Tag Archives: EBITDA

Viking Announces CEO Transition and Reports First Quarter Results

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Viking Announces CEO Transition and Reports First Quarter Results

Viking Holdings today announced that its Board of Directors has appointed Leah Talactac, President and Chief Financial Officer, as Chief Executive Officer.

Torstein Hagen, Chairman and CEO, has been appointed as Executive Chairman and will continue to serve as Chairman of Viking’s Board of Directors, according to a press release.

The company also announced that Linh Banh, Executive Vice President of Finance, has been appointed as CFO.

Since joining Viking in 2006, Viking said Talactac has been a key leader on the executive team. Alongside Hagen, she led Viking’s initial public offering in 2024, which was the largest offering on the NYSE that year, and she was appointed President in January 2025 while retaining her responsibilities as CFO. Starting today, Talactac will report to the Board of Directors and continue to lead Viking’s executive committee.

As Executive Chairman,  Hagen will focus on long term strategy and continue to support Talactac in her role as CEO.

“This leadership transition reflects the strength and depth of Viking’s management team and the succession planning we have built over many years,” said Hagen. “Leah’s appointment as CEO is a natural next step, and the Board and I have full confidence in her ability to lead Viking with the same continuity, discipline and vision that have guided us since Viking was founded. On behalf of the entire Viking family, we congratulate Leah, and I look forward to partnering closely with her and the Board as she guides Viking forward in this next chapter.”

“I am honored by this appointment and deeply grateful for the trust of the Board and Tor,” said Talactac. “Tor and our entire executive team have built a phenomenal company over the last 29 years, and I am delighted to lead Viking as we continue to deliver meaningful experiences for our guests and execute our long-term strategy. I also want to take a moment to congratulate Linh on her new appointment as CFO. Linh is a trusted leader within Viking, and her financial stewardship will ensure a smooth transition.”

Q1 Results

The company also reported financial results for the first quarter ended March 31, 2026, and provided an update on operating capacity and bookings.

Key Highlights

  • Total revenue was $1,053.7 million for the first quarter of 2026, an increase of 17.5% compared to the same period in 2025.
  • Gross margin increased 21.2% and Adjusted Gross Margin increased 16.9% compared to the same period in 2025.
  • Net Yield was $596, an increase of 9.5% compared to the same period in 2025.
  • Adjusted EBITDA was $104.8 million, an increase of 43.9% compared to the same period in 2025.
  • Diluted EPS was $(0.12) and Adjusted EPS was $(0.11).
  • Net Leverage improved from 1.1x as of December 31, 2025 to 1.0x as of March 31, 2026.
  • As of May 3, 2026, for its Core Products, Viking had sold 92% of its Capacity Passenger Cruise Days for the 2026 season and 38% of its Capacity Passenger Cruise Days for the 2027 season.

“2026 is off to a strong start and we are very pleased with our first‑quarter results. Total revenue for the quarter grew 17.5% driving a 43.9% year-over-year increase in Adjusted EBITDA, underscoring the demand for our product and our operational discipline,” said Mr. Hagen. “Moreover, we are already 92% booked for 2026 which positions us very well for the remainder of the year. During the quarter, we also continued to make progress increasing our fleet and destination-focused offerings, further enhancing the experiences and value we offer our guests. As we look ahead, we remain focused on delivering on the strong demand while continuing to invest in our future and generate sustainable, profitable growth.”

First Quarter 2026 Consolidated Results

During the first quarter of 2026, Capacity PCDs increased by 6.6% over the same period in 2025. This year-over-year increase was mainly driven by the growth of the company’s fleet, which included one additional ocean ship. Occupancy for the first quarter of 2026 was 94.7%.

Total revenue for the first quarter of 2026 was $1,053.7 million, an increase of $156.6 million, or 17.5%, over the same period in 2025 mainly driven by increased Capacity PCDs and higher revenue per PCD in 2026 compared to 2025.

Gross margin for the first quarter of 2026 was $297.6 million, an increase of $52.1 million, or 21.2%, over the same period in 2025 and Adjusted Gross Margin for the first quarter of 2026 was $717.2 million, an increase of $103.9 million, or 16.9%, over the same period in 2025. Net Yield was $596 for the first quarter of 2025, up 9.5% year-over-year.

For the first quarter of 2026, vessel operating expenses were $357.5 million and vessel operating expenses excluding fuel were $316.1 million. Compared to the same period in 2025, vessel operating expenses increased $47.6 million, or 15.4%, and vessel operating expenses excluding fuel increased $47.9 million, or 17.9%, mainly driven by timing of maintenance and repair costs and the increase in the size of the company’s fleet in 2026 compared to 2025.

Net loss for the first quarter of 2026 improved to $54.2 million compared to a loss of $105.5 million for the same period in 2025. Adjusted Net Loss attributable to Viking Holdings Ltd for the first quarter of 2026 improved to $49.2 million compared to a loss of $105.5 million for the same period in 2025.

Adjusted EBITDA was $104.8 million, an increase of $32.0 million, or 43.9%, over the same period in 2025. The increase in Adjusted EBITDA was mainly driven by increased Capacity PCDs and higher revenue per PCD.

Diluted EPS was $(0.12) and Adjusted EPS was $(0.11) for the first quarter of 2026, compared to Diluted EPS and Adjusted EPS of $(0.24) for the same period in 2025.

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

“We are very encouraged by the financial results of the first quarter. Increasing capacity together with Net Yield improves our profitability and further strengthens our market leadership,” said  Banh. “In this dynamic macroeconomic environment, we remain focused on delivering superior experiences, optimizing revenue and maintaining disciplined cost management, while prudently investing to support long‑term growth.”

Update on Operating Capacity and Bookings

For the company’s core products, operating capacity is 7% higher for the 2026 season compared to the 2025 season and 15% higher for the 2027 season compared to the 2026 season.

As of May 3, 2026, for the company’s core products, it had sold 92% of our Capacity PCDs for the 2026 season and 38% for the 2027 season. Viking said it had $6,225 million of Advance Bookings for the 2026 season, 13% higher than the 2025 season at the same point in time; and said it had $3,403 million of Advance Bookings for the 2027 season, 31% higher than the 2026 season at the same point in time.

Advance Bookings per PCD for the 2026 season was $842, 5.5% higher than the 2025 season at the same point in time, and Advance Bookings per PCD for the 2027 season was $986, 11.0% higher than the 2026 season at the same point in time.

“With 2026 mostly booked, our focus has shifted to the 2027 season, which is off to a great start. Capacity for our Core Products is increasing by 15%, and is already 38% booked, with Advance Bookings 31% ahead of last year,” said Talactac. “Our booked positions for 2026 and 2027 demonstrate the resilience of our loyal customer base and the sustained demand for our product reflecting that travel remains a priority for our customers. These results also underscore the effectiveness of our strategic initiatives including an extended booking window, targeted direct marketing, a broader itinerary offering and a compelling value proposition.”

Azamara: Investing in Existing Fleet and More Markets

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Azamara: Investing in Existing Fleet and More Markets

With a new refurbishment program underway, Azamara is focusing on hardware upgrades and operational agility to drive profitability, according to Chief Executive Officer Dondra Ritzenthaler.

The company last expanded its fleet in 2022, with the introduction of the Azamara Onward, which was acquired from Princess Cruises a year earlier.

According to Ritzenthaler, the company currently sees investment in its own fleet as the biggest opportunity for growth.

In 2026, Azamara announced the “Forward” refurbishment program, an $80-million project that will see the brand’s four ships undergoing major refits.

Ritzenthaler said that in addition to updates to existing areas of the vessels, the program includes major structural additions.

“We’re literally putting a deck on top of the ship that’s going to have 12 more suites,” she explained.

The first ship to undergo the project is the Azamara Quest, which will debut the new features ahead of its upcoming world cruise in early 2027. The Azamara Onward follows suit later next year.

Beyond hardware upgrades, the company is also planning to expand its global sourcing footprint, paying more attention to new markets around the world, Ritzenthaler said.

Azamara currently sources most of its guests in North America, the United Kingdom, Ireland and Australia, she explained.

Executing these growth strategies is made easier by the lack of corporate bureaucracy inherent in a smaller organization, Ritzenthaler noted.

“You can make changes; you can turn on the dime. And I think when you’re able to do that, then the economics of what you do become much easier to achieve,” she explained.

Ritzenthaler said that Azamara is currently performing extremely well financially from an EBITDA standpoint.

This so-called operational nimbleness is said to be transferred to the brand’s deployment strategy, allowing Azamara to secure premium berthing in highly regulated destinations.

“We simply can go in right into the city center. We literally go up the Seville River where the larger ships have to stay out and tender people in,” Ritzenthaler said.

As some ports push back against large tourist influxes, smaller vessels provide a vital economic lifeline for local communities without overwhelming local infrastructure, Ritzenthaler continued.

The ability to rapidly adjust deployments is also an important defense against external disruptions, including fluctuating fuel prices and regional conflicts.

“We look at this every single day,” Ritzenthaler said, noting that Azamara is in a better position to weather geopolitical issues due to being small and profitable.

She said that when itinerary changes occur, the company relies heavily on its travel advisor network to communicate with passengers, ensuring safety remains a non-competitive priority across the industry.

Speaking of demographics, Ritzenthaler said that the company caters to shifting audiences but tends to naturally attract a specific passenger demographic.

While maturing cruisers looking to step up from premium lines form a significant part of the company’s public, the core Azamara guest is defined by having ample time and resources.

“The average cruise length for us is 12 nights, but many of our customers do back-to-backs or take intensive cruises or even a world voyage,” she said.

“These customers are different customers who really want to get immersed,” noting that the company’s passengers ultimately “love cruising.”

This mindset fosters a strong onboard community, Ritzenthaler added, leading to repeat bookings among affinity groups.

However, despite having an affluent passenger base, the company sees a consistent demand for a clear upfront value.

“No matter how wealthy somebody is, people still love value for money,” she noted, pointing to the line’s inclusive pricing model.

Ritzenthaler said that while external challenges may arise, the company is in a good position to handle situations positively.

“In life, it’s only 10 percent what happens and 90 percent how you handle it, and we’re going to handle it in a positive, nimble, flexible and resilient way.”

Norwegian Reports 2026 Q1 Results

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Norwegian Reports 2026 Q1 Results

Norwegian Cruise Line Holdings today reported financial results for the first quarter ended March 31, 2026 and provided guidance for the second quarter and full year 2026.

Highlights

  • First quarter total revenue grew 10% to $2.3 billion. GAAP net income was $105 million, with EPS of $0.23.
  • Delivered Adjusted EBITDA of $533 million in first quarter 2026, exceeding guidance, and representing an increase of 18% compared to 2025. Adjusted Net Income more than doubled to $108 million. Adjusted EPS increased $0.13 to $0.23.
  • Company lowered full year 2026 guidance with Adjusted EPS expected to be $1.45 to $1.79.
  • Company took delivery of Norwegian Luna, featuring an exceptional collection of venues and experiences, including its latest in house production ELTON: A Celebration of Elton John™.
  • Announced Board refreshment with the appointment of five new independent directors effective March 31, 2026, further strengthening the Company’s governance and shareholder value focus.
  • Executed targeted initiatives to enhance its SG&A profile, generating approximately $125 million of expected annualized run-rate savings.

“

We delivered strong first quarter results, and more importantly we have already begun taking decisive actions to strengthen execution and accountability across the company, which will enhance results over the longer term,” said John W. Chidsey, Chairperson and Chief Executive Officer of Norwegian Cruise Line Holdings.

“During the quarter, we acted with urgency to simplify, optimize, and streamline the organization, including executing SG&A savings initiatives totaling $125 million in expected run rate savings. These are long-term structural actions that we believe will help offset near-term pressures and position the business for stronger performance over time. As we move through the year, we will continue to manage costs and focus on revenue growth to align resources with the high-growth, high value areas of the business. I remain confident and encouraged that we are building a leaner, more effective and nimble organization that positions NCLH for sustainable long-term value creation.”

First Quarter 2026 Highlights

  • Generated total revenue of $2.3 billion, a 10% increase compared to the first quarter of 2025, driven by increased Capacity Days. GAAP net income was $104.7 million compared to $(40.3) million in the prior year, with EPS of $0.23.
  • Gross margin per Capacity Day increased 4.0% versus 2025 on an as reported basis and increased 2.6% on a Constant Currency basis. Net Yield decreased approximately 0.3% on an as reported basis and 1.0% on a Constant Currency basis, above our guidance of a decline of 1.6%.
  • Gross Cruise Costs per Capacity Day was approximately $287, compared to $297 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $169 on an as reported basis and $168 on a Constant Currency basis, and was down 0.2% on an as reported basis and 1.0% on a Constant Currency basis compared to $169 in 2025, better than guidance.
  • Adjusted EBITDA increased 18% to $533 million, compared to $453 million in 2025, exceeding guidance of ~$515 million. Adjusted EPS increased 121% to $0.23, exceeding guidance of ~$0.16.

2026 Full Year Outlook

The Company is experiencing headwinds related to disruptions in the Middle East, including higher fuel expense and signs of softer demand as consumers reevaluate travel plans, particularly to Europe. As previously noted, the Company entered 2026 behind its targeted booking curve, and these headwinds have hindered the Company’s ability to accelerate bookings and close that gap. These external pressures come as the Company continues to enhance its revenue management system and improve execution, resulting in additional pressure on the business and a reduction in its full year guidance. A summary of the updated full year guidance is provided below:

  • 2026 full year Net Yield on a Constant Currency basis is expected to be down approximately 3% to 5% versus 2025.
  • 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be approximately flat on a Constant Currency basis versus 2025, reflecting better-than-previously-guided performance driven by workforce optimization and other SG&A savings.
  • 2026 full year Adjusted EBITDA is expected to be approximately $2.48 billion to $2.64 billion.
  • Adjusted Operational EBITDA Margin for the full year 2026 is expected to be 32.9% to 34.3%.
  • Full year Adjusted Net Income is expected to be approximately $679 million to $838 million. Adjusted EPS is expected to be $1.45 to $1.79.

Q2 2026 Outlook

  • Q2 2026 Net Yield on a Constant Currency basis is expected to decline approximately 3.6% versus 2025.
  • Q2 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to grow approximately 1.0% on a Constant Currency basis versus 2025.
  • Q2 2026 Adjusted EBITDA is expected to be approximately $632 million and Adjusted Operational EBITDA Margin for the quarter is expected to be approximately 32.5%.

Booking Environment Update

The Company remains below its optimal booking range following certain execution missteps, exacerbated by softer demand related to heightened geopolitical uncertainty. Recent events related to the conflict in the Middle East have impacted bookings across all three brands, especially in Europe during the summer season. While the near-term environment remains challenging, the Company is taking targeted actions to better align commercial strategy, including marketing, with deployment and revenue management, with the benefits of these actions expected to materialize gradually over time.

Liquidity and Financial Position

The Company is committed to optimizing its balance sheet and reducing Net Leverage. As of March 31, 2026, the Company had total debt of $15.2 billion and Net Debt of $15.0 billion. Net Leverage ended the quarter at 5.3x.

As of March 31, 2026, liquidity was $1.6 billion including approximately $185.0 million of cash and cash equivalents and $1.4 billion of availability under our Revolving Loan Facility.

“During the quarter we delivered better-than-expected cost performance across the business,” said Mark A. Kempa, Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings Ltd. “As we navigate a more uncertain macroeconomic and geopolitical environment, we are acting diligently to offset those pressures through targeted SG&A savings and broader efficiency initiatives. Based on the actions taken during the quarter, we now expect full year Adjusted Net Cruise Cost Excluding Fuel to be approximately flat to last year, which should help support margins as we continue to strengthen execution across the business.”

Outlook and Guidance

In addition to announcing the results for the first quarter of 2026, the Company also provided guidance for the second quarter and full year 2026, along with accompanying sensitivities, subject to changes in the broad macroeconomic environment. The Company does not provide certain estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2026 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort.