Viking Holdings Ltd. (VIK) shares climbed over 5% Wednesday after the cruise operator delivered third-quarter results that showed its customers aren't backing away from travel spending anytime soon.
The company posted adjusted EPS of $1.20, edging past the $1.19 estimate, while revenue of $2.0 billion came in slightly above the $1.992 billion consensus. That 19.1% year-over-year revenue jump wasn't just a fluke—it reflected an 11% increase in Capacity Passenger Cruise Days, 96% occupancy rates, and higher revenue per passenger day.
The profitability picture looked even better. Gross margin jumped 22.9% to $881.7 million, while adjusted gross margin climbed 21.4% to $1.34 billion. Net yield per passenger increased 7.1% to $617, and adjusted EBITDA rose 26.9% to $703.5 million.
Adjusted net income reached $533.8 million compared with $398.6 million the year before. Both diluted EPS of $1.15 and adjusted EPS of $1.20 showed healthy gains over the prior year.
Viking's expansion continues at full steam. The company took delivery of four new river vessels during the quarter, added two ocean ships, and entered the Viking Yi Dun accommodation agreement. Vessel operating expenses rose 19.1% to $392.2 million, reflecting that fleet growth.
The booking numbers tell an even more compelling story about future demand. As of early November, Viking had already sold 96% of its 2025 capacity and 70% of 2026 capacity. Advance bookings totaled $5.6 billion for 2025 (up 21%) and $4.9 billion for 2026 (up 14%). Perhaps most impressive, advance bookings per passenger day climbed to $782 for 2025 and $861 for 2026.
"Our strong booking position for both 2025 and 2026 reflects the robust demand for Viking's destination-focused offerings," said President and CFO Leah Talactac.
Talactac highlighted the company's recent financial moves, including a Moody's upgrade, $1.7 billion in senior unsecured notes, and an upsized revolving credit facility expanded to $1.0 billion. "We believe that these actions strengthen Viking's capital structure and enhance our financial flexibility to pursue long-term growth," she added.
The balance sheet shows Viking ended the quarter with $3.0 billion in cash and cash equivalents, an undrawn $375 million revolver, and $4.3 billion in deferred revenue. Scheduled principal payments total $956.9 million through year-end and $195 million in 2026.
Chairman and CEO Torstein Hagen celebrated hitting triple digits. "We delivered another remarkable quarter, highlighted by a significant milestone – surpassing 100 ships," he said.
During the earnings call, Hagen explained what's really driving those strong numbers. The company's healthy yield reflects a customer base that's both resilient and still hungry for travel experiences. Viking's travelers have the time and money to book trips, which supports the mid-single-digit price growth the company had previously guided.
Rather than chasing sales through aggressive discounting, Hagen emphasized that Viking focuses on engaging consumers and maintaining pricing discipline. The goal is to finish the year with strong bookings while keeping enough inventory available to drive momentum into next year's selling season.
Viking continues expanding aggressively, entering option agreements for eight additional river vessels with potential deliveries in 2031 and 2032. The company expects two more river vessels to arrive by year-end.
Price Action: VIK shares traded up 5.35% to $61.39 on Wednesday.