Strong Revenue Growth
Total revenue increased 17.5% year‑over‑year to over $1.0B in Q1 2026, driven by higher capacity and improved revenue per PCD.
Viking Holdings
· VIK
May 14th, 2026
Summary
- Earnings Call Date:
- 2026-05-14
- Change Since:
- +18.83%
- Next Earnings Date:
- 2026-08-26
Earnings Call Sentiment
PositiveThe call presented multiple strong operational and financial positives: healthy revenue and margin growth, substantial improvements in adjusted EBITDA, a very strong advanced booking position for 2026 and encouraging early traction for 2027, a robust cash position and deleveraging, plus strategic fleet additions including sustainability innovations. Key near‑term headwinds include higher vessel maintenance costs, fuel price risk, seasonal Q1 net loss, temporary booking softness tied to geopolitical events, and sizable committed ship CapEx. On balance, the favorable demand, pricing strength, liquidity and pronounced booking momentum materially outweigh the manageable operational and market uncertainties.
Company Guidance
Management reaffirmed that, assuming stable macro conditions, Viking’s long‑term target remains mid‑single‑digit yield growth across its core products; booking curves as of May 3, 2026 showed consolidated advanced bookings of $6.2B (up 13% YoY) with the 2026 season ~92% booked and capacity +7%, while 2027 is ~38% booked with $3.4B advanced bookings (up 31%) and capacity expected to increase ~15%. First‑quarter revenue rose 17.5% YoY to >$1.0B, adjusted gross margin was $717M (+16.9% YoY) with net yield $596 (+9.5% YoY), adjusted EBITDA $105M (+43.9% YoY) and net loss $54.2M (improved >$51M); consolidated liquidity included $4.0B cash, a $1.0B undrawn revolver, net debt $1.9B and net leverage of 1.0x (from 1.1x); deferred revenue was $5.4B. Segment highlights: River net yield $761 (+28.3% YoY), occupancy 93.7% and capacity PCDs -8.4%; Ocean net yield $527 (+5.6% YoY), occupancy 95% and capacity PCDs +10%. Management also reiterated fleet and capex plans (2026 committed ship CapEx ≈$1.9B / $650M net of financing; 2027 ≈$1.0B / $260M net), scheduled principal payments of $174.4M remaining in 2026 and $197.4M in 2027, noted fuel exposure is manageable (fuel ≈4% of 2025 adjusted gross margin) with river fuel largely contracted for 2026 and ocean more market‑sensitive.
Improved Profitability Metrics
Adjusted gross margin rose 16.9% year‑over‑year to $717M; adjusted EBITDA was $105M, up 43.9% year‑over‑year; net yield consolidated was $596, up 9.5% versus Q1 2025.
Very Strong Booking Position for 2026 and Early Strength for 2027
2026 core products are 92% booked; advanced bookings consolidated were $6.2B (up 13% YoY). 2027 is already 38% booked with advanced bookings of $3.4B (31% higher versus same point in 2025) and planned core capacity increasing ~15% year‑over‑year.
Segment Performance — River
River adjusted gross margin increased 17.2% YoY; net yield was $761, up 28.3% YoY; occupancy 93.7% (in line with prior year) despite an 8.4% decline in capacity PCDs due to intentional deployment/mix changes.
Segment Performance — Ocean
Ocean capacity PCDs increased 10% YoY, occupancy ~95%, adjusted gross margin up 16.9% YoY and net yield of $527 (up 5.6% YoY), benefiting from the Viking Vesta addition and strong pricing.
Solid Liquidity and Balance Sheet Improvements
Cash and cash equivalents of $4.0B plus an undrawn $1.0B revolver; net debt $1.9B and net leverage improved from 1.1x to 1.0x. Deferred revenue of $5.4B and bond maturities fall in 2028 and beyond.
Fleet Growth and Sustainability Milestones
Delivered/additions include Viking Eldir and Viking Yidun (China), float‑out of two Nile river vessels with further orders for Egypt, and float‑out of Viking Libra — the world's first hydrogen‑powered ocean cruise ship designed for 0 emissions.
Adjusted Loss Improving
Net loss of $54.2M in Q1 2026, an improvement of over $51M compared with Q1 2025, reflecting seasonal dynamics but meaningful progress toward profitability.
Operator
Good morning. My name is Paul, and I will be your conference operator today. At this time, I would like to welcome everyone to Viking's First Quarter 2026 Earnings Conference Call. As a reminder, this call is being recorded. [Operator Instructions]. I would now like to turn the program to your host for today's conference, Vice President of Investor Relations, Carola Mengolini.
Carola Mengolini
Good morning, everyone, and welcome to Viking's First Quarter 2026 Earnings Conference Call. I am joined by Tor Hagen, Executive Chairman; Leah Talactac, President and Chief Executive Officer; and Linh Banh, Chief Financial Officer. Before we get started, please note our cautionary statement regarding forward-looking information. During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC. The forward-looking statements are as of today, and we assume no obligation to update or supplement these statements. We may also refer to certain non-IFRS financial metrics which are reconciled and described in our press release posted on our Investor Relations website at ir.viking.com. Tor, Leah and Linh will provide a strategic overview of the company, a recap of our first quarter results and an update of the current booking environment.
We will then open the call for your questions. ...
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