our aspiration of net zero emissions, our defined goals and targets are set based on feasible, achievable, and available pathways.

We continue to implement Service Power Packages (or Power Saver Packs), a comprehensive set of technology upgrades, which will be completed over the next several years across a portion of the fleet.

These upgrades include the following elements designed to reduce both fuel usage and GHG emissions while also contributing to cost savings:

• Comprehensive upgrades to each ship’s hotel HVAC (heating, ventilation, and air conditioning) systems

• LED lighting systems

• Remote monitoring and optimization of energy usage and performance

Service Power Package (or Power Saver Packs) upgrades are the main part of our ongoing energy efficiency investment program and are expected to further improve energy savings and reduce fuel consumption.

Upon completion, these upgrades are expected to deliver approximately 5% fuel savings per ship.

We have ten Air Lubrication Systems (“ALS”) operating in our fleet as of November 30, 2024 and have additional installations in progress and planned for the future.

ALS cushions the flat bottom of a ship’s hull with air bubbles, which reduces the ship’s frictional resistance and the propulsive power required to drive the ship through the water and generate approximately 5% savings in fuel consumption for propulsion and reductions in GHG emissions on ALS equipped ships when operating in a specific speed range.

We have ten LNG powered cruise ships in operation as of November 30, 2024, which represent nearly 20% of our fleet capacity and six more that are expected to join the fleet through 2033.

While LNG is a fossil fuel and generates GHG emissions, its direct CO 2 emissions are lower than those of conventional fuels.

It emits virtually zero sulfur oxides (only the sulfur in the pilot fuel is present), reduces nitrogen oxides by 85% and cuts particulate matter by 95%-100%.

The types of engines that we use experience small amounts of methane slip (un-combusted methane passing through the engine).

There are varying views on measuring LNG’s environmental impact and our disclosures report our emissions, including methane slip, as part of our total GHG emissions (reported as CO 2 e) using the scientifically accepted 100-year global warming potential (“GWP”) time frame and are measured on a tank-to-wake basis.

We are part of the Methane Abatement in Maritime Innovation Initiative, partnering with other major maritime players to find solutions for this challenge, including evaluating options to remove unburnt methane from exhaust streams.

The latest generation of LNG-fueled engines show significantly reduced methane slip and we are working with the engine manufacturers to update our existing engines to improve their methane slip performance.

As a result of these efforts, LNG’s advantage over conventional fuels in terms of reduced GHG emissions is expected to grow.

A new ship capable of running on LNG also provides flexibility and future optionality.

LNG engines are dual-fuel engines, capable of operating on MGO and LNG, including fossil, biofuel and, when available, synthetic versions of those fuels.

The type of tank and system arrangements that we have on our LNG-fueled ships also allows for future conversion to other low GHG fuels such as green methanol.

LNG ships are also built with larger fuel tanks, with the space necessary to retrofit for other fuels.

Given the expected life of a cruise ship, this provides us with more options to continue to fuel our ships regardless of how the alternative fuel markets develop in the future.

The combined impact of the factors above makes LNG the best readily available fuel to reduce GHG emissions in the absence of market-ready zero-emission or near-zero-emission fuels.

We pioneered the use of Advanced Air Quality Systems on board our ships to aid in the reduction of sulfur and are promoting the use of shore power.

Shore power enables our ships to use shoreside electric power, where available, while in port rather than running their engines to power their onboard services, resulting in reduced engine emissions and noise in port.

We also pioneered the use of shore power in 2001.

More than two-thirds of our ships are equipped with this capability, and that number will increase over time as more ports provide shore power.

We have continued our work with several local port authorities to utilize cruise ship shore power connections.

We have considered our sustainability goals and efforts, as described above, in connection with the preparation of our consolidated financial statements and any estimates used in the preparation of our consolidated financial statements.

We have voluntarily reported our GHG footprint via the CDP each year since 2006.

The CDP rates companies on the depth and scope of their disclosures and the quality of their reporting.

Our submission includes details of our most recently compiled emissions data and reduction efforts, along with the results of an independent, third-party verification of our GHG emissions.

We also disclose our holistic water stewardship to use less, reuse more and clean as well as purify used water to return to nature through the CDP water program.

Carnival Corporation & plc’s GHG emissions inventory management plan follows the guidance in The Greenhouse Gas Protocol and ISO 14064-1:2018 and our environmental management system is certified in accordance with the ISO 14001:2015 Environmental Management System standard.

While we continue to pursue our aspiration of net zero emissions from ship operations, our defined goals and targets are set based on feasible, achievable, and available pathways based on existing and emerging technologies, available fuel alternatives and proven infrastructure.

These reports are not incorporated in this document and can be viewed at www.carnivalcorp.com and www.carnivalplc.com .

Website Access to Carnival Corporation & plc SEC Reports

We use our websites as channels of distribution of company information.

We use our websites for the distribution of company information.

Our Form 10-K, joint Quarterly Reports on Form 10-Q, joint Current Reports on Form 8-K, joint Proxy Statement related to our annual shareholders meeting, Section 16 filings and all amendments to those reports are available free of charge at www.carnivalcorp.com and www.carnivalplc.com and on the SEC’s website at www.sec.gov as soon as reasonably practicable after we have electronically filed or furnished these reports with the SEC.

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Cruise Industry News is a for profit magazine company that covers all aspects of cruise operations.

Their magazines and annual report cover all cruise lines and shipyards and report on all aspects of cruise operations including relevant issues, financial results, ship building, ship reviews, etc.

Their magazines and annual report cover all cruise lines and shipyards and report on all aspects of cruise operations including relevant issues, financial results, shipbuilding, ship reviews, etc.

All other references to third-party information are publicly available at nominal or no cost.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business