Viking (VIK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 24.9% year-over-year to $897.1 million, driven by capacity growth and robust demand.

• Net loss narrowed to $105.5 million from $490.7 million in Q1 2024, with adjusted EBITDA turning positive at $73 million, a $77 million improvement.

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

• No pricing promotions or discounting have been used; demand remains resilient and bookings are sticky.

• Announced 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 million, up from $718 million in Q1 2024.

• Adjusted gross margin rose 23.8% to $613 million; net yield reached $544, up 7.1% year-over-year.

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

• Net loss was $105 million, with adjusted EPS at a loss of $0.24, improving $0.09 year-over-year.

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

Outlook and guidance

• 2025 is nearly sold out; focus shifts to 2026, which is off to a strong start with 37% of 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).

• 2025 season expects a 12% increase in capacity PCD, and 2026 season an 8% increase.

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

• No changes to booking window or promotional strategy anticipated.