Viking Holdings Ltd

Total revenue increased 16.5% year over year to $2.2 billion. Adjusted gross margin increased 16.3% to $1.4 billion, net yield was $645, up 6.2%, adjusted EBITDA rose 18.2% to $748 million, net income was $588 million, adjusted net income attributable to Viking was $587 million, and adjusted EPS was $1.31, up 33%. For the first half, consolidated adjusted gross margin increased 16.5% year over year to over $2.1 billion and adjusted EBITDA was $853 million, up 20.9%. For 2026 bookings, management said 96% of core capacity is booked with $6.4 billion of advanced bookings, up 13% versus the 2025 season at the same point, while 2027 is 53% booked with $4.7 billion of advanced bookings, up 21% at the same point last year. Management said the 2027 goal remains mid-single-digit yield growth, but low water conditions may cause some impact in Q3 and into future periods. The company ended June 30 with $4 billion of cash and cash equivalents, $1 billion of undrawn revolver capacity, $2.4 billion of net debt, and 1.2x net leverage. Deferred revenue was $5 billion. Scheduled principal payments were $117 million for the remainder of 2026 and $234 million for 2027. Full-year 2026 committed ship CapEx is about $1.9 billion, or $650 million net of financing, and full-year 2027 committed ship CapEx is about $1.0 billion, or $260 million net of financing.

Leah Talactac emphasized that demand remains strong and that Viking’s advanced-booking visibility supports dynamic pricing and careful capacity growth. She highlighted fleet expansion, new land extensions and shore excursions, and said the company’s nearly identical ships, deployment flexibility, and ship-swap capabilities are key advantages in both normal and low-water conditions. On the river disruptions, her tone was pragmatic and guest-focused: Viking is issuing vouchers, improving communications, and prioritizing guest satisfaction even though the vouchers will carry costs into 2027 and 2028.

Linh Banh walked through the quarter’s financial strength, citing 16.5% revenue growth to $2.2 billion, adjusted gross margin of $1.4 billion, adjusted EBITDA of $748 million, net income of $588 million, and adjusted EPS of $1.31. She noted vessel expenses excluding fuel rose 2.7% year over year, SG&A was slightly lower as a percentage of adjusted gross margin, and first-half adjusted EBITDA reached $853 million. On the balance sheet, she cited $4 billion of cash, $1 billion of undrawn revolver capacity, $2.4 billion of net debt, and 1.2x net leverage, while also flagging that low-water costs are not yet fully reflected and may show up in Q3 and future periods through transportation and voucher impacts.

Analysts focused heavily on whether low water levels are hurting demand, bookings, and future loyalty. Management said they have not seen a booking impact, pointing to 2027 River being already over 40% booked and to strong overall pacing, and said guests have responded positively to Viking’s handling of disruptions. Questions also centered on vouchers, pricing, and margins; management said vouchers are credits toward future cruises, that they will reduce future-period revenue when redeemed, and that the company still aims for mid-single-digit yield growth despite near-term cost pressure from transportation and operational disruptions.