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Viking Holdings Ltd (VIK)
NYSE:VIK
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Viking Holdings Ltd
(NYSE:VIK)
Rating:67Neutral
Price Target:
$66.00
▲(5.05% Upside)
Positive Factors
Financial Performance
VIK's 2Q25 EBITDA of $633M beat the consensus driven by solid 8% ticket yield growth.
Growth Prospects
VIK is on track to grow 2025 EBITDA by over 25% with 2026/2027 estimates growing mid-teens.
Negative Factors
Pricing Concerns
VIK shares were down 5% as a 1Q beat and positive booking commentary were overshadowed by questions surrounding pricing.
Segment Pricing Issues
The focus of the call was on what looked to be weakness in River segment pricing not only in 1Q, but embedded in the 2026 booking curve as well.
Viking Holdings Ltd (VIK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.98B
Dividend YieldN/A
Average Volume (3M)2.67M
Price to Earnings (P/E)33.9
Beta (1Y)1.30
Revenue Growth17.72%
EPS GrowthN/A
CountryUS
Employees12,000
SectorGeneral
Sector StrengthN/A
IndustryTravel Services
Share Statistics
EPS (TTM)0.99
Shares Outstanding315,646,480
10 Day Avg. Volume2,491,911
30 Day Avg. Volume2,673,600
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue4.62
Enterprise Value/Gross Profit10.90
Enterprise Value/Ebitda18.62
Forecast
1Y Price Target
$66.75Price Target Upside6.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Viking Holdings Ltd Business Overview & Revenue Model
Company DescriptionViking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.
How the Company Makes MoneyViking Holdings Ltd generates revenue through multiple streams, primarily from its investments in real estate and technology sectors. In real estate, the company earns income from property rentals, sales of developed properties, and capital appreciation of its assets. In the technology sector, VIK invests in startups and established firms, profiting from equity stakes, dividends, and resale of shares. Additionally, its renewable energy projects contribute to revenues through energy sales and government incentives for sustainable practices. The company may also enter into strategic partnerships with other firms, enhancing its market access and operational capabilities, which further supports its revenue generation efforts.
Viking Holdings Ltd Earnings Call Summary
Earnings Call Date:Aug 19, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong revenue and booking growth, significant EBITDA increases, and strategic expansion of their fleet and itineraries. However, challenges such as rising vessel expenses, increased SG&A costs, and currency fluctuation impacts were noted.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Net yield increased 8%, and capacity grew by 8.8%, resulting in an 18.5% increase in revenue year-over-year to $1.9 billion.
High Booking Levels
96% of 2025 capacity is already booked, and 55% of 2026 capacity is sold, with advanced bookings showing significant increases compared to previous years.
Fleet and Itinerary Expansion
Expansion with the addition of Viking Vesta and Viking Amun, as well as new itineraries in India starting in 2027, with strong initial demand.
Significant EBITDA Growth
Adjusted EBITDA for the second quarter was $633 million, a 28.5% increase from the previous year.
Solid Financial Position
Total cash and cash equivalents of $2.6 billion and an undrawn revolver facility of $375 million, with a net leverage of 2.1x.
Negative Updates
Increased Vessel Expenses
Vessel expenses, excluding fuel, per capacity PCD increased 8.2% due to itinerary mix changes and higher port charges.
SG&A Expenses Rise
Increased investments in teams and sales and marketing to support future growth, reflecting a rise in SG&A expenses.
Currency Fluctuation Impact
Unrealized FX losses on euro-denominated loans, translating to an $0.11 impact on adjusted EPS for Q2.
Company Guidance
During Viking's Second Quarter 2025 Earnings Conference Call, the company provided guidance reflecting strong performance and future growth expectations. In Q2 2025, Viking reported an 8% increase in net yield, combined with an 8.8% capacity growth, resulting in an 18.5% year-over-year revenue increase. The company noted that 96% of the 2025 capacity for its core products is already booked, with a strong start for 2026 bookings where 55% of the capacity is sold at higher rates than the previous year. Viking's fleet expansion included the addition of the Viking Vesta to its ocean fleet and the Viking Amun to its river operations on the Nile. Financially, Viking's adjusted EBITDA for Q2 2025 rose 28.5% year-over-year to $633 million, with net income improving by nearly $280 million. The company also highlighted a $439 million net income for the quarter, a 25.8% increase from 2024, and maintained a favorable net leverage of 2.1x as of June 30, 2025. Viking's strategic focus on destination-centric travel continues to drive strong advanced bookings and capacity expansion, with plans to add new itineraries in India starting in 2027.Viking Holdings Ltd Financial Statement Overview
Summary
Viking Holdings Ltd demonstrates a mixed financial performance. While revenue and profitability have improved, high leverage and negative equity present significant risks. Cash flow generation is adequate, but declining free cash flow growth is a concern. The company needs to address its leverage and equity issues to enhance financial stability.Income Statement
Viking Holdings Ltd has shown a positive revenue growth trend with a 5.3% increase in the latest TTM period. The company has improved its profitability, with a net profit margin rising to 9.8% from 2.9% in the previous annual report. The gross profit margin remains strong at around 40.8%. However, the company has experienced fluctuations in EBITDA margins, indicating potential volatility in operational efficiency.72
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk. The company's equity is negative, which is concerning, but there has been a slight improvement in the return on equity, moving from negative to a less negative position. The equity ratio remains low, reflecting limited financial stability.45
Neutral
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 34.8% in the latest TTM period, which is a concern. However, the operating cash flow to net income ratio is healthy, suggesting that the company is generating sufficient cash from operations relative to its net income. The free cash flow to net income ratio is also positive, indicating some level of cash flow efficiency.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.81B | 5.33B | 4.71B | 3.18B | 625.10M |
| Gross Profit | 2.46B | 2.22B | 1.86B | 747.10M | -291.59M |
| EBITDA | 1.44B | 811.16M | -1.11B | 1.14B | -1.50B |
| Net Income | 824.48M | 152.33M | -1.86B | 398.56M | -2.11B |
Balance Sheet | |||||
| Total Assets | 11.12B | 10.12B | 8.50B | 7.86B | 7.69B |
| Cash, Cash Equivalents and Short-Term Investments | 2.44B | 2.34B | 1.59B | 1.25B | 1.91B |
| Total Debt | 5.66B | 5.57B | 5.55B | 6.84B | 6.22B |
| Total Liabilities | 10.84B | 10.34B | 13.85B | 11.35B | 11.57B |
| Stockholders Equity | 275.13M | -222.73M | -5.35B | -3.50B | -3.89B |
Cash Flow | |||||
| Free Cash Flow | 778.83M | 1.16B | 695.00M | -970.33M | -599.58M |
| Operating Cash Flow | 2.26B | 2.08B | 1.37B | -15.44M | 359.81M |
| Investing Cash Flow | -1.42B | -853.71M | -634.23M | -856.38M | -677.39M |
| Financing Cash Flow | -78.52M | -247.90M | -479.65M | 322.04M | 1.31B |
Viking Holdings Ltd Technical Analysis
Positive
62.83
Price Trends
58.35
Positive
51.50
Positive
48.36
Positive
Market Momentum
1.54
Negative
63.68
Neutral
76.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIK, the sentiment is Positive. The current price of 62.83 is above the 20-day moving average (MA) of 60.72, above the 50-day MA of 58.35, and above the 200-day MA of 48.36, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 63.68 is Neutral, neither overbought nor oversold. The STOCH value of 76.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIK.
Viking Holdings Ltd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $97.80B | 27.14 | 47.48% | 0.70% | 12.10% | 37.89% | |
73 Outperform | $47.52B | 20.19 | 12.94% | 0.38% | 17.73% | 27.95% | |
72 Outperform | $26.79B | 26.49 | 129.04% | 0.56% | 5.69% | 47.33% | |
70 Outperform | $11.57B | 18.47 | 63.57% | ― | 5.23% | 66.94% | |
67 Neutral | $27.98B | 33.89 | 34.73% | ― | 17.72% | ― | |
66 Neutral | $9.52B | 113.95 | 22.38% | ― | 18.13% | -55.21% | |
55 Neutral | $6.29B | 4.66 | -20.95% | 6.01% | 10.84% | 8.15% |
* General Sector Average
Performance Comparison
VIK
Viking Holdings Ltd
62.83
30.39
93.68%
TCOM
Trip.com Group Sponsored ADR
72.79
25.74
54.71%
EXPE
Expedia
214.95
82.93
62.82%
MMYT
Makemytrip
100.45
6.63
7.07%
RCL
Royal Caribbean
352.27
193.76
122.24%
NCLH
Norwegian Cruise Line
25.66
8.16
46.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.