Business Context and Reporting Period
Company: Viking Holdings Ltd (VIK)
Filing Type: Annual Report on Form 20-F
Reporting Period: Fiscal year ended December 31, 2025
Accounting Basis: International Financial Reporting Standards (IFRS)
Viking Holdings Ltd is a global travel company operating river, ocean, and expedition cruises. The company operates under a single brand strategy targeting affluent, English-speaking travelers aged 55 and older. As of December 31, 2025, the fleet consisted of 103 ships (89 river vessels, 12 ocean ships, and 2 expedition ships). The company completed its IPO in May 2024 and subsequently converted Series C Preference Shares to ordinary shares.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 Value | 2024 Value |
|---|---|---|
| Total Revenue | $6,501.4 million | $5,333.9 million |
| Operating Income | $1,501.5 million | $1,075.1 million |
| Net Income | $1,148.1 million | $153.0 million |
| Adjusted EBITDA | $1,872.1 million | $1,348.3 million |
| Adjusted Net Income | $1,165.1 million | $809.5 million |
| Adjusted EPS | $2.61 | $1.86 |
| Adjusted Free Cash Flow | $2,175.6 million | $1,726.2 million |
| Total Debt | $5,665.5 million | $5,481.0 million |
| Cash and Cash Equivalents | $3,803.9 million | $2,489.7 million |
| Occupancy Rate | 95.4% | 93.6% |
| Net Yield (per PCD) | $583 | $543 |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 21.9% to $6.5 billion, driven by a 7% increase in Capacity Passenger Cruise Days (PCDs) due to fleet expansion (one ocean ship and six river vessels delivered in 2025) and higher occupancy (95.4% vs. 93.6%).
- Profitability Surge: Net income jumped from $153 million to $1.15 billion. This significant increase was primarily due to the absence of non-cash Private Placement derivative losses ($364.2 million in 2024) and warrant liability remeasurement losses ($261.5 million in 2024) which were derecognized following the IPO and conversion of Series C Preference Shares.
- Operating Expenses: Operating expenses increased in line with revenue growth. Vessel operating expenses rose 15.0% to $1.47 billion, and selling and administration expenses increased 16.7% to $1.03 billion, largely due to fleet growth and marketing investments for future seasons.
- Debt Restructuring: In October 2025, the company issued $1.7 billion in 5.875% Senior Notes due 2033. Proceeds were used to redeem $825 million of 2027 notes and refinance charters for the Viking Orion, Viking Mars, and Viking Octantis.
Guidance, Outlook, and Risks
Outlook and Booking Environment: As of February 15, 2026, the company had sold 86% of its Capacity PCDs for the 2026 season, representing $5.96 billion in Advance Bookings (13% higher than the prior year at the same point in time). Operating capacity for 2026 is projected to be 7% higher than 2025.
Management Commentary: Management highlighted strong demand across all segments, with Viking Ocean revenue growing 30.6% and Viking River revenue growing 15.7%. The company continues to focus on fleet expansion, with 17 river vessels and 10 ocean ships on order.
Key Risks and Contingencies:
- Geopolitical Instability: Ongoing conflicts in Russia-Ukraine and the Middle East continue to impact itineraries and demand in affected regions. The company is not currently operating Russia or Ukraine itineraries.
- Shipyard Delays: In December 2025, the company was informed that the delivery of eight river vessels would be delayed from late 2025/early 2026 to later in 2026 due to technological disruptions and resource availability.
- Regulatory and Tax: The company is subject to the new Bermuda Corporate Income Tax Act (15% rate) effective 2025, though international shipping income is currently exempt. There are also risks related to the U.S. Passenger Vessel Services Act (PVSA) regarding the Viking Mississippi charter.
- Market Risks: Exposure to foreign currency fluctuations (particularly the Euro) and fuel price volatility remains a key risk, though the company utilizes hedging strategies.
Investor Verification Checklist
- Non-GAAP Reconciliations: Verify the adjustments made to Net Income to arrive at Adjusted EBITDA and Adjusted Net Income, specifically the exclusion of derivative losses and warrant liabilities that significantly impacted 2024 results.
- Shipyard Delivery Schedule: Monitor the status of the eight delayed river vessels and the impact on 2026 capacity and revenue recognition.
- Debt Covenants: Review compliance with financial maintenance covenants, particularly the recent amendment to the Hermes Financing in February 2026 which removed a specific liquidity covenant.
- Advance Bookings: Track the conversion of the $5.96 billion in 2026 Advance Bookings into actual revenue and monitor occupancy rates against the 86% sold capacity.
- China JV Investment: Assess the performance and financial impact of the China Merchants Viking Cruises Limited (CMV) joint venture, including recent capital contributions and loan disbursements.