Viking Holdings Q2 Revenue Up 18 Percent

Viking Holdings(NYSE:VIK) reported second-quarter 2025 earnings on August 19, 2025, achieving 18.5% year-over-year revenue growth to $1.9 billion, an adjusted EBITDA increase of 28.5% to $633 million, net income of $439 million, up nearly $280 million from Q2 2024. Core cruise capacity expanded 8.8% this year and 96% of 2025 cruises are already sold, while 55% of 2026 capacity is booked at higher rates as of August 10. The call detailed new product launches in India, continued fleet investment, and robust operating leverage as advanced bookings and margin expansion supported a strong long-term outlook.

Viking Holdings expands portfolio with disciplined capacity and global reach

The company added the Viking Vesta to its ocean fleet in June, expanded Nile vessels to seven as of the quarter, with five more planned by 2027, and announced completely sold-out river cruises in India launching in 2027-2028. Viking’s river fleet now numbers 85 vessels globally, controlling or having priority access to 110 docking locations, and the company operates 12 identical ocean ships and two expedition vessels.

"Through years of strategic investments and partnerships, we now control or have priority access to 110 docking locations, giving us logistical flexibility and the ability to deliver a consistent high-quality guest experience. On the oceans, we now operate 12 small modern ships, all with 100% balcony staterooms and designed to be nearly identical."
-- Tor Hagen, Chairman and CEO

Control of key global docking infrastructure and a standardized ship platform enable Viking Holdings to efficiently scale capacity, sustain premium yields, and erect high barriers to new entrants in both river and ocean cruise segments.

Net yield and booking momentum drive Viking Holdings EBITDA growth

Net yield increased 8% year-over-year to $607 (non-IFRS), with 96% of 2025 core cruise capacity and 55% of 2026 already booked as of August 10—rates for 2026 are 4% above the prior year as of August. The company recorded $5.6 billion in advanced bookings for 2025, which is 21% higher than the 2024 season at the same point in time. Capacity for core products is increasing by 9% for the 2026 season.

"Advanced bookings equal $5.6 billion, which is 21% higher than the 2024 season at the same point in time, while the capacity is increasing by 12%. And for 2026, we are already 55% booked with $3.9 billion of advanced bookings. These are 13% higher than the 2025 season at the same point in time in 2024. Capacity for our core products is increasing by 9%."
-- Tor Hagen, Chairman and CEO

Viking Holdings mitigates currency risk, demonstrates cost discipline

Viking hedged EUR 470 million of 2025 and EUR 500 million of 2026 operating expenses at a $1.10 per euro rate and converted equivalent cash to euros to offset euro-denominated loans, eliminating $0.11 adjusted EPS drag from unrealized foreign exchange (FX) losses that impacted adjusted EPS. Vessel expenses per capacity passenger cruise day (PCD) rose 8.2% due to itinerary mix, but company operating expenses excluding fuel increased just 3.9% year-over-year for first half 2025 against 11% capacity and 7.6% yield expansion.

"To this end, we have hedged a significant portion of our euro exposure for 2025 and 2026 operating expenses. We have EUR 470 million hedged for 2025 and EUR 500 million hedged for 2026 at a weighted rate of $1.1 per euro. We also worked on opportunities to offset our currency exposure on the balance sheet, such as our euro-denominated loans. For example, we naturally hedge these loans by converting an equivalent amount of cash holdings into euros as of late Q2 2025."
-- Leah Talactac, President and CFO

Effective hedging of both cash outflows and balance sheet exposures adds resilience to Viking Holdings’ earnings and eliminates a material quarterly FX risk, reinforcing steady execution in a volatile macro environment.

Looking Ahead

Management disclosed no formal earnings or margin guidance but affirmed a strategic intent for mid single-digit price growth and ongoing capacity expansion for 2025 and 2026, supported by booked rates for the 2026 season, which are tracking 4% above the prior year with 9% higher capacity. Capital expenditure is committed at approximately $990 million (net $560 million) for the full year 2025 and $1.2 billion (net $70 million) for the full year 2026, largely for two new ocean ships. No dividend or share buyback is planned near term, with leadership prioritizing cash reserves, future fleet investment, and selectively accretive M&A over near-term capital returns.

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This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool recommends Viking. The Motley Fool has a disclosure policy.