Viking Holdings Ltd(US:VIK)2026-03-03 14:04Financial Performance - Total revenue for 2025 reached $6,501,419, a 22% increase from $5,333,882 in 2024 and a 38% increase from $4,710,493 in 2023[326]. - Net income attributable to Viking Holdings Ltd for 2025 was $1,147,570, compared to $152,331 in 2024, marking a significant turnaround from a loss of $1,850,572 in 2023[330]. - Adjusted EBITDA for 2025 was $1,872,088, up 39% from $1,348,302 in 2024[331]. - Total revenue for the year ended December 31, 2025 increased by $1,167.5 million, or 21.9%, to $6,501.4 million from $5,333.9 million in 2024[336]. - Net income increased by $995.1 million to $1,148.1 million for the year ended December 31, 2025, from $153.0 million in 2024[352]. - Adjusted EPS for 2025 was $2.61, compared to $1.86 in 2024[330]. Operational Capacity and Demand - As of February 15, 2026, the company had $5,960 million in Advance Bookings, which is 13% higher compared to the same point in time for the 2025 season[298]. - The operating capacity for Viking Ocean is 9% higher for the 2026 season compared to the 2025 season, with Advance Bookings reaching $2,727 million, a 16% increase[299]. - Viking River's operating capacity is 6% higher for the 2026 season, with Advance Bookings at $2,806 million, a 10% increase compared to the 2025 season[300]. - The company sold 86% of its Capacity Passenger Cruise Days (PCDs) for the 2026 season, indicating strong demand[298]. - The primary cruising season for river products is from April to October, with the majority of revenue and profits historically earned in the second and third quarters[305]. Costs and Expenses - Operating costs may increase due to inflation, affecting labor, fuel, and airfare expenses, but fixed-price contracts mitigate some risks[306]. - Vessel operating expenses for 2025 totaled $1,472,487, an increase from $1,280,711 in 2024[332]. - Commissions and transportation costs increased by $202.9 million, or 17.5%, to $1,359.5 million for the year ended December 31, 2025[341]. - Direct costs of cruise, land, and onboard increased by $175.1 million, or 25.9%, to $851.9 million for the year ended December 31, 2025[342]. Cash Flow and Financing - Net cash flow from operating activities increased by $478.3 million to $2,560.3 million for the year ended December 31, 2025, compared to $2,082.0 million in 2024, primarily due to a $426.4 million increase in operating income[361]. - Net cash flow used in investing activities increased by $95.8 million to $949.5 million for the year ended December 31, 2025, mainly due to a $109.4 million increase in capital expenditures[362]. - Net cash flow used in financing activities increased by $58.1 million to $306.0 million for the year ended December 31, 2025, primarily due to $1,710.4 million in higher debt repayments[363]. - The company entered into a revolving credit facility providing for borrowing of up to $1.0 billion, maturing on November 14, 2030[354]. - In October 2025, the company issued $1.7 billion in principal amount of its 5.875% Senior Notes due 2033 to refinance existing debt and fund operations[355]. Assets and Liabilities - As of December 31, 2025, the company had $3,803.9 million in cash and cash equivalents and a working capital deficit of $1,214.3 million, which included $4,605.2 million of deferred revenue[356]. - Total liabilities were $11,298,124, consisting of non-current liabilities of $5,334,242 and current liabilities of $5,963,882[385]. - Non-current assets amounted to $7,599,484, while current assets were $4,654,467 as of December 31, 2025[385]. - Total debt obligations as of December 31, 2025, amounted to $7,375.98 million, with future interest on variable rate debt calculated based on rates ranging from 5.57% to 6.95%[364]. Revenue Segmentation - Viking River segment revenue increased by $416.4 million, or 15.7%, to $3,070.8 million for the year ended December 31, 2025, driven by higher revenue per PCD and increased occupancy[338]. - Viking Ocean segment revenue increased by $672.2 million, or 30.6%, to $2,868.2 million for the year ended December 31, 2025, primarily due to higher occupancy and revenue per PCD[339]. Other Financial Metrics - Adjusted Free Cash Flow (FCF) for 2025 was $2,175,610, representing a conversion rate of 116.2%[331]. - The average occupancy rate improved to 95.4% in 2025, compared to 93.6% in 2024[332]. - Net yield per passenger increased to $583 in 2025, up from $543 in 2024[332]. - Adjusted Gross Margin for the year ended December 31, 2025 was $4,290.0 million, an increase of $789.5 million, or 22.5%, from $3,500.5 million in 2024[335]. - Operating income for the year ended December 31, 2025 was $1,501.5 million, compared to $1,075.1 million in 2024[346]. Currency and Foreign Exchange - 11.5% of total revenue for the years ended December 31, 2025, and 2024, was generated in currencies other than the U.S. dollar[532]. - A 10% increase or decrease in the value of the U.S. dollar against the euro would have resulted in an estimated $107.0 million effect on income before income taxes for 2025[532]. - As of December 31, 2025, 2.0% of the principal outstanding on total debt had variable interest rates, compared to 7.2% in 2024[539]. - The company entered into forward foreign currency contracts to purchase €470.0 million at an average exchange rate of 1.09 in 2023 and €970.0 million at 1.10 in 2024[534]. Asset Management - The estimated useful lives of river vessels range from 40 to 50 years for hull and superstructure, while ocean and expedition ships have an estimated useful life of 32 years for hull, deck, and machinery[396]. - The company did not recognize any impairment loss related to vessels and ships for the years ended December 31, 2025, 2024, and 2023[401]. - The company has made reasonable estimates for vessel and ship accounting purposes, with potential depreciation expense increases of approximately $16.0 million if useful lives were reduced by one year[398].