Viking Holdings Ltd (VIK) Stocks: Q1 Loss Narrows, Revenue Soars 24.9%

TLDR

Viking stock dropped 7.13% at open despite strong Q1 results and revenue growth. Q1 2025 revenue rose 24.9% to $897.1M due to fleet expansion and high occupancy. Net loss narrowed significantly to $105.5M with margins and EPS improving. Advance bookings hit $5.5B for 2025 and $2.67B for 2026, showing strong demand. Viking maintains $2.8B in cash, continues expansion with new vessels and sustainability goals

Viking Holdings Ltd stock opened with a sharp 7.13% decline on Tuesday, falling to $43.72. This came despite the cruise company posting narrower quarterly losses and strong revenue growth. The pre-market optimism faded quickly as investors reacted to the broader market context and potential concerns about guidance.

Viking Holdings Ltd(VIK)

Revenue Increases on Higher Capacity and Demand

Viking recorded $897.1 million in Q1 2025 revenue, up 24.9% from Q1 2024. The increase resulted from new ships and higher passenger cruise days. Strong occupancy of 94.5% also supported overall financial performance.

The company expanded its capacity by 14.9% compared to the previous year. Viking added new vessels, including two river ships and one ocean ship. Consequently, this contributed to higher cruise days and stronger revenue per customer.

Net Yield improved 7.1% year-over-year, reaching $544 per passenger cruise day. Viking also booked 92% of its 2025 capacity by May 11. This high booking rate reflects growing demand and effective customer targeting.

Loss Narrows, Margins Improve Across Key Metrics

Net loss narrowed to $105.5 million in Q1 2025 from $490.7 million in Q1 2024. The previous year included a one-time loss related to Series C Preference Shares. Excluding that, adjusted net loss still showed significant improvement year-over-year.

Gross margin rose by 53.9%, reaching $245.5 million during the quarter. Adjusted gross margin increased 23.8% to $613.3 million, supported by higher capacity and strong pricing. Adjusted EBITDA climbed to $72.8 million, driven by stronger passenger metrics.

Earnings per share stood at $(0.24), compared to $(1.20) a year ago. Adjusted EPS matched the reported EPS, also showing quarterly improvement. These results reflect progress in cost control and revenue generation.

Bookings and Capacity Strong for 2025 and 2026

By May 11, Viking had $5.5 billion in advance bookings for 2025, 21% higher than 2024 levels. For 2026, advance bookings reached $2.67 billion, up 11% from the prior year’s figures. Average booking value per guest also increased for both seasons.

Viking sold 92% of its 2025 capacity and 37% of 2026’s capacity. These figures suggest that demand remains resilient despite broader macroeconomic shifts. The company continues to benefit from early booking trends and targeted marketing.

Operating capacity is expected to rise 12% in 2025 and 8% in 2026. Viking also plans to deliver one ocean and nine river vessels in the remaining months of 2025. Additional orders for ships scheduled through 2033 highlight long-term growth planning.

Liquidity and Expansion Plans Remain on Track

Viking reported $2.8 billion in cash and equivalents as of March 31, 2025. The company also retained access to a $375 million undrawn credit facility. These resources support operations and capital expansion through the coming years.

Scheduled debt payments for the remainder of 2025 total $438.7 million. Viking repaid $250 million in senior notes in May. Deferred revenue stood at $4.8 billion, reflecting strong forward booking momentum.

Expansion continued with the delivery of Viking Nerthus, a new European river vessel. The company also contracted two ocean ships for 2031 and announced options for two more in 2033. Plans for hydrogen-powered ships and new vessels in Portugal further reinforce its sustainability vision.

 

The post Viking Holdings Ltd (VIK) Stocks: Q1 Loss Narrows, Revenue Soars 24.9% appeared first on CoinCentral.