20-F: Viking Holdings Reports Strong 2025 Growth, Fleet Expansion

Viking Holdings Ltd announced robust financial and operational growth for 2025, driven by increased capacity, higher occupancy, and strategic fleet expansion across its river, ocean, and expedition cruise segments.

Summary

• Total revenue for 2025 increased by $1,167.5 million (21.9%) to $6,501.4 million from $5,333.9 million in 2024.
• Net income increased by $995.1 million to $1,148.1 million in 2025 from $153.0 million in 2024.
• Adjusted EBITDA reached $1,872.1 million in 2025, up from $1,348.3 million in 2024.
• Adjusted EPS was $2.61 in 2025, compared to $1.86 in 2024.
• Advance Bookings for the 2026 season were $5,960 million as of February 15, 2026, a 13% increase compared to the 2025 season at the same point in time.
• Capacity Passenger Cruise Days (PCDs) for core products are 7% higher for the 2026 season compared to 2025.
• Occupancy for 2025 was 95.4%, up from 93.6% in 2024.
• The company's fleet grew to 103 ships by December 31, 2025, including 89 river vessels, 12 ocean ships, and 2 expedition ships.
• New river vessels (7 Longships, 1 Longship-Seine, 4 Longships, 1 Longship-Douro, 4 Longships) are expected for delivery between 2026 and 2028.
• New ocean ships (Viking Mira, Viking Libra, Viking Astrea, Viking Lyra, Ship XVII, Ship XVIII, Ship XIX, Ship XX, Ship XXI, Ship XXII) are scheduled for delivery between 2026 and 2031.
• Two new expedition ships are scheduled for delivery in 2030 and 2031.
• A secondary offering of 30.5 million ordinary shares was completed on May 29, 2025, on behalf of CPP Investments and TPG, with no proceeds to the company.
• Viking Cruises Ltd (VCL) issued $1.7 billion in 5.875% Senior Notes due 2033 in October 2025, using proceeds to redeem $825.0 million of 5.875% Senior Notes due 2027 and refinance certain ship charters.
• Material weaknesses in internal control over financial reporting identified in 2024 were remediated in 2025.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very positive report, highlighting strong financial growth, robust future bookings, and strategic fleet expansion. The successful remediation of internal control weaknesses and proactive environmental investments further bolster confidence, despite minor delays in river vessel deliveries and currency fluctuations.

Positives

• Strong revenue growth of 21.9% in 2025, reaching $6,501.4 million.
• Significant increase in net income to $1,148.1 million in 2025 from $153.0 million in 2024.
• Adjusted EBITDA grew by 38.8% to $1,872.1 million in 2025.
• Adjusted EPS increased to $2.61 in 2025 from $1.86 in 2024.
• High advance bookings for 2026 season, up 13% to $5,960 million, indicating strong future revenue visibility.
• Increased occupancy to 95.4% in 2025, reflecting strong demand.
• Fleet expansion with 1 ocean ship and 6 river vessels delivered in 2025, and more scheduled through 2031.
• Successful refinancing of $825.0 million Senior Notes due 2027 with $1.7 billion Senior Notes due 2033, extending debt maturity.
• Remediation of previously identified material weaknesses in internal control over financial reporting.
• High guest satisfaction and brand loyalty, with repeat guest percentage increasing to 54% for the 2025 season.
• Industry-leading market share in North American outbound river market (52%) and luxury ocean market (27%) for 2025.
• Young fleet (average age 8 years) drives efficiency and lower maintenance costs.
• Fuel-efficient fleet design and investment in green technologies (HVO, liquid hydrogen/fuel cells) position the company favorably for environmental regulations.
• Seasoned management team with long tenure and proven track record of growth and new product launches.
• High crew retention rate and dedicated training programs.

Negatives

• Working capital deficit of $1,214.3 million as of December 31, 2025, although this includes $4,605.2 million of deferred revenue.
• Currency loss of $56.1 million in 2025, compared to a gain of $31.5 million in 2024, primarily due to unrealized losses on euro-denominated loans.
• Non-recurring charges of $17.2 million in interest expense due to early repayment of ship charters and redemption of notes.
• Delay in delivery of eight river vessels (two from December 2025 to 2026, six from H1 2026 to later in 2026) due to temporary technological disruptions and resource availability.
• The company does not carry business interruption insurance, leaving it exposed to revenue/earnings loss from ship incidents.
• Exposure to increased costs (fuel, labor, airfare) due to inflation and geopolitical events, which may not be fully offset by pricing adjustments for existing bookings.
• Substantial indebtedness of $5,665.5 million as of December 31, 2025, with associated risks.
• The company's two-class share structure concentrates voting control with the principal shareholder, limiting influence for other shareholders.

Risks

• Changes in the general worldwide economic and political environment could reduce demand for cruises, including volatility in fuel prices, higher interest rates, inflation, and geopolitical conflicts (Russia-Ukraine, Middle East, South China Sea).
• Adverse weather conditions or other natural disasters, including high or low river water levels, may require itinerary alterations or cancellations, affecting revenue and operations.
• Adverse incidents involving cruise ships (e.g., accidents, mechanical failures, illness outbreaks, onboard crimes) and associated negative media coverage could harm reputation and demand.
• Disease outbreaks or pandemics could significantly impact the travel industry, leading to reduced demand, increased cancellations, governmental restrictions, and higher operating costs.
• Increased labor costs or inability to recruit/retain employees could adversely affect service levels and profitability.
• Fluctuations in foreign currency exchange rates, particularly the U.S. dollar against the euro, could adversely affect financial results, despite hedging strategies.
• An increase in cruise capacity without a corresponding increase in demand and infrastructure could lead to reduced occupancy and price discounting.
• Overcapacity and competition in the cruise and land-based vacation industry may lead to a decline in sales, pricing, and destination options.
• Unsuccessful expansion into new products (e.g., Viking Expedition, Viking Mississippi) or new Asian source markets could result in unrecovered investments and foregone opportunities.
• Risks associated with jointly owned investments, such as the China JV Investment, including lack of full decision-making authority, potential disputes, and liability for actions of other investees.
• Compliance with various U.S. laws, including the U.S. Passenger Vessel Services Act (PVSA), for Mississippi River operations, with potential challenges to the time charter structure.
• Acquisitions may distract management, delay integration, incur greater-than-expected liabilities, or face economic/political/legal challenges.
• Delays in ship construction, repairs, maintenance, or refurbishments, or changes in costs, could adversely affect business.
• Lack of continuing availability of attractive, convenient, and safe port destinations could negatively impact guest experience and operations.
• Reliance on travel agencies for a material portion of sales, with risks of losing preferred relationships or increased competitor incentives.
• Reliance on third parties (operators, ship owners, suppliers, governmental agencies) for integral services and products, with risks of financial hardship, service interruptions, or increased costs.
• Reliance on scheduled commercial airline services, with risks of disruptions, increased prices, or limited availability.
• Credit card processing terms and requirements, adverse changes in guest payment policies, and consumer protection legislation could negatively affect financial condition.
• Challenges to intellectual property protections (trademarks, patents, copyrights) could impair brands and business.
• Breaches in data security or other disturbances to information technology systems and networks, including from evolving cybersecurity threats and AI systems, could harm reputation, expose to liability, and incur significant costs.
• Complex and evolving governmental regulations related to data privacy, data protection, and information security (e.g., GDPR, CCPA) could lead to significant penalties, investigations, and operational changes.
• Inability to keep pace with developments in technology could impair operations or competitive position.
• Substantial indebtedness and potential inability to generate sufficient cash to service debt or obtain additional financing.
• Restrictive covenants in debt agreements may limit operational flexibility.
• Volatility and disruptions in global credit and financial markets may adversely affect borrowing ability and increase counterparty credit risks.
• Application of existing tax laws is subject to ambiguities and differing interpretations, potentially leading to additional tax liabilities.
• Amendments to existing tax laws or enactment of new unfavorable tax laws (e.g., global minimum tax, Bermuda CIT Act) could increase tax payments.
• Regulatory limitations on ownership and transfer of ordinary shares (Bermuda BO Act).
• Share price volatility and potential loss of investment.
• Anti-takeover provisions in organizational documents could delay or prevent a change of control.
• Negative impact of future sales of ordinary or special shares on market price.
• No anticipated dividends in the foreseeable future.
• Two-class share structure concentrates voting control with the principal shareholder.
• Investor Rights Agreement grants certain rights to principal shareholder and CPP Investments that may not align with other shareholders.
• Difficulty enforcing judgments against the company or its directors/executive officers in Bermuda.
• Bermuda law may afford less protection to shareholders than U.S. law.
• Bye-laws restrict shareholders from bringing legal action against officers/directors and contain exclusive forum provisions.
• Loss of foreign private issuer status could result in significant additional costs and expenses.
• Controlled company status under NYSE rules allows reliance on exemptions from certain corporate governance requirements.
• Increased costs and management time devoted to public company compliance.

Future Outlook

Viking Holdings expects continued growth, with operating capacity for core products projected to be 7% higher for the 2026 season. Advance bookings for 2026 are already up 13% compared to the previous year, indicating strong future demand. The company plans to sustain its market-leading position in river cruising and sees significant growth potential in Viking Ocean. Strategic expansion into new Asian source markets and broadening its product portfolio are key growth strategies. While seasonality in revenue and profits is expected to continue, the growth of year-round products will help mitigate this. The company has a robust newbuilding program with 17 river vessels and 10 ocean ships scheduled for delivery through 2031, and two new expedition ships in 2030 and 2031. Options for additional river and ocean vessels extend through 2034. The company will also monitor the impact of evolving OECD Pillar Two tax rules.

Management Comments

• "Our guests trust us to create best-in-class travel experiences, whether it be a new itinerary for a product they already love or a completely new product experience, and we leverage our strong bookings for future seasons and our robust customer insights practice to help identify and deliver on the needs of our core demographic."
• "Expanding our travel platform enables us to capture a greater portion of our core demographics travel spend, while reinforcing brand loyalty, building customer lifetime value and increasing our repeat guest percentage, all of which generate shareholder value."
• "At Viking, we build innovative ships that are the right size for the experience. From the outset, we creatively balance competing preferences for smaller ships and spacious, uncrowded shared areas through greater efficiencies in space utilization and operations."
• "We believe the best results come from investing in our employees. We are proud to offer comprehensive benefits packages for our employees, which vary by location and are designed to meet or exceed local requirements and be competitive in the marketplace."
• "Our management team has capitalized on opportunities during times of adversity, weathered several economic cycles together and ultimately built Viking to be the company it is today—a household brand name with industry-leading quality ratings, numerous awards, a proven go-to-market strategy and a sizeable market share in the fast-growing luxury cruise market."

Industry Context

StockSavvy.ai notes that Viking Holdings Ltd's strong performance in 2025, particularly its revenue growth and increased occupancy, demonstrates resilience and effective strategy execution in the luxury travel market. The company's focus on destination-focused, small-ship cruising continues to differentiate it from larger competitors that often prioritize onboard entertainment and broader demographics. The significant increase in advance bookings for 2026, coupled with planned fleet expansion, suggests a confident outlook that contrasts with the broader travel industry's cautious recovery from past disruptions. The company's proactive approach to environmental sustainability, including investments in HVO and hydrogen fuel cell technology, positions it favorably against increasing global regulatory scrutiny and evolving consumer preferences for eco-conscious travel.

Comparison to Industry Standards

• Viking's 2025 Net Promoter Scores (73 for River, 71 for Ocean, 74 for Expedition) indicate strong customer loyalty, which is generally higher than the average for the broader cruise industry.
• The average age of Viking's fleet (8 years) is younger than that of large public cruise lines (e.g., Carnival Corporation, Norwegian Cruise Line Holdings Ltd., Royal Caribbean Cruises Ltd.), suggesting better fuel efficiency and lower maintenance costs compared to industry averages.
• Viking's fuel costs represented only 4.0% of its Adjusted Gross Margin in 2025, which is favorably low compared to many competitors in the cruise industry, indicating superior fuel efficiency or effective hedging.
• Viking's North American outbound river market share of 52% for the 2025 season is approximately three times that of its nearest competitor (e.g., AMA Waterways, Avalon Waterways, Tauck, Uniworld River Cruises, Inc.), highlighting its dominant position.
• Viking is the world's largest luxury ocean line based on its 27% luxury ocean market share for the 2025 season, surpassing competitors like Atlas Ocean Voyages, Crystal Cruises, Regent Seven Seas Cruises, Seabourn Cruise Line, and Silversea Cruises.
• Viking's Mississippi river market share of 35% for the 2025 season positions it strongly against its primary competitor, American Cruise Lines.
• Viking's contracted capacity represents approximately 48% of the total new berths coming online globally in the luxury ocean market by 2031, indicating aggressive expansion relative to the overall luxury segment growth of 13%.

Management Changes

Corporate Governance

Legal Proceedings

• Not currently involved in any legal proceedings that, either individually or in the aggregate, are expected to have a material adverse effect on financial position or profitability.
• No government proceedings are pending or known to be contemplated.

Related Party Transactions

• Management Services Agreement: The company provides finance, accounting, and management services to its principal shareholder and affiliates, charging for salary expenses and reimbursed for other expenses. As of December 31, 2025, current receivables were $0.6 million.
• China JV Investment: The company has a 10% interest in CMV (China Merchants Viking Cruises Limited), which owns and operates the Viking Yidun. Capital contributions to CMV were $6.5 million in 2025, $8.5 million in 2024, and $7.0 million in 2023. Recognized losses from CMV were $5.2 million in 2025, $7.9 million in 2024, and $7.0 million in 2023. The carrying amount of the investment in CMV was $1.3 million (2025) and $0.6 million (2024).
• VCL guaranteed 10% of CMV's financing obligations for the Viking Yidun, up to a maximum of $45.0 million.
• Accommodation agreement for Viking Yidun cabins: from Q3 2024 to end of 2026, with an option to extend for 2027. Vessel operating expenses related to Viking Yidun were $12.6 million (2025) and $8.1 million (2024). Services revenue to CMV was $11.3 million (2024) and $23.5 million (2023).
• Loan to CMV: RMB 253.0 million ($35.4 million) disbursed in February 2026, interest-bearing at 2.9%, matures January 2027.
• Sale of Viking Hungary Kft.: In 2025, the company sold 100% legal title of Viking Hungary Kft. to Freya Investments S.r.l., a related party wholly owned by Torstein Hagen, for regulatory reasons, while retaining all material economic and governance rights. No gain or loss recognized.
• Purchase of ordinary shares by principal shareholder: On December 11, 2025, the principal shareholder purchased 1,290,910 ordinary shares from Torstein Hagen for $61.84 per share.

Stakeholder Impact

• Shareholders: Positive impact from strong financial performance, increased dividends (prior to IPO), and potential for future growth. However, the dual-class share structure and anti-takeover provisions limit influence for ordinary shareholders. Future share sales could impact price. No dividends expected in the foreseeable future.
• Employees: Positive impact from comprehensive benefits packages, strong retention rates, and internal training/promotion opportunities. Share-based compensation plans (2018 Incentive Plan, 2024 ESPP) provide incentives.
• Customers: High guest satisfaction and brand loyalty driven by quality travel experiences, destination-focused itineraries, and consistent service. New product offerings and fleet expansion provide more travel opportunities.
• Creditors: Substantial indebtedness and restrictive covenants in debt agreements impact the company's financial flexibility. However, strong operating cash flows and successful refinancing activities indicate ability to service debt.
• Suppliers: Reliance on third-party suppliers for ship construction, operations, and services. Potential for increased costs or supply chain disruptions could impact relationships.

Next Steps

• Delivery of 7 Longships and 1 Longship-Seine in 2026.
• Delivery of Viking Mira and Viking Libra ocean ships in 2026.
• Delivery of 4 Longships, 1 Longship-Douro, and 2 Egypt river vessels in 2027.
• Delivery of Viking Astrea ocean ship in 2027.
• Delivery of 4 Longships in 2028.
• Delivery of Viking Lyra and Ship XVII ocean ships in 2028.
• Delivery of Ship XVIII and Ship XIX ocean ships in 2029.
• Delivery of Ship XX, Ship XXI ocean ships and Expedition Ship III in 2030.
• Delivery of Ship XXII ocean ship and Expedition Ship IV in 2031.
• Exercise options for 4 Longships for 2029 delivery by September 2026.
• Exercise options for 4 Longships for 2030 delivery by September 2027.
• Exercise options for 4 Longships for 2031 delivery by September 2028.
• Exercise options for 4 Longships for 2032 delivery by September 2029.
• Exercise options for Ship XXIII and Ship XXIV ocean ships for 2032 delivery by July 2026.
• Exercise options for Ship XXV and Ship XXVI ocean ships for 2033 delivery by July 2027.
• Exercise options for Ship XXVII and Ship XXVIII ocean ships for 2034 delivery by July 2028.
• Operation of two 80-berth river vessels in India under charter agreements from 2027 and 2028 seasons.
• Monitor the development of OECD Pillar Two rules and their impact on financial results.
• Viking Catering to become a Subsidiary Guarantor after termination of Viking Catering Swiss Loan.

Key Dates

Recommendation

The filing demonstrates robust financial performance in 2025 with significant increases in revenue, net income, and Adjusted EBITDA, indicating strong operational execution and market demand. The substantial advance bookings for 2026 provide excellent revenue visibility and suggest continued growth momentum. Strategic fleet expansion, coupled with high customer satisfaction and brand loyalty, positions Viking Holdings Ltd as a leader in the luxury cruise market. While there are ongoing capital commitments and some operational delays, the overall trajectory and management's proven ability to navigate market conditions make Viking Holdings Ltd an attractive investment for long-term growth.

Keywords

Cruise industry, Luxury travel, River cruises, Ocean cruises, Expedition cruises, Viking, SEC filing, Financial results, Fleet expansion, Debt, Corporate governance, Risk management, Bermuda, IPO, Shareholder, Capital markets, Tourism, Travel, Ship building, Sustainability, Environmental, Cybersecurity, Data privacy, Tax, Financial performance, Operating income, Net income, Adjusted EBITDA, Advance bookings, Occupancy, Share-based compensation, Related party transactions