VIKING HOLDINGS LTD earnings calls

connection problem

Q (Steven Wieczynski · Stifel): The operator introduced the first question from Steve Wieczynski but his line had technical difficulty.

A: The question could not be heard because of a technical problem. There was no management response on the call for this turn.

low river levels and bookings

Q (Xian Siew Hew Sam · BNP Paribas): Are low water levels causing near-term demand declines for river cruises? How might low water affect guest experience and brand loyalty over time?

A: Management said Viking has operated Europe's rivers for nearly 30 years and designed its river fleet and operations to handle varying water levels, including ship swaps. They reported no cancellations and said they have not seen any particular impact in booking cadence. Linh added that for 2027 they are already over 40% booked for Rivers as of August 9.

"We have not seen any particular impact in terms of booking cadence, but I'll let Linh expand on that." — Leah Talactac (CEO)

guest feedback on disruptions

Q (Torstein Hagen): Tor added a point about guest reactions and how Viking handled recent river disruptions.

A: Tor said his daughter talked to guests who had combined river and ocean trips and reported guests were very pleased with how Viking handled the situation. He acknowledged it wasn't ideal but said the company handled the situation well using ship swaps and extra care.

pricing and 2027 yield outlook

Q (Matthew Boss · JPMorgan): How are recent pricing trends across River vs Ocean and can you still achieve mid-single-digit yield growth in 2027 despite vouchers? Any transitory expense impacts this year (excluding fuel)?

A: Leah said booking curves and pacing look good, with healthy bookings for 2027 and no visible demand impact. Linh said net yields for 2027 are about 10% higher year-over-year so far due to favorable product mix and reiterated the goal of mid-single-digit yield growth for 2027. He also said expense cadence can vary by period and noted possible impacts from low water and voucher issuances that will show up in future periods.

"I think our goal remains mid-single-digit yield growth for 2027." — Linh Banh (CFO)

vouchers issued and airfare effect

Q (Robin Farley · UBS): How much value of vouchers have you issued and what would be the impact if all used in 2027? Is part of the 10% booked revenue per day lift from higher airfares rather than cruise price?

A: Leah said Viking proactively issued future cruise vouchers to generate goodwill after disruptions. She said that as of mid-August more than 50% of River capacity cruise days were affected and about 10% to 12% ultimately canceled, and vouchers have been started for those guests. Linh said net yields reflect costs including airfare pressure but the company still targets mid-single-digit yield growth.

"As of mid-August, more than 50% of the River capacity cruise days were affected with about 10% to 12% ultimately canceling." — Leah Talactac (CEO)

do booking curves reflect vouchers?

Q (Raymond Bowers · Wells Fargo): Do booking curves include the vouchers impact? Also, what marketing efficiencies did you see given lower S&M spend this quarter?

A: Leah said second quarter results do not include any impact from the low water, which began in mid-July. She explained future cruise vouchers are credits applied toward new bookings and effectively provide a discount on future cruise fares for bookings later in '26 and into '27 and '28. The management did not provide specific commentary on marketing efficiencies in this response.

"So the second quarter results do not include any impact for the low water." — Leah Talactac (CEO)

mix effect on booking per day metric

Q (James Hardiman · Citi): How much did product mix drive the move from 11% to 10% advanced bookings per PCD, and did River slow more than Ocean?

A: Linh said product mix (for example Egypt and Vietnam) has boosted the year-to-date curves and that as they sell more Europe the average price will normalize. He said Ocean pricing stayed around a 12% increase and reiterated the mid-single-digit net yield goal, noting there is still substantial inventory left to sell.

"And so overall, I mean, the current strength is driven by higher pricing and itinerary mix, but our goal remains mid-single-digit yield growth." — Linh Banh (CFO)

land/shore extensions and experiences

Q (Elizabeth Dove · Goldman Sachs): How do you think about expanding shore extensions and experiences long term, and could acquisitions fit into this plan?

A: Leah said the company is focused on destination and experiences and that teams plan future itineraries with optional shore and pre/post excursion offerings in mind. She invited Tor to provide color on specific experiences like the Zeppelin and how extensions can enhance core products.

"So our teams have -- with that top of mind, when we think about our future itinerary planning as well as what offerings we have available for either optional shore excursions or pre and post excursions when they are in Europe." — Leah Talactac (CEO)

capital allocation priorities

Q (Conor Cunningham · Melius): Could you clarify capital allocation priorities given about $4 billion cash, and also on River occupancy deceleration and excursion attach rates?

A: Leah said they have a healthy cash balance of $4 billion and the priority is to reinvest that cash in the business to generate strong returns. She said any acquisition must be scalable, margin accretive and complementary to the brand while comparing to organic returns; she did not provide a numeric split between buybacks/dividends versus reinvestment here.

"Our priority, as you can see from our order book, is really to reinvest the cash in the business to generate strong returns." — Leah Talactac (CEO)

occupancy, excursions, repeat customers

Q (David Katz · Jefferies): Why was River occupancy slightly lower in Q2 and how are excursions/extensions performing? Also, what portion of bookings are repeat customers?

A: Linh said Q2 River occupancy was slightly lower than Q2 2025 and there was some impact related to Egypt itineraries; about a little under 40% of guests opt for a pre or post land extension and those guests tend to rate their experience higher. Leah said, based on 2025 data, about 52% of guests who traveled with Viking were repeat customers, and the company values a mix of repeat and new-to-brand guests as it grows capacity and itineraries.

"So as of last year, so as of 2025, I'm going off memory now, so Linh, correct me if I'm wrong, but I believe 52% of the guests who traveled with us in the 2025 season were repeat guests." — Leah Talactac (CEO)

how broad is the low-water impact

Q (Andrew Didora · BofA): Historically what happened to future bookings after low water events, and does the 'more than 50% impacted' refer to 3Q cruises? Is this worse than past low-water events?

A: Linh said as of mid-August more than 50% of River capacity PCDs during the third quarter (July) were impacted, and the condition began in July into mid-August. She said they issued vouchers for affected guests, expect some impact to Q3 and future years, and characterized this low water as probably more severe than past seasons while noting booking curves and pricing to date remain healthy and they still aim for mid-single-digit yield growth.

"As of mid-August, more than 50% of our River capacity PCDs during the third quarter, so July." — Linh Banh (CFO)

operational changes for rivers

Q (Richard Clarke · Bernstein): Would you change operations or capacity if low water repeats, and would a later cut of the booking curve look different?

A: Leah said river levels naturally fluctuate and their fleet is specifically designed to navigate these seasonal variations, allowing operational flexibility like ship swaps to minimize disruption; they have seen similar conditions in 2018 and 2022 without canceling cruises. Tor added that informing guests and having identical ships for swaps helps, and he sees no reason to lower ambitions for River volume; he even noted potential contrarian opportunities given their strong financial position.

"And so our fleet is specifically designed to navigate through these seasonal variations of water flow." — Leah Talactac (CEO)

cancellations and extensions economics

Q (Stephen Grambling · Morgan Stanley): Is the 10%–12% cancellation rate of the affected cruises or overall? How do extensions affect margins and how do you balance optional upsells with the all-inclusive brand?

A: Leah clarified the 10% to 12% cancellation rate is on the affected 50% of River capacity PCDs. She said the product remains all-inclusive and guests can choose whether to add optional shore or pre/post extensions; Linh noted about 40% of guests opt for pre or post extensions and optional shore excursions are already reflected in net yields and can improve guest quality scores.

"So the clarifying point, the cancellation of 10% to 12% is on the affected 50% of River capacity PCDs." — Leah Talactac (CEO)

other revenue sources and China outbound

Q (Meredith Prichard Jensen · HSBC): Please unpack the 'other' revenue category (Mississippi, Expedition, China outbound) and how U.S. rivers are performing.

A: Linh said the Other segment mixes Mississippi, Expedition, and China outbound efforts; they added the Yi Dun and over the summer operated it in Europe for Chinese-speaking guests. Tor said they operate China outbound differently by marketing directly to Chinese consumers, and early reactions are very positive, making it an interesting medium-term opportunity.

"We have currently today 4 long ships operating in Europe for our Chinese-speaking guests, and now the Yi Dun for our Ocean-going itineraries." — Linh Banh (CFO)

China domestic, India demand, Q3 costs

Q (Alex Brignall · Rothschild & Company): Any progress on domestic China business? How are India itineraries selling? And what incremental Q3 costs should we model from low-water disruptions beyond lower occupancy?

A: Tor explained the China strategy favors marketing directly to Chinese consumers rather than competing on price with local wholesalers. Leah said the India itinerary for 2027 and 2028 is completely sold out and 2029 is selling well. They said the low-water situation is ongoing, they are optimistic it may improve, but it is premature to give figures; they expect some incremental transportation and operational expenses affecting adjusted gross margin and vessel expenses and will provide an update in Q3.

"we are pleased to report that for the 2027 and 2028 seasons, the India itinerary is completely sold out, so they're full." — Leah Talactac (CEO)