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    VIK
    Earnings call· Mar 2026(Q1 FY26)

    Viking Holdings Q1 FY26 earnings call VIK

    May 14, 2026 Source

    Executive summary

    Viking Holdings Q1 FY26 — Strong Bookings and Leadership Transition

    Viking Holdings reported a strong Q1 FY26, marked by robust demand and a significant leadership transition with Leah Talactac assuming the CEO role. The company is well-positioned with high advanced bookings for 2026 and 2027, supported by strategic fleet expansion and a resilient customer base, despite temporary geopolitical headwinds.

    Highlights

    5

    • Total revenue increased 17.5% year-over-year to over $1 billion.

    • Adjusted EBITDA increased 43.9% year-over-year to $105 million.

    • The 2026 season is 92% booked, with advanced bookings of $6.2 billion, 13% higher year-over-year.

    • The 2027 season is 38% booked, with advanced bookings of $3.4 billion, 31% higher than 2026 at the same point.

    • Net leverage improved from 1.1x as of December 31, 2025, to 1.0x as of March 31, 2026.

    Concerns

    3

    • Experienced a temporary slowdown in River bookings for the 2026 season after the last earnings call due to geopolitical events.

    • Higher fuel prices are expected to have some effect as the year progresses, particularly on Ocean operations, though fuel represented only 4% of adjusted gross margin in 2025.

    • Vessel expenses, excluding fuel per capacity PCD, increased 10.6% this quarter compared to the same time last year, mainly due to repair and maintenance costs.

    Guidance & targets

    9
    CategoryTargetConfidence
    Capacity growth (core products)
    15% over 2026
    high materiality
    High
    Ocean ship deliveries
    1 Ocean ship
    medium materiality
    High
    River vessel deliveries
    8 River vessels
    medium materiality
    High
    Capacity growth timing
    slightly higher in the first half of '27 than in the second half
    low materiality
    Medium
    Committed Ship CapEx
    $1.9 billion
    high materiality
    High
    Committed Ship CapEx (net of financing)
    $650 million
    high materiality
    High
    Committed Ship CapEx
    $1 billion
    high materiality
    High
    Committed Ship CapEx (net of financing)
    $260 million
    high materiality
    High
    Egypt River vessel orders
    2 additional vessels
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    River
    The core season runs from April through October, so Q1 metrics are not indicative of full-year performance. Capacity was added through new-builds in high-yield Egypt and Vietnam, while lower-yielding winter capacity in Europe was intentionally removed, driving a favorable increase in net yield despite lower overall capacity.
    Capacity PCDs: decreased 8.4% year-over-yearOccupancy: 93.7%Net yield: $761 (up 28.3% year-over-year)
    		———Adjusted gross margin increased 17.2%
    Ocean
    Capacity increase was due to the addition of the Viking Vesta, which began operating in July of 2025. Net yield growth was driven by higher pricing amongst most itineraries.
    Capacity PCDs: increased 10% year-over-yearOccupancy: 95% (slightly higher than last year)Net yield: $527 (up 5.6% compared to the previous year)
    		———Adjusted gross margin increased 16.9%

    Operational metrics

    15
    Net yield (consolidated)
    $596up 9.5% YoY
    Q1 FY26

    Consolidated net yield across all segments.

    Vessel expenses excluding fuel per capacity PCD
    increased 10.6%YoY
    Q1 FY26

    Mainly driven by repair and maintenance costs across the fleet, which can vary between quarters based on project schedules.

    Total cash and cash equivalents
    $4 billion
    March 31, 2026

    Balance sheet position.

    Undrawn revolver
    $1 billion
    March 31, 2026

    Liquidity position.

    Net debt
    $1.9 billion
    March 31, 2026

    Balance sheet position.

    Net leverage
    1.0ximproved from 1.1x as of Dec 31, 2025
    March 31, 2026

    Leverage ratio.

    Deferred revenue
    $5.4 billion
    March 31, 2026

    Balance sheet item reflecting advanced bookings.

    Scheduled principal payments
    $174.4 million
    remainder of 2026

    Scheduled debt amortization for the current fiscal year.

    Scheduled principal payments
    $197.4 million
    full year 2027

    Scheduled debt amortization for the next fiscal year.

    Fuel as percentage of adjusted gross margin
    4%
    2025

    Provides context for overall exposure to fuel cost volatility.

    Consolidated capacity growth
    7%YoY
    2026

    Overall capacity increase for the current season.

    Consolidated capacity growth
    15%YoY
    2027

    Overall capacity increase for the next season.

    Ocean luxury market share
    24%
    current

    Current market share in the luxury Ocean segment, with a stated target for future growth.

    River ships operating in Egypt
    8
    this year

    Number of River ships deployed in Egypt.

    Guest count per ship in Egypt
    80
    average

    Average guest capacity for River ships in Egypt.

    Industry KPIs

    5
    MetricValueDetails
    REVPAR growth$777 (Ocean 2026), $882 (Ocean 2027), $878 (River 2026), $1,108 (River 2027)USD
    Comparable sales comps93.7% (River), 95% (Ocean)%
    Input cost inflation hedgingFixed price contracts for River operations
    Value affordability positioningTactical promotional marketing pieces
    Net unit growth development pipeline24 River ships, 10 Ocean shipsships

    Orderbook & backlog

    11
    Advanced bookings (consolidated)$6.2 billionMay 3, 2026

    13% higher YoY

    For the 2026 season, which is 92% booked.

    Advanced bookings (consolidated)$3.4 billionMay 3, 2026

    31% higher than 2026 at same point in 2025

    For the 2027 season, which is 38% booked.

    Advanced bookings (Ocean)$2.8 billionMay 3, 2026

    17% higher than last year at the same point in time

    For the 2026 Ocean season, which is 92% sold.

    Advanced bookings (River)almost $3 billionMay 3, 2026

    10% higher than last year at the same point in time

    For the 2026 River season, which is 93% sold.

    Advanced bookings (River)$1.2 billionMay 3, 2026

    21% higher than the 2026 season at the same point in time in 2025

    For the 2027 River season, which is 26% sold.

    2026 season booked percentage (consolidated)92%May 3, 2026

    Overall booking status for the current season.

    2027 season booked percentage (consolidated)38%May 3, 2026

    Overall booking status for the next season.

    2026 Ocean capacity sold percentage92%May 3, 2026

    Booking status for the 2026 Ocean season.

    2027 Ocean capacity sold percentage46%May 3, 2026

    Booking status for the 2027 Ocean season.

    2026 River capacity sold percentage93%May 3, 2026

    Booking status for the 2026 River season.

    2027 River capacity sold percentage26%May 3, 2026

    Booking status for the 2027 River season.

    Product announcements

    2
    ProductTypeDetails
    2 additional River vessels for Egyptlaunch
    Viking Libramilestone

    Deals & partnerships

    1
    Viking Yidunacquisition

    Viking acquired the Viking Yidun, an ocean ship, to further strengthen its ocean lineup and increase itinerary offerings for Chinese travelers, including new ocean voyages in Europe.

    Risks & headwinds

    3
    Temporary slowdown in bookings due to geopolitical eventsAfter last earnings call (Q4 FY25)

    Temporary slowdown, mostly in River bookings, for the 2026 season

    Mitigation: Consumers responded well to tactical promotional marketing pieces; demand has since rebounded.

    Higher fuel pricesAs the year progresses

    Expected to have some effect as the year progresses; fuel represented approximately 4% of adjusted gross margin in 2025

    Mitigation: River operations benefit from fixed price contracts for a significant portion of the 2026 season; Ocean fleet designed with fuel efficiency, equipped with closed-loop scrubbers, and ability to use shore power.

    Increased vessel expensesQ1 FY26

    Vessel expenses, excluding fuel per capacity PCD, increased 10.6% year-over-year

    Mitigation: Mainly driven by repair and maintenance costs across the fleet, which are incurred against specific projects rather than being quarterly managed.

    Q&A highlights

    8

    How should we interpret the strong 2027 booking curves, considering potential product mix and timing impacts, and whether yields could settle higher than the mid-single-digit target?

    The 2027 curve reflects positive timing and product mix impacting rate and volume. While the company feels good about the strong start, the final outcome depends on remaining inventory and dynamic pricing. The mid-single-digit yield growth target remains valid if macro conditions are stable.

    “How the curve develops for the remainder of the '27 season, that will really depend on the inventory we have available to sell and how we dynamically price the rest of the season. As we previously stated, if macro conditions are stable, our target remains mid-single-digit yield growth across our core products.”

    asked by Steven Wieczynski · answered by Linh Banh

    2 min read6 chapters

    Detailed Narrative

    01

    Leadership Transition and Continuity

    Tor Hagen, after 30 years, transitioned to Executive Chairman, with Leah Talactac, former President and CFO, appointed CEO. Linh Banh, a long-standing leader, assumed the CFO role. This planned succession emphasizes continuity, discipline, and vision, leveraging deep institutional knowledge and experience within the executive team to ensure stability for guests, employees, and shareholders.

    02

    Robust Demand and Booking Environment

    Viking reported strong demand, with the 2026 season 92% booked and the 2027 season already 38% booked, reflecting significant momentum. Despite a temporary slowdown in River bookings following recent geopolitical events, demand quickly rebounded. The company's advanced booking curves, long booking window, and direct marketing engine provide exceptional visibility and pricing discipline, supported by low cancellation rates.

    03

    Fleet Expansion and Innovation

    The company continues its fleet expansion with the delivery of the Viking Eldir longship for European rivers and the acquisition of the Viking Yidun ocean ship, dedicated to Chinese guests. Significant progress was made on new builds for Egypt, with two River vessels floated out for 2026 delivery and two more ordered for 2028. A key milestone was the float-out of the Viking Libra, set to be the world's first hydrogen-powered ocean cruise ship, underscoring Viking's commitment to innovation and sustainability.

    04

    Strategic Focus on Chinese Market

    Viking is actively growing its Chinese demand strategy by increasing itinerary offerings, including new ocean voyages in Europe tailored for Chinese travelers aboard the Viking Yidun. The long-term goal is to establish Viking as the preferred choice for Chinese travelers to Europe, both for river and ocean cruises, leveraging a potentially well-recognizable brand, though acknowledging it will take time.

    05

    Capital Allocation Philosophy

    Viking's capital allocation prioritizes reinvestment in the business, particularly its strong order book, to generate robust returns. The company's guiding principles for deploying cash focus on scalability, margin accretion, and brand alignment, with a preference for owning and operating assets to control the guest experience. The substantial cash reserves provide stability for long-term growth plans and enable responsible operations, especially in uncertain macroeconomic environments.

    06

    Fuel Cost Management and Efficiency

    While higher fuel prices are anticipated to impact operations as the year progresses, Viking has mitigation strategies in place. River operations benefit from fixed-price contracts for a significant portion of the 2026 season. The Ocean fleet is designed for fuel efficiency, equipped with closed-loop scrubbers, and capable of utilizing shore power. Fuel represented approximately 4% of adjusted gross margin in 2025, indicating a manageable overall exposure.

    AI-generated summary of the company’s earnings call. Not investment advice.