Viking Holdings Ltd. (VIK) shares were climbing in premarket trading Wednesday after the cruise operator posted second-quarter results that beat Wall Street's expectations. The story here isn't just a beat, though. It's that travelers are still willing to open their wallets for a good cruise, even with all the economic uncertainty floating around.
The numbers were solid: adjusted earnings of $1.31 per share, topping the $1.26 analysts were looking for. Revenue came in at $2.19 billion, up 16.5% from a year ago and ahead of the $2.15 billion estimate. That's the kind of performance that makes investors feel good about the direction of the company.
Viking Revenue Growth, Higher Yield Lift Results
Digging into the details, gross margin jumped 15.7% year-over-year to $928.8 million, while adjusted gross margin rose 16.3% to $1.44 billion. Net yield, which is basically revenue per passenger cruise day, increased 6.2% to $645. That's a key metric for cruise lines, and it shows Viking is getting more money out of each passenger.
Capacity passenger cruise days were up 10.9%, mostly because the fleet is growing. Occupancy stood at a healthy 94.4%, which means the ships are pretty full. Adjusted EBITDA rose 18.2% to $748.4 million, driven by higher capacity and better revenue per passenger. Net income climbed to $587.7 million from $439.2 million a year earlier.
Of course, running a bigger fleet costs more. Vessel operating expenses went up 17.1% to $442.3 million, and excluding fuel, they rose 13.9% to $380.9 million. Viking says that's mainly due to having more ships in the water.
President and CEO Leah Talactac said in a statement, "Our second quarter results reflect the continued execution of our long-term strategy and the strength of the Viking brand." She pointed to strong demand for Viking's destination-focused offerings as a key driver of revenue and EBITDA growth.
Bookings Strengthen For 2026 And 2027 Seasons
Looking ahead, the booking picture looks pretty rosy. As of Aug. 9, Viking had sold 96% of capacity passenger cruise days for its core products for the 2026 season and 53% for 2027. That's a lot of future revenue already locked in.
Advance bookings for 2026 totaled $6.39 billion, which is 13% higher than where the 2025 season was at the same point. For 2027, advance bookings hit $4.71 billion, up 21% from the comparable point for 2026. On a per-passenger-cruise-day basis, advance bookings for 2026 are $833, up 6%, and for 2027 they're $958, up 10%.
Operating capacity for core products is set to grow 7% in 2026 and another 15% in 2027. So they're adding supply, and demand is keeping up.
CFO Linh Banh said, "With 96% of our 2026 capacity for our Core Products already sold, we are in a strong position for the balance of the year." She also highlighted the 2027 booked position and continued demand.
Balance Sheet Remains Strong
Financially, Viking is in good shape. At the end of June, it had about $4 billion in cash and cash equivalents, plus an undrawn $1 billion revolving credit facility. Deferred revenue stood at $5 billion, and net leverage was a modest 1.2 times.
Scheduled principal payments are $116.7 million for the rest of 2026 and $233.7 million in 2027, which seems manageable given the cash pile.
Since its first-quarter earnings release, Viking has taken delivery of the Viking Mira ocean ship and four river vessels. It also exercised options for two more ocean ships, scheduled for delivery in 2032. Based on its committed order book, Viking expects to take delivery of one ocean ship and five river vessels in the remainder of 2026.
Viking Price Action
VIK Price Action: Viking Holdings shares were up 1.36% at $99.63 during premarket trading on Wednesday, according to market data.
