Viking Holdings Ltd (VIK) Earnings

Management highlights

### Leadership Transition - Foundational leader Tor Hagen stepped into the role of Executive Chairman after nearly 30 years leading the company - 20-year company veteran Leah Talaktak (former President) assumed the role of Chief Executive Officer - 20-year company veteran Lynn Bond was appointed Chief Financial Officer - The transition is pre-planned, designed to ensure business continuity, stability, and leverage the deep existing experience of the executive team - Tor Hagen will focus on long-term strategy, sustainability initiatives, and new market development as Executive Chairman ### First Quarter 2026 Operational & Business Highlights - Q1 2026 is off to a strong start, with 92% of full-year 2026 capacity already booked, positioning the company well for the full year - 2027 core product capacity is 15% higher than 2026, and the season is already 38% booked, with strong early momentum - After a temporary post-geopolitical-event slowdown in 2026 river bookings earlier this year, demand has fully rebounded, with cancellation rates remaining within historical averages - The company maintains two core competitive strengths: long booking windows that provide high forward visibility, and a direct marketing engine + loyal customer base that supports proactive demand generation and pricing discipline ### Fleet Updates - Added two new vessels this quarter: the Viking Eldir (European river longship) and the acquired Viking Idun (ocean vessel dedicated to Chinese outbound travelers) - Celebrated the float out of two new Nile River vessels for Egypt, scheduled for delivery in late 2026; announced two additional Egypt river vessels ordered for 2028 delivery (Egypt itineraries are among the highest yield in the river segment) - Celebrated the float out of the Viking Libra, the world's first hydrogen-powered zero-emission ocean cruise ship, the company's most environmentally advanced vessel to date - Expanded itinerary offerings for Chinese outbound travelers, adding new European ocean voyages tailored to this market to support cross-selling and optimized fleet utilization ### Industry Recognition - Viking was named one of Time Magazine's most influential companies of 2026, in the Disruptors category, and ranked among the 10 most influential companies shaping the travel and tourism sector

Guidance

- The long-term target for mid-single-digit net yield growth across core products is maintained, assuming stable macroeconomic conditions - 2026 full-year committed ship capital expenditure is expected to be ~$1.9 billion total, or $650 million net of financing - 2027 full-year committed ship capital expenditure is expected to be ~$1 billion total, or $260 million net of financing - Capacity growth for 2027 core products will be 15% overall, with slightly higher growth in the first half of 2027 due to vessel delivery timing - No change to the company's long-term fleet expansion plan, which includes 24 committed river ship orders through 2028, 16 additional river orders between 2029 and 2032, 10 committed ocean ships between 2026 and 2031, and 6 additional ocean ships for delivery in 2032 and 2034 - Management expects the company to reach up to 30% market share in the global luxury ocean cruise segment from its current 24% share, as it executes its expansion plan

Segment performance

1. River Segment: - Capacity passenger cruise days (PCDs): decreased 8.4% year-over-year, driven by intentional removal of lower-yielding winter European capacity, offset partially by new high-yield capacity added in Egypt and Vietnam - Occupancy: 93.7%, flat year-over-year - Adjusted gross margin: increased 17.2% year-over-year - Net yield: $761, up 28.3% year-over-year, driven by a shift to higher-yielding itineraries and strong pricing - 2026 full-year advance bookings: 93% of capacity sold, $3 billion in advance bookings (10% higher year-over-year), 6% capacity increase, average rates of $878 (up from $828 in 2025) - 2027 full-year advance bookings: 26% of capacity sold, $1.2 billion in advance bookings (21% higher year-over-year), 13% capacity increase, average rates of $1,108 (up from $992 in 2026 at the same point) - Revenue contribution: ~48% of 2026 total advance bookings 2. Ocean Segment: - Capacity PCDs: increased 10% year-over-year, following the 2025 delivery of the Viking Vesta - Occupancy: 95%, slightly higher year-over-year - Adjusted gross margin: increased 16.9% year-over-year - Net yield: $527, up 5.6% year-over-year, driven by broad pricing increases across most itineraries - 2026 full-year advance bookings: 92% of capacity sold, $2.8 billion in advance bookings (17% higher year-over-year), 9% capacity increase, average rates of $777 (up from $737 in 2025) - 2027 full-year advance bookings: 46% of capacity sold, advance bookings 38% higher year-over-year, 18% capacity increase, average rates of $882 (up from $786 for 2026 at the same point) - Revenue contribution: ~45% of 2026 total advance bookings

Risks & headwinds

- Geopolitical events can cause temporary short-term booking softness, though historically demand rebounds after an initial adjustment period - Recent increases in fuel prices are expected to impact full-year 2026 results; ocean operations have greater sensitivity to market fuel price movements than river operations, which are mostly covered by 2025 fixed-price contracts for 2026 - Higher transatlantic airfare prices are expected to create a modest headwind for 2026 results, though the company's air department has a strong track record of managing air cost volatility - Chinese domestic cruise market has high price competition and limited differentiation opportunities for the company, slowing expansion of domestic Chinese operations - Regulatory uncertainty around sustainable shipping fuel standards creates challenges for scaling zero-emission vessel technology - Long-term macroeconomic instability could impact consumer discretionary spending on travel, though the company's customer demographic has proven historically resilient

Analyst Q&A

• Q: The strong early 2027 booking curve has been driven in part by selling high-demand, high-yield itineraries first. Is the current strong rate growth likely to hold, or will it settle back to the company's long-term mid-single-digit target? /

  A: Management confirms the 2027 early booking pace is stronger than expected, and the high current average rate reflects favorable timing and product mix (more high-yield Egypt/India itineraries sold early in the cycle). With 62% of 2027 capacity still unsold, management reaffirms that if macroeconomic conditions remain stable, the full-year 2027 yield growth will still settle at the longstanding target of mid-single digits. Strong current bookings just reflect healthy underlying consumer demand. (311 characters)

• Q: What is Viking's market share opportunity across river and ocean, and how is the product differentiated from competitors? /

  A: Viking is already the clear market leader in river cruising for North American outbound passengers, and its priority is maintaining that market dominance via consistent fleet expansion. The biggest growth opportunity is in the luxury ocean cruise segment, where management expects to grow share from 24% to 30% as it adds new capacity. Viking is differentiated by its consistent one-brand understated luxury experience, destination-focused immersive itineraries, and high-quality crew service, which drives strong repeat business. (397 characters)

• Q: Should investors expect any changes to strategy or capital allocation under the new leadership team? /

  A: The leadership transition is explicitly focused on stability and continuity, not change. The company's long-term growth strategy is already well-defined and locked in via the multi-year order book through 2034, and Leah Talaktak has worked alongside Tor Hagen for 20 years, so no strategic shifts are planned. Top capital allocation priority remains reinvesting in organic fleet growth, which generates strong returns aligned with the Viking brand. Any external acquisitions would only be pursued if they are scalable, margin-accretive, and fully aligned with the Viking brand ethos. (412 characters)

• Q: Can you update on the development of Viking's business for Chinese travelers? /

  A: Viking first entered the China market in the early 2000s, and has shifted its focus away from competitive domestic Chinese cruising to instead target Chinese outbound travelers seeking European river and ocean vacations. The company already operates four river vessels in Europe with Mandarin-speaking crews for Chinese guests, and the newly acquired Viking Idun ocean vessel will now operate European itineraries for Chinese travelers under the Norwegian flag. Building brand recognition in this market will take time, but it represents a large long-term growth opportunity. (401 characters)

• Q: What is the outlook for the zero-emission Viking Libra and hydrogen-powered shipping strategy? /

  A: The Viking Libra is designed to demonstrate the path to zero-emission shipping, using hydrogen fuel cells for approximately one-third of propulsion capacity. Management notes that current hydrogen is expensive and not widely available, and global shipping regulations are inconsistent and do not always prioritize lower-emission fuels. Tor Hagen (Executive Chairman) will lead this initiative as a long-term strategic priority, and the company continues to prioritize closed-loop scrubbers for existing vessels to minimize ocean pollution. (366 characters)