Viking Q1 Loss Narrower-Than-Expected, Revenues Beat Estimates

Viking Holdings (VIK) incurred a loss of 24 cents per share in the first quarter of 2025 compared with the Zacks Consensus Estimate of a loss of 26 cents per share. Loss per share was 3 cents in the first quarter of 2024.

Total revenues of $897.1 million surpassed the Zacks Consensus Estimate by 4.49% and improved 24.9% on a year-over-year basis. The upside was driven by increased Capacity Passenger Cruise Days (capacity PCDs) and higher revenue per PCD in 2025 compared to 2024.

Viking Holdings Ltd. Price, Consensus and EPS Surprise

Viking Holdings Ltd. price-consensus-eps-surprise-chart | Viking Holdings Ltd. Quote

Adjusted EBITDA was $72.8 million, an increase of $77.3 million from the first quarter of 2024. The uptick in adjusted EBITDA was owing to the increased capacity of PCDs and higher revenue per PCD. Adjusted gross margin grew 23.8% from the year-ago quarter.

During the first quarter of 2025, capacity PCDs improved 14.9% year over year owing to the addition of two new river vessels and a new ocean ship delivered in 2024.

Torstein Hagen, chairman and chief executive officer of Viking, stated, "Viking is off to a remarkable start in 2025, with our first quarter financial performance underscoring the continued momentum in our business. During the quarter, we increased capacity by 14.9% and simultaneously delivered a 7.1% growth in Net Yield – clear indicators of the robust demand for meaningful and enriching travel experiences among our core demographic. We are also delighted to have already booked 92% of our capacity for the 2025 season. Looking ahead, we remain firmly focused on generating demand and delivering best-in-class differentiated products through our one Viking brand, which will advance our long-term strategy of thoughtful, sustainable growth."

Vessel operating expenses increased 10.2% year over year, and vessel operating expenses, excluding fuel, increased 12.2% year over year, owing to the increase in the size of the company's fleet in 2025 compared to 2024.

VIK’s first-quarter results reflect the seasonality of its business. While VIK’s ocean, expedition and Mississippi products operate year-round, the primary cruising season for VIK’s river product is from April to October.

As of March 31, 2025, VIK had $2.8 billion in cash and cash equivalents and an undrawn revolver facility of $375.0 million. The company’s net debt was $2.9 billion.

VIK’s Zacks Rank

Currently, VIK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q1 Performance of Some Other Stocks Belonging to VIK’s Industry

Norwegian Cruise Line Holdings Ltd.NCLH reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both top and bottom lines decreased on a year-over-year basis.

Results in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates. For 2025, Norwegian Cruise anticipates occupancy to be approximately 102.5% compared with the prior guidance of 103.4% and Capacity Days to be about 24.545 million.

Caesars Entertainment, Inc.CZR reported mixed first-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. Nonetheless, both top and bottom lines improved on a year-over-year basis.

Caesars Entertainment’s first-quarter performance was driven by record results in the Digital segment. Growth in the regional segment, supported by recently opened properties, and solid performance in Las Vegas, despite a tough comparison to last year’s Super Bowl period, also aided the quarter’s performance.

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This article originally published on Zacks Investment Research (zacks.com).

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