Viking Holdings Ltd

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 fourth quarter 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 1 on your telephone keypad. If you wish to remove yourself from the queue, please press star 2. Thank you. I would now like to turn the program to your host for today's conference, Vice President of Investor Relations, Carola Mangalini.

Good morning, everyone, and welcome to Vikings' fourth quarter of full year 2025 earnings conference call. I am joined by Tor Hagen, Chairman and Chief Executive Officer, and Lieta Lagtak, President and Chief Financial Officer. Also available during the Q&A session is Lynn Ban, 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. 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.gov. Dora and Lia will provide a strategic overview of the company, a recap of our fourth quarter and full year results, and an update of the current booking environment. We will then open the call for your questions. To supplement today's call, we have prepared an earnings presentation that is also available on our investor relations website. With that, I am pleased to turn the call over to Tor.

Thank you, Carola. Good morning, everyone, and thank you for joining us today. In our first full year as a public company, we've delivered very strong financial results, and I think we accomplished a great deal as our business continues to grow. If we turn to slide three, I'll begin by highlighting our fleet, which remains at the center of our strategy. 2025 was marked by a significant milestone, surpassing 100 ships. I believe that this accomplishment reflects our innovative approach and decades of thoughtful growth. From our humble beginnings in 1997, with just four river ships and two cell phones, we have steadily built a global business that now operates on all seven continents, spanning river, ocean, and expedition cruising. Today our fleet consists of 89 river vessels, 12 ocean ships, and two expedition ships. All share the unique Scandinavian design and deliver the consistency and quality that our guests expect from Viking. As part of our ongoing fleet expansion, we will soon operate the world's first hydrogen-powered cruise ship, capable of operating part of the time with zero emissions, something I'm particularly proud of. We believe that innovation should be practical, and thoughtfully implemented. Also during the year, we continued to expand into new and exciting destinations. A highlight was the announcement of our new river itineraries in India, a region rich in history and cultural depth. At the same time, we increased our river fleet on the Nile and on the Mekong rivers. In parallel to all this, we strengthened and expanded partnerships across the arts, culture, and scientific institutions. These partnerships support brand awareness and local engagement among our target demographic. Moreover, in many cases, they also introduce opportunities to enhance a guest's experience via unique privilege access unavailable through other travel providers. As you can see, we pursue growth with intention, expanding access, increasing choice, and enriching the cultural experiences that set Viking Product apart. I'm very pleased that the milestones we achieved in 2025 supported an exceptional fleet and with it an exceptional financial performance. Regarding our fleet, you can see on the next two slides some of the features that make our ships such a strong driver of our results. I will start with ocean on slide four. As it pertains to our ocean fleet, we are one of the youngest fleets in the cruise industry. Our state-of-the-art, efficient design eliminates wasted space and extra weight on board, while maximizing guest comfort and optimizing fuel consumption. Moreover, our ocean ships with a sleek hull design and closed-loop scrubbers allow us to use more cost-efficient fuel. These attributes help us manage fuel costs in times of adversity. The layout and onboard offering of our ocean ships also allow us to operate with fewer crew, without diminishing our high level of service. All these elements improve ship profitability. If we now focus on the river on slide five, most of our river vessels are longships, a unique type of ship designed for European rivers. These ships include design features such as patented asymmetrical corridors and a square bow that allows for three full decks. With this design, we can accommodate up to 190 guests, which is more than the average European river vessel, improving the long-ship profitability. As it pertains to fuel costs, the river operation has a fixed price contract for a significant portion of the 2026 season. Within each product, our ships are indistinguishable to our guests. Potential guests shop by itinerary, rather than a specific ship or age of ship, and it allows older ships to achieve similar yields even when introducing new ships. On average, and based on contribution to operations, the payback period for an ocean ship is about five to six years, and the payback period for a long ship is about four to five years. Taken together, these characteristics show how the design, efficiency, and consistency of our ships translate directly into very good financial performance. which was particularly strong in 2025. Now, turning to slide six, you can see that we increased the capacity by 12% year over year. This reflects both the expansion of our fleet and the continued demand for our product. At the same time, our net yields grew 7.4%, demonstrating our ability to attract high-quality demand and to maintain pricing power. Together, these factors drove a 21.9% increase in total revenue, which reached a record of $6.5 billion in 2025. This strong top-line momentum translated into meaningful profitability. Our adjusted EBITDA reached almost $1.9 billion, an increase of 38.8% year-over-year, reflecting not only higher revenues, but also the benefits of scale, operational efficiency, and disciplined cost management. And lastly, our adjusted net income was $1.2 billion, 43.9% higher than last year. We are very proud of this performance, given the continued investments we are making to support our long-term growth. Now, our 2025 performance is best understood and appreciated in the context of our long-standing track record of strong, consistent results. As you can see on slide seven, for 2025, every major financial metric outperformed the compound annual growth rates shown on the slide, which are all very good. I believe that these trends reinforced that our 2025 results were not driven by a single good year, but by sustained demand, long-term planning, disciplined execution, and a strong business model. Additionally, on the next slide, number eight, you can see in a measurable way the strength of our demand. Viking has consistently increased capacity by increasing yields and maintaining high occupancy levels. Together, these trends reflect the long-term resilience of our business and our ability to execute consistently. In this context, a strong financial performance is part of the story. It's also important to review additional metrics that validate our growth trajectory. These are on slide nine and highlight the depth of our guests' loyalty, our market position, and our strength of our balance sheet. In 2025, 54% of our guests sailed with Viking as repeat travelers, a number that continues to grow, and that is a clear sign of the trust they placed in our brand. Moreover, more than half our bookings were made directly through Viking, This provides a meaningful long-term advantage in how we manage demand and engage with our guests. On top of this, we continue to hold a leading market share position with a 52% share of the North American outbound river market and a 27% share of the luxury ocean market. In addition to all this, we managed our balance sheet well. We ended the year with 45.8% return on invested capital and a net leverage ratio of 1.1 times. Overall, these results reflect our ability to achieve profitable growth while staying true to our principles of financial discipline and long-term value creation. Beyond the financial results, this consistency is also reflected in the recognition we continue to receive from our guests and the industry. On the next slide, number 10, we have highlighted some of the many accolades we have received during the year. These awards are particularly meaningful because they're based on guest feedback, reinforcing that our differentiated approach continues to resonate with our core demographic. In closing, I would like to highlight that even as business continues to evolve, the principles that define Viking and guide every decision we make are unchanged. And these principles are shown on slide 11. First, We remain unwavering in our commitment to obsess over our guests, making sure that we deliver an excellent travel experience at good value. Second, we continue to treat our employees as part of our extended family, recognizing that their dedication and care are central to everything we do. Third, we will continue to take a contrarian approach when we believe it serves the long-term interests of the business. And finally, we continue to do what we believe is right for the environment. With that, I will return to Leah to discuss our financials.