Viking Holdings Ltd Q4 FY2025 earnings call

• Fleet: Surpassed 100 ships in 2025, with 89 river vessels, 12 ocean ships, and 2 expedition ships. Set to operate world's first hydrogen-powered cruise ship. Expanded into new destinations like India, increased river fleet on Nile and Mekong. Strengthened partnerships across arts, culture, and scientific institutions. - Financials: 2025 total revenue reached a record of $6.5 billion, up 21.9% year-over-year. Adjusted EBITDA was almost $1.9 billion, up 38.8% year-over-year. Adjusted net income was $1.2 billion, 43.9% higher than last year. Fourth quarter 2025 total revenue was $1.7 billion, up 27.8% year-over-year. Adjusted EBITDA totaled $463 million, up 51.3% over the fourth quarter of 2024. Net income for the fourth quarter of 2025 was $300 million compared to $104 million in 2024. - Balance Sheet: Strong liquidity position with total cash and cash equivalents of $3.8 billion and undrawn revolver of $1 billion as of December 31, 2025. Net debt was $2.1 billion and net leverage ratio was 1.1 times. Deferred revenue totaled $4.6 billion.

River Segment: Capacity PCDs increased 6.5% year over year. Adjusted gross margin grew 16.2% year-over-year to $1.9 billion, net yield was $578, up 8.4% year-over-year, occupancy was 96% for the year. Ocean Segment: Capacity PCDs increased 17.9% year-over-year. Adjusted gross margin increased 30.9% year-over-year to almost $2 billion, net yield was $572, up 9.7% compared to the previous year, occupancy for the period was 95%.

• 2026 is shaping up to be a great year with strong demand. As of February 15th, 86% booked for 2026 season, 13% higher advanced bookings than 2025 at same point. Ocean cruises: $2.7 billion of advanced bookings, 87% of capacity sold, advanced bookings per PCD $787 vs $746 in 2025. Expect two new ocean ships to join fleet in 2026. River cruises: Adjusted 2026 capacity 6% higher than 2025. Advanced bookings for 2026 rivers $2.8 billion, 10% higher than last year, 85% of operating capacity sold at strong rates averaging $906 per day. - Entered into option agreements for two additional ocean ships to be delivered in 2034 and shipbuilding commitments for two additional expedition ships scheduled to be delivered in 2030 and 2031.

• River ship delivery delays: Shipyards experienced temporary technological disruptions and resource availability issues, affecting delivery timelines of eight longships. - Geopolitical uncertainty: Middle East situation with Egypt representing ~2% of overall capacity. Travel warning issued which may impact, but Egypt is far from travel areas and impact is limited to ~3,000 guests on ~40 voyages.

Q: Steve Wychinski asked about yield growth in 2026 based on curves and advanced bookings.

A: Tor and Leah said curves speak for themselves and extrapolation makes sense.

Q: Steve Wychinski asked about impact of Middle East geopolitical backdrop on business.

A: Tor said American customers are well-educated, past blips went back to normal, Egypt is limited part of inventory.

Q: Robin Farley asked about dividend or share repurchase given low leverage.

A: Leah said not premature, not ruled out but not entertained for now.

Q: Robin Farley asked about expedition ship orders.

A: Tor said bookings for expedition are strong, vessels to be deployed in same itineraries as current ones.

Q: Matthew Boss asked about acceleration in advanced bookings per PCD and repeat vs new customers.

A: Leah said goal is mid-single-digit yield growth, past guest repeat rate slightly ticked up.

Q: Connor Cunningham asked about occupancy vs pricing strategy.

A: Tor said occupancy won't exceed 100% due to two people per cabin, strategy is to sell out ships and manage price increases.

Q: Connor Cunningham asked about river ship delivery delays and Egypt exposure.

A: Tor said minimal reaccommodation expenses, Egypt itinerary pause through March 31, 2026 with limited impact.

Q: James Hardiman asked about river yard delays impact on curves and India itineraries.

A: Tor said delays don't affect curves as guests shop by itinerary, India itineraries were well supported by past passengers.

Q: Andrew DeDora asked about unsold 14% of 2026 bookings and India itineraries.

A: Tor said majority unsold is fourth quarter, India itineraries were sold out quickly and yield at higher rates.

Q: David Katz asked about depth of market and new to cruise customers.

A: Tor said new to brand guests come from other cruise lines, river cruise brand awareness helps expand market.

Q: Stephen Grambling asked about gross margin expansion drivers.

A: Tor and Leah said guest first approach, capacity and yield increases, prudent cost management.

Q: Brandt Montour asked about SG&A leverage.

A: Tor and Leah said plan to leverage SG&A with digital transformation, marketing expenses related to future operations.

Q: Patrick Scholes asked about non-refundable bookings and impact of escalated geopolitical situation.

A: Tor said bookings are sticky with low cancellation rates, and Viking will act if unsafe