Viking (VIK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $897.1 million, up 24.9% year-over-year, driven by capacity growth and higher revenue per passenger cruise day.

• Net yields rose 7.1% year-over-year, and adjusted EBITDA turned positive at $73 million, a $77.3 million improvement from last year.

• Net loss narrowed to $105.5 million from $490.7 million in Q1 2024, with adjusted EPS at $(0.24), improving from $(0.33) last year.

• 92% of 2025 capacity is already sold, and 37% of 2026 capacity is booked, reflecting high demand and advanced booking visibility.

• Announced the Viking Libra, the world's first hydrogen-powered cruise ship, and ordered two additional ocean ships for 2031.

Financial highlights

• Total revenue for Q1 2025 was $897.1 million, up 24.9% year-over-year.

• Adjusted gross margin rose 23.8% to $613.3 million; net yield reached $544, up 7.1%.

• Adjusted EBITDA was $73 million, a significant turnaround from a negative result last year.

• Net loss was $105.5 million, with adjusted EPS at $(0.24), improving $0.09 year-over-year.

• Vessel expenses per capacity PCD (excluding fuel) decreased 2.3% year-over-year to $230.

Outlook and guidance

• 2025 is nearly sold out; 92% of capacity sold and 37% of 2026 capacity booked.

• Advanced bookings for 2025 are $5.5 billion (21% higher year-over-year); for 2026, $2.7 billion (11% higher year-over-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 changes to booking window or promotional strategy anticipated.