Viking Q1 Earnings Call Highlights

Key Points

• Viking reported strong Q1 results, with revenue rising 17.5% year over year to more than $1 billion and adjusted EBITDA up 43.9% to $105 million. The company also narrowed its net loss to $54.2 million, reflecting higher revenue and improved operating performance.
• Leadership is changing at the top as founder Torstein Hagen moves to executive chairman and Leah Talactac becomes president and CEO, while longtime executive Linh Banh takes over as CFO. Hagen said the transition was planned to provide continuity and stability.
• Bookings and fleet growth remain robust, with Viking 92% booked for 2026 and already 38% booked for 2027, while advanced bookings climbed sharply year over year. The company continues expanding its fleet, including new river and ocean ships and plans for hydrogen-powered vessel development.

Viking NYSE: VIK reported a stronger first quarter for fiscal 2026 and announced a leadership transition, with founder Torstein Hagen moving from chief executive to executive chairman and Leah Talactac, previously president and chief financial officer, taking over as president and CEO.

Hagen said the transition reflects years of succession planning and is intended to provide “continuity and stability” for guests, employees and shareholders. Talactac has worked at Viking for nearly 20 years, while Linh Banh, also a longtime company executive, has been appointed chief financial officer.

“The board and I have full confidence in her ability to lead Viking with the same continuity, discipline, and vision on which the company was founded,” Hagen said of Talactac. He added that, as executive chairman, he will focus on Viking’s long-term vision while continuing to serve as chairman of the board.

Revenue Tops $1 Billion as Bookings Remain Strong

Banh said Viking’s first-quarter total revenue rose 17.5% from a year earlier to more than $1 billion, driven by increased capacity and higher revenue per passenger cruise day. Capacity increased 6.6% in the quarter, primarily due to the delivery of one ocean ship in 2025.

Adjusted gross margin rose 16.9% year over year to $717 million, while net yield increased 9.5% to $596. Adjusted EBITDA was $105 million, up 43.9% from the prior-year quarter, primarily due to higher revenue across all segments. Viking reported a net loss of $54.2 million, an improvement of more than $51 million from the first quarter of 2025.

Banh noted that the first quarter is typically negative because of the seasonality of Viking’s business. She also said vessel expenses excluding fuel per capacity passenger cruise day increased 10.6% year over year, mainly because of repair and maintenance costs across the fleet.

River and Ocean Segments Show Pricing Strength

In Viking’s river segment, capacity passenger cruise days declined 8.4% year over year, while occupancy was 93.7%, in line with the prior year. Adjusted gross margin rose 17.2%, and net yield increased 28.3% to $761.

Banh said first-quarter river results are not indicative of full-year performance because the core river season runs from April through October. She attributed the yield gain to a shift toward higher-yielding itineraries in Egypt and Vietnam, along with the removal of lower-yielding winter capacity in Europe during January and February.

In the ocean segment, capacity passenger cruise days rose 10% year over year, reflecting the addition of the Viking Vesta, which began operating in July 2025. Ocean occupancy was 95%, slightly higher than last year. Adjusted gross margin rose 16.9%, and net yield increased 5.6% to $527, driven by higher pricing across most itineraries.

2026 Nearly Sold Out; 2027 Booking Curve Builds

Talactac said Viking is already 92% booked for 2026, positioning the company well for the remainder of the year. With the current year mostly booked, she said the company’s sales and marketing focus has shifted toward 2027, which is already 38% booked. Capacity for Viking’s core products is expected to increase 15% in 2027 over 2026.

Hagen said consolidated advanced bookings for 2026 totaled $6.2 billion as of May 3, up 13% year over year, while capacity is increasing 7%. For 2027, advanced bookings totaled $3.4 billion, up 31% from the 2026 season at the same point in 2025.

Hagen cautioned that the 2027 booking curve reflects timing and product mix that are currently benefiting both volume and rates. He said the eventual performance of the curve will depend on remaining inventory and dynamic pricing, and reiterated that, if macroeconomic conditions are stable, Viking’s long-term target remains mid-single-digit yield growth across core products.

For ocean cruises, Viking has sold 92% of 2026 capacity and 46% of 2027 capacity. Ocean advanced bookings for 2026 were $2.8 billion, up 17% year over year, while 2027 ocean advanced bookings were 38% higher than the 2026 season at the same point last year.

For river cruises, Viking has sold 93% of 2026 capacity and 26% of 2027 capacity. River advanced bookings for 2026 were nearly $3 billion, up 10% year over year, while 2027 advanced bookings totaled about $1.2 billion, up 21% from the comparable point last year.

Fleet Expansion Continues Across River and Ocean

Talactac highlighted several fleet updates, including the March delivery of the Viking Eldir, a Longship for Europe, and the acquisition of the Viking Yi Dun, an ocean ship dedicated to Chinese guests. Viking also announced plans for two additional river vessels for Egypt, scheduled for delivery in 2028, and celebrated the float out of two Nile river vessels scheduled for delivery later this year.

Talactac said Egypt itineraries generate some of the highest yields in Viking’s river portfolio and deliver strong guest satisfaction scores. During the question-and-answer session, Banh said Egypt remains a small percentage of capacity, with eight ships operating this year and about 80 guests per ship on average. She said Viking canceled two weeks in Egypt for 2026 but continues to see strong demand for the product.

Viking also marked the float out of the Viking Libra, which Talactac said will be the world’s first hydrogen-powered ocean cruise ship capable of operating with zero emissions. Hagen later said hydrogen is expensive and not easily available, but described the ship as setting “a direction of travel for the future of shipping.”

Management Addresses Macro, Fuel and Capital Allocation

Talactac said Viking experienced a temporary slowdown in bookings after its prior earnings call, mostly in river bookings for the 2026 season, but demand has since rebounded. She said cancellations remain within historical averages and that travel continues to be a priority for Viking’s customers.

On fuel, Talactac said higher fuel prices did not affect first-quarter results due to timing, though the company expects some impact as the year progresses. She said Viking’s river operations benefit from fixed-price fuel contracts for a significant portion of the 2026 season, while the ocean business is more exposed to market movements. Fuel represented about 4% of adjusted gross margin in 2025.

Viking ended the quarter with $4 billion in cash and cash equivalents and a $1 billion undrawn revolving credit facility. Net debt was $1.9 billion, and net leverage improved to 1.0 times from 1.1 times at the end of 2025. Deferred revenue was $5.4 billion as of March 31.

Asked about capital allocation, Talactac said Viking’s top priority is reinvesting in the business, including its order book. She said potential uses of cash would be evaluated based on whether they are scalable, margin accretive and complementary to the Viking brand. Hagen added that organic growth remains the priority and that any acquisition would need to fit the brand closely.

About Viking NYSE: VIK

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships.

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