Q2 2025 Viking Holdings Ltd Earnings Call

Binder at this call is being recorded all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

If you would like to ask a question at that time. Please press star one on your telephone keypad, if you wish to remove yourself from the queue. Please press star two thank you.

I would now like to turn the program to your host for today's conference Vice President of Investor Relations Corolla Mangling.

Good morning, everyone and welcome to Viking's second quarter 2025 earnings Conference call I'm joined by Tom Hagen, Chairman, and Chief Executive Officer, and via <unk>, President and Chief.

Speaker #1: Good morning. My name is Paul, and I will be your conference operator today. At this time, I would like to welcome everyone to Viking's second quarter 2025 earnings conference call.

Paul (Conference Operator): Good morning. My name is Paul, and I will be your conference operator today. At this time, I would like to welcome everyone to Viking's Q2 2025 earnings conference call. As a reminder, this call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star one on your telephone keypad. If you wish to remove yourself from the queue, please press star two. Thank you. I would now like to turn the program to your host for today's conference, Vice President of Investor Relations, Carola Mengolini.

Financial Officer.

Speaker #1: As a reminder, this call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.

Also available during the Q&A session is lean Bon executive Vice President of Finance.

Before we get started please note our cautionary statement regarding forward looking information.

Speaker #1: If you would like to ask a question at that time, please press star one on your telephone keypad. If you wish to remove yourself from the queue, please press star two.

During the call management May discuss information that is forward looking and involves known and unknown risks uncertainties and other factors, which may cause the actual results to be different than those expressed or implied.

Speaker #1: Thank you. I would now like to turn the program over to your host for today's conference, Vice President of Investor Relations, Carola Mengolini.

Please evaluate the forward looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC.

Speaker #2: Good morning, everyone, and welcome to Viking's second quarter 2025 earnings conference call. I am joined by Torstein Hagen, Chairman and Chief Executive Officer, and Leah Talactac, President and Chief Financial Officer.

Carola Mengolini: Good morning, everyone, and welcome to Viking's second quarter 2025 earnings conference call. I am joined by Tor Hagen, Chairman and Chief Executive Officer, and Leah Talactac, President and Chief Financial Officer. Also available during the Q&A session is Lynn Bond, Executive Vice President of Finance. Before we get started, please note our cautionary statement regarding forward-looking information. During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties, and other factors, which may cause the actual results to be different than those expressed or implied. Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC. The forward-looking statements are as of today, and we assume no obligation to update or supplement these statements.

The forward looking statements are as of today, and we assume no obligation to update or supplement these statements.

Speaker #2: Also available during the Q&A session is Linh Ban, Executive Vice President of Finance. Before we get started, please note our cautionary statement regarding forward-looking information.

We may also refer to certain non ifr S financial metrics, which are reconciled and described in our press release posted on our Investor Relations website at IR Dot Viking Dot com.

Speaker #2: During the call, management may discuss information that is forward-looking and involves known and unknown risks, uncertainties, and other factors, which may cause the actual results to be different from those expressed or implied.

Turing Leah will begin today's call with a strategic overview of the business, including a recap of our second quarter results and an update on the current booking environment.

Speaker #2: Please evaluate the forward-looking information in the context of these factors, which are detailed in today's press release as well as in our filings with the SEC.

Following their remarks, we will open the call for your questions.

Implement today's discussion and the earnings presentation is available on our Investor Relations website.

Speaker #2: The forward-looking statements are as of today, and we assume no obligation to update or supplement this statement. We may also refer to certain non-IFRS financial metrics, which are reconciled and described in our press release posted on our investor relations website at ir.viking.com.

With that I'm pleased to turn the call over to tour.

Thank you Carla and good morning, everyone.

Carola Mengolini: We may also refer to certain non-IFRS financial metrics, which are reconciled and described in our press release posted on our investor relations website at ir.viking.com. Tor and Leah will begin today's call with a strategic overview of the business, including a recap of our second quarter results and an update on the current booking environment. Following their remarks, we will open the call for your questions. To supplement today's discussion, an earnings presentation is available on our investor relations website. With that, I am pleased to turn the call over to Tor.

We are pleased <unk> delivered another quarter of great results, which reaffirm once again the strength of our business model of our brand and our guests demographics.

As you can see on slide three.

Speaker #2: Tor and Leah will begin today's call with a strategic overview of the business, including a recap of our second quarter results and an update on the current booking environment.

In the second quarter of 2025 net yield increased 8%.

Which combined with an eight 8% capacity growth resulted in revenue increases.

Speaker #2: Following their remarks, we will open the call for your questions. To supplement today's discussion, an earnings presentation is available on our Investor Relations website.

Our 18% year over year.

I believe this is the result of disciplined execution and great demand for our cruises.

In terms of the overall booking environment, we are seeing sustained strength in the demand.

Speaker #2: With that, I'm pleased to turn the call over to Tor.

9% to 6% of the 2025 capacity to grow core product is already booked effectiveness selling out this year.

Speaker #3: Thank you, Carola, and good morning, everyone. We are pleased to have delivered another quarter of great results, which reaffirm once again the strength of our business model, our brand, and our guest demographic.

Torstein Hagen: Thank you, Carola Mengolini, and good morning, everyone. We are pleased to have delivered another quarter of great results, which reaffirm once again the strength of our business model, of our brand, and our guest demographic. As you can see on slide three, in the second quarter of 2025, net yield increased 8%, which combined with an 8.8% capacity growth resulted in revenue increases of 18.5% year over year. I believe this is the result of disciplined execution and great demand for our cruises. In terms of the overall booking environment, we are seeing sustained strength in demand. 96% of the 2025 capacity for our core product is already booked, effectively selling out this year. As such, our attention remains on 2026 bookings, where we are seeing a very strong start.

As such our attention remains on 2026 bookings progressing.

I'll start.

August 10, 2% to 5% of the capacity of our core products for the 'twenty to 'twenty six season was already sold.

Speaker #3: As you can see on slide three, in the second quarter of 2025, net yield increased 8 percent, which, combined with an 8.8 percent capacity growth, resulted in revenue increases of 18.5 percent year over year.

Which is in line with our book position at this standpoint last year as higher rates.

If you look at the next slide number four.

You will see that since we last spoke we have been quite busy both expanding our fleet and strengthening our global presence.

Speaker #3: I believe this is the result of disciplined execution and great demand for our cruises. In terms of the overall booking environment, we are seeing sustained strength in demand; 96 percent of the 2025 capacity for our core product is already booked, effectively selling out this year.

First <unk>.

<unk> joined our Ocean fleet in June and is spending her inaugural season in the Mediterranean.

On the river side, we continue to thoughtfully strength not presence with additions of the Viking among others.

Also this past July we announced our first through the voyages in India starting in 2027.

Speaker #3: As such, our attention remains on 2026 bookings, where we are seeing a very strong start. As of August 10, 55% of the capacity of our core products for the 2026 season was already sold.

This region offers stunning Sandra and rich cultural heritage.

Torstein Hagen: As of August 10, 55% of the capacity of our core products for the 2026 season was already sold, which is in line with our booked position at the same point last year and at higher rates. If you look at the next slide, number four, you will see that since we last spoke, we have been quite busy, both expanding our fleet and strengthening our global presence. First, the Viking Vesta joined our ocean fleet in June and is spending her inaugural season in the Mediterranean. On the riverside, we continue to thoughtfully strengthen our presence with the additions of the Viking Ammon on the Nile. Also, this past July, we announced our first river voyages in India, starting in 2027. This region offers stunning scenery and rich cultural heritage.

We look forward to taking our guests to exclusive about Tenda has delivered the Viking away that is with a great level of comfort.

Speaker #3: Which is in line with our booked position at the same point last year and at higher rates. If you look at the next slide, number four, you will see that since we last spoke, we have been quite busy, both expanding our fleet and strengthening our global presence.

Cultural enrichment.

The early response to this new product has been phenomenal, but all available later on <unk> already sold out.

Earlier during the second quarter.

Completed a secondary offering of $30 5 million ordinary shares priced at $44 27 per share.

Speaker #3: First, the Viking Vesta joined our ocean fleet in June and is spending a very inaugural season in the Mediterranean. On the riverside, we continue to thoughtfully strengthen our presence with the addition of the Viking Amund. Also, this past July, we announced our first river voyages in India, starting in 2027.

We will now look at how these developments shaped the bigger picture, providing starting on slide five.

When you consider that we started with just four dealerships in 1997.

Both of the years I've been a remarkable achievement and one we are very proud of them.

Speaker #3: This region offers stunning scenery and a rich cultural heritage. We look forward to taking our guests on exclusive itineraries delivered the Viking way, that is, with a great level of comfort and cultural enrichment.

Key reason behind our sustained success is that our vision has remained consistent.

Torstein Hagen: We look forward to taking our guests to exclusive itineraries delivered the Viking way, that is, with a great level of comfort and cultural enrichment. The early response to this new product has been phenomenal, with all available itineraries already sold out. And earlier during the second quarter, we completed a secondary offering of 30.5 million ordinary shares, priced at $44.20 per share. We will now look at how these developments shape the bigger picture for Viking, starting on slide five. When you consider that we started with just four river ships in 1997, our growth over the years has been a remarkable achievement and one we are very proud of. A key reason behind our sustained success is that our vision has remained consistent. Travel should focus on the destination. We are also fortunate to have very loyal guests, travelers who return to Viking time and time again.

I will focus on the destination.

We are also fortunate to have very loyal guests.

Speaker #3: The early response to this new product has been phenomenal, with all available itineraries already sold out. And earlier during the second quarter, we completed a secondary offering of 13 and a half million ordinary shares, priced at 44 dollars and 20 cents per share.

<unk> returned to Viking and time and time again, and most importantly, our continued growth as a result of the hard work and dedication of our teams around the world.

Today I'll review our fleet consists of 85 vessels operating on rivers across the globe from the Ryan to the Nile and <unk> gotten them to the megaphone.

Speaker #3: We will now look at how these developments shaped the bigger picture for Viking. Starting on slide five, when you consider that we started with just four river ships in 1997, our growth over the years has been a remarkable achievement and one we are very proud of.

Through years of strategic investments and partnerships, we now control or have priority access of 110 docking location.

Us logical flexibility.

The ability to deliver a consistent high quality guest experience.

Speaker #3: A key reason behind our sustained success is that our vision has remained consistent. Travel should focus on the destination. We are also fortunate to have very loyal guests.

On the oceans, we now operate 12 small modern ships.

All of it 100% balcony staterooms designed to be nearly identical.

This uniformity allows us to scale efficiently deliver a consistent product and maintain tight operational control.

Speaker #3: Travelers who return to Viking time and time again. Most importantly, our continued growth is a result of the hard work and dedication of our teams around the world.

Torstein Hagen: Most importantly, our continued growth is a result of the hard work and dedication of our teams around the world. Today, our river fleet consists of 85 vessels operating on rivers across the globe, from the Rhine to the Nile and from the Danube to the Mekong. Through years of strategic investments and partnerships, we now control or have priority access of 110 river docking locations, giving us logical flexibility and the ability to deliver a consistent, high-quality guest experience. On the oceans, we now operate 12 small modern ships, all with 100% balcony staterooms and designed to be nearly identical. This uniformity allows us to scale efficiently, deliver a consistent product, and maintain tight operational control. The same philosophy guides our two expedition vessels, which serve guests seeking deeper exploration in remote regions of the world.

The same philosophy.

Our two expedition vessels, which serve guests seeking deeper exploration in remote regions of the world.

Speaker #3: Today, our river fleet consists of 85 vessels operating on rivers across the globe, from the Rhine to the Nile and from the Danube to the Mekong.

Overall, our fleet is designed with both efficiency on purpose.

Speaker #3: Through years of strategic investments and partnerships, we now control or have priority access to 110 docking locations, giving us logical flexibility and the ability to deliver a consistently high-quality guest experience.

Offering superior guest comfort and compelling economics.

These efficiencies have got both of our ship this side, where we optimize space utilization and energy solution.

And our operations, enabling it to drive yield enhancing guest experience and build long term growth.

Speaker #3: On the oceans, we now operate 12 small modern ships, all with 100 percent balcony staterooms and designed to be nearly identical. This uniformity allows us to scale efficiently, deliver a consistent product, and maintain tight operational control.

Now moving to slide six.

The recent ship deliveries new itinerary offerings in India are Testament to the fact that our river business remains fundamental to our identity and <unk>.

Continues to be a key growth engine and brand differentiation.

Speaker #3: The same philosophy guides our two expedition vessels, which serve guests seeking deeper exploration in remote regions of the world. Overall, our fleet is designed with both efficiency and purpose.

Overall, we now operate 21 reverse worldwide.

An expanding footprint that reflects both demand from our loyal guests and the cultural richness of the regions we serve.

Torstein Hagen: Overall, our fleet is designed with both efficiency and purpose, offering superior guest comfort and compelling economics. These efficiencies apply both to our standardized ship design, where we optimize space utilization and energy solution, and our operations, enabling Viking to drive net yield, enhance the guest experience, and build long-term growth. Now moving to slide six, the recent ship deliveries and new itinerary offerings in India are a testament to the fact that our river business remains fundamental to our identity and continues to be a key growth engine and brand differentiator. Overall, we now operate 21 rivers worldwide, with an expanding footprint that reflects both demand from our loyal guests and the cultural richness of the regions we serve. Our river strategy is built on selective expansion, focusing on destinations that align with the Viking brand and resonate with culturally curious travelers.

Speaker #3: Offering superior guest comfort and compelling economics, these efficiencies apply both to our ship design—where we optimize space utilization and energy solutions—and our operations. This enables Viking to drive yields, enhance the guest experience, and build long-term growth.

River strategy is built on selective expansion focusing on destinations that in line with the Viking brands and resonate with culture curious travelers.

This means going beyond our well traveled European routes and deepening our presence in high value less explored regions like those shown on this slide.

Speaker #3: Now, moving to slide six, the recent ship deliveries and new itinerary offerings in India are a testament to the fact that our river business remains fundamental to our identity and continues to be a key growth engine and brand differentiator.

In Egypt, the <unk> continues to be a strong performer.

Seven ships in operation.

To deliver five more by 2027 underscoring our confidence in the long term demand for this iconic destination.

On the Mekong River through Vietnam, and Cambodia, We currently operate one vessel with another scheduled for delivery later this year.

Speaker #3: Overall, we now operate 21 rivers worldwide, with an expanding footprint that reflects both demand from our loyal guests and the cultural richness of the regions we serve.

And our newest river offering in India will start with one vessel in 2027 and another one in 2028.

Speaker #3: Our river strategy is built on selective expansion, focusing on destinations that align with the Viking brand and resonate with culturally curious travelers. This means going beyond our well-traveled European routes and deepening our presence in high-value, less explored regions like those shown on the slide.

These will be small vessels with a capacity of <unk> seats.

We are regularly conducting extensive research to identify new itineraries that will fill gaps in the travel market for our core demographic.

Torstein Hagen: This means going beyond our well-traveled European routes and deepening our presence in high-value, less explored regions like those shown on the slide. In Egypt, the Nile continues to be a strong performer. We now have seven ships in operation and plan to deliver five more by 2027, underscoring our confidence in the long-term demand for this iconic destination. On the Mekong River, through Vietnam and Cambodia, we currently operate one vessel, with another scheduled for delivery later this year. Our newest river offering in India will start with one vessel in 2027 and another one in 2028. These will be small vessels with a capacity of 80 guest seats. We are regularly conducting extensive research to identify new itineraries that will fill gaps in the travel market for our core demographic, inspiring our past Viking guests to travel with us again while attracting new guests to the brand.

Inspiring our past Viking has to travel with us again.

While attracting new guests to the brand.

Speaker #3: In Egypt, the Nile continues to be a strong performer. We now have seven ships in operation and plan to deliver five more by 2027, underscoring our confidence in the long-term demand for this iconic destination.

And there is one example of that.

The India offering is not large in terms of immediate scale. But this addition is not about volume it's about providing our guests with cultural MRSA.

Speaker #3: On the Mekong River, through Vietnam and Cambodia, we currently operate one vessel, with another scheduled for delivery later this year. Our newest river offering in India will start with one vessel in 2027 and another one in 2028.

The nation brokers travel that can enrich our portfolio and offer our loyal guests even more ways.

To explore the world right.

Now if we move to slide seven I'll provide a quick update on our ownership structure.

On May 29 2025.

Speaker #3: These will be small vessels with a capacity of 80 guests each. We are regularly conducting extensive research to identify new itineraries that will fill gaps in the travel market for our core demographic.

We completed a secondary offering.

In aggregate of $13 5 million ordinary shares were offered by TPG capital under secrecy investments.

As the price of $44 20 per share.

Speaker #3: Inspiring our past Viking guests to travel with us again, while attracting new guests to the brand. India is one example of that. The India offering is not large in terms of immediate scale, but this addition is not about volume; it's about providing our guests with culturally immersive, destination-focused travel that can enrich our portfolio and offer our loyal guests even more ways to explore the world of Viking.

As you can see on this slide this transaction adjusted our ownership competition.

Torstein Hagen: India is one example of that. The India offering is not large in terms of a media scale, but this addition is not about volume; it is about providing our guests with culturally immersive, destination-focused travel that can enrich our portfolio and offer our loyal guests even more ways to explore the world with Viking. Now, if we move to slide seven, I will provide a quick update on our ownership structure. On May 29, 2025, we completed a secondary offering. An aggregate of 30.5 million ordinary shares were offered by TPG Capital and Canada Pension Plan Investment Board at a price of $44.20 per share. As you can see on the slide, this transaction adjusted our ownership composition, increasing our institutional float and further diversifying our shareholder base. We appreciate all the participants in the offering and are grateful for the continued interest and support in Viking.

Increasing our institutional flows.

And further diversifying our shareholder base.

We appreciate all that participated in the offering and are grateful for the continued interest and supported by.

With that I will turn to layer to discuss our financials.

Thank you tore and good morning, everyone I will start by reviewing our very strong second quarter results on a consolidated basis total revenue for the quarter increased 18, 5% year over year to $1 $9 billion. The year over year increase was mainly driven by increased.

Speaker #3: Now, if we move to slide seven, I will provide a quick update on our ownership structure. On May 29, 2025, we completed a secondary offering.

Speaker #3: An aggregate of 30.5 million ordinary shares were offered by TPG Capital and CPP Investments at a price of $44.20 per share.

<unk> higher occupancy and higher revenue per Pcbs.

<unk> increased eight 8% this quarter driven by the delivery of two river vessels and one ocean ship in 2024 as well as an additional river vessel delivered in March 2025.

Speaker #3: As you can see on the slide, this transaction adjusted our ownership composition, increasing our institutional float and further diversifying our shareholder base. We appreciate all who participated in the offering and are grateful for the continued interest and support in Viking.

Growth also reflects the Viking doing which operates in China as.

Speaker #3: With that, I'll turn to Leah to discuss our financials.

As you might recall at the end of last year, we celebrated our return to this region.

Torstein Hagen: With that, I will turn to Leah to discuss our financials.

Speaker #4: Thank you, Tor, and good morning, everyone. I will start by reviewing our very strong second quarter results. On a consolidated basis, total revenue for the quarter increased 18.5 percent year over year, to $1.9 billion.

Leah Talactac: Thank you, Torstein Hagen, and good morning, everyone. I will start by reviewing our very strong second quarter results. On a consolidated basis, total revenue for the quarter increased 18.5% year over year to $1.9 billion. The year-over-year increase was mainly driven by increased capacity, higher occupancy, and higher revenue per PCD. Capacity increased 8.8% this quarter, driven by the delivery of two river vessels and one ocean ship in 2024, as well as an additional river vessel delivered in March 2025. Growth also reflects the Viking Yidun, which operates in China. As you might recall, at the end of last year, we celebrated our return to this region. While our product in Asia and for Asia is still in its early stages of development, we are very pleased to have added an ocean ship with unique itineraries for our Asian guests.

Our product in Asia and for Asia is still in its early stages of development. We are very pleased to have added an ocean ship with unique itineraries for Asian guests.

Adjusted gross margin increased 19, 2% year over year to $1 2 billion, resulting in a net yield of $607, 8% higher than the second quarter of 2024.

Speaker #4: The year-over-year increase was mainly driven by increased capacity, higher occupancy, and higher revenue per PCBs. Capacity increased 8.8 percent this quarter, driven by the delivery of two river vessels and one ocean ship in 2024.

Vessel expenses, excluding fuel per capacity PCB increased eight 2% this quarter compared to the same period last year.

Speaker #4: As well as an additional river vessel delivered in March 2025. Growth also reflects the Viking Idun, which operates in China. As you might recall, at the end of last year, we celebrated our return to this region.

This year over year increase was driven by several factors. These.

These include changes in itinerary mix that resulted in both higher yields and some higher expenses such as port charges.

Speaker #4: While our product in Asia and for Asia is still in its early stages of development, we are very pleased to have added an ocean ship with unique itineraries for our Asian guests.

We remain committed to optimizing our cost structure, while continuously refining our deployment and itinerary planning rig.

<unk> SG&A following the year over year step up in expenses in the second quarter, we continued to invest in our teams as well as in sales and marketing to support future growth and drive demand generation.

Speaker #4: Adjusted gross margin increased 19.2% year over year, to $1.2 billion, resulting in a net yield of $670, which is eight percent higher than the second quarter of 2024.

Leah Talactac: Adjusted gross margin increased 19.2% year over year to $1.2 billion, resulting in a net yield of $607, 8% higher than the second quarter of 2024. Vessel expenses, excluding fuel per capacity PCD, increased 8.2% this quarter compared to the same period last year. This year-over-year increase was driven by several factors. These include changes in itinerary mix that resulted in both higher yields and some higher expenses, such as port charges. We remain committed to optimizing our cost structure while continuously refining our deployment and itinerary planning. Regarding SG&A, following the year-over-year step-up in expenses in the second quarter, we continue to invest in our teams, as well as in sales and marketing, to support future growth and drive demand generation. Adjusted EBITDA for the second quarter was $633 million, 28.5% higher than the same period last year.

Adjusted EBITDA for the second quarter with $633 million 28, 5% higher than the same period last year.

Speaker #4: Vessel expenses excluding fuel per capacity (PCB) increased 8.2 percent this quarter, compared to the same period last year. This year-over-year increase was driven by several factors.

This significant year over year increase was mainly driven by higher capacity occupancy and net yields in both the ocean and <unk> segments as.

Speaker #4: These include changes in itinerary mix that resulted in both higher yields and some higher expenses, such as port charges. We remain committed to optimizing our cost structure while continuously refining our deployment and itinerary planning.

As we have mentioned in the past the combination of capacity growth and yield growth translates into healthy EBITDA growth.

Net income was $439 million, an improvement of almost $280 million when compared to the same period in 2024 I will note that the net income for the second quarter of 2024 includes a loss of $123 million from the revaluation of warrants issued by the company.

Speaker #4: Regarding SG&A, following the year-over-year step-up in expenses in the second quarter, we continue to invest in our teams as well as in sales and marketing to support future growth and drive demand generation.

Stock price appreciation and it also includes a loss of $66 million from the net impact of the private placement derivative loss and interest expense related to the company's series D preference shares.

Speaker #4: Adjusted EBITDA for the second quarter was 633 million dollars, 28 and a half percent higher than the same period last year. This significant year-over-year increase was mainly driven by higher capacity, occupancy, and net yields in both the ocean and river segments.

Leah Talactac: This significant year-over-year increase was mainly driven by higher capacity, occupancy, and net yields in both the ocean and river segments. As we have mentioned in the past, the combination of capacity growth and yield growth translates into healthy EBITDA growth. Net income was $439 million, an improvement of almost $280 million when compared to the same period in 2024. I will note that the net income for the second quarter of 2024 includes a loss of $123 million from the revaluation warrants issued by the company due to stock price appreciation, and it also includes a loss of $66 million from the net impact of the private placement derivative loss and interest expense related to the company's Series C preference shares. Adjusted net income attributable to Viking Holdings Ltd. was $439 million, 25.8% higher than the same period in 2024.

Adjusted net income attributable to <unk> Holdings Ltd was $439 million 25, 8% higher than the same period in 2024.

Speaker #4: As we have mentioned in the past, the combination of capacity growth and yield growth translates into healthy EBITDA growth. Net income was $439 million, an improvement of almost $280 million when compared to the same period in 2024.

The net income is also impacted by fluctuation in currency.

To this end we have hedged a significant portion of our euro exposure for 2025 and 2026 operating expenses.

Speaker #4: I will note that the net income for the second quarter of 2024 includes a loss of $123 million from the revaluation of warrants issued by the company due to stock price appreciation. It also includes a loss of $66 million from the net impact of the private placement derivative loss and an interest expense related to the company's Series C preference shares.

We have 470 million euros hedged for 2025, and 500 million euros hedged for 2026 at a weighted rate of $1 10 per euro.

We also worked on opportunities to offset our currency exposure on the balance sheet, such as our euro denominated loans. For example, we naturally hedged these loans by converting an equivalent amount of cash holdings into euros as of late Q2 2025.

Speaker #4: Adjusted net income attributable to Viking Holdings Limited was $439 million, 25.8 percent higher than the same period in 2024. The net income is also impacted by fluctuations in currency.

With this on a go forward basis, we have generally mitigated the unrealized currency fluctuations caused by the euro loans due to fluctuating euro rates.

Leah Talactac: The net income is also impacted by fluctuation in currency. To this end, we have hedged a significant portion of our euro exposure for 2025 and 2026 operating expenses. We have 470 million euros hedged for 2025 and 500 million euros hedged for 2026 at a weighted rate of $1.10 per euro. We also worked on opportunities to offset our currency exposure on the balance sheet, such as our euro-denominated loans. For example, we naturally hedged these loans by converting an equivalent amount of cash holdings into euros as of late Q2 2025. With this, on a forward basis, we have generally mitigated the unrealized currency fluctuations caused by the euro loans due to fluctuating euro rates. Adjusted EPS was $0.99 for the second quarter.

Speaker #4: To this end, we have hedged a significant portion of our euro exposure for 2025 and 2026 operating expenses. We have €470 million hedged for 2025 and €500 million hedged for 2026 at a weighted rate of 1.10 cents per euro.

Adjusted EPS was <unk> 99 for the second quarter.

Before moving to our reportable segments, which are on slide 10, I would like to highlight that for the first half of the year. Our consolidated adjusted gross margin increased 27% year over year to over one 8 billion.

Speaker #4: We also worked on opportunities to offset our currency exposure on the balance sheet, such as our euro-denominated loans. For example, we naturally hedged these loans by converting an equivalent amount of cash holdings into euros as of late Q2 2025.

And our net yield was $584 seven 6% higher than in the same period last year.

Now I will briefly discuss our two reportable segments <unk> Ocean.

Speaker #4: With this, on a forward basis, we have generally mitigated the unrealized currency fluctuations caused by the euro loans due to fluctuating euro rates. Adjusted EPS was $0.99 for the second quarter.

Unless noted I will be referring to year to date metrics are six months ended June 32025.

And the river segment capacity Pcbs increased seven 5% year over year, mainly driven by the addition of two new ships for Egypt delivered in 2024, and the Viking nurses, which began operating on the <unk> River in March of 2025.

Speaker #4: Before moving to our reportable segments, which are on slide 10, I would like to highlight that for the first half of the year, our consolidated adjusted gross margin increased 20.7% year over year.

Leah Talactac: Before moving to our reportable segments, which are on slide 10, I would like to highlight that for the first half of the year, our consolidated adjusted gross margin increased 20.7% year over year to over $1.8 billion, and our net yield was $584, 7.6% higher than in the same period last year. Now, I will briefly discuss our two reportable segments, river and ocean. Unless noted, I will be referring to year-to-date metrics, or six months ended June 30, 2025. In the river segment, capacity PCDs increased 7.5% year over year, mainly driven by the addition of two new ships for Egypt delivered in 2024, and the Viking Nerthus, which began operating on the Seine River in March of 2025. Occupancy for the period was 95.6%, an increase of almost 100 basis points compared to the same period last year.

Occupancy for the period was 95, 6% an increase of almost 100 basis points compared to the same period last year.

Speaker #4: To over $1.8 billion, and our net yield was $584, 7.6 percent higher than in the same period last year. Now, I will briefly discuss our two reportable segments: river and ocean.

Adjusted gross margin grew 15, 8% year over year and net yield was $607 up six 9% year over year, driven by strong demand for our European itineraries.

As a reminder, the bulk of our river business begins in the second quarter.

Speaker #4: Unless noted, I will be referring to year-to-date metrics, or six months ended June 30, 2025. In the river segment, capacity PCBs increased 7.5 percent year over year, mainly driven by the addition of two new ships for Egypt, delivered in 2024, and the Viking Nerthus, which began operating on the Seine River in March 2025.

For Ocean capacity Pcbs increased 11, 2% year over year, mainly due to the addition of the Viking Vela in December of 2024.

Occupancy for the period was 95, 2% about 25 basis points higher than last year.

Adjusted gross margin increased 24, 9% year over year to $888 million.

Speaker #4: Occupancy for the period was 95.6 percent, an increase of almost 100 basis points compared to the same period last year. Adjusted gross margin grew 15.8 percent year over year, and net yield was $670, up 6.9 percent year over year, driven by strong demand for our European itineraries.

Net yield increased 12% to $551.

Leah Talactac: Adjusted gross margin grew 15.8% year over year, and net yield was $607, up 6.9% year over year, driven by strong demand for our European itineraries. As a reminder, the bulk of our river business begins in the second quarter. For ocean, capacity PCDs increased 11.2% year over year, mainly due to the addition of the Viking Vela in December of 2024. Occupancy for the period was 95.2%, about 25 basis points higher than last year. Adjusted gross margin increased 24.9% year over year to $888 million, while net yield increased 12% to $551. The increase in net yield was primarily driven by a favorable mix in deployment. I will particularly highlight the positive impact of operating one world cruise this year compared to two in 2024. Excluding this impact, net yield for the period would have increased by high single digits compared to 2024.

The increase in net yield was primarily driven by a favorable mix in deployment.

I will particularly highlight the positive impact of operating Oneworld crews this year compared to two in 2024.

Speaker #4: As a reminder, the bulk of our river business begins in the second quarter. For ocean, capacity PCBs increased 11.2% year over year, mainly due to the addition of the Viking Vela in December of 2024.

Excluding this impact net yield for the period would have increased by high single digits compared to 2024.

Now moving to the balance sheet on slide 11, you can see that as of June 32025, we had total cash and cash equivalents of $2 6 billion.

Speaker #4: Occupancy for the period was 95.2 percent, about 25 basis points higher than last year. Adjusted gross margin increased 24.9 percent year over year, to $888 million, while net yield increased 12 percent to $551.

And we also have an undrawn revolver facility of $375 million, our net debt was $3 $2 billion and our net leverage was two one times.

As of June 32025, deferred revenue was $4 $4 billion.

Speaker #4: The increase in net yield was primarily driven by a favorable mix in deployment. I will particularly highlight the positive impact of operating one world cruise this year, compared to two in 2024.

Also on Slide 11, we show you our bond maturity outlook as you can see maturities are in 2027 and beyond.

With this I'd like to confirm our debt amortization for 2025 and 2026.

Speaker #4: Excluding this impact, net yield for the period would have increased by high single digits compared to 2024. Now, moving to the balance sheet on slide 11, you can see that as of June 30, 2025, we had total cash and cash equivalents of $2.6 billion.

As of June 32025, the scheduled principal payments for the remainder of 2025 or $142 million and $258 million for the full year 2026.

Leah Talactac: Moving to the balance sheet on slide 11, you can see that as of June 30, 2025, we had total cash and cash equivalents of $2.6 billion, and we also have an undrawn revolver facility of $375 million. Our net debt was $3.2 billion, and our net leverage was 2.1 times. As of June 30, 2025, deferred revenue was $4.4 billion. Also, on slide 11, we show you our bond maturity outlook. As you can see, maturities are in 2027 and beyond. With this, I'd like to confirm our debt amortization for 2025 and 2026. As of June 30, 2025, the scheduled principal payments for the remainder of 2025 were $142 million and $258 million for the full year 2026. From a committed capital expenditure perspective and for full year 2025, the total expected committed ship CapEx is about $990 million, or $560 million net of financing.

From a committed capital expenditure perspective and for full year 2025. The total expected committed ship capex is about $990 million or $560 million net of financing and for the full year 2026. The total expected committed ship Capex is about one point.

Speaker #4: And we also have an undrawn revolver facility of $375 million. Our net debt was $3.2 billion, and our net leverage was 2.1 times.

Speaker #4: As of June 30, 2025, deferred revenue was $4.4 billion. Also, on slide 11, we show you our bond maturity outlook. As you can see, maturities are in 2027 and beyond.

$2 billion or.

Our $70 million net of financing.

The main drivers of the total committed ship Capex for 2026 are two ocean ships, Viking mirror and Viking Libra, which are scheduled for delivery in 2026.

Speaker #4: With this, I'd like to confirm our debt amortization for 2025 and 2026. As of June 30, 2025, the scheduled principal payments for the remainder of 2025 were $142 million and $258 million for the full year 2026.

That I will turn it back to tour to review, our business outlook, including our booking curves.

Thank you Laura.

That's why we got into the booking curves.

Which are all as of August 2025.

Speaker #4: From a committed capital expenditure perspective, and for full year 2025, the total expected committed ship capex is about $990 million, or $560 million net of financing.

On slide 13, we show our consolidated metrics for our core products.

As you can see we are in very good shape, both will 2025, and the 22006 systems.

Speaker #4: And for the full year 2026, the total expected committed ship capex is about $1.2 billion, or $70 million net of financing. The main drivers of the total committed ship capex for 2026 are two ocean ships, Viking Mira and Viking Libra, which are scheduled for delivery in 2026.

Leah Talactac: For the full year 2026, the total expected committed ship CapEx is about $1.2 billion, or $70 million net of financing. The main drivers of the total committed ship CapEx for 2026 are two ocean ships, Viking Mira and Viking Vibra, which are scheduled for delivery in 2026. With that, I'll turn it back to Torstein Hagen to review our business outlook, including our booking curves.

The 2025 season.

All around 96% of our capacity piece of these books.

Advanced bookings equaled $5 $6 billion.

Which is 21% higher than the 2024 C. It's not the standpoint in time.

Well the capacity is increasing by 12%.

For 2026, we're already 55% booked with $3 $9 billion of advanced bookings.

Speaker #4: With that, I will turn it back to Tor to review our business outlook, including our booking curves.

These are 13% higher than the 20 to 25 season at the same point in time in 2024.

Speaker #3: Thank you, Leah. Let's now delve into the booking curves, which are all as of August 10, 2025. On slide 13, we show our consolidated metrics for our core products.

Torstein Hagen: Thank you, Leah. Let us now dive into the booking curves, which are all as of August 10, 2025. On slide 13, we show our consolidated metrics for our core products. As you can see, we are in very good shape, both for the 2025 and the 2026 seasons. The 2025 season already has 96% of our capacity PCDs booked. Advanced bookings equal $5.6 billion, which is 21% higher than the 2024 season at the same point in time, while the capacity is increasing by 12%. For 2026, we are already 55% booked with $3.9 billion of advanced bookings. These are 13% higher than the 2025 season at the same point in time in 2024. Capacity for our core product is increasing by 9%. Let us now talk about the advanced booking curves for the segments. On the next slide, you will see the curves for ocean cruises.

Capacity for our core products is increasing by 9%.

That is not talking about the advanced booking curves for the segments.

Speaker #3: As you can see, we are in very good shape, both for the 2025 and 2026 seasons. The 2025 season already has 96% of our capacity PCBs booked.

On the next slide you will see the curves for ocean produces the slide 14.

I will start with the Blue line, which shows the bookings for 2025 overall vessel, 95% of our capacity piece of these for the year and up to $5 billion of advanced bookings, which is 29% higher than last year at this point in time.

Speaker #3: Advanced bookings equal $5.6 billion, which is 21 percent higher than the 2024 season at the same point in time, while capacity is increasing by 12 percent.

Capacity is increasing by 18%.

Speaker #3: And for 2026, we are already 55 percent booked, with $3.9 billion of advanced bookings. These are 13 percent higher than the 2025 season at the same point in time in 2024.

Rates have remained strong as we finished selling the last quarter of the year.

If you now look at the Yellow line, you will see the booking trend for the 'twenty to 'twenty six season, which is in very good shape too.

As of August <unk>.

Speaker #3: Capacity for our core product is increasing by 9 percent. Let us now talk about the advanced booking curves for the segments. On the next slide, you will see the curves for ocean cruises.

We have sold about 64% over 2026 gigabytes at Roche.

Which is increasing by 9%.

Advanced bookings are 19% higher than last year.

Speaker #3: This is slide 14. I will start with the blue line, which shows the bookings for 2025. Overall, we have sold 95 percent of our capacity PCBs for the year, and we have $2.5 billion in advanced bookings, which is 29 percent higher than last year at this point in time.

Torstein Hagen: This is slide 14. I will start with the blue line, which shows the bookings for 2025. Overall, we have sold 95% of our capacity PCDs for the year and have $2.5 billion of advanced bookings, which is 29% higher than last year at this point in time. Capacity is increasing by 18%, and rates have remained strong as we finish selling the last quarter of the year. If you now look at the yellow line, you will see the booking trend for the 2026 season, which is in very good shape too. As of August 10, we had sold about 64% of the 2026 capacity for ocean, which is increasing by 9%. Advanced bookings are 19% higher than last year, with rates equal to $780 compared to $752 for the 2025 season at the same point in time.

It's equal to $780 compared to $752 for the 2025 season at the same point in time.

Now if we move to slide 15, you will see the curves of the river cruises.

I will start with advanced bookings for 2025, which is the blue line.

Speaker #3: Capacity is increasing by 18 percent, and rates have remained strong as we finish selling the last quarter of the year. If you now look at the yellow line, you will see the booking trend for the 2026 season, which is in very good shape too.

As you can see we are having a great year with 97% over 2025 capacity already sold as of August one.

We have over $2 $7 billion in advanced bookings, which is 16% higher than last year at this point in time.

As you can tell we have continued to book our remaining inventory at very attractive rates.

Speaker #3: As of August 10, we have sold about 64 percent of the 2026 capacity for ocean. Which is increasing by 9 percent. Advanced bookings are 19 percent higher than last year, with rates equal to 780 dollars, compared to 752 dollars for the 2025 season at the same point in time.

Capacity for the reverse segment is expected to grow approximately 6%.

<unk> decrease from the 7% reported last quarter.

The most notable update is related to two vessels previously scheduled for delivery at the end of 2025.

Now expected at the beginning of 2026.

Speaker #3: Now, if we move to slide 15, you will see the curves for the river cruises. I will start with advanced bookings for 2025, which is the blue line.

Torstein Hagen: Now, if you move to slide 15, you will see the curves for the river cruises. I will start with advanced bookings for 2025, which is the blue line. As you can see, we are having a great year with 97% of the 2025 capacity already sold as of August 10. We have over $2.7 billion in advanced bookings, which is 16% higher than last year at this point in time. As you can tell, we have continued to book our remaining inventory at very attractive rates. Capacity for the river segment is expected to grow approximately 6%, a slight decrease from the 7% reported last quarter. The most notable update is related to two vessels previously scheduled for delivery at the end of 2025, which are now expected at the beginning of 2026.

The impact of these changes to the advanced booking curves.

Our metrics were extended to 'twenty five.

So that matter is immaterial.

Speaker #3: As you can see, we are having a great year, with 97 percent of the 2025 capacity already sold as of August 10. We have over $2.7 billion in advanced bookings, which is 16 percent higher than last year at this point in time.

Now looking at the yellow line.

These are the advanced bookings for the 2000 2016.

As you can see we have sold about $1 $6 billion in advance bookings, which is 5% higher than the 20 to 25 season at the same point in time.

Speaker #3: As you can tell, we have continued to book our remaining inventory at very attractive rates. Capacity for the river segment is expected to grow approximately 6 percent, a slight decrease from the 7 percent reported last quarter.

Our operating capacity forever is up 9% year over year.

This number is slightly higher than what we reported last year driven by the changes in delivery dates previously mentioned.

Speaker #3: The most notable update is related to two vessels, previously scheduled for delivery at the end of 2025, which are now expected at the beginning of 2026.

Good friends, where trend is minus X with rates equal to $940 compared to $887 in 2025.

So overall advanced bookings for our core products are doing.

Speaker #3: The impact of these changes to the advanced booking curves and our metrics for 2025 and 2026 is immaterial. Now, looking at the yellow line, these are the advanced bookings for the 2026 season.

Torstein Hagen: The impact of these changes to the advanced booking curves and our metrics for 2025 and 2026 is immaterial. Now, looking at the yellow line, these are the advanced bookings for the 2026 season. As you can see, we have sold about $1.6 billion in advanced bookings, which is 5% higher than the 2025 season at the same point in time. Our operating capacity for river is up 9% year over year. This number is slightly higher than what we reported last year, driven by the changes in delivery dates previously mentioned. These are good trends for 2026, with rates equal to $940 compared to $887 in 2025. Overall, advanced booking for our core products are doing very well. Moreover, rates for the 2026 season remain steady, currently 4% higher than the 2025 season at the same point in time, alongside with a 9% increase in capacity.

Very well.

Moreover rates for the 2026th season remained steady currently 4% higher than the 20 to 25 season at the same point in time.

Alongside with a 9% increase in capacity.

Speaker #3: As you can see, we have sold about $1.6 billion in advanced bookings, which is 5 percent higher than the 2025 season at the same point in time.

To this end, we're very pleased with how the curves are not trending.

Leah will add some color to our order book on capacity.

Speaker #3: Our operating capacity for river is up 9% year over year. This number is slightly higher than what we reported last year, driven by the changes in delivery dates previously mentioned.

Thank you tore now turning to our order book on Slide 16. The chart has been updated to reflect the ship deliveries mentioned by tour.

It also includes the two river vessels that we will operate in India with deliveries planned for 2027 and 2028.

Speaker #3: These are good trends for 2026, with rates equal to $940 compared to $887 in 2025. So overall, advanced booking for our core products is doing very well.

And lastly, the chart reflects a shift in the delivery timeline of two river vessels previously scheduled for 2025, which are now expected in 2026.

As you can see we remain committed to adding new capacity and expanding our itinerary offerings and exciting destinations.

Speaker #3: Moreover, rates for the 2026 season remain steady, currently 4% higher than the 2025 season at the same point in time. Alongside this, there is a 9% increase in capacity.

At Viking, we believe that if we remain focused on offering and delivering meaningful experiences strong results will follow.

Speaker #3: To this end, we are very pleased with how the curves are now trending. Now, Leah will add some color to our order book and capacity.

Torstein Hagen: To this end, we are very pleased with how the curves are now trending. Leah Talactac will add some color to our order book and capacity.

With this I conclude our prepared remarks, I'll now turn it back to the operator to take questions.

Speaker #4: Thank you, Tor. Now, turning to our order book on slide 16, the chart has been updated to reflect the ship deliveries mentioned by Tor.

Leah Talactac: Thank you, Tor. Now turning to our order book on slide 16, the chart has been updated to reflect the ship deliveries mentioned by Tor. It also includes the two river vessels that we will operate in India with deliveries planned for 2027 and 2028. Lastly, the chart reflects a shift in the delivery timeline of two river vessels previously scheduled for 2025, which are now expected in 2026. As you can see, we remain committed to adding new capacity and expanding our itinerary offerings in exciting destinations. At Viking, we believe that if we remain focused on offering and delivering meaningful experiences, strong results will follow. With this, I conclude our prepared remarks. I will now turn it back to the operator to take questions.

Thank you at this time, we will be conducting a question and answer session. In the interest of time, we ask that participants limit themselves to one question and one follow up on today's call.

Speaker #4: It also includes the two river vessels that we will operate in India, with deliveries planned for 2027 and 2028. Lastly, the chart reflects a shift in the delivery timeline of two river vessels previously scheduled for 2025, which are now expected in 2026.

If you'd like to ask a question. Please press star one on your telephone keypad.

Confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Speaker #4: As you can see, we remain committed to adding new capacity and expanding our itinerary offerings in exciting destinations. At Viking, we believe that if we remain focused on offering and delivering meaningful experiences, strong results will follow.

On the first question today is coming from Steve White Shinskie from Stifel. Steve Your line is live.

Yeah, Hey, guys good morning.

Speaker #4: With this, I conclude our prepared remarks and will now turn it back to the operator to take questions.

Congratulations on a solid quarter here so.

<unk>.

I'm wondering if.

Maybe you could just walk us through the last couple of months in terms of booking progress for 26, I'm guess, yes, I guess, what I'm trying to understand here.

Speaker #1: Thank you. At this time, we will be conducting a question-and-answer session. In the interest of time, we ask that participants limit themselves to one question and one follow-up on today's call.

Paul (Conference Operator): Thank you. At this time, we will be conducting a question and answer session. In the interest of time, we ask that participants limit themselves to one question and one follow-up on today's call. If you would like to ask your question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. The first question today is coming from Steve Wojcinski from Stifel. Steve, your line is live.

Yes.

And a little bit more here is obviously there was some slowdown.

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And bookings that we go back and think about February March around Liberation day stuff and just general macro uneasiness and then when we heard from you guys last April and May it seemed like it improved and wondering that if you could just walk us through maybe what you kind of have seen in June July and so far in August in terms of how bookings have trended across both river or no.

Speaker #1: You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #1: One moment, please, while we pull for questions. And the first question today is coming from Steve Wojcinski from Stifel. Steve, your line is live.

And maybe if your core customer.

Has become more selective with with how and when they are booking.

Speaker #5: Yes, hey guys. Good morning. Congratulations on a solid quarter here. So, Tor or Leah, Leah, wondering if you could just walk us through the last couple of months in terms of booking progress for '26.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Yeah, hey guys, good morning. Congratulations on a solid quarter here. Tor, Leah, I'm wondering if, maybe you could just walk us through the last couple months in terms of booking progress for 2026. I guess what I'm trying to understand a little bit more here is obviously there was some slowdown in bookings. If we go back and think about February, March, around Liberation Day stuff and just general macro uneasiness. When we heard from you guys last April and May, it seemed like it improved. I'm wondering then if you could just walk us through maybe what you kind of have seen in June, July, and so far in August in terms of how bookings have trended across both river and ocean, and maybe if your core customer has become more selective with how and when they are booking. Thanks.

Hi, Steve Good morning, Thanks for the question.

It's a great question.

Since we last spoke we have continued to be really strong demand from our consumers in fact, we had.

An outstanding June and July and we continue to see that booking strength continue into August.

Speaker #5: And guess, you know, I guess what I'm trying to understand here, you know, or understand a little bit more here is obviously there were some slowdowns, you know, in bookings as we go back and think about February and March around Liberation Day, stuff, and just general macro uneasiness.

And that's reflected in the fact that were 55% sold for 2026, so from our perspective, the consumer behavior is pretty much.

Speaker #5: And then, when we heard from you guys last April and May, it seemed like it improved. And wondering then if you could just walk us through maybe, you know, what you kind of have seen in June, July, and so far in August in terms of how bookings have trended across both river and ocean, and maybe if your core customer, you know, has become more selective with, you know, with how and when they are are booking.

Consistent with what we've seen in the past we've seen our guests start to really engage and start to book their their holidays for the 2026 season.

And tore I don't know if you want to provide any color.

Speaker #5: Thanks.

Speaker #4: Hi, Steve. Good morning. Thanks for the question. It's a great question. You know, since we last spoke, we have continued to see really strong demand from our consumers; in fact, we had an outstanding June and July, and we continue to see that booking strength continue into August.

Leah Talactac: Hi Steve, good morning. Thanks for the question. It's a great question. Since we last spoke, we have continued to see really strong demand from our consumers. In fact, we had an outstanding June and July, and we continue to see that booking strength continue into August. That's reflected in the fact that we're 55% sold for 2026. From our perspective, the consumer behavior is pretty much consistent with what we have seen in the past. We've seen our guests start to really engage and start to book their holidays for the 2026 season. Tor, I don't know if you want to provide any color. You're on mute, Tor. All right, go ahead, Steve. Do you have another question?

Darren mute tour.

Okay, well go ahead Steve.

Yes.

I'll move on.

And then you guys you mentioned marketing spend a little bit of uptick in terms of marketing spend and just just wondering maybe is that is that broad based.

Speaker #4: You know, and that's reflected in the fact that we're 55% sold for 2026. So, from our perspective, consumer behavior is pretty much consistent with what we have seen in the past.

Or are you guys, having the market, maybe more aggressively to certain itineraries or certain cabin classes and stuff like that just just trying to understand that commentary there around the uplift in marketing spend yes.

Speaker #4: We've seen our guests start to really engage and begin booking their holidays for the 2026 season. Tor, I don't know if you want to provide any color.

Yeah sure. So we've in the past we have spoken to the fact that if we see a.

A little bit of softening in demand that our first lever that we pull as marketing not necessarily pricing and and you've spoken to this a little bit of a softer demand around the operation day, and so that's where we turned on our marketing machine and.

Speaker #4: You're on mute, Tor. Okay, well, go ahead, Steve. Do you have another question?

Speaker #5: Yeah, I'll move on. And then you guys mentioned marketing spend and a little bit of uptick in terms of marketing spend. Just wondering, maybe, you know, is that broad-based or, you know, are you guys having to market, you know, maybe more aggressively to certain itineraries or certain cabin classes and stuff like that?

And.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Yeah, I'll move on. You mentioned marketing spend and a little bit of uptick in terms of marketing spend. Just wondering, maybe, is that broad-based, or are you guys having to market more aggressively to certain itineraries or certain cabin classes and stuff like that? Just trying to understand that commentary there around the uplift in marketing spend. Thanks.

Just promoted more not necessarily discount, but just got the word out and the consumers focusing on Viking and stimulating that demand. So that's what you see there and.

Something that we do.

As part of our business strategy of yours.

Yes.

Consumer direct to consumer interface.

Speaker #5: Just trying to understand that commentary there around the uplift in marketing spend. Thanks.

Okay got you understood. Thanks, guys really appreciate it.

Speaker #4: Yeah, sure. So, you know, in the past, we have spoken to the fact that if we see a little bit of softening in demand, our first lever that we pull is marketing.

Leah Talactac: Yeah, sure. We, in the past, have spoken to the fact that if we see a little bit of softening in demand, our first lever that we pull is marketing, not necessarily pricing. You have spoken to this a little bit of a softer demand around Liberation Day. That is where we turned on our marketing machine and promoted more, not necessarily discount, but just got the word out and got the consumers focusing on Viking and stimulating that demand. That is what you see there. It is something that we do as part of our business strategy of direct-to-consumer interface.

Thank you.

Thank you. The next question will be from Matthew boss from J P. Morgan Matthew Your line is live.

Great Thanks, and congrats on a nice quarter.

Speaker #4: Not necessarily pricing. And, you know, you've spoken to the little bit of a softer demand around Liberation Day. And so that's where we turned on our marketing machine.

Thanks, Matt.

With 2026 bookings off to a very strong start as you cited how do you see the current 26 book to position had over 50% today, allowing you to optimize pricing on capacity for 26 at this point.

Speaker #4: And, you know, just promoted more. Not necessarily a discount, but just got the word out and got the consumers focusing on Viking and stimulating that demand.

Yes. This is all of us.

Speaker #4: So that's what you see there. And, you know, it's something that we do as part of our business strategy of, you know, consumer direct-to-consumer interface.

Thank you again.

Sure.

At the prices, we get we have a reasonably good return.

And we also want to make sure that our guests get good value for money.

Speaker #5: Okay, gotcha. Understood. Thanks, guys. Really appreciate it.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Okay, gotcha. Understood. Thanks, guys. Really appreciate it.

So we should be careful that we don't get.

Speaker #4: Thank you.

Leah Talactac: Thank you.

Get overly excited also.

Speaker #1: Thank you. The next question will be from Matthew Boss from J.P. Morgan. Matthew, your line is live.

Paul (Conference Operator): Thank you. The next question will be from Matthew Boss from J.P. Morgan. Matthew, your line is live.

But.

It's about balancing this right.

Speaker #6: Great. Thanks. And congrats on a nice quarter.

Analyst (Matthew Boss, Lynn Bond): Great, thanks, and congrats on a nice quarter.

And I think we are in a good spot now where we are.

Speaker #4: Thanks, Matt.

Leah Talactac: Thanks, Matt.

Speaker #6: So, Tor, with 2026 bookings off to a very strong start, as you cited, how do you see the current '26 booked position at over 50 percent today allowing you to optimize pricing on capacity for '26 at this point?

Analyst (Matthew Boss, Lynn Bond): Tor, with 2026 bookings off to a very strong start, as you cited, how do you see the current 2026 booked position at over 50% today, allowing you to optimize pricing on capacity for 2026 at this point?

Possibly when you look at things backwards by possibly.

This is a little bit higher and I think we're quite satisfied.

We are.

Great.

For a follow up Leah maybe could you provide some perspective on the 4% advanced bookings per PCB growth to date is mid single digit yield growth for 2006, the right baseline or just any puts and takes to consider as we move further down the booking curve.

Speaker #3: Yeah, this is always a tricky game. We, you know, at the prices we get, have a reasonably good return. And we also want to make sure that our guests get good value for money.

Torstein Hagen: This is always a tricky game. We, at the prices we get, have a reasonably good return, and we also want to make sure that our guests get good value for money. We should be careful that we do not get overly excited also. But it is a balance we strike, and I think we are in a good spot now where we are. We might possibly, when you look at things backwards, might possibly have pushed the price a little bit higher, but I think we are quite satisfied with where we are.

Sure So I think.

We don't provide guidance, but b.

Speaker #3: So, we should be careful that we don't get overly excited. It's about the balance we strike, and I think we are in a good spot now where we are.

We have that is our goal is to mid single digits price growth.

Taking into perspective, we've talked a little bit about our average price per day, we are averaging 800 to $900 per day, and that's 4% on top of already 7% that we've achieved in 2025 so.

Speaker #3: My possibly, when you look at things backwards, my possibly, I've pushed the price a little bit higher. But I think we're quite satisfied with where we are.

The pricing increase in addition to our capacity increase we believe will lead to great revenue and EBIT growth not just in 'twenty five but also in 2026 and at the end of the day.

Speaker #6: Great. And for a follow-up, Leah, maybe you could provide some perspective on the 4 percent advanced bookings per PCB growth to date? Is mid-single-digit yield growth for '26 the right baseline, or just any puts and takes to consider as we move further down the booking curve?

Analyst (Matthew Boss, Lynn Bond): Great. For a follow-up, Leah, maybe could you provide some perspective on the 4% advanced bookings per PCD growth to date? Is mid-single-digit yield growth for 2026 the right baseline, or just any puts and takes to consider as we move further down the booking curve?

We are building long term, we want our guests to repeat we want good value for money and our payback on our ships reflect that our pricing is also quite strong our payback for ocean vessels five to six years payback for reverse as four to five years and that's even before the negative working capital with the fact that our.

Speaker #4: Sure. So I think, you know, we don't provide guidance, but we have that is our goal is to mid-single-digits price growth. And, you know, taking into perspective, we've talked a little bit about average price per day.

Leah Talactac: Sure. I think, you know, we do not provide guidance, but we have, you know, that is our goal is to mid-single-digit price growth. And, you know, taking into perspective, we talked a little bit about average price per day. We are averaging $800 to $900 per day, and that is 4% on top of already 7% that we have achieved in 2025. So the pricing increase, in addition to our capacity increase, we believe will lead to great revenue and EBITDA growth, not just in 2025, but also in 2026. At the end of the day, you know, we are building long-term. We want our guests to repeat. We want good value for money. Our payback on our ships reflect that, you know, our pricing is also quite strong. Our payback for ocean vessels, five to six years.

Guests book and pay you know seven eight months prior to departure. So overall I would say that the consumer is showing signs that it is healthy they're engaged they're booking.

Speaker #4: You know, we are averaging $800 to $900 per day, and that's 4 percent on top of the already 7 percent that we've achieved in 2025.

And we are able to demonstrate that our goals of mid single digit price increases is achievable.

Speaker #4: So, the pricing increase, in addition to our capacity increase, we believe will lead to great revenue and EBITDA growth, not just in 2025, but also in 2026.

That's great color and if I may add if I may add we are of course, we are of course fortunate because we believe we are somewhat contrarian. So we have been able to contract ships very.

Speaker #4: And at the end of the day, you know, we are building long-term. We want our guests to repeat. We want good value for money.

Very good prices were also a good negotiator when it comes to the shipyards.

Speaker #4: And our payback on our ships reflects that. You know, our pricing is also quite strong. Our payback for ocean vessels is five to six years.

You can say the ships that we now have on the books.

<unk> had been acquired.

Speaker #4: Payback for rivers is four to five years. And that's even before the negative working capital, with the fact that our guests book and pay, you know, seven or eight months prior to departure.

Leah Talactac: Payback for rivers is four to five years, and that is even before the negative working capital with the fact that our guests book and pay, you know, seven, eight months prior to departure. Overall, I would say that the consumer is showing signs that it is healthy. They are engaged, they are booking, and we are able to demonstrate that our goals of mid-single-digit price increases are achievable.

Firstly at attractive prices.

Advantaged relative to anybody but might want to.

Expand their position or even enter into entrant into this market. So I think we want to make sure that we give good values to our loyal guests.

Speaker #4: So overall, I would say that the consumer is showing signs that it's healthy. They're engaged. They're booking. And we are able to demonstrate that our goals of mid-single-digit price increases are achievable.

It's really helpful color best of luck.

Thanks.

Thank you. The next question will be from Robin Farley from UBS Robin Your line is live.

Speaker #6: Great color.

Analyst (Matthew Boss, Lynn Bond): Great, Colin.

Speaker #3: And And if I may add, if I may add, we are of course fortunate because we believe we are somewhat contrarian. So we have been able to contract ships at very good prices.

Torstein Hagen: We are, of course, fortunate because we believe we are somewhat contrarian. So we have been able to contract ships at very good prices. We are also a good negotiator when it comes to shipyards. You can say the ships that we now have on the books have been acquired at fairly attractive prices, which gives advantage relative to anybody who might want to expand their position or even enter this market. So I think we want to make sure that we give good value to our loyal guests.

Great. Thank you.

Just looking at your book to revenue per Crusade for 2026 of that up 4% and it sounded last quarter like you had maybe expected that would tick up over the course of this year. It sounds like is maybe the expectation that it that it wont tick up that it may be will sort of stay at this level. So maybe a little.

Speaker #3: We are also good negotiators when it comes to shipyards. So, you can say the ships that we now have on the books have been acquired at fairly attractive prices.

Bit of a different view than you had last quarter or how should we think about.

Speaker #3: Which gives an advantage relative to anybody who might want to expand their position or even enter this market. So I think we want to make sure that we provide good value to our loyal guests.

The commentary.

That youre, giving us today. Thanks.

Hi, Robyn.

Alright go ahead one no. Please go ahead yeah yeah.

Speaker #6: That's a really helpful color. Best of luck.

Analyst (Matthew Boss, Lynn Bond): is really helpful, Colin. Best of luck.

I can start and then you can kind of give you our perspective, but we have said mid single digits and.

Speaker #4: Thanks.

Leah Talactac: Thanks.

Speaker #1: Thank you. The next question will be from Robin Farley from UBS. Robin, your line is live.

Paul (Conference Operator): Thank you. The next question will be from Robin Farley from UBS. Robin, your line is live.

We didn't.

Give any guidance though.

Speaker #7: Great. Thank you. Just looking at your booked revenue per cruise day for 2026, it's about up 4 percent. And it sounded last quarter like you had maybe expected that would tick up.

Analyst (Robin Farley, Lizzie Dove): Great, thank you. Just looking at your booked revenue per cruise day for 2026, about up 4%. It sounded last quarter like you had maybe expected that would tick up over the course of this year. It sounds like it is maybe the expectation that it will not tick up, that it maybe will sort of stay at this level. So maybe a little bit of a different view than you had last quarter? Or how should we think about the commentary that you are giving us today? Thanks.

Got it would tick up so I just wanted to clarify that.

Go ahead Lynn.

No I agree with what you just said I think in our last call. We said as you know if market conditions remain we do feel that we would get to our mid single digit call and I'll just reiterate what we've tore eylea both just said.

Speaker #7: Over the course of this year, it sounds like there is maybe the expectation that it won't tick up, that it maybe will sort of stay at this level.

Speaker #7: So maybe a little bit of a different view than you had last quarter. How should we think about the commentary that you're giving us today?

We feel our capacity increase plus our yield increase would lead to good healthy EBITDA growth.

Speaker #7: Thanks.

<unk> said and I'll reiterate we feel we're in great position for 2026 or 55%. So our rates are higher and given that our average revenue per day is eight to $900. We feel we are in a good spot.

Speaker #4: Hi, Robin.

Leah Talactac: Hi, Robin.

Speaker #6: Sorry, go ahead, Linh.

Analyst (Matthew Boss, Lynn Bond): Sorry, go ahead, Lynn.

Speaker #4: No, please go ahead, Leah.

Leah Talactac: Please go ahead, Leah.

Speaker #6: Yeah, I can start, and then you can kind of give your perspective. But, you know, we have said mid-single digits, and we didn't give any guidance that we thought it would tick up.

Analyst (Matthew Boss, Lynn Bond): I can start, and then you can kind of give your perspective. We have said mid-single digits, and we didn't give any guidance that we thought it would tick up. I just wanted to clarify that. Go ahead, Lynn.

Okay. Thank you and just as a follow up question.

Speaker #6: So I just wanted to clarify that. But go ahead, Linh.

On the expense side.

You mentioned there were some things having to do with port charges, some more marketing different things that are contributing to that.

Speaker #8: No, I agree with what Leah just said. I think, you know, in our last call, we said that if marketing conditions remain the same, we do feel that we would reach our mid-single-digit goal.

Leah Talactac: I agree with what Leah just said. I think, in our last call, we said if market conditions remain, we do feel that we would get to our mid-single digit goal. We will just reiterate what Torstein and Leah both just said, that we feel our capacity increase plus our yield increase would lead to good, healthy EBITDA growth. As Torstein said, and we will reiterate, we feel we are in a great position for 2026. We are 55% sold. Rates are higher. Given that our average revenue per day is $800 to $900, we feel we are in a good spot.

Higher expense uptick can you give us a sense of.

How much of that do you think is is this the new base for another words it should we expect this.

Speaker #8: And, you know, we'll just reiterate what we've Tor and Leah both just said. That, you know, we feel our capacity increase, plus our yield increase, would lead to good, healthy EBITDA growth.

<unk> increased to continue or were there kind of one time items or nonrecurring.

Speaker #8: So as Tor said, and we'll reiterate, we feel we're in a great position for 2026. We're 55 percent sold. Rates are higher, and, you know, given that our average revenue per day is eight to nine hundred dollars, we feel we are in a good spot.

Factors in the quarter, because I'm, just thinking about that rate of expense growth relative to next year's revenue.

Our revenue growth if it stays at the 4% level just to get some comfort that expenses wouldn't be up that much more than that.

Revenue, so anything about but maybe sort of nonrecurring from this quarter. Thanks.

Speaker #7: Okay, thank you. And just as a follow-up question, on the expense side, you mentioned there were some things having to do with port charges, some more marketing, and different things that were contributing to that.

Analyst (Robin Farley, Lizzie Dove): Okay, thank you. Just as a follow-up question, on the expense side, you mentioned there were some things having to do with port charges, some more marketing, different things that were contributing to that higher expense uptick. Can you give us a sense of how much of that do you think is the new base? In other words, should we expect this expense increase to continue, or were there kind of one-time items or non-recurring factors in the quarter? I am just thinking about that rate of expense growth relative to next year's revenue growth, if it stays at the 4% level, just to get some comfort that expenses wouldn't be up that much more than revenue. Anything about what may be sort of non-recurring from this quarter? Thanks.

Sure. So I mean at the end of.

The day quarterly bearing fifth may occur due to a variety of things the timing of repairs and maintenance ship deliveries.

Speaker #7: That higher expense uptick, can you give us a sense of how much of that you think is the new base? In other words, should we expect this expense increase to continue, or were there kind of one-time items or non-recurring factors in the quarter?

Itinerary mix.

But like we noted in the past we are long term and we do not manage our business.

Quarterly we do match at most on an annual basis.

We tried to be prudent with expenses, while not compromising quality and so what we can say is for the first half of 2025 compared to the same period in 24 operating expenses, excluding fuel was up three 9% and our capacity was up 11% for the same period and yields were up seven six.

Speaker #7: Because I'm just thinking about that rate of expense growth relative to next year's revenue growth, if it stays at the 4 percent level. Just to get some comfort that expenses wouldn't be up, you know, that much more than revenue.

Speaker #7: So, anything about that, you know, maybe sort of non-recurring from this quarter? Thanks.

So overall revenue growth grew 25% and adjusted EBITDA grew 45%. So I think for the first half of the year.

Speaker #8: Sure. So, I mean, at the end of the day, quarterly variances may occur due to a variety of things: the timing of repairs and maintenance, ship deliveries, and itinerary mix.

Leah Talactac: Sure. I mean, at the end of the day, quarterly variances may occur due to a variety of things: the timing of repairs and maintenance, ship deliveries, itinerary mix. But like we noted in the past, we are long-term, and we do not manage our business quarterly. We do manage at most on an annual basis. We try to be prudent with expenses, while not compromising quality. What we can say is for the first half of 2025, compared to the same period in 2024, operating expenses, excluding fuel, was up 3.9%. Our capacity was up 11% for the same period, and yields were up 7.6%. Overall revenue growth grew 20.5%, and adjusted EBITDA grew 45%. I think, for the first half of the year, even given the slight tick up in operating expenses, we were able to yield really strong revenue growth and EBITDA growth.

Given the slight tick up in operating expenses as we were able to yield really strong revenue growth and EBITDA growth.

Speaker #8: But like we noted in the past, we are long-term, and we do not manage our business quarterly. We do manage at most on an annual basis.

Thanks for the Q2 expenses, that's not the level that you.

Youre, saying there are quarterly fluctuations in there is that that's the right way to think rack then there will be quarterly fluctuation.

Speaker #8: We try to be prudent with expenses, while not compromising quality. And so what we can say is for the first half of 2025, compared to the same period in '24, operating expenses excluding fuel was up 3.9 percent.

Agreed there will be quarter fluctuations.

Okay. Thank you.

Thank you. The next question will be from Andrew <unk> from Bank of America, Andrew Your line is live.

Speaker #8: And our capacity was up 11 percent for the same period, and yields were up 7.6 percent. So overall revenue growth grew 20.5 percent, and adjusted EBITDA grew 45 percent.

Hi, good morning, everyone.

Charlie I just wanted to ask one more just on 2026 pricing.

Obviously across the portfolio it held steady from your last update.

Speaker #8: So, I think, you know, for the first half of the year, even given the slight tick up in operating expenses, we were able to yield really strong revenue growth and EBITDA growth.

After the presentation. It looked like river pricing did accelerate from your last update while Ocean was decelerated modestly can you maybe speak to some of the differences youre seeing in consumer behavior across the two segments if any at all.

Speaker #7: Thanks. So the Q2 expenses, that's not the level that you're saying—there are quarterly fluctuations in there. Is that the right way to think about it?

Analyst (Robin Farley, Lizzie Dove): Thanks. The Q2 expenses, that is not the level that you are saying. There are quarterly fluctuations in there. That is the right way to think about it.

Yeah, sure So hi, Andrew.

Speaker #8: Correct. There will be quarterly fluctuations. Agreed. There will be quarterly fluctuations.

Leah Talactac: There will be quarterly fluctuations. Agreed. There will be quarterly fluctuations.

We've talked about a lot about how we operate as one brand and we feel that that really differentiates us and so from our perspective.

Speaker #7: Okay, thank you.

Analyst (Robin Farley, Lizzie Dove): Okay, thank you.

Speaker #1: Thank you. The next question will be from Andrew Dodora from Bank of America. Andrew, your line is live.

Paul (Conference Operator): Thank you. The next question will be from Andrew Dedora from BofA Securities. Andrew, your line is live.

Whether our guests traveled with us on rivers or oceans or expeditions as long as they book and traveled with Viking that remains our goal.

Speaker #6: Hi, good morning, everyone. Tor, Leah, I just wanted to ask one more question about 2026 pricing. Obviously, across the portfolio, it held steady from your last update.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Hi, good morning, everyone. Tor, Leah, just wanted to ask one more on 2026 pricing. Obviously, across the portfolio, it held steady from your last update. But digging into the presentation, it looked like river pricing did accelerate from your last update while ocean was decelerated modestly. Can you maybe speak to some of the differences you are seeing in consumer behavior across the two segments, if any at all?

And year over year price changes will always be dependent on what is sold and in the last call. You know Lynn has talked a little Glen talked a little bit about how the river curve is slightly different in shape of when the curves develop because of the seasonality of the product itself and so you start.

Speaker #6: But just digging into the presentation, it looked like river pricing did accelerate from your last update, while ocean was decelerated modestly. Can you maybe speak to some of the differences you were seeing in consumer behavior across the two segments, you know, if any at all?

To see that in the curves that we presented today, where the river curves have picked up.

Speaker #4: Yeah, sure. So, hi Andrew. You know, we've talked a lot about how we operate as one brand, and we feel that that really differentiates us.

And at the end of the day, we price to demand.

Leah Talactac: Yeah, sure. So, hi, Andrew. We have talked a lot about how we operate as one brand, and we feel that that really differentiates us. From our perspective, whether our guests travel with us on rivers or oceans or expeditions, as long as they book and travel with Viking, that remains our goal. Year-over-year price changes will always be dependent on what is sold. In the last call, Lynn Bond talked a little bit about how the river curve is slightly different in shape of when the curves develop because of the seasonality of the product itself. You are starting to see that in the curves that we presented today where the river curves have picked up. At the end of the day, we price to demand.

And.

And we feel again with the 800 to $900 per day in revenue achieved.

Achieved across all our products.

Speaker #4: And so from our perspective, you know, whether our guests travel with us on rivers or oceans or expeditions, as long as they book and travel with Viking, you know, that remains our goal.

We are you know feel we are well positioned in an hour curves look for the 2026 year.

Speaker #4: And year over year price changes will always be dependent on what is sold. And in the last call, you know, Linh has talked a little, Linh talked a little bit about how the river curve is slightly different in shape of when the curves develop because of the seasonality of the product itself.

Got it thank you.

And then.

So you get this question a lot.

When looks out to next year.

That is likely headed below maybe a turn on net leverage is one <unk>.

Tricks in your mind do you have to get to in order to consider capital returns to shareholders.

Speaker #4: And so, you're starting to see that in the curves that we presented today, where the river curves have picked up. At the end of the day, you know, we price to demand.

Ask just because another cruise companies starting to return capital with net leverage above where you are today. So just curious how we should think about that thank you yeah sure. So we're committed to a balanced capital allocation framework and at the end of the day. We have said that we feel that the large cash reserve we have on hand at the balance sheet.

Speaker #4: And we feel, again, with the $800 to $900 per day in revenue achieved across all our products, we feel we are well positioned in how our curves look for the 2026 year.

Leah Talactac: We feel, again, with the $800 to $900 per day in revenue achieved across all our products, we feel we are well positioned in how our curves look for the 2026 year.

Provides a great buffer against unpredictability, we've seen it in in years past and even in this year. So it gives us that stability and flexibility to be able to be contrarian.

Speaker #6: Got it. Thank you. And then look, I know you get this question a lot, but as one looks out to next year, net debt is likely headed below, you know, maybe a turn of net leverage.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Got it. Thank you. Look, I know you get this question a lot, but as one looks out to next year, net debt is likely headed below, you know, maybe a turn of net leverage. I guess what metrics in your mind do you have to get to in order to consider capital returns to shareholders? I ask just because another cruise company starts to return capital with net leverage, you know, above where you are today. Just curious how we should think about that. Thank you.

And you know we believe the strategy reflects our long term perspective, and readiness to deploy capital when market conditions are favorable or take advantage of when things.

Speaker #6: I guess what metrics, in your mind, do you have to get to in order to consider capital returns to shareholders? And I ask just because another cruise company starts returning capital.

So currently we're not contemplating a dividend or share buyback, but they are an option to return capital to shareholders in the longer term, but given that were just passed our one year Mark I think there are better uses of our cash in terms of generating return to investors.

Speaker #6: With net leverage, you know, above where you are today. So, just curious how we should think about that. Thank you.

Speaker #4: Yeah, sure. So, we're committed to a balanced capital allocation framework. At the end of the day, you know, we have said that we feel that the large cash reserve we have on hand at the balance sheet provides a great buffer against unpredictability. You know, we've seen it in years past and even in this year.

Leah Talactac: Yeah, sure. We are committed to a balanced capital allocation framework. At the end of the day, we have said that we feel that the large cash reserve we have on hand at the balance sheet provides a great buffer against unpredictability. We have seen it in years past and even in this year. It gives us that stability and flexibility to be able to be contrarian. We believe the strategy reflects our long-term perspective and readiness to deploy capital when market conditions are favorable or take advantage of when things arise. Currently, we are not contemplating a dividend or share buyback, but they are an option to return capital to shareholders in the longer term. Given that we are just past our one-year mark, I think there are better uses of our cash in terms of generating return to investors.

Thank you.

Yep.

Thank you. The next question will be from James Hardiman from City James Your line is live.

Hey, good morning.

Speaker #4: So, it gives us that stability and flexibility to be able to be contrarian. And, you know, we believe the strategy reflects our long-term perspective and readiness to deploy capital when market conditions are favorable or to take advantage of when things arise.

So wanted to actually follow up on that last question I guess two questions ago.

The idea that as.

Should we think about 2026 advanced bookings for PCB. The river is accelerating a little bit notion is decelerating a little bit.

Is are those trends that we should anticipate moving forward.

Speaker #4: So currently, we're not contemplating a dividend or share buyback, but they are an option to return capital to shareholders in the longer term. But, you know, given that we're just past our one-year mark, I think there are better uses of our cash in terms of generating returns to investors.

And maybe you can speak I am curious how capacity growth impacts pricing growth obviously.

Ocean segment growing at a much faster pace does that put downward pressure on pricing relative to what we're seeing in river.

Speaker #6: Thank you.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Thank you.

I wouldn't say that the growth.

Speaker #4: Yep.

Leah Talactac: Yep.

Speaker #1: Thank you. The next question will be from James Hardiman from CITI. James, your line is live.

Paul (Conference Operator): Thank you. The next question will be from James Hardiman from Citi. James, your line is live.

As much to do with the pricing on the Ocean <unk> Ocean segment quite frankly.

Speaker #5: Hey, good morning. So, it's actually a follow-up on that last question. Well, I guess two questions ago. The idea that, as we think about 2026 advanced bookings for PCB, that river is accelerating a little bit and ocean is decelerating a little bit.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Hey, good morning. I wanted to actually follow up on that last question, well, I guess two questions ago. The idea that as we think about 2026 advanced booking per PCD, that river is accelerating a little bit and ocean is decelerating a little bit, are those trends that we should anticipate moving forward? And maybe you can speak, I am curious how capacity growth impacts pricing growth. Obviously, the ocean segment growing at a much faster pace, does that put downward pressure on pricing relative to what we are seeing in river? Thanks.

Sure.

Probably almost flip it around a little bit.

Growth that we see.

In our ocean business.

Yes.

Thanks clear manifestation of that.

Standing product.

<unk> no I go from time to time on board onboard.

Speaker #5: Are those trends that we should anticipate moving forward? And maybe you can speak—I'm curious how capacity growth impacts pricing growth. Obviously, you know, the ocean segment is growing at a much faster pace.

Vessels and talk to our guests.

They are very enthusiastic about.

Well to the experience so I think I think we see.

Speaker #5: Does that put downward pressure on pricing relative to what we're seeing in river? Thanks.

Good very good growth opportunities on their own.

This is on the numbers.

I see no signs of a slowdown in the ocean, maybe we could have either a little bit higher price.

Speaker #3: I wouldn't say that the growth has much to do with the pricing on the ocean segment, quite frankly. I would probably almost flip it around a little bit.

Torstein Hagen: I wouldn't say that the growth has much to do with the pricing on the ocean segment, quite frankly. I'd probably almost flip it around a little bit. The growth that we see in our ocean business is really a clear manifestation of the outstanding product that we have on the oceans. I go from time to time on board our vessels and talk to our guests, and they are very enthusiastic about what they experience. So I think we see good, very good growth opportunities on the ocean. We see it on the rivers too, but I see no signs of a slowdown in the ocean. Maybe we could have had a little bit higher price on the ocean in the last couple of quarters.

And then last couple of quarters, but at these rates we give it.

It's not a good return to shareholders as it is.

Speaker #3: The growth that we see in our ocean business is really a clear manifestation of the outstanding product that we have on the oceans. You know, I go from time to time on board our vessels and talk to our guests.

It gives us a good chance to to deliver deliver.

Hey, good product.

And good results.

Some interesting things when we're looking at.

Right.

Hong.

Is that.

Speaker #3: And they are very enthusiastic about what they experience. So I think we see good, very good growth opportunities on the ocean. We see it on the rivers too, but I see no signs of a slowdown in the ocean.

The people who are now traveling on our ocean business.

To a large extent people who have been on other ocean cruise lines before.

Not mentioning names of some of them, but we have it in some of our presentation material for murder.

Speaker #3: Maybe we could have added a little bit higher price on the ocean in the last couple of quarters. But at these rates, you know, we get a reasonably good return to shareholders.

They've been on the Ocean Ocean cruises I'll call them more floating theme parks, where their children and then they grow up I guess I thought that as they get into <unk> and is that we really want to have a different experience.

Torstein Hagen: But at these rates, we get a reasonably good return to shareholders as it is, and it gives us a good chance to deliver a good product and good results. Some interesting things when we look at what's going on is that the people who now travel on our ocean business are, to a large extent, people who have been on other ocean cruise lines before. I'll not mention names of some of them, but we have it in some of our presentation material from earlier, where they've been on ocean cruises. I call them more floating theme parks with their children, and then they grow up. Our guests have had that, that is. They get into their 50s and say, "We really want to have a different experience than this stuff where we go with our kids and do all the fun stuff.

Speaker #3: As it is, it gives us a good chance to deliver a good product and good results. There are some interesting things when we look at what's going on.

<unk> software, we go with our kids.

And do all the fun stuff, we want to have acquired theory and experience.

I think they don't have much choice and there is so enthusiastic about what route so I think our our ocean product.

Speaker #3: The people in our travel on our ocean business are, to a large extent, individuals who have been on other ocean cruise lines before.

Very much demand coming.

And we have very fortunate to have the large order book.

Uh huh.

Very attractive prices for those ships.

Speaker #3: You know, I'll not mention names of some of them, but we have it in some of our presentation material from earlier. Where they've been on ocean cruises, I call them more floating theme parks, with their children.

So we can talk about the fine tuning of the of the of the fares.

Fares.

As I said, we're mindful.

A little bit better looking backward as all of us.

Easier.

Speaker #3: And then they grow up. I guess that is. They get into their 50s, and they say, 'We really want to have a different experience.'

I think there are some business is in great shape and I'd say the river businesses also in very good shape.

You may have 50% of that market and 52% I think.

Speaker #3: Then this stuff where we go with our kids and do all the fun stuff. We want to have a quiet, serene experience, and I think they don't have much choice.

So I think were excellent position on both of the products.

Torstein Hagen: We want to have a quiet, serene experience." And I think they don't have much choice, and they're so enthusiastic about what we have. So I think our ocean product has very much demand coming, and we are very fortunate to have the large order book that we have at very attractive prices for the ships. So we can talk about the fine-tuning of the fares. As I said, we might could have done a little bit better. Looking backward is always easier. But I think the ocean business is in great shape. I'd say the river business is also in very good shape. We have 50% of that market, 52%, I think, latest count. So I think we're in an excellent position on both of the products.

Speaker #3: And they're so enthusiastic about what we have. So I think our ocean products have very much demand coming. We are very fortunate to have the large order book that we have.

Got it that's.

That's helpful and.

I wanted to ask about mix a little bit obviously, the 4% for 2026, then a lot of focus this morning.

It's the same number as last time around and so one takeaway might just be but nothing's changed right since may whatever may 11th.

Speaker #3: At very attractive prices for the ships, so we can talk about the fine-tuning of the fares. As I said, we might could have done a little bit better.

I guess are there.

Any mix offsets that we should be aware of.

Speaker #3: Looking backward is always easier. But I think the ocean business is in great shape. And I’d say the river business is also in very good shape.

No.

Concept of sort of like for like has that gotten any better and maybe thats offset we've talked a lot in the past about sort of the premium room booking first.

Speaker #3: We have 50 percent of that market—52 percent, I think latest count. So I think we're in an excellent position on both of the products.

Obviously, theres a lot of different parts of the world. So curious about how mix impacts of about 2026 number and then maybe a way to early question for 2027, but.

Speaker #5: Got it. That's helpful. And I wanted to ask about mix a little bit. Obviously, the 4% for 2026 is getting a lot of focus this morning.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Got it. That is helpful. I wanted to ask about mix a little bit. Obviously, the 4% for 2026 is getting a lot of focus this morning. It is the same number as last time around. One takeaway might just be that nothing has changed since May, whatever, May 11th. I guess, are there any mix offsets that we should be aware of? I do not know if there is this concept of sort of like for like. Has that gotten any better? Maybe that is offset. We have talked a lot in the past about sort of the premium rooms booking first. Obviously, there are a lot of different parts of the world. So, curious about how mix impacts that 2026 number. Then maybe a way too early question for 2027. How do we think about mix there? It looks like your Egyptian capacity is almost doubling.

How do we think about mix there it looks like your Egyptian capacity is almost almost doubling I think you get some real good prices for those rooms should we be thinking about that as a tailwind to pricing in 2027.

Speaker #5: It's the same number as last time around. And so one takeaway might just be that nothing's changed, right, since May, May 11th. I guess, are there any mix offsets that we should be aware of?

Of course, Egypt.

Let me quickly filled out and similar to India.

Speaker #5: I don't know. If there's this concept of sort of like-for-like, has that gotten any better? And maybe that's offset— you know, we've talked a lot in the past about sort of the premium rooms booking first.

Very.

Very shortly after we launched it.

Is there a push prices higher on that.

But.

There are no such big components of our business, so that won't have a big impact on the on the on the average unless you can grow.

Speaker #5: You know, obviously there's a lot of different parts of the world. So I'm curious about how the mix impacts that 2026 number. And then maybe a way too early question for 2027.

And I think it shows.

The great desire I guess I have to go to.

Speaker #5: But you know, how do we think about mix there? It looks like your Egyptian capacity is almost doubling. I think you get some real good prices for those rooms.

Two new classes.

Easy it is for us too.

To introduce new products the way, we introduce expedition product.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): I think you get some real good prices for those rooms. Should we be thinking about that as a tailwind to pricing in 2027? Thanks.

Speaker #5: Should we be thinking about that as a tailwind to pricing in 2027? Thanks.

As another example, our guests want.

Morning.

Our experiences.

I wasn't borda as I said, one of our two of our ships this weekend.

Speaker #3: Of course, Egypt. When you see how quickly it sold out, and similarly, India has sold out very shortly after we launched it.

Torstein Hagen: Of course, Egypt, when you see how quickly it sold out, and similarly, India, has sold out very shortly after we launched it. You can say, should we have pushed prices higher on that? But they are not such big components of our business, so they will not have a big impact on the average, as you can well realize. I think it shows the great desire our guests have to go to new places and how easy it is for us to introduce new products. The way we introduce the expedition product is another example. Our guests want to have more experiences. I was on board, as I said, one of our two of our ships this weekend. There are people who quoted from my commercial, as in my commercial, where I talk about time, time being the only truly scarce resource.

And there are people who are quoted from my commercial is that my commercial Brightcove time time being the owner through the scarce resource.

Speaker #3: So you could say, should we have pushed prices higher on that? But they're not such big components of our business, so they won't have a big impact on the average, as you can well realize.

No.

We don't have so much time, we have to do something useful a nice without time.

And what other thing.

Then traveled with Viking.

New eyeballs, a quarter, so that probably better mill.

Speaker #3: But I think it shows the great desire our guests have to go to new places, and how easy it is for us to introduce new products.

But I think I think this has been key.

Keith.

Are we can find.

New experiences for them.

And we have a long debate how much of a luxury product. However, we are about other people's defined luxury one way or another.

Speaker #3: You know, the way we introduced the expedition product is another example. Our guests want to have more experiences. I was on board, as I said, on one of our two ships this weekend.

I guess necessarily like Butler's roaming around their luggage.

Rather than directly involved.

Speaker #3: And the people who quoted from my commercial, I said my commercial, where I talk about time—time being the only truly scarce resource. And I said, heck, you know, we don't have so much time left.

But no we are.

We are really about it.

We are an understated elegance products.

This will quiet we give.

Torstein Hagen: Zach, we do not have so much time left. We have to do something useful and nice with our time. What other thing is there to do than travel with Viking? They knew I was, of course, so that probably buttered me up. I think this is very, very key, how we can find new experiences for them. We have had a long debate, how much of a luxury product are we? We are about, other people define luxury one way or another. I do not think our guests necessarily like to have butlers roaming around their luggage and whether it is dirty or clean laundry. We are really a very, we are an understated, elegant product, peaceful, quiet. We give a product to people who have worked hard and who now deserve to spend some time doing interesting things.

Victor if people have worked hard.

Speaker #3: We have to do something useful and nice with our time. And what other thing is there to do than travel with Viking? They knew I was, of course, probably buttering me up.

To serve.

To spend some time doing interesting things.

So the promises.

No children <unk> No Nickel-and-dime me I think that is.

Speaker #3: But I think this is very, very key: how we can find new experiences for them. We have had a long debate about how much of a luxury product we are.

Right.

Of who the people.

What people want when I travel.

We shouldnt almost call that cruise because we're so different from the others.

Speaker #3: We are about, you know, other people define luxury one way or another. I don't think our guests necessarily like to have butlers roaming around their luggage.

So I think I think Brian a good spot.

Interesting color. Thanks Chuck.

Thank you. The next question will be from Stephen Grambling from Morgan Stanley Steven Your line is live.

Speaker #3: And whether it's dirty or clean laundry. But, you know, we are really a very understated, elegant product. Peaceful, quiet. We give our product to people who have worked hard.

Hi, Thanks, I think I caught that you said that you were getting good pricing on on ships I guess I was wondering if you could double click on that comment is that relative to peers history or both and what do you think is driving some of the improved capital efficiency on the order book.

Speaker #3: And who now deserves to spend some time doing interesting things. So the promises we have: no children, no casinos, no nickel and diming. I think that has hit right at the heart of what people want when they travel.

Torstein Hagen: The promises we have, no children, no casinos, no nickel and diming, I think that is hit right at the heart of who the people, what people want when they travel. We should not almost call it cruise because we are so different from the others. I think we are in a good spot.

If I may I think.

I think we we.

A lot of care when we first signed both there are some shifts on the river ships.

We'd like to get it right in the first place and then as you know we don't vary things much.

Speaker #3: We shouldn't almost call it truth because we are so different from the others. So, I think we're in a good spot.

So we don't have new designers come in unmet things around so our ships are virtually identical.

Speaker #5: Interesting color. Thanks, Tor.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Interesting color. Thanks, Tor.

Speaker #1: Thank you. The next question will be from Steven Grambling from Morgan Stanley. Steven, your line is live.

Paul (Conference Operator): Thank you. The next question will be from Stephen Grambling from Morgan Stanley. Stephen, your line is live.

Is it better for the yard so we get a better better better for price as such it costs them less to repeat.

Speaker #6: Hi, thanks. I think I caught that you said you were getting good pricing on ships. I guess I was wondering if you could double-click on that comment.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Hi, thanks. I think I caught that you said that you were getting good pricing on ships. I guess I was wondering if you could double-click on that comment. Is that relative to peers, history, or both? What do you think is driving some of the improved capital and efficiency on the order book?

Also there is that we have.

Speaker #6: Is that relative to piers, history, or both? And what do you think is driving some of the improved capital and efficiency on the order book?

The people on our site and they go said all right.

But.

Hard nosed when it comes to dealing with yard we don't use brokers and between some of the other cruise lines too. So so we are quite quite profession.

Speaker #3: If I may, I think we have taken a lot of care when we first designed both the ocean ships and the river ships. We like to get it right in the first place.

Torstein Hagen: If I may, I think we have taken a lot of care when we first designed both the ocean ships and the river ships. We like to get it right in the first place. Then, as you know, we don't vary things much. So we don't have new designers come in and mess things around. So our ships are virtually identical. That makes it better for the yard. So we get a better price as such. It costs them less to repeat. Also, I dare say we have the people on our side who negotiate are quite hard-nosed when it comes to dealing with the yard. We don't use brokers in between, which some of the other cruise lines do. So we are quite efficient, I would say.

I would say so the comparison is really.

It both with our prices over the past because of course with inflation.

Speaker #3: And then, as you know, we don't vary things much. So we don't have new designers come in and mess things around. Our ships are virtually identical.

We haven't had to pay.

Somewhat more certain.

A competitor to <unk>.

Anybody out there now.

Contracting chips.

At much better prices.

Speaker #3: That makes it better for the yard, so we get a better price as such. It costs them less to repeat. Also, I dare say we have the people on our side who negotiate quite hard-nosed when it comes to dealing with the yard.

Because we are quite efficient.

Don't waste space or or or things on the ships. So that is a key tenet of what we're doing.

That's helpful.

Maybe changing gears as a follow up could you just talk about some of the puts and takes to gross margins associated with thinking about the gross pricing you have in your advanced bookings versus what we're seeing in net yields which look like they've been a little bit better and how to think about that maybe into next year. Thank you.

Speaker #3: We don't use brokers in between, which some of the other cruise lines do. So, we are quite efficient, I would say. The comparison is really both with our prices of the past, because, of course, with inflation, we have had to pay somewhat more.

Torstein Hagen: So the comparison is really both with our prices of the past because, of course, with inflation, we have had to pay somewhat more. But certainly, compared to anybody out there now contracting ships, we get much better prices than they because we are quite efficient and we don't waste space or things on the ships. So that is a key tenet of what we're doing.

Sure Hey, Stephen this is Lynn.

So what we provide in our booking curves are what generally I guess what book so crews.

Speaker #3: But certainly, compared to anybody out there now contracting ships, we get much better prices than they do. Because we are quite efficient, and we don't waste space or things on the ships.

Land et cetera, and our net yields we do include costs onboard spend and ancillary revenue. So that's how you go from.

What we have in the curbs two ways eventually presented in our financial statements. There will be a difference as you know, but you know we've done a good job of being able to keep rates up.

Speaker #3: So that is a key tenet of what we're doing.

Speaker #5: That's helpful. And maybe changing gears as a follow-up, could you just talk about some of the puts and takes to grow margins associated with thinking about the growth pricing you have and your advanced bookings versus what we're seeing in net yields, which look like they've been a little bit better?

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): That's helpful. And maybe changing gears as a follow-up, could you just talk about some of the puts and takes to gross margins associated with thinking about the gross pricing you have in your advanced bookings versus what we're seeing in net yields, which look like they've been a little bit better? And how to think about that maybe into next year. Thank you.

Got it thank you.

Thank you. The next question will be from Lizzie Dove from Goldman Sachs. Your line is live.

Speaker #5: And how to think about that maybe into next year. Thank you.

Hi, there. Thanks for taking the question I just wanted to go back bigger picture to the kind of capacity growth piece, obviously as people mention you have some of the best capacity growth in the industry.

Speaker #8: Sure. Hey, Steven, this is Linh. So what we provide in our booking curves are what generally a guest would book: cruise, land, air, et cetera.

Leah Talactac: Sure. Hey, Stephen, this is Lynn. So, what we provide in our booking curves are what generally a guest would book: cruise, land, air, et cetera. In our net yields, we do include cost, onboard spend, and ancillary revenue. That is how you go from what we have in the curves to what is eventually presented in our financial statements. There will be a difference, as you note, but we have done a good job of being able to keep rates up.

I was looking at long term, even beyond 'twenty six 'twenty seven what gives you confidence in kind of filling that capacity at the right price, how do you kind of balance occupancy and price and especially with some of the growing competition that you have in river over the longer term.

Speaker #8: In our net yields, you know, we do include costs, onboard spend, and ancillary revenue. So that's how you go from what we have in the curves to what is eventually presented in our financial statements.

Speaker #8: There will be a difference, as you note, but you know, we've done a good job of being able to keep rates up.

Like I said, we're growing composite competition I understand some of it is going to Denver to newer ships in 2027.

That's that's a course of a quarter of a.

Our year's delivery from our normal fleet, so I don't worry too much about that.

Speaker #6: Got it. Thank you.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): Got it. Thank you.

Speaker #1: Thank you. The next question will be from Lizzie Dove from Goldman Sachs. Lizzie, your line is live.

Paul (Conference Operator): Thank you. The next question will be from Lizzie Dove from Goldman Sachs. Lizzie, your line is live.

Nice to get some attention.

To the sector.

I've been asked this now or soon.

Speaker #9: Hi there. Thanks for taking the question. I just wanted to go back to the bigger picture regarding the kind of capacity growth piece. Obviously, as people mentioned, you have some of the best capacity growth in the industry.

Analyst (Robin Farley, Lizzie Dove): Hi there. Thanks for taking the question. I just wanted to go back bigger picture to the capacity growth piece. Obviously, as people mentioned, you have some of the best capacity growth in the industry. I suppose looking at long term, even beyond 2026 and 2027, what gives you confidence in filling that capacity at the right price? How do you balance occupancy and price, especially with some of the growing competition that you have in river over the longer term?

So in 30 years.

We're not going to work.

Too much about that as you know on the levers we have.

A number of fairly protected things we.

Speaker #9: I suppose, looking at the long term, you know, even beyond 2026 and 2027, what gives you confidence in kind of filling that capacity at the right price?

We own our own or control. The 110 documents stations, along the river, which I think is nice prime prime docking.

Speaker #9: How do you kind of balance occupancy and price? And especially with, you know, some of the growing competition that you have in river over the longer term?

That's an upside on the oceans, I would say that given where.

We haven't seen any indication that it's going to be difficult to do.

Speaker #3: But you say we have growing competition. I understand somebody is going to deliver two new ships in 2027, and that's a quarter of a year's delivery from our normal fleet.

Torstein Hagen: We have growing competition. I understand somebody is going to deliver two new ships in 2027, and that is a quarter of a year's delivery from our normal fleet. I do not worry too much about that. It is nice to get some attention to the sector. We have been at it now for soon, soon 30 years, and we are not worrying too much about that. As you know, in the rivers, we have a number of fairly protective things. We own or control the 110 river docking locations along the river, which I think is nice to have prime docking. That is on that side. On the oceans, I would say that given we have not seen any indication that it is going to be difficult to fill.

To fill some surge we may also need some of those some more tonnage for a product in China, which is.

Which we are developing for the Chinese source market.

Speaker #3: So I don't worry too much about that. It's nice to get some attention to the sector. But we've been at it now for some time.

We are developing.

And it seems to be coming along quite okay, but.

At least sitting.

Sitting here today, they're not the least worried about.

Speaker #3: Soon 30 years. And we are not worrying too much about that. As you know, in the rivers, we have a number of fairly protective things.

About filling that capacity, we're more worried about making sure we have enough capacity.

More of an issue.

Speaker #3: We own or control 110 docking stations along the river, which I think is nice to have as prime docking. That's on that side. On the oceans, I would say that given we haven't seen any indication that it's going to be difficult to fill.

Great That's Super clear and then just following up on one of the earlier questions about capital returns I think you mentioned in your answer that you would see better uses of cash I am curious whether kind of any kind of M&A would be on the cards and what kind of.

Whether it's tuck in acquisitions that you might consider thanks.

Speaker #3: And at some stage, we may also need some of that tonnage for our product in China, which we are developing for the Chinese source market.

Torstein Hagen: At some stage, we may also need some of those, some more tonnage for a product in China, which we are developing for the Chinese source market, which we are developing, and it seems to be coming along quite okay. We are, at least sitting here today, not the least worried about filling that capacity. We are more worried about making sure we have enough capacity. That is more of an issue.

Yes sure Rosie.

You know we talk about our committed order book. So you could see that we have our growth engine is ocean and while our strategy is to maintain our dominance in the river so that.

Speaker #3: Which we are developing, and it seems to be coming along quite well. But at least sitting here today, we are not the least worried about filling that capacity.

That that strong cash balance gives us the opportunity to continue to contract. These vessels further out with options going out to 2032 and 2033.

Speaker #3: We are more worried about making sure we have enough capacity. That's more of an issue.

Speaker #9: Great. That's super clear. And then, just following up on one of the earlier questions about capital returns, I think you mentioned in your answer that you would see better uses of cash.

And when we think about M&A you know our ROIC is a benchmark that we want to further improve and we're ready for an acquisition if the right opportunity presents itself and in the past we've talked about our guiding principles, which is that it's scalable it's margin accretive and its complementary to the brand and yeah.

Analyst (Robin Farley, Lizzie Dove): Great. That is super clear. Then, just following up on one of the earlier questions about capital returns, I think you mentioned in your answer that you would see better uses of cash. I am curious whether any kind of M&A would be on the cards and what kind of, you know, whether it is stock in acquisitions that you might consider. Thanks.

Speaker #9: I'm curious whether kind of any kind of M&A would be on the cards and what kind of, you know, whether it's stock in acquisitions that you might consider.

Speaker #9: Thanks.

India is an example of that where it is definitely complimentary to the brand.

Speaker #4: Yeah, sure, Lizzie. You know, we talk about our committed order book, so you could see that our growth engine is ocean and, well, our strategy is to maintain our dominance in the river.

Leah Talactac: Yeah, sure, Lizzie. We talk about our committed order book. You could see that our growth engine is ocean, while our strategy is to maintain our dominance in the river. That strong cash balance gives us the opportunity to continue to contract these vessels further out with options going out to 2032 and 2033. When we think about M&A, our ROIC is a benchmark that we want to further improve, and we are ready for an acquisition if the right opportunity presents itself. In the past, we have talked about our guiding principles, which is that it is scalable, it is margin accretive, and it is complementary to the brand. India is an example of that, where it is definitely complementary to the brand.

Our guests have largely sold it out and have demonstrated that when we come to market with a new product. They are very willing to book.

Speaker #4: So, you know, that strong cash balance gives us the opportunity to continue to contract these vessels further out, with options going out to 2032 and 2033.

Book in this case two years two to three years out.

So.

We believe that having making sure that these three guiding principles are met are really what drives our decisions in terms of acquisition and and and further expansion. So we remain watchful.

Speaker #4: And when we think about M&A, our ROIC is a benchmark that we want to further improve. We're ready for an acquisition if the right opportunity presents itself.

There are plenty of opportunities and plenty of.

Speaker #4: And in the past, we've talked about our guiding principles, which are that it's scalable, it's margin accretive, and it's complementary to the brand. You know, India is an example of that, where it is definitely complementary to the brand.

Companies that come up for sale every once in a while and we do.

<unk> them, but at the end of the day, we want to make sure that these three principles are met.

And I would say.

Speaker #4: Our guests have largely sold it out and have demonstrated that when we come to market with a new product, they are very willing to book, in this case, two to three years out.

Leah Talactac: Our guests have largely sold it out and have demonstrated that when we come to market with a new product, they are very willing to book, in this case, two to three years out. We believe that making sure that these three guiding principles are met is really what drives our decisions in terms of acquisition and further expansion. We remain watchful. There are plenty of opportunities and plenty of companies that come up for sale every once in a while, and we do assess them. At the end of the day, we want to make sure that these three principles are met.

I would say that.

Everybody in management of top of mind.

Hmm.

I think we will.

Some of US are owners soon I.

I think we all have the owner's mentality rather than the managers.

Speaker #4: So you know, we believe that making sure that these three guiding principles are met are really what drives our decisions in terms of acquisition and further expansion.

We want to.

We think about what we're doing.

Well the shareholders not what we're doing with.

So the management egos.

If an acquisition.

It has to be a good deal and Thats a fit for those principles.

Speaker #4: So we remain watchful. You know, there are plenty of opportunities and plenty of companies that come up for sale every once in a while.

I wouldn't talk too much here.

Thank you.

Thank you. The next question will be from Alex breakdown from Rothschild <unk> Company Redburn, Alex Your line is live.

Speaker #4: And we do assess them. But at the end of the day, we want to make sure that these three principles are met.

Thank you very much good morning.

Speaker #3: And I would say that everybody in the management, the top management of Viking, I think we all, some of us are owners too.

Torstein Hagen: I would say, Leah, that everybody in management, top management of Viking, I think we all, some of us are owners too, but I think we all have the owner's mentality rather than the manager's mentality. We want to, we think about what we're doing for the shareholders, not what we're doing for the management egos. If an acquisition should take place, it has to be a good deal, and it has to fit for those principles. I wouldn't have too much fear.

It does.

I'll ask a question on a couple of things I guess, both related to the product in a new entrance you talked about the position you have with the shipyards when you think about.

Speaker #3: But I think we all have the owners' mentality rather than the managers' mentality. We want to think about what we're doing for the shareholders.

Where capacity would come from if others were going to want to build.

Loan birds.

Ships is that.

Speaker #3: Not what we're doing for the management egos. If an acquisition should take place, it has to be a good deal, and it has to fit those principles.

Whether restrictions lie I guess the large the major cruise lines would talk about that relationship with existing shutdowns, but can you just talk about obviously you've done a phenomenal job of building a very consistent product to a very very high standards.

Speaker #3: So I wouldn't have too much fear.

Speaker #9: Thank you.

Analyst (Robin Farley, Lizzie Dove): Thank you.

It's good for us to understand what the restrictions are on.

Speaker #1: Thank you. The next question will be from Alex Brignal from Rothschild & Co., Redburn. Alex, your line is live.

Paul (Conference Operator): Thank you. The next question will be from Alex Brignall from Rothschild & Company, Redburn. Alex, your line is live.

The shipyards to build ships, we obviously know highways in the ocean space, a little bit better.

Speaker #10: Thank you very much. Good morning. Just asking a question on a couple of things, I guess both related to the product and new entrants.

Torstein Hagen: Thank you very much. Good morning. Just asking a question on a couple of things, I guess both related to the product and new entrants. You talked about the position you have with the shipyards. When you think about where capacity would come from if others were going to want to build longboat river ships, is that where the restrictions lie? I guess the large, the major cruise lines would talk about their relationship with existing shipyards. But can you just talk about, obviously, you have done a phenomenal job of building a very consistent product to a very, very high standard. It is good for us to understand what the restrictions are on other shipyards that could build river ships. We obviously know how it works in the ocean space a little bit better. Perhaps I will ask my second one because it is very related.

And.

Perhaps I'll ask my second one because its very related.

Obviously, a very consistent product on both sides and you obviously understand your customer very very well.

Speaker #10: You talked about the position you have with the shipyards. When you think about where capacity would come from if others were going to want to build longboats, river ships, is that where the restrictions lie?

The cruise lines have talked about the evolving demand habits and preferences that consumers have you seemingly have consumers.

What they like.

Speaker #10: I guess the large and the major cruise lines would talk about their relationship with existing shipyards. But can you just talk about, obviously, you've done a phenomenal job of building a very consistent product to a very, very high standard.

Do you sort of continually assess that and think about why it ways that you could at the margin evolve the product should that happen or is it sort of this the way it's going to be because thats. The way that we run the business. Thank you so much.

Maybe I could take the second half of the question first.

Speaker #10: And so it's good for us to understand what the restrictions are on other shipyards that could build river ships. We obviously know how it works in the ocean space a little bit better.

There is one word I don't like.

Evolve.

I think evolution sneaky evolution is very dangerous.

Speaker #10: And perhaps I'll ask my second one because it's very related. You obviously have a very consistent product on both sides, and you understand your customer very, very well.

We are very very very tough.

Anything that.

Torstein Hagen: You have obviously a very consistent product on both sides, and you obviously understand your customer very, very well. Other cruise lines have talked about the evolving demand habits and preferences that their consumers have. You seemingly have consumers that do not change what they like. Do you continually assess that and think about ways that you could, at the margin, evolve the product should that happen, or is it the way it is going to be because that is the way that we run the business? Thank you so much. Maybe I could take the second half of the question first. There is one word I do not like, and that is evolve. I think evolution, you know, sneaky evolution is very dangerous. So we have been very, very, very tough on anything that could change the product the way it is generally delivered and perceived.

Good change.

The product the way it is generally delivered unperceived I believe a little bit in revolutions not evolutions.

Speaker #10: Other cruise lines have talked about the evolving demand habits and preferences that their consumers have. You seemingly have consumers that don't change what they like.

But but I think we've gotten the model right.

The Doctor and says I said, we also have some other design elements that are very very.

Speaker #10: Do you sort of continually assess that and think about why it weighs that you could, at the margin, evolve the product? Should that happen, or is it sort of this the way it's going to be because that's the way that we run the business?

Very unique whereas this asymmetric borrowers, but we have a patent on that I know a few things like that and of course we.

We feel we have the first call first.

Speaker #10: Thank you so much.

Speaker #3: Maybe I could take the second half of the question first. There is one word I don't like, and that's "evolve." I think evolution, you know, sneaky evolution, is very dangerous.

Lawyer of choice.

You don't have any guarantees for that but we have here.

We treated our staff during Covid I think it's paid off.

And manifolds because.

Speaker #3: So we have been very, very, very tough on anything that could change: the product, the way it is generally delivered, and perceived. I believe a little bit in revolutions, not evolutions.

Patriots of them drive part of the family.

So we had that locked down.

Parents that our team has not so true.

Torstein Hagen: I believe a little bit in revolutions, not evolutions. But I think we have gotten the model right. We have the river docking locations, as I said. We also have some of the design elements that are very, very unique. We have these asymmetric corridors where we have a patent on that and a few things like that. Of course, we feel we have the first call. First, we are the employer of choice. I feel that you do not have any guarantee for that, but we feel we are. The way we treated our staff during COVID, I think has paid off in manifold sense because we treated them like part of the family. So we had that lockdown. The experience that our team has, you know, it is not so true. It is easier to operate an ocean ship than a river ship.

Operator, and ocean ship Danone over ship.

Speaker #3: But I think we've gotten the model right. We have the dockings, as I said. We also have some of the design elements that are very unique.

The shipyard to be awake 24 hours, a day, a notion of competitor on autopilot and normally it goes well.

So I think we have we have a cat.

<unk> engineers.

Speaker #3: We have these asymmetric corridors where we have a patent on that, and a few things like that. Of course, we feel we have the first call; first, we are the employer of choice.

But huge skills and they'd like to work with Viking, we probably tried to it will cement them, even more to us, but I think I think we have all that the relationships along the rivers.

Speaker #3: I feel that you don't have any guarantee for that. But we feel we are. The way we treated our staff during COVID, I think has paid off manifold since.

So I think it's fine.

There are yards that can build whatever ships, but it is not so.

Not so easy.

Look I'd say it'd be very cost conscious.

Speaker #3: Because we treated them like part of the family. So we have that lockdown. The experience that our team has, you know, it's not so true.

So.

If you give it enough years.

People can get up to kind of get to us.

Speaker #3: It's easier to operate an ocean ship than a river ship. You know, with a river ship, you have to be awake 24 hours a day; on an ocean ship, you don't.

Slice of the market.

I'm not too worried about it.

Torstein Hagen: You know, a river ship, you had to be awake 24 hours a day. On an ocean, you can put it on autopilot, and it normally goes well. I think we have captains and engineers with huge skills, and they like to work with Viking. We probably try to cement them even more to us, but I think we have all that, the relationships along the rivers. I think it is fine. There are yards that can build river ships, but it is not.

Famous last words.

Speaker #3: You can put it on autopilot, and it normally goes well. So, I think we have captains and engineers with huge skills, and they like to work with Viking.

Thank you so much for the detail.

Thank you and our final question today will come from Conor Cunningham from Melius Research Your line is live.

Hi, everyone. Thank you nice to see that the 2020, thanks rubber prices move up I get that.

Speaker #3: We probably tried to will cement them even more to us. But I think we have all that: the relationships along the rivers. So I think it's fine.

On.

New markets like Egypt, and India, you talked about how you've seen a lot of demand already.

Speaker #3: There are yards that can build river ships, but it's not so easy. And you could say you have to be very cost-conscious.

I'm curious if those new markets or new markets in general are dilutive to the overall pricing strategy and maybe if you could just talk about how you. How you go about assessing new markets in General and then just as my second question. During the IPO process, you mentioned a lot about moving a point of sale away from the opera.

Torstein Hagen: Not so easy. You could say you had to be very cost-conscious. But you know, if you give it enough years, people can get a slice of the market. I am not too worried about it.

Speaker #3: So you know, if you give it enough years, people can go up to get a slice of the market. But I'm not too worried about it.

Attunity sat outside of.

Speaker #3: Famous last words.

Paul (Conference Operator): Famous last words.

The North American market tour, you talked a little bit about China I was just hoping you could level set a little bit on that strategy and where things sit today. Thank you.

Speaker #1: Brilliant. Thank you so much for the detail. Thank you. And our final questions today will come from Connor Cunningham from Melious Research. Connor, your line is live.

Carola Mengolini: Brilliant. Thank you so much for the detail.

Torstein Hagen: Thank you. Our final question today will come from Connor Cunningham from Melius Research. Connor, your line is live.

Yes, I think when we when we moved to new new destination.

Speaker #10: Hi everyone. Thank you. Nice to see that the 2026 river prices have moved up like they did. On new markets like Egypt and India, you talked about how you've seen a lot of demand already.

Leah Talactac: Hi everyone, thank you. Nice to see that the 2026 river pricing moved up like it did. On new markets like Egypt and India, you talked about how you've seen a lot of demand already. I'm curious if those new markets, or new markets in general, are diluted to the overall pricing strategy. Maybe if you could just talk about how you go about assessing new markets in general. Then just as my second question, during the IPO process, you mentioned a lot about moving a point of sale away from, or the opportunity set outside of the North American market. Torstein Hagen, you talked a little bit about China. I was just hoping you could level set a little bit on that strategy and where things sit today. Thank you.

Destinations.

It's quite typically we then go with smaller vessels.

On smaller vessels.

Need a higher prices. So we have to make sure that based on do anything stupid.

But I think what we have done for example in Egypt is exceptional.

Nobody comes near the vessels they are building and quota.

I think someday there will be.

India.

So I think we ought to be.

Take care of that.

The market research.

I would Joe.

Joked a bit about it is that we do a lot of market I do a lot of market research in the morning, when I shave.

And that's it.

Great.

We do a lot of formal market research too.

Torstein Hagen: Yeah, I think when we move to new, new, call it, destinations, new destinations, it is quite, you know, typically we then go with smaller vessels. Smaller vessels do need higher prices. So we had to make sure that we do not do anything stupid. But I think what we have done, for example, in Egypt is exceptional. Nobody comes near the vessels we are building there in quality. I think similarly will be India. So I think we had to take care of that. The market research, I would joke, I was joked a bit about it. I said, we do a lot of market, I do a lot of market research in the morning when I shave. Maybe that is a bit, we do a lot of formal market research too.

I have the benefit as I know.

I figured I know, what our guests want quite frankly.

My colleagues, so we have we beacon beacon.

We can really.

Assesses quite well, but.

It's clear that people want to go to interesting places I mentioned to some guests on board next workers will go through logos in Nigeria.

Many people say Oh, that's a danger.

Of course people like to go to a new place where they haven't been before and I said, we'd like to go with Viking.

No.

Yes.

That's really the theme throughout.

So so I think.

We will find some more places like that.

Torstein Hagen: But I have the benefit that I know, I feel I know what our guests want, quite frankly. So do my colleagues. So we can, we can, we can really assess it quite well. But you know, it is clear that people want to go to interesting places. I mentioned to some guests on board that next World Cruise will go to Lagos in Nigeria. Many people say, oh, that is so dangerous. Of course, people like to go to a new place where they have not been before. They say we like to go with Viking because we know that we are safe. That is really the theme throughout. So I think we will find some more places like that. But you know, the map, when you look at our map in our brochure, we are pretty much everywhere, quite frankly.

When you look at our map in our brochure.

And quite frankly.

Even though.

The business, we have and in the U S on the Mississippi.

Had some.

Startup issues.

I think that is also come quite quite right in terms of the growth of the product.

On China.

China.

We all know is a huge potential market.

Florida for ships.

Stopped by Chinese speakers and we are marketing.

<unk> has been doing in North America, where market directed Chinese consumer people said, you must be a nuts and I said no. We don't want to go through tier operators, where other people around over us.

I think were seeing its taken a long time, but.

He would work coming through that so there will be hopefully some some some real things coming and coming out of that.

Torstein Hagen: Maybe even now, the business we have in the U.S., on the Viking Mississippi, we had some startup issues. But I think that has also come quite right in terms of the quality of the product. China, as we all know, is a huge potential market. We currently have four river ships, staffed by Chinese speakers. We have marketing. In the same fashion as we do in North America, we market directly to Chinese consumers. People said, you must be nuts. I said, no, we do not want to go through tour operators or other people who brand over us. So I think we are seeing, it has taken a long time, but I feel we are coming, coming through that. So there will be hopefully some real things coming, coming out of that. So there are these obvious expansion opportunities. China is the biggest one, of course.

So there is there are these.

This expansion effort in China as it is the biggest one of them of course.

So I don't know that answer.

Yeah.

There was one point.

Made.

We want to make the point before the last question.

No.

No. We just wanted to point out that.

We talked a little bit about it during the scripted portion of the call, but we do have two euro denominated loans, they're ocean loans. There. They are disclosed in the financial statements and we did experience a unrealized FX.

Losses related to them, we and we calculated and it translated to a and.

I don't have incense adjust adjusted EPS.

Impact to our adjusted EPS 99 cents.

Torstein Hagen: So I know that answers the question. Leah, there was one point you should have made. Do you want to make the point before the last question gets read out? Or should we shut up?

And what we did was we converted U S dollars to euros to create a natural hedge. So we don't expect that unrealized loss to recur throughout the rest of the year. So we did want to point that out.

As the euro starts to strengthen.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): No, we just wanted to point out that, we talked a little bit about it during the scripted portion of the call, but we do have two euro-denominated loans. They are ocean loans. They are disclosed in the financial statements. We did experience unrealized effects, losses related to them. We calculated, and it translated to, an $0.11 adjusted EPS impact to our adjusted EPS $0.99. What we did was we converted U.S. dollars to euros to create a natural hedge. We do not expect that unrealized loss to recur throughout the rest of the year. We did want to point that out, as the euro starts to strengthen, the fact that we did that, and also we are hedged for a portion of our 2025 and 2026 results, we feel we are able to manage through the currency exposure.

The fact that we did that and also we are hedged for a portion of our 25 and 26 results. We feel we are able to manage through the currency exposure.

That's important because our philosophy has always been to two to finance.

Vessels in dollars, but on this okay.

Some issues and we then said we have to do it in Europe I mean, you.

Probably a little bit slow in converting or adding a matching.

Your your deposit so that that has a negative impact both on Q1 and Q2 of this year.

It should not be a recurring event for those of you like to add up to in the future.

I think that's important we don't.

They don't want to take unnecessary.

Our currency risks.

Are there enough other risks we can exploit.

I appreciate that and attack.

Attack Andi.

That was exactly the point thanks tore.

[laughter], Okay, sorry about that.

Torstein Hagen: I think that's important because our philosophy has always been to finance our vessels in dollars. On this occasion, there was some issue, and we then said we had to do it in euro. We were probably a little bit slow in converting or in having a matching deposit, so that had that negative impact both on Q1 and Q2 this year. That should not be a recurring event for those who like to look to the future. I think that's important. We don't want to take unnecessary currency risks. There are enough other risks we can exploit.

Yeah.

I think some famous investor from Omar musical EBITA, there myself before expenses.

And there are something below EBITDA to which one should look at we.

We do look at the bottom line.

Thank you.

And I would like to turn the conference back over to Tom Hagen Vikings, Chairman and CEO for closing remarks.

Yeah. So can I, thank everybody for joining in today's call.

Thank you for the support and interest in Viking.

And you.

You will see what the future range. Thank you very much all.

Leah Talactac: Appreciate all the Q1 to tack on.

Analyst (Multiple: Steve Wojcinski, Andrew Dedora, James Hardiman, Stephen Grambling, Connor Cunningham): That was exactly the point. Thanks, Torstein.

Thank you. This does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation.

Torstein Hagen: Sorry about that. But I think it is important because, you know, somebody, I think some famous investor from Omar used to call adjusted EBITDA the result before expenses. There are some things below adjusted EBITDA too, which one should look at. We do look at the bottom line.

Torstein Hagen: Thank you. I will now turn the conference back over to Torstein Hagen, Viking's Chairman and CEO, for closing remarks.

Torstein Hagen: I thank everybody for joining in today's call. I thank you for the support and interest in Viking. We will see what the future brings. Thank you very much all.

Torstein Hagen: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.