Viking (NYSE:VIK) executives highlighted record 2025 results and strong early demand for 2026 during the company’s fourth-quarter earnings call, while also discussing River ship delivery timing adjustments and a temporary pause of Egypt itineraries amid Middle East developments.
Fleet growth, product design, and expansion priorities
Chairman and CEO Tor Hagen said 2025 marked a milestone as Viking surpassed 100 ships, reflecting what he described as decades of “thoughtful growth.” The company’s fleet now includes 89 River vessels, 12 Ocean ships, and two Expedition ships operating across all seven continents.
Hagen also said Viking expects to soon operate what it described as the world’s first hydrogen-powered cruise ship, capable of operating part of the time with zero emissions.
During 2025, Viking announced new River itineraries in India and increased its River fleet on the Nile and Mekong Rivers. Management also noted continued partnerships with arts, cultural, and scientific institutions aimed at strengthening brand awareness and enhancing guest access and experiences.
2025 financial performance: revenue record and margin expansion
Hagen said Viking’s capacity increased 12% year-over-year in 2025 while Net Yields rose 7.4%. These factors drove a 21.9% increase in total revenue to a record $6.5 billion for the year. Adjusted EBITDA rose 38.8% year-over-year to nearly $1.9 billion, while Adjusted Net Income increased 43.9% to $1.2 billion.
President and CFO Leah Talactac detailed fourth-quarter results, citing total revenue of $1.7 billion, up 27.8% year-over-year, driven by higher capacity, occupancy, and revenue per PCD. Adjusted gross margin was $1.1 billion, up 27.3%, and Net Yield was $546, an increase of 7.7% from the prior-year quarter. Vessel operating expenses excluding fuel per Capacity PCDs rose 2.6%.
Adjusted EBITDA for the quarter was $463 million, up $157 million, or 51.3%, from the fourth quarter of 2024. Talactac said adjusted EBITDA margin reached 41.8%, up 663 basis points year-over-year. Net income was $300 million versus $104 million in the prior-year quarter; Talactac noted the 2024 quarter included a $96 million loss from warrant revaluation tied to stock price appreciation and that the fourth quarter of 2024 was the final quarter impacted by that revaluation. Adjusted net income attributable to Viking Holdings Ltd was $298 million and adjusted EPS was $0.67, up 48.3% year-over-year.
Segment performance: River and Ocean
For full-year 2025, Talactac said River capacity PCDs rose 6.5% year-over-year, driven by two vessels delivered in 2024 and six vessels delivered in 2025 operating in regions including Europe, Egypt, Vietnam, and Cambodia. River adjusted gross margin increased 16.2% to $1.9 billion, Net Yield was $578 (up 8.4%), and occupancy was 96%.
Ocean capacity PCDs increased 17.9% year-over-year due to the Viking Vela delivery in December 2024 and the addition of the Viking Vesta in July 2025. Ocean adjusted gross margin rose 30.9% to nearly $2.0 billion, Net Yield was $572 (up 9.7%), and occupancy was 95%.
Management reiterated that, because Viking’s staterooms are designed for two guests and it has some single travelers, occupancy near the mid-90% range is effectively “sold out” for its model.
Balance sheet, liquidity, and capital deployment
Talactac said Viking ended 2025 with $3.8 billion in cash and cash equivalents and a $1.0 billion undrawn revolver. Net debt was $2.1 billion and net leverage was 1.1x. The company’s bond maturities fall in 2028 and beyond, and deferred revenue totaled $4.6 billion as of December 31, 2025.
For 2026, scheduled principal payments were cited as $397 million. Talactac said total expected committed ship capital expenditures for 2026 are about $1.4 billion, or $500 million net of financing.
Asked about returning capital via dividends or share repurchases, management said it was premature, citing a preference for prudence and strong cash balances, particularly in light of current global events, and also noting a sizable order book. The company did not rule out dividends or repurchases in the future.
2026 booking environment, ship delivery timing, and Egypt pause
Hagen said demand for Viking’s “Core Products” remains strong, and as of February 15 the company was 86% booked for the 2026 season. He said this was in line with the same time last year, with capacity expected to rise 7%. Advanced bookings totaled $6.0 billion, up 13% versus the comparable point in the prior year.
For Ocean, management said advanced bookings were $2.7 billion, up 16% year-over-year, with 2026 operating capacity up 9%. As of February 15, 87% of Ocean capacity was sold, and advanced bookings per PCD were $787 compared with $746 at the same point in 2025. Viking expects two new Ocean ships in 2026: Viking Mira in the second quarter and Viking Libra in the fourth quarter.
For River, management said advanced bookings were $2.8 billion, up 10% year-over-year. Viking said it had sold 85% of River operating capacity at average rates of $906 per day versus $841 last year.
However, Hagen disclosed that one shipyard experienced “temporary technological disruptions and resource availability issues,” leading to adjusted delivery timelines for eight Longships. Two vessels originally scheduled for December 2025 are now expected in 2026, and six ships originally slated for the first half of 2026 are now expected later in 2026. Viking reduced its 2026 River capacity growth expectation to 6% from 10% previously. Management said the financial impact is expected to be immaterial and noted Viking’s ability to re-accommodate guests because ships are largely interchangeable from a guest perspective.
Talactac said Viking is monitoring developments in the Middle East, particularly relating to Egypt, and emphasized safety and comfort for guests and crew. During Q&A, she said Viking is temporarily pausing Egypt itineraries through March 31, 2026, impacting about 40 voyages and fewer than 3,000 guests. She described Egypt as about 3% of total capacity and said management does not expect a material impact to the business.
On fuel, executives reiterated that River operations have fixed-price fuel contracts for a significant portion of the 2026 season and that Ocean ship design is intended to improve fuel efficiency.
Looking longer term, Talactac said Viking entered into option agreements for two additional Ocean ships to be delivered in 2034, bringing total planned additions including options to 16 new Ocean ships over the next nine years. Viking also added commitments for two additional Expedition ships scheduled for delivery in 2030 and 2031, with Hagen citing strong booking trends for the Expedition product given limited existing supply.
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.
