Financial Data and Key Metrics Changes - In 2025, total revenue reached a record of $6.5 billion, reflecting a 21.9% increase year-over-year, driven by a 12% increase in capacity and a 7.4% growth in Net Yields [11][12] - Adjusted EBITDA for 2025 was nearly $1.9 billion, up 38.8% year-over-year, with an Adjusted Net Income of $1.2 billion, representing a 43.9% increase from the previous year [11][12] - For Q4 2025, total revenue was $1.7 billion, a 27.8% increase year-over-year, with an Adjusted EBITDA of $463 million, up 51.3% from Q4 2024 [16][17] Business Line Data and Key Metrics Changes - The River segment saw a 6.5% increase in capacity PCDs year-over-year, with an Adjusted gross margin growth of 16.2% to $1.9 billion and a Net Yield of $578, up 8.4% [18][19] - The Ocean segment experienced a 17.9% increase in capacity PCDs, with an Adjusted gross margin of nearly $2 billion, reflecting a 30.9% year-over-year increase and a Net Yield of $572, up 9.7% [19] Market Data and Key Metrics Changes - Viking holds a 52% market share in the North American outbound river market and a 27% share in the Luxury Ocean Market, indicating strong market positioning [13] - The company reported that 54% of guests were repeat travelers, showcasing strong brand loyalty [13] Company Strategy and Development Direction - The company plans to continue expanding its fleet, with a focus on innovative and sustainable practices, including the introduction of the world's first hydrogen-powered cruise ship [7][8] - Viking aims to enhance guest experiences through partnerships with cultural and scientific institutions, which also support brand awareness [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for core products, with 86% of bookings for the 2026 season already secured, reflecting a 13% increase in advanced bookings compared to the previous year [23] - The company is monitoring geopolitical developments, particularly in the Middle East, but remains optimistic about its operations and guest safety [30][31] Other Important Information - The company ended 2025 with a strong liquidity position, holding $3.8 billion in cash and cash equivalents, and a Net Leverage ratio of 1.1x [21][22] - Deferred revenue totaled $4.6 billion, providing a solid foundation for future growth [22] Q&A Session Summary Question: Thoughts on yield growth for 2026 - Management indicated that with 86% of bookings sold and a 13% growth in advanced bookings, yield growth is expected to remain solid in the 5%-7% range [34][35] Question: Impact of geopolitical uncertainty on demand - Management noted that past experiences show minimal impact from geopolitical events, with guests being well-informed and relaxed about travel advisories [37][38] Question: Consideration of dividends or share repurchases - Management stated that while they maintain a strong cash position, it is premature to consider dividends or share repurchases at this time [44][45] Question: Demand for Expedition ships - Management confirmed that the new Expedition ships will be deployed in similar itineraries as current vessels, reflecting strong demand in that segment [47][48] Question: Insights on advanced bookings and repeat guests - Management highlighted a slight increase in repeat guests and emphasized the importance of balancing pricing and guest experience [53][55] Question: Occupancy versus pricing strategy - Management clarified that with high occupancy levels, the strategy focuses on selling out ships while managing price increases to ensure value for guests [62] Question: Impact of River ship delivery delays - Management confirmed that delays would not significantly impact booking curves, as guests can be accommodated on identical vessels [67][68]