Viking Holdings Ltd ((VIK)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Viking Holdings Ltd presented an optimistic outlook, highlighting robust revenue and booking growth, significant EBITDA increases, and strategic fleet and itinerary expansions. Despite these positive trends, the company acknowledged challenges such as rising vessel expenses, increased SG&A costs, and the impact of currency fluctuations.
Strong Revenue Growth
Viking Holdings Ltd reported an impressive 18.5% increase in revenue year-over-year, reaching $1.9 billion. This growth was driven by an 8% increase in net yield and an 8.8% capacity expansion, underscoring the company’s ability to capitalize on market demand and enhance its financial performance.
High Booking Levels
The company showcased its strong booking levels, with 96% of 2025 capacity already booked and 55% of 2026 capacity sold. This indicates a significant increase in advanced bookings compared to previous years, reflecting customer confidence and demand for Viking’s offerings.
Fleet and Itinerary Expansion
Viking’s strategic expansion includes the addition of the Viking Vesta and Viking Amun to its fleet, alongside new itineraries in India starting in 2027. This move is met with strong initial demand, positioning the company for continued growth in new markets.
Significant EBITDA Growth
The company reported a substantial 28.5% increase in adjusted EBITDA for the second quarter, amounting to $633 million. This growth highlights Viking’s operational efficiency and its ability to generate higher earnings from its expanding operations.
Solid Financial Position
Viking maintains a solid financial position with total cash and cash equivalents of $2.6 billion and an undrawn revolver facility of $375 million. The company also reported a favorable net leverage of 2.1x, indicating strong financial health and flexibility.
Increased Vessel Expenses
The earnings call noted an 8.2% increase in vessel expenses per capacity PCD, excluding fuel. This rise is attributed to changes in itinerary mix and higher port charges, presenting a challenge that the company is actively managing.
SG&A Expenses Rise
Viking has increased its investments in teams and sales and marketing efforts to support future growth, resulting in a rise in SG&A expenses. These investments are seen as necessary to sustain the company’s expansion and market presence.
Currency Fluctuation Impact
The company experienced unrealized foreign exchange losses on euro-denominated loans, impacting adjusted EPS for Q2 by $0.11. This highlights the challenges posed by currency fluctuations in the global market.
Forward-Looking Guidance
During the earnings call, Viking Holdings Ltd provided guidance reflecting strong performance and future growth expectations. The company anticipates continued revenue growth with an 8% increase in net yield and 8.8% capacity growth. With 96% of 2025 capacity already booked and a promising start for 2026, Viking is well-positioned for future success. The addition of new vessels and itineraries, particularly in India, is expected to drive further expansion.
In conclusion, Viking Holdings Ltd’s earnings call painted a positive picture of the company’s current performance and future prospects. With strong revenue and booking growth, strategic expansions, and a solid financial position, Viking is poised for continued success. However, challenges such as rising expenses and currency fluctuations remain areas to watch as the company navigates its growth trajectory.