Viking Holdings Ltd. ( VIK ) stock rose after reporting third-quarter 2025 results that topped expectations, delivering adjusted EPS of $1.20 versus the $1.19 estimate and revenue of $1.9996 billion, slightly above the $1.992 billion consensus.

Revenue rose 19.1% from a year earlier, supported by an 11% increase in Capacity Passenger Cruise Days (PCDs), 96% occupancy, and higher revenue per PCD.

Gross margin increased 22.9% to $881.7 million, while adjusted gross margin grew 21.4% to $1,333.7 million. Net yield rose 7.1% to $617.

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Adjusted net income reached $533.8 million compared with $398.6 million in 2024. Diluted EPS was $1.15, and Adjusted EPS was $1.20, both higher year over year.

Adjusted EBITDA increased 26.9% to $703.5 million. Vessel operating expenses were $392.2 million, up 19.1%, and vessel operating expenses excluding fuel were $346.5 million, up 21.7%, reflecting fleet growth that included four new river vessels, two ocean ships, and the Viking Yi Dun accommodation agreement.

Bookings remained strong heading into future seasons. As of November 2, Viking had sold 96% of the 2025 Capacity PCDs and 70% of the 2026 PCDs.

Advance bookings totaled $5,613 million for 2025, up 21%, and $4,925 million for 2026, up 14%. Advance bookings per PCD rose to $782 for 2025 and $861 for 2026.

The company ended the quarter with $3.0 billion in cash and cash equivalents, an undrawn $375.0 million revolver and $4.3 billion in deferred revenue. Scheduled principal payments are $956.9 million through year-end and $195.0 million in 2026.

"Our strong booking position for both 2025 and 2026 reflects the robust demand for Viking’s destination-focused offerings," said President and CFO Leah Talactac.

“Since our last earnings release, we have also realized significant financial achievements. Moody’s upgraded Viking, we successfully issued $1.7 billion in senior unsecured notes, and upsized our revolving credit facility to $1.0 billion. We believe that these actions strengthen Viking’s capital structure and enhance our financial flexibility to pursue long-term growth,” he added.

The company continued to expand its capacity, taking delivery of four river vessels and entering option agreements for eight more, with potential deliveries scheduled for 2031 and 2032. Viking expects delivery of two additional river vessels by year-end.

"We delivered another remarkable quarter, highlighted by a significant milestone – surpassing 100 ships," said Chairman and CEO Torstein Hagen.

During the earnings conference call, Hagen said the company's strong yield reflects a healthy and resilient customer base that continues to prioritize travel.

He noted that Viking's travelers have both the time and financial resources to book trips, supporting the mid-single-digit price growth the company had previously guided for.

Hagen added that Viking's strategy focuses on engaging consumers rather than relying on aggressive pricing actions. He said Viking aims to finish the year in a strong booking position while keeping enough inventory available to drive next year's sales momentum.

Price Action: VIK shares were trading higher by 5.35% to $61.39 at last check Wednesday.

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