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    VIK
    Earnings call· Dec 2025(Q4 FY25)

    Viking Holdings Ltd VIK

    Mar 3, 2026 Source

    Executive summary

    Viking Holdings Ltd Q4 FY25 — Record Revenue and Strong Booking Momentum

    Viking Holdings delivered exceptional Q4 and full-year 2025 results, driven by strong demand, capacity expansion, and yield growth across its river and ocean segments. The company maintains a robust balance sheet and high advanced booking levels for 2026, despite minor river ship delivery delays and temporary adjustments to Egypt itineraries due to geopolitical concerns. Management emphasizes its long-term growth strategy and commitment to guest experience.

    Highlights

    5

    • Total revenue reached a record $6.5 billion for FY25, up 21.9% YoY, driven by 12% capacity increase and 7.4% net yield growth.

    • Adjusted EBITDA for FY25 increased 38.8% YoY to almost $1.9 billion, with Q4 FY25 Adjusted EBITDA margin reaching 41.8%, up 663 basis points.

    • Advanced bookings for the 2026 season are 86% booked as of February 15, 2026, with $6 billion in advanced bookings, 13% higher than the prior year.

    • Net leverage ratio ended FY25 at a low 1.1x, with $3.8 billion in cash and a $1 billion undrawn revolver.

    • Repeat travelers constituted 54% of guests in 2025, demonstrating strong guest loyalty.

    Concerns

    2

    • River new-build program experienced temporary technological disruptions and resource availability issues, delaying 8 long ships originally scheduled for late 2025 and early 2026.

    • The company is temporarily pausing Egypt itineraries through March 31, 2026, impacting 40 voyages and less than 3,000 guests due to geopolitical developments.

    Guidance & targets

    4
    CategoryTargetConfidence
    Committed Ship Capital Expenditure
    $1.4 billion total, $500 million net of financing
    high materiality
    High
    River Capacity Growth
    6% higher than 2025
    medium materiality
    High
    New Ocean Ships Delivery
    2 new ocean ships
    medium materiality
    High
    Yield Growth
    mid-single-digit
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    River
    Adjusted gross margin for FY25. Capacity increase driven by the addition of 2 vessels delivered in 2024 and 6 vessels delivered in 2025, operating across multiple regions including Europe, Egypt, Vietnam, and Cambodia.
    Capacity PCDs: 6.5% increase YoYNet Yield: $578Net Yield Growth: 8.4% YoYOccupancy: 96%
    		———$1.9 billion
    Ocean
    Adjusted gross margin for FY25. Capacity increase driven by the delivery of the Viking Vela in December 2024 and the addition of the Viking Vesta in July 2025.
    Capacity PCDs: 17.9% increase YoYNet Yield: $572Net Yield Growth: 9.7% YoYOccupancy: 95%
    		———almost $2 billion

    Operational metrics

    30
    Total Revenue
    $1.7 billion27.8% increase YoY
    Q4 FY25

    Driven by higher capacity, higher occupancy, and higher revenue per PCD.

    Adjusted Gross Margin
    $1.1 billion27.3% increase YoY
    Q4 FY25
    Net Yield
    $5467.7% higher YoY
    Q4 FY25
    Vessel Operating Expenses (ex-fuel) per Capacity PCD
    2.6%increase YoY
    Q4 FY25
    Adjusted EBITDA
    $463 million$157 million or 51.3% improvement YoY
    Q4 FY25
    Adjusted EBITDA Margin
    41.8%663 basis points increase YoY
    Q4 FY25
    Net Income
    $300 millionvs $104 million in Q4 FY24
    Q4 FY25

    Q4 FY24 net income included a $96 million loss from warrant revaluation.

    Adjusted Net Income Attributable to Viking Holdings Limited
    $298 million
    Q4 FY25
    Adjusted EPS
    $0.6748.3% higher YoY
    Q4 FY25
    Total Revenue
    $6.5 billion21.9% increase YoY
    FY25

    Record revenue.

    Capacity Increase
    12%YoY
    FY25

    Reflects fleet expansion and continued demand.

    Net Yield Growth
    7.4%YoY
    FY25

    Demonstrates ability to attract high-quality demand and maintain pricing power.

    Adjusted EBITDA
    almost $1.9 billion38.8% increase YoY
    FY25

    Reflecting higher revenues, benefits of scale, operational efficiency, and disciplined cost management.

    Adjusted Net Income
    $1.2 billion43.9% higher YoY
    FY25

    Despite continued investments for long-term growth.

    Repeat Travelers
    54%continues to grow
    FY25

    Clear sign of trust in the brand.

    Direct Bookings
    more than half
    FY25

    Provides meaningful long-term advantage in demand management and guest engagement.

    North American Outbound River Market Share
    52%
    FY25

    Leading market share position.

    Luxury Ocean Market Share
    27%
    FY25
    Return on Invested Capital
    45.8%
    FY25
    Net Leverage Ratio
    1.1x
    FY25
    Cash and Cash Equivalents
    $3.8 billion
    as of Dec 31, 2025
    Undrawn Revolver
    $1 billion
    as of Dec 31, 2025
    Net Debt
    $2.1 billion
    as of Dec 31, 2025
    Deferred Revenue
    $4.6 billion
    as of Dec 31, 2025
    Scheduled Principal Payments
    $397 million
    FY26

    As of December 31, 2025.

    Ocean Capacity Increase
    18%YoY
    FY25

    This year's capacity growth comes on top of an 18% capacity increase in 2025.

    Capacity in Europe
    more than 70%
    FY26

    Similar to past seasons.

    Egypt Capacity Contribution
    2%
    current

    Of overall capacity.

    Egypt Itineraries Paused
    40
    through March 31, 2026

    Temporarily paused due to geopolitical developments, representing 3% of total capacity.

    Advanced Bookings per PCD Growth
    5.5%
    3 months back

    Baseline for comparison to current 6% growth.

    Industry KPIs

    2
    MetricValueDetails
    Gross bookings value room nights$6 billionUSD
    Net unit growth development pipeline16 new ocean ships; 2 additional expedition shipsunits

    Orderbook & backlog

    7
    Advanced Bookings$6 billionFebruary 15, 2026

    13% higher than 2025 season at same point in time

    86% booked for 2026 season, with 7% capacity increase.

    Ocean Advanced Bookings$2.7 billionFebruary 15, 2026

    16% higher than last year at same point in time

    87% of operating capacity sold at very good rates; operating capacity up 9% in 2026.

    Ocean Advanced Bookings per PCD$787February 15, 2026

    vs $746 at same point in 2025

    River Advanced Bookings$2.8 billionFebruary 15, 2026

    10% higher than last year

    85% of operating capacity sold at very strong rates.

    River Advanced Bookings per PCD$906February 15, 2026

    vs $841 last year

    Ocean Ship Order Book16 new ocean shipscurrent

    2 additional option agreements since last earnings release

    Total planned additions over the next 9 years, including options. 2 ships to be delivered in 2034.

    Expedition Ship Order Book2 additional expedition shipscurrent

    2 additional shipbuilding commitments since last earnings release

    Scheduled for delivery in 2030 and 2031. Demand for Viking Expedition product remains very strong.

    Product announcements

    4
    ProductTypeDetails
    Hydrogen-powered cruise shiproadmap
    India River Itinerarieslaunch
    Viking Miralaunch
    Viking Libralaunch

    Risks & headwinds

    3
    River Ship Delivery Delays2026

    8 long ships delayed; 2 originally for Dec 2025 now in 2026; 6 originally for H1 2026 now later in 2026.

    Mitigation: Shipyard implementing corrective measures; continuous communication; impact to 2026 advanced bookings and financial metrics deemed immaterial; 2027 deliveries not impacted; guests re-accommodated to identical ships on same itineraries.

    Geopolitical Developments in Middle EastNear-term (through March 31, 2026)

    Egypt operations represent 2% of overall capacity; 40 voyages (less than 3,000 guests) temporarily paused through March 31, 2026.

    Mitigation: Monitoring developments closely; prepared to make adjustments for guest/crew safety; guests are well-educated and understand conflict areas; 86% booked for 2026 provides buffer; low cancellation rates for booked/paid trips; ability to resell inventory.

    Fuel Cost VolatilityFY26

    Brent crude up 35% this year (analyst comment).

    Mitigation: River operations have fixed-price contracts for a significant portion of 2026; ocean fleet designed with fuel efficiency in mind; monitoring fuel prices and will act accordingly.

    What to watch in Q1 FY26

    4

    River Ship Delivery Schedule

    Next quarter / later in 2026
    Current8 long ships delayed, 2 from Dec 2025 to 2026, 6 from H1 2026 to later in 2026.
    TargetShipyard restores full technological functionality and returns to regular scheduling cadence; 2027 deliveries not impacted.

    Why it matters

    Delays impact capacity growth and revenue for the River segment, a core product.

    As a result, the delivery time lines for 8 of our long ships have been adjusted. The 2 vessels originally scheduled for December 2025 will now be delivered in 2026. Additionally, as the yard works through the impact of workflow sequence, 6 ships originally scheduled for delivery in the first half of '26 will now be delivered later in that year.

    Q&A highlights

    6

    Analyst notes 4 straight years of >7% yield growth and asks if 5-7% yield growth for 2026 is a reasonable extrapolation given current booking curves.

    Leah Talactac points to the booking curves and advanced booking growth, stating the extrapolation 'makes sense' from their point of view, but avoids giving firm guidance. Linh Banh later confirms aiming for 'mid-single-digit yield growth' for 2026.

    “I think the curves speak for themselves. And I don't know that we can say much more than that, but I think that your extrapolation makes sense from this -- from our point of view today.”

    asked by Steven Wieczynski · answered by Leah Talactac

    2 min read6 chapters

    Detailed Narrative

    01

    Fleet Expansion and Innovation

    Viking surpassed 100 ships in 2025, operating 89 river, 12 ocean, and 2 expedition vessels across all 7 continents. The company is particularly proud of the upcoming hydrogen-powered cruise ship, capable of zero-emission operation part of the time, reflecting a commitment to practical innovation.

    02

    Strategic Growth and Partnerships

    The company expanded into new destinations like India river itineraries and strengthened its river fleet on the Nile and Mekong. Strategic partnerships with arts, culture, and scientific institutions enhance brand awareness, local engagement, and guest experiences through unique access.

    03

    Ship Design and Profitability

    Viking's ocean ships feature state-of-the-art, fuel-efficient designs with closed-loop scrubbers, allowing for cost-efficient fuel use and reduced crew requirements without compromising service. River long ships, designed for European rivers, accommodate up to 190 guests, exceeding the average, which improves profitability. The consistent design across ships allows guests to shop by itinerary, maintaining yields for older vessels.

    04

    Strong Financial Track Record

    Viking demonstrated a consistent track record of strong financial performance, with all major financial metrics in 2025 outperforming historical compound annual growth rates. This sustained performance is attributed to long-term planning, disciplined execution, and a robust business model, rather than a single good year.

    05

    Balance Sheet Strength and Capital Allocation

    The company ended 2025 with a strong liquidity position, including $3.8 billion in cash and a $1 billion undrawn revolver, and a net leverage ratio of 1.1x. Deferred revenue totaled $4.6 billion. While not currently pursuing share repurchases or dividends due to a strong order book and long-term options, the company emphasizes prudence and flexibility for growth investments.

    06

    Geopolitical Impact and Mitigation

    Viking is closely monitoring developments in the Middle East, particularly concerning its Egypt operations (2% of overall capacity). The company has temporarily paused Egypt itineraries through March 31, 2026, impacting 40 voyages and less than 3,000 guests, prioritizing guest and crew safety. River operations have fixed-price fuel contracts for a significant portion of 2026, and ocean fleet design emphasizes fuel efficiency.

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