Viking (VIK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 24.9% year-over-year to $897 million, driven by increased capacity and robust demand, with net loss narrowing to $105 million and adjusted EBITDA turning positive at $73 million.

• 92% of 2025 capacity and 37% of 2026 capacity are already sold, reflecting strong forward bookings and high demand.

• Announced the Viking Libra, the world's first hydrogen-powered cruise ship, for delivery in 2026, and ordered two additional ocean ships for 2031, with options for two more for 2033.

• Continued expansion with new river vessels, including Viking Nerthus for the Seine and a new ship for Portugal in 2027.

Financial highlights

• Adjusted gross margin increased 23.8% year-over-year to $613 million; net yield rose 7.1% to $544; occupancy was 94.5%.

• Net loss attributable to the company was $105 million; adjusted EPS was a loss of $0.24, improving from $(0.33) in Q1 2024.

• Cash and cash equivalents stood at $2.8 billion as of March 31, 2025; net debt was $2.9 billion.

• Deferred revenue reached $4.8 billion, reflecting strong advance bookings.

• Vessel expenses per capacity PCD (excluding fuel) decreased 2.3% year-over-year.

Outlook and guidance

• Advance bookings for 2025 reached $5.5 billion, up 21% year-over-year, with 2026 bookings at $2.7 billion, 11% higher than the prior year.

• Operating capacity for core products is 12% higher for 2025 and expected to be 8% higher for 2026.

• Expect mid-single-digit yield growth for 2026 if macroeconomic conditions remain stable.

• No plans to use pricing promotions; focus remains on direct marketing and product differentiation.

• Confident in maintaining strong booking momentum and pricing power for 2026 and beyond.