The following discussion contains management’s discussion and analysis of our financial condition and results of operations and should be read together with our audited consolidated financial statements and related notes thereto included elsewhere in this Annual Report. For a comparative discussion and analysis related to the results of operations and changes in financial condition for the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report of Form 20-F for the year ended December 31, 2024 filed on March 11, 2025, with the SEC and available electronically at www.sec.gov. The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Item 3.D. Key Information—Risk Factors” and “Special Note Regarding Forward-Looking Statements.” Our actual results may differ materially from those contained in or implied by any forward-looking statements. A. Operating Results Booking Environment Advance Bookings reflects the aggregate ticketed amount for guest bookings for our voyages at a specific point in time, and include bookings for cruises, land extensions and air. Advance Bookings does not reflect changes to guest reservations after the applicable specific point in time. Advance Bookings are presented in U.S. dollars. As guests from Australia, Canada and the United Kingdom make reservations in local currencies, the ticketed amounts are converted based on the relevant exchange rate. Advance Bookings includes redemptions of vouchers. For Viking River, Viking Ocean, Viking Expedition and Viking Mississippi collectively, operating capacity is 7% higher for the 2026 season in comparison to the 2025 season. As of February 15, 2026, for the 2026 season, we had sold 86% of our Capacity PCDs and had $5,960 million of Advance Bookings. Advance Bookings were 13% higher in comparison to the 2025 season at the same point in time. Advance Bookings per PCD for the 2026 season was $859, 6% higher than the 2025 season at the same point in time. The following bullets contain additional information about Advance Bookings for Viking Ocean and Viking River for the 2026 season as of February 15, 2026, compared with the 2025 season at the same point in time: Viking Ocean: •Operating capacity is 9% higher for the 2026 season in comparison to the 2025 season. We had sold 87% of our Capacity PCDs for the 2026 season, and had $2,727 million of Advance Bookings, an increase of 16% compared to the same point in time for the 2025 season. Advance Bookings per PCD for the 2026 season was $787, compared to $746 at the same point in time for the 2025 season. Viking River: •Operating capacity is 6% higher for the 2026 season in comparison to the 2025 season. We had sold 85% of our Capacity PCDs for the 2026 season, and had $2,806 million of Advance Bookings, an increase of 10% compared to the same point in time for the 2025 season. Advance Bookings per PCD for the 2026 season was $906, compared to $841 at the same point in time for the 2025 season. 45 Table of Contents Secondary Offering On May 29, 2025, we completed a secondary offering of 30.5 million ordinary shares on behalf of CPP Investments and TPG at a price of $44.20 per share. We did not issue any ordinary shares and did not receive any proceeds from the secondary offering. We incurred approximately $1.3 million in expenses associated with the secondary offering, which are included in selling and administration on the consolidated statement of operations. After giving effect to that offering, TPG ceased being a party to, and did not retain any rights under, the Investor Rights Agreement. Key Factors Affecting Our Results of Operations Key factors that have influenced our results of operations in the past and may also influence results in the future include: Significant Early Bookings—We have historically been able to attain high levels of early bookings. Due to these bookings, we have insight into levels of guest demand, and can strategically allocate the ships in our fleet to optimize our revenue and Net Yield. For example, we may distribute a greater number of our Longships to regions with higher demand, or manage our capacity by consolidating passengers and taking one or more of our river ships out of service to reduce our operating costs. Additionally, the insights into guest demand inform our decisions for future ship commitments and allow us to coordinate our planned capacity growth with expected future demand. As cruise-related revenue is recognized over the duration of the cruise, our results of operations are affected by strategies we employed during prior periods. For instance, to obtain early bookings, a significant portion of the selling and administration expenses that we incur in a period supports revenues for future periods, including marketing and employee costs that support the growth of our fleet. We expect that our ability to attain high levels of early bookings for future seasons will impact our results for future periods. Size of Our Fleet and Occupancy—Our operating results are highly correlated with the number of ships that we operate during a given period and our Occupancy. If we take delivery of additional ships, our potential Capacity PCDs increase, which may increase our revenue. In contrast, if we decide to take one or more of our ships out of service, our Capacity PCDs decrease, which we expect will lower our revenue. As of December 31, 2025, our fleet consisted of 89 river vessels, including the Viking Mississippi, 12 ocean ships, including the Viking Yidun, and two expedition ships. We strategically manage our fleet by adjusting the number of ships deployed to a particular region, or in total, to improve Occupancy and efficiently manage operating costs. Our early bookings enable us to best position our fleet to meet guest demand. Seasonality—Our results are seasonal because while our ocean, expedition and Mississippi products operate year-round, the primary cruising season for our river product is from April to October, although some of our river cruises run longer seasons. Additionally, our highest Occupancy occurs during the Northern Hemisphere’s summer months. We recognize cruise-related revenue over the duration of the cruise and expense our marketing and employee costs when the related costs are incurred. As a result, the majority of our revenue and profits have historically been earned in the second and third quarters of each year, while the first and fourth quarters of each year have been closer to break even or a loss, as our selling and administration expenses are consistent throughout the year. Though the growth of our fleet of year-round products will continue to reduce the seasonality in future periods, we expect the seasonality trend of our revenue and profits to continue. Operating costs and expenses—Our operating costs and expenses are dependent on both macroeconomic factors and our strategic decisions. Inflation may increase our operating costs and expenses in future periods, including costs of labor, fuel and airfare. Inflation generally does not impact our ship commitments that are already under contract as a fixed price has already been agreed upon. Repairs and maintenance costs are recognized when incurred and the timing can shift depending on our operational needs. As a result, the cadence of these expenses may differ year-over-year. Additionally, as a result of our early bookings, we may not be able to pass on increases in operating costs and expenses, including cost increases from our suppliers (whether or not related to general inflationary pressures) and changes in governmental fees and taxes, to our guests with existing bookings, though we are able to adjust pricing for future bookings. However, as a significant portion of our marketing expenses are discretionary, we are able to strategically deploy our resources based on current market conditions, our early bookings and other factors. Financial Presentation Description of Certain Line Items Revenue Our revenue consists of: •Cruise and land, which includes revenue, net of discounts, earned primarily from cruises, air, land excursions, cancellation revenue and travel protection, net; and 46 Table of Contents •Onboard and other, which primarily consists of revenue related to optional shore excursions, onboard bar revenue, shop revenue and other products offered during a cruise, and services revenue. Expenses Our operating costs and expenses consist of: •Commissions and transportation costs, which consists of commission payments made to third parties for selling our product and the cost of air and other transportation; •Direct costs of cruise, land and onboard, which primarily includes cost of land excursions, shore excursions, credit card fees, transfer costs and onboard purchases; •Vessel operating, which primarily consists of costs to operate the vessels such as staff costs, fuel, emissions, food and hotel consumables, port charges, insurance, repair and maintenance, value added taxes and charter costs for variable and non-lease components; and •Selling and administration, which primarily consists of costs associated with marketing costs, employee costs, office expenses, professional services and other administration costs. Selected Operational and Financial Metrics, including Non-IFRS Accounting Standards Financial Measures We use certain non-IFRS Accounting Standards financial measures, such as Adjusted Gross Margin, Net Yield, Adjusted EBITDA, Adjusted Net Income (Loss) attributable to Viking Holdings Ltd, Adjusted EPS and vessel operating expenses excluding fuel to analyze our performance. We utilize Adjusted Gross Margin and Net Yield to manage our business because these measures reflect revenue earned net of certain direct variable costs. We also present certain non-IFRS Accounting Standards financial measures because we believe that they are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. Our non-IFRS Accounting Standards financial measures have limitations as analytical tools, may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS Accounting Standards. Adjusted Earnings per Share or Adjusted EPS represents Adjusted Net Income (Loss) attributable to Viking Holdings Ltd divided by Adjusted Weighted-Average Shares Outstanding. We present Adjusted EPS because we believe it provides additional information to us and our investors about the earnings performance of our primary operating business. We have presented Adjusted EPS for periods beginning in 2024 due to the changes in our capital structure as a result of our IPO. Adjusted EBITDA represents EBITDA (consolidated net income (loss) adjusted for interest income, interest expense, income tax benefit (expense) and depreciation, amortization and impairment) as further adjusted for non-cash Private Placement derivative gains and losses, currency gains or losses, share-based compensation expense, and other financial income (loss) (which includes forward gains and losses, gain or loss on disposition of assets, certain non-cash fair value adjustments, restructuring charges and non-recurring items). Adjusted EBITDA is a non-IFRS Accounting Standards financial measure and does not comply with IFRS Accounting Standards because it is adjusted to exclude certain cash and non-cash expenses. We present Adjusted EBITDA as a performance measure because we believe it facilitates a comparison of our consolidated operating performance on a consistent basis from period-to-period and provides for a more complete understanding of factors and trends affecting our business than measures under IFRS Accounting Standards can provide alone. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. You should exercise caution in comparing our Adjusted EBITDA to Adjusted EBITDA of other companies. Adjusted Gross Margin is gross margin adjusted for vessel operating and ship depreciation and impairment. Gross margin is calculated pursuant to IFRS Accounting Standards as total revenue less total cruise operating expenses and ship depreciation and impairment. Adjusted Gross Margin has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. Adjusted FCF represents net cash flow from operating activities as adjusted for interest paid, interest payments for lease liabilities, interest received, and Ongoing Capex, as further adjusted for the cash portion of interest expense related to our Series C Preference Shares. Our Series C Preference Shares automatically converted into ordinary shares immediately prior to the consummation of our IPO. Adjusted FCF Conversion represents the ratio, expressed as a percentage, of Adjusted FCF divided by Adjusted EBITDA. Adjusted FCF and Adjusted FCF Conversion are non-IFRS Accounting Standards financial measures. Management believes these are a relevant measure of our liquidity because Adjusted FCF provides additional information on our ability to support the future growth of the business and repay debt after making capital investments to support ongoing business operations and Adjusted FCF Conversion quantifies how efficiently we generate cash on an ongoing basis. Adjusted FCF does not 47 Table of Contents represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of debt. Adjusted FCF and Adjusted FCF Conversion have limitations as analytical tools, and should not be considered in isolation, or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. Adjusted Net Income (Loss) attributable to Viking Holdings Ltd represents net income (loss) attributable to Viking Holdings Ltd excluding certain items that we believe are not part of our primary operating business and are not an indication of our future earnings performance. We believe that interest expense and Private Placement derivatives gain (loss) related to our Series C Preference Shares, warrants gain (loss), debt extinguishment and modification costs, gain (loss) on embedded derivatives associated with debt, impairment charges and reversals and certain other gains and losses are not a part of our primary operating business and are not an indication of our future earnings performance. Adjusted Weighted Average Shares Outstanding represents the diluted weighted-average ordinary shares and special shares outstanding, adjusted for outstanding warrants and dilutive share based awards to the extent not included in diluted weighted-average ordinary shares outstanding, as further adjusted in 2024 to reflect the conversion of the Series C Preference Shares and preference shares as if it had occurred at the beginning of the year. Capacity Passenger Cruise Days or Capacity PCDs with respect to any given period is a measurement of capacity that represents, for each ship operating during the relevant period, the number of berths multiplied by the number of Ship Operating Days, determined on an aggregated basis for all ships in operation during the relevant period. Invested Capital is the average of the most recent four quarters of indebtedness, gross of debt fees, less cash and cash equivalents, plus total shareholders’ equity. Net Yield is Adjusted Gross Margin divided by Passenger Cruise Days. Due to early bookings by our passengers, our Net Yield for a given reporting period is affected by strategies we employed or events that occurred prior to the sailing year. Occupancy is the ratio, expressed as a percentage, of Passenger Cruise Days to Capacity Passenger Cruise Days with respect to any given period. Contrary to many of our competitors, we do not allow more than two passengers to occupy a two berth stateroom. Additionally, we have guests who choose to travel alone and are willing to pay higher prices for single occupancy in a two berth stateroom. As a result, our Occupancy cannot exceed 100% and may be less than 100%, even if all our staterooms are booked. Passenger Cruise Days or PCDs is the number of passengers carried for each cruise, with respect to any given period and for each ship operating during the relevant period, multiplied by the number of Ship Operating Days. ROIC is the ratio, expressed as a percentage, of operating income adjusted for income tax (expense) benefit, divided by Invested Capital. ROIC is a non-IFRS Accounting Standards financial measure. Management believes this is a relevant measure of our performance because it quantifies how efficiently we generated operating income relative to the total capital we have invested in the business. ROIC has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. Ship Operating Days is the number of days within any given period that a ship and vessel is in service and carrying cruise passengers, determined on an aggregated basis for all ships and vessels in operation during the relevant period. Vessel operating expenses excluding fuel is vessel operating expenses less fuel expense. Management believes this is a relevant measure for evaluating our ability to control costs. Vessel operating expenses excluding fuel has limitations as an analytical tool because it excludes an expense necessary for conducting our operations, and should not be considered in isolation, or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. 48 Table of Contents Results of Operations Operating results for the years ended December 31, 2025, 2024 and 2023 are shown in the following table: Year Ended December 31, 2025 2024 2023 (in thousands, except per share data) Consolidated Statements of Operations Revenue Cruise and land $ 6,051,435 $ 4,971,282 $ 4,383,524 Onboard and other 449,984 362,600 326,969 Total revenue 6,501,419 5,333,882 4,710,493 Cruise operating expenses Commissions and transportation costs (1,359,517 ) (1,156,610 ) (1,053,874 ) Direct costs of cruise, land and onboard (851,856 ) (676,760 ) (586,234 ) Vessel operating (1,472,487 ) (1,280,711 ) (1,211,676 ) Total cruise operating expenses (3,683,860 ) (3,114,081 ) (2,851,784 ) Other operating expenses Selling and administration (1,031,235 ) (883,889 ) (789,040 ) Depreciation, amortization and impairment (284,790 ) (260,844 ) (253,719 ) Total other operating expenses (1,316,025 ) (1,144,733 ) (1,042,759 ) Operating income 1,501,534 1,075,068 815,950 Non-operating income (expense) Interest income 84,876 69,374 48,027 Interest expense (362,575 ) (380,486 ) (528,061 ) Currency (loss) gain (56,100 ) 31,542 (20,815 ) Private Placement derivative loss — (364,214 ) (2,007,089 ) Other financial income (loss) 13 (261,450 ) (151,469 ) Income (loss) before income taxes 1,167,748 169,834 (1,843,457 ) Income tax expense (19,653 ) (16,857 ) (6,639 ) Net income (loss) $ 1,148,095 $ 152,977 $ (1,850,096 ) Net income (loss) attributable to Viking Holdings Ltd $ 1,147,570 $ 152,331 $ (1,850,572 ) Net income attributable to non-controlling interests $ 525 $ 646 $ 476 Weighted-average ordinary shares and special shares outstanding - Diluted 446,418 366,709 221,936 Net income (loss) per share attributable to ordinary and special shares - Diluted $ 2.57 $ 0.36 $ (4.42 ) Other Financial Information: Adjusted EBITDA $ 1,872,088 $ 1,348,302 $ 1,090,322 Adjusted Net Income attributable to Viking Holdings Ltd $ 1,165,050 $ 809,492 N/A Adjusted EPS $ 2.61 $ 1.86 N/A 49 Table of Contents The following table reconciles net income (loss), the most directly comparable IFRS Accounting Standards measure, to Adjusted EBITDA for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 2024 2023 (in thousands) Net income (loss) $ 1,148,095 $ 152,977 $ (1,850,096 ) Interest income (84,876 ) (69,374 ) (48,027 ) Interest expense 362,575 380,486 528,061 Income tax expense 19,653 16,857 6,639 Depreciation, amortization and impairment 284,790 260,844 253,719 EBITDA 1,730,237 741,790 (1,109,704 ) Private Placement derivative loss (a) — 364,214 2,007,089 Warrants loss (b) — 261,615 107,673 Other financial (income) loss (2,767 ) (1,886 ) 46,540 Currency loss (gain) 56,100 (31,542 ) 20,815 Share based compensation expense 88,518 14,111 17,909 Adjusted EBITDA $ 1,872,088 $ 1,348,302 $ 1,090,322 (a)Private Placement derivative loss represented the non-cash loss on the remeasurement of the fair value of the derivatives associated with the Series C Preference Shares. The Series C Preference Shares automatically converted to ordinary shares immediately prior to the consummation of our IPO. (b)Warrants loss represented the non-cash loss on the remeasurement of the warrant liability and is included in other financial income (loss) on the consolidated statements of operations. All warrants were exercised in November 2024, at which point the associated liability ceased to be outstanding. The following tables reconcile net income (loss) attributable to Viking Holdings Ltd, the most directly comparable IFRS Accounting Standards measure, to Adjusted Net Income (Loss) attributable to Viking Holdings Ltd and diluted weighted-average ordinary shares and special shares outstanding, the most directly comparable IFRS Accounting Standards measure, to Adjusted Weighted-Average Shares Outstanding for the years ended December 31, 2025 and 2024. Additionally, the following tables show the calculation of Adjusted EPS for the years ended December 31, 2025 and 2024. Year Ended December 31, 2025 2024 (in thousands) Net income attributable to Viking Holdings Ltd $ 1,147,570 $ 152,331 Interest expense and Private Placement derivative loss related to Series C Preference Shares — 396,207 Warrants loss — 261,615 Loss (gain), net, for debt extinguishment and modification costs and embedded derivatives associated with debt 17,480 (661 ) Adjusted Net Income attributable to Viking Holdings Ltd $ 1,165,050 $ 809,492 Year Ended December 31, 2025 2024 (in thousands) Weighted average ordinary shares and special shares outstanding – Diluted 446,418 366,709 Outstanding warrants — 7,803 Assumed conversion of Series C Preference Shares and preference shares at the beginning of 2024 — 61,504 Adjusted Weighted Average Shares Outstanding 446,418 436,016 Year Ended December 31, 2025 2024 (in thousands, except Adjusted EPS) Adjusted Net Income attributable to Viking Holdings Ltd $ 1,165,050 $ 809,492 Adjusted Weighted Average Shares Outstanding 446,418 436,016 Adjusted EPS $ 2.61 $ 1.86 50 Table of Contents The following table sets forth certain non-IFRS Accounting Standards financial measures for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 Adjusted FCF (in thousands) $ 2,175,610 $ 1,726,154 Adjusted FCF Conversion 116.2 % 128.0 % ROIC 45.8 % 40.8 % The following tables reconcile net cash flow from operating activities, the most directly comparable IFRS Accounting Standards measure, to Adjusted FCF, for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 (in thousands) Net cash flow from operating activities $ 2,560,310 $ 2,082,009 Interest paid (314,240 ) (355,080 ) Interest payments for lease liabilities (19,014 ) (20,872 ) Interest received 83,629 71,770 Ongoing Capex (135,075 ) (80,258 ) Cash portion of interest expense related to Series C Preference Shares — 28,585 Adjusted FCF $ 2,175,610 $ 1,726,154 Year Ended December 31, 2025 2024 (in thousands) Investments in PP&E $ (1,026,854 ) $ (917,424 ) Additions to PP&E for vessels and ships under construction 890,334 836,897 Additions to PP&E for vessels and ships delivered in current period 1,445 269 Ongoing Capex $ (135,075 ) $ (80,258 ) Year Ended December 31, 2025 2024 (in thousands, except Adjusted FCF Conversion) Adjusted FCF $ 2,175,610 $ 1,726,154 Adjusted EBITDA 1,872,088 $ 1,348,302 Adjusted FCF Conversion 116.2 % 128.0 % Year Ended December 31, 2025 2024 (in thousands) Operating income $ 1,501,534 $ 1,075,068 Income tax expense (19,653 ) (16,857 ) Operating income, after tax (a) $ 1,481,881 $ 1,058,211 Year Ended December 31, 2025 2024 (in thousands, except ROIC) Average indebtedness for four quarters $ 5,645,526 $ 6,503,078 Average debt fees for four quarters 156,518 129,306 Average cash and cash equivalents for four quarters (3,052,964 ) (2,097,717 ) Average shareholders’ equity for four quarters 483,931 (1,940,023 ) Invested Capital (b) $ 3,233,011 $ 2,594,644 ROIC (a) / (b) 45.8 % 40.8 % 51 Table of Contents The following table sets forth selected statistical and operating data on a consolidated basis: Statistical and Operating Data Year Ended December 31, 2025 2024 2023 Consolidated Vessels operated (a) 96 89 84 Passengers 791,582 683,717 649,669 PCDs 7,353,024 6,443,492 6,069,070 Capacity PCDs 7,709,620 6,886,205 6,476,790 Occupancy 95.4 % 93.6 % 93.7 % Adjusted Gross Margin (in thousands) $ 4,290,046 $ 3,500,512 $ 3,070,385 Net Yield $ 583 $ 543 $ 506 Vessel operating expenses (in thousands) $ 1,472,487 $ 1,280,711 $ 1,211,676 Vessel operating expenses excluding fuel (in thousands) $ 1,299,417 $ 1,105,533 $ 1,036,969 Vessel operating expenses per Capacity PCD $ 191 $ 186 $ 187 Vessel operating expenses excluding fuel per Capacity PCD $ 169 $ 161 $ 160 (a)Vessels operated includes chartered vessels and the Viking Yidun, which operated select Viking Ocean itineraries and Asia Outbound sailings for the years ended December 31, 2025 and 2024. The following table sets forth selected statistical and operating data for Viking River and for Viking Ocean: Statistical and Operating Data Year Ended December 31, 2025 2024 2023 Viking River Passengers 414,758 381,870 366,730 PCDs 3,285,444 3,065,534 2,957,595 Capacity PCDs 3,421,332 3,213,218 3,097,264 Occupancy 96.0 % 95.4 % 95.5 % Adjusted Gross Margin (in thousands) $ 1,897,876 $ 1,633,550 $ 1,411,214 Net Yield $ 578 $ 533 $ 477 Viking Ocean Passengers 313,529 253,360 243,291 PCDs 3,468,423 2,907,450 2,724,241 Capacity PCDs 3,650,314 3,096,400 2,914,620 Occupancy 95.0 % 93.9 % 93.5 % Adjusted Gross Margin (in thousands) $ 1,985,634 $ 1,517,435 $ 1,354,215 Net Yield $ 572 $ 522 $ 497 The following tables reconcile gross margin, the most directly comparable IFRS Accounting Standards measure, to Adjusted Gross Margin for the years ended December 31, 2025, 2024 and 2023 on a consolidated basis and for Viking River and Viking Ocean: Consolidated Year Ended December 31, 2025 2024 2023 (in thousands) Total revenue $ 6,501,419 $ 5,333,882 $ 4,710,493 Total cruise operating expenses (3,683,860 ) (3,114,081 ) (2,851,784 ) Ship depreciation and impairment (235,127 ) (214,729 ) (221,527 ) Gross margin $ 2,582,432 $ 2,005,072 $ 1,637,182 Ship depreciation and impairment 235,127 214,729 221,527 Vessel operating 1,472,487 1,280,711 1,211,676 Adjusted Gross Margin $ 4,290,046 $ 3,500,512 $ 3,070,385 52 Table of Contents Viking River Year Ended December 31, 2025 2024 2023 (in thousands) Total revenue $ 3,070,849 $ 2,654,407 $ 2,341,274 Total cruise operating expenses (1,789,646 ) (1,569,207 ) (1,446,513 ) Ship depreciation and impairment (72,994 ) (75,705 ) (89,540 ) Gross margin $ 1,208,209 $ 1,009,495 $ 805,221 Ship depreciation and impairment 72,994 75,705 89,540 Vessel operating 616,673 548,350 516,453 Adjusted Gross Margin $ 1,897,876 $ 1,633,550 $ 1,411,214 Viking Ocean Year Ended December 31, 2025 2024 2023 (in thousands) Total revenue $ 2,868,205 $ 2,196,040 $ 1,945,200 Total cruise operating expenses (1,549,311 ) (1,241,420 ) (1,131,696 ) Ship depreciation and impairment (128,018 ) (104,914 ) (98,847 ) Gross margin $ 1,190,876 $ 849,706 $ 714,657 Ship depreciation and impairment 128,018 104,914 98,847 Vessel operating 666,740 562,815 540,711 Adjusted Gross Margin $ 1,985,634 $ 1,517,435 $ 1,354,215 The following table reconciles vessel operating expenses excluding fuel to vessel operating expenses, the most directly comparable IFRS Accounting Standards measure, for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 2024 2023 (in thousands) Vessel operating expenses $ 1,472,487 $ 1,280,711 $ 1,211,676 Fuel expense (173,070 ) (175,178 ) (174,707 ) Vessel operating expenses excluding fuel $ 1,299,417 $ 1,105,533 $ 1,036,969 Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Revenues Consolidated Total revenue for the year ended December 31, 2025 increased by $1,167.5 million, or 21.9%, to $6,501.4 million from $5,333.9 million in 2024. Cruise and land increased by $1,080.1 million, or 21.7%, to $6,051.4 million for the year ended December 31, 2025, from $4,971.3 million in 2024. Onboard and other increased by $87.4 million, or 24.1%, to $450.0 million for the year ended December 31, 2025, from $362.6 million in 2024. These increases were primarily due to an increase in Capacity PCDs and higher Occupancy, and higher revenue per PCD. During the year ended December 31, 2025, our Capacity PCDs increased primarily due to growth in the fleet, including one ocean ship and two river vessels delivered in 2024, and one ocean ship and six river vessels delivered in 2025, and additional ship operating days in 2025 related to the Viking Yidun accommodation agreement. Viking River Segment Total revenue for our Viking River segment for the year ended December 31, 2025 increased by $416.4 million, or 15.7%, to $3,070.8 million from $2,654.4 million for the same period in 2024. The increase was primarily due to higher revenue per PCD and an increase in Capacity PCDs and higher Occupancy. During the year ended December 31, 2025, our Capacity PCDs increased primarily due to the operation of two river vessels delivered in 2024 and six river vessels delivered in 2025. Viking Ocean Segment Total revenue for our Viking Ocean segment for the year ended December 31, 2025 increased by $672.2 million, or 30.6%, to $2,868.2 million from $2,196.0 million for the same period in 2024. The increase was primarily due to an increase in Capacity PCDs and higher Occupancy and higher revenue per PCD. During the year ended December 31, 2025, our Capacity PCDs increased primarily due to one ocean ship delivered in 2024 and one ocean ship delivered in 2025. 53 Table of Contents Operating Costs and Expenses Commissions and transportation costs increased by $202.9 million, or 17.5%, to $1,359.5 million for the year ended December 31, 2025, from $1,156.6 million in 2024. The increase was primarily due to an increase in Capacity PCDs and higher Occupancy, and higher revenue. During the year ended December 31, 2025, our Capacity PCDs increased primarily due to growth in the fleet, including one ocean ship and two river vessels delivered in 2024, and one ocean ship and six river vessels delivered in 2025, and additional ship operating days related to the Viking Yidun accommodation agreement. Direct costs of cruise, land and onboard increased by $175.1 million, or 25.9%, to $851.9 million for the year ended December 31, 2025, from $676.8 million in 2024. The increase was primarily due to an increase in Capacity PCDs as well as an increase in our ancillary services. During the year ended December 31, 2025, our Capacity PCDs increased primarily due to growth in the fleet, including one ocean ship and two river vessels delivered in 2024, and one ocean ship and six river vessels delivered in 2025, and additional ship operating days related to the Viking Yidun accommodation agreement. Vessel operating increased by $191.8 million, or 15.0%, to $1,472.5 million for the year ended December 31, 2025, from $1,280.7 million in 2024. During the year ended December 31, 2025, vessels operated increased due to growth in the fleet, including one ocean ship and two river vessels delivered in 2024, and one ocean ship and six river vessels delivered in 2025, and additional ship operating days related to the Viking Yidun accommodation agreement. Selling and administration increased by $147.3 million, or 16.7%, to $1,031.2 million for the year ended December 31, 2025, from $883.9 million in 2024. The increase was due to an increase in employee costs and an increase in selling costs, office and professional fees, primarily due to an increase in Capacity PCDs for future seasons. Depreciation, amortization and impairment increased by $24.0 million, or 9.2%, to $284.8 million for the year ended December 31, 2025, from $260.8 million in 2024. The increase was primarily due to growth in the fleet, including one ocean ship and two river vessels delivered in 2024, and one ocean ship and six river vessels delivered in 2025. The drivers of changes in operating costs and expenses for our Viking River and Viking Ocean segments are the same as those described for our consolidated results. As a result of the foregoing, operating income was $1,501.5 million for the year ended December 31, 2025, compared to $1,075.1 million in 2024. Non-operating Income (Expense) Net interest expense decreased by $33.4 million to $277.7 million for the year ended December 31, 2025, from $311.1 million in 2024. The decrease was due to $32.0 million in interest expense recognized in 2024 related to the Series C Preference Shares, which automatically converted to ordinary shares immediately prior to the consummation of our IPO, and a $15.5 million increase in interest income. These decreases were partially offset by non-recurring charges of $17.2 million primarily due to the early repayment of ocean and expedition ship charters and the redemption of VCL’s 5.875% Senior Notes due 2027. Currency (loss) gain decreased by $87.6 million to a loss of $56.1 million for the year ended December 31, 2025, from a gain of $31.5 million in 2024. The loss was primarily due to unrealized losses for the Viking Neptune and Viking Saturn loans, which are both payable in euros and adjusted for currency translation, and realized currency losses due to payments for operating costs and vendor payments incurred in non-U.S. dollar denominations. These losses were partially reduced by currency gains related to cash and other financial assets held in euros and other non-U.S. dollar currencies, which create a natural offset with currency losses on non-U.S. dollar liabilities. Private Placement derivative loss decreased to nil for the year ended December 31, 2025, from $364.2 million in 2024. Immediately prior to the consummation of our IPO, the Series C Preference Shares automatically converted to ordinary shares and upon conversion to ordinary shares, the Private Placement derivative was no longer outstanding. Other financial income (loss) increased by $261.5 million primarily due to the loss on the remeasurement of the warrant liability in 2024. All warrants were exercised in November 2024, at which point the associated liability ceased to be outstanding. Income tax expense increased by $2.8 million to $19.7 million for the year ended December 31, 2025, from $16.9 million in 2024. 54 Table of Contents Net Income (Loss) Net income increased by $995.1 million to $1,148.1 million for the year ended December 31, 2025, from $153.0 million in 2024. The increase was primarily due to a $426.4 million increase in operating income due to the various factors described above, the $364.2 million loss on remeasurement of the Private Placement derivative in 2024 and $32.0 million in interest expense related to the Series C Preference Shares in 2024. Immediately prior to the consummation of our IPO, the Series C Preference Shares automatically converted to ordinary shares and upon conversion to ordinary shares, the Private Placement derivative and Private Placement liability were no longer outstanding. Additionally, there was a $261.5 million increase in other financial income (loss) primarily due to the loss on the remeasurement of the warrant liability in 2024. B. Liquidity and Capital Resources Liquidity Management Our liquidity requirements arise primarily from the need to fund working capital and capital expenditures for the expansion, refurbishment and maintenance of our fleet and to repay debt. Historically, we have obtained financing of up to 80% of our newbuild contract prices and issued debt and equity, when needed, to finance our cash needs and the growth of our business. Additionally, we collect significant deposits from bookings, which are recorded as deferred revenue and are recognized as revenue generally pro rata over the cruise period. In June 2024, we entered into an agreement for a revolving credit facility, which we amended and upsized in November 2025 (the “Revolving Credit Facility”). The Revolving Credit Facility provides for the borrowing of up to an aggregate principal amount of $1.0 billion, and if drawn, the proceeds will be used by us to finance ongoing working capital requirements and for other general corporate purposes. The Revolving Credit Facility matures on November 14, 2030. As of December 31, 2025 and 2024, no amounts were drawn on the Revolving Credit Facility. In October 2025, VCL issued $1.7 billion in principal amount of its 5.875% Senior Notes due 2033, the net proceeds of which were used to fund the full redemption of $825.0 million in principal amount of its 5.875% Senior Notes due 2027, including accrued and unpaid interest, and to pay costs and expenses related to the offering of its 5.875% Senior Notes due 2033 and the redemption of its 5.875% Senior Notes due 2027. The remaining net proceeds, together with cash on hand, were used to refinance the Viking Orion, the Viking Mars and the Viking Octantis charters in the fourth quarter of 2025 and refinance the Viking Jupiter charter in January 2026. As of December 31, 2025, we had $3,803.9 million in cash and cash equivalents and a working capital deficit of $1,214.3 million. The working capital deficit included $4,605.2 million of deferred revenue. We believe existing cash and cash equivalents and cash flows from operations and financing activities will continue to be sufficient to fund our operating activities and cash commitments for at least the next 12 months. Our liquidity requirements depend on several factors, many of which are beyond our control, as further described in “Item 3.D. Key Information—Risk Factors” of this Annual Report. Our liquidity requirements also include operating expenses, which have been impacted by elevated levels of inflation. We closely monitor costs and are cost conscious in managing our operations. We may work with multiple suppliers or source items from different markets to take advantage of cost competition. We may also look for opportunities to thoughtfully substitute lower cost alternatives, without compromising the quality of the guest experience. Where we anticipate elevated costs may be more sustained, we may enter into contracts with suppliers to lock in rates, such as for our river fuel. We are also strategic in the duration of our contracts to provide flexibility to take advantage of cost declines when they occur. We collect a significant amount of deposits for cruise bookings from our customers well in advance of their cruise dates. Credit card and electronic transfer transactions that settle quickly are classified as cash and cash equivalents. Other credit card receivables are included in accounts and other receivables. We rely on multiple credit card processors for collection of customer funds for future cruises. Credit card processors can limit the funds they remit to us if they determine that they need to increase their reserve requirements on credit card processing activities, which could reduce our cash and cash equivalents and negatively impact our liquidity position. 55 Table of Contents Sources and Uses of Cash Set forth below is a summary of our cash flows for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, (in thousands) 2025 2024 2023 Consolidated Statements of Cash Flows Data: Net cash flow from operating activities $ 2,560,310 $ 2,082,009 $ 1,371,331 Net cash flow used in investing activities (949,480 ) (853,711 ) (634,227 ) Net cash flow used in financing activities (305,964 ) (247,903 ) (479,651 ) Change in cash and cash equivalents 1,304,866 980,395 257,453 Effect of exchange rate changes on cash and cash equivalents 9,406 (4,436 ) 3,120 Net increase in cash and cash equivalents $ 1,314,272 $ 975,959 $ 260,573 Net Cash Flow from Operating Activities Net cash flow from operating activities increased by $478.3 million to $2,560.3 million for the year ended December 31, 2025, compared to $2,082.0 million in 2024. The increase was primarily due to a $426.4 million increase in operating income. Other changes primarily related to timing differences in cash receipts and payments for various operating assets and liabilities. Net Cash Flow used in Investing Activities Net cash flow used in investing activities increased by $95.8 million to $949.5 million for the year ended December 31, 2025, compared to $853.7 million in 2024. The increase was primarily due to a $109.4 million increase in capital expenditures, partially offset by a $11.9 million increase in interest received. Net Cash Flow used in Financing Activities Net cash flow used in financing activities increased by $58.1 million to $306.0 million for the year ended December 31, 2025, compared to $247.9 million in 2024. The increase was primarily due to $1,710.4 million in higher debt repayments and $243.9 million in net proceeds from our IPO in 2024. These increases were partially offset by an increase of $1,710.2 million in proceeds from long-term debt related to the issuance by VCL of $1.7 billion in principal amount of 5.875% Senior Notes due 2033 in 2025 and the debt drawdown upon the delivery of the Viking Vesta in 2025, $124.1 million in taxes paid related to net share settlement of equity awards in connection with our IPO in 2024, $40.8 million in lower interest paid and $18.2 million in lower dividends paid. Debt Obligations and Material Capital Commitments The table below summarizes our material commitments, based on contractual undiscounted cash flows as of December 31, 2025: Total 2026 2027-2028 2029-2030 2031 - forward (in thousands) Debt obligations (1) $ 7,375,981 $ 700,656 $ 1,591,790 $ 1,534,893 $ 3,548,642 Shipbuilding obligations (2) 4,549,409 1,183,924 1,886,371 1,479,114 — Vessel charter and accommodation agreement obligations (3) 218,056 39,029 81,043 66,790 31,194 Total $ 12,143,446 $ 1,923,609 $ 3,559,204 $ 3,080,797 $ 3,579,836 (1) Debt obligations include principal and estimated interest payments. Debt obligations denominated in euros are based on the euro to U.S. dollar exchange rate as of December 31, 2025, which was 1.17. Debt obligations are presented gross of debt transaction costs of $163.6 million. Our debt obligations mature at various dates through 2037 and bear interest at fixed and variable rates. Future interest on variable rate debt as of December 31, 2025 is calculated based upon interest rates ranging from 5.57% to 6.95%. See Note 14 in the consolidated financial statements for further information about our debt obligations. (2) Shipbuilding obligations include amounts payable for newbuilding agreements and amendments that were effective as of December 31, 2025. Our shipbuilding contracts are in euros and the amounts above are based on the euro to U.S. dollar exchange rate as of December 31, 2025, which was 1.17. As we make payments towards our newbuilds, our shipbuilding obligations are reduced. See “— Newbuilding Program” for additional information about our shipbuilding obligations and any related financing. (3) Vessel charter and accommodation agreement obligations represent remaining amounts contractually committed for leased vessels and ships, excluding renewal options not yet exercised. Vessel charter and accommodation agreement obligations 56 Table of Contents include payments for both asset and service components of the charters. The lease agreements for both the Viking Mississippi and the Viking Yidun include variable amounts, which are subject to change based on actual operating expenses or number of passengers. As of December 31, 2025, we had a financial maintenance covenant on certain of our river vessel financings that required Viking River Cruises Ltd (“VRC”), as guarantor, and Viking River Cruises AG (“VRC AG”), as borrower, to maintain at all times following the first drawdown, an aggregate amount of consolidated free liquidity, which included cash and cash equivalents, marketable securities and receivables from credit card processors, equal to or greater than $75.0 million. As of December 31, 2025, VRC and VRC AG were in compliance with this financial maintenance covenant. In February 2026, as a result of amendments to these vessel financings, this financial maintenance covenant no longer applies. We also have covenants in our debt agreements that generally restrict the amount of funds that can be transferred from VCL and its restricted subsidiaries to the Company to a basket, which is calculated based on a cumulative earnings metric. Newbuilding Program Newbuilds increase our potential number of berths and Capacity PCDs. Each Longship has 190 berths and certain of our river vessels are Longship-like, but are designed to be able to navigate smaller rivers and have fewer berths. Longships for Asia Outbound have 182 berths. Each ocean ship has 930 or 998 berths and each new ocean ship will have 998 berths. Each expedition ship has 378 berths. The Viking Mississippi has 386 berths. We generally have a variety of alternatives to finance our newbuilds. When we acquire options for newbuilds, we have no contractual or financial obligation to the shipyard until a contract for a newbuild is signed, subject to certain conditions. River Newbuilds and Charters A summary of the river newbuilding program as of December 31, 2025 is outlined below. The aggregate contract price of our river vessels on order listed in the table below was $826.0 million, based on the euro to U.S. dollar exchange rate as of December 31, 2025, which was 1.17. In December 2025, we were informed that the delivery of eight river vessels would be delayed. Two vessels originally scheduled for delivery in December 2025 will now be delivered in 2026 and six vessels originally scheduled for delivery in the first half of 2026 will now be delivered later in 2026. The table below reflects the updated delivery timing. River Vessels Number of Vessels Expected Delivery Longships 7 2026 Longship-Seine 1 2026 Longships 4 2027 Longship-Douro 1 2027 Longships 4 2028 Total 17 In 2025, we secured the following options for additional river vessels: River Vessels - Options Number of Vessels Expected Delivery Option Exercise Date Longships 4 2029 September 2026 Longships 4 2030 September 2027 Longships 4 2031 September 2028 Longships 4 2032 September 2029 We have entered into raw materials agreements for four river vessels that will operate in Egypt. We expect these vessels to be delivered in 2026 and 2027. In 2025, we entered into charter agreements for two 80-berth river vessels traveling through India for the 2027 through 2035 seasons and the 2028 through 2036 seasons, respectively. We have options to extend the charters for three additional seasons. 57 Table of Contents Ocean Newbuilds A summary of the ocean newbuilding program as of December 31, 2025 is outlined below. In November 2025, we amended the shipbuilding contracts to accelerate the delivery dates for Ship XIX and Ship XX by six months each, and they are now scheduled to be delivered in 2029 and 2030, respectively. The aggregate contract price of our ocean ships on order listed in the table below was $4,625.6 million, based on the euro to U.S. dollar exchange rate as of December 31, 2025, which was 1.17. We have obtained financing for all ships, as described below. Ocean Ships Expected Delivery Viking Mira 2026 Viking Libra 2026 Viking Astrea 2027 Viking Lyra 2028 Ship XVII 2028 Ship XVIII 2029 Ship XIX 2029 Ship XX 2030 In 2021 and 2022, we entered into loan agreements for the Viking Mira, the Viking Libra, the Viking Astrea and the Viking Lyra. In the first quarter of 2025, we entered into loan agreements for Ship XVII, Ship XVIII, Ship XIX and Ship XX. These loans are for up to 80% of each newbuild’s contract price, including certain change orders, and 100% of the Export Credit Agency premium, and will be available for drawdown in U.S. dollars. SACE SpA, which manages the official export credit guarantee scheme on behalf and for account of the Italian Government, provided the lenders with an insurance policy covering 100% of the principal and interest of the facility amount. The interest rates for the loans are fixed. The loans are due in 12 years through 24 consecutive, semiannual, equal installments, the first of which is generally due six months after the drawdown at delivery. The Company, VCL and Viking Ocean Cruises II Ltd have jointly and severally guaranteed all of these loan agreements. In 2025, we entered into shipbuilding contracts for the ships outlined below conditioned upon certain financing conditions. If the financing conditions are not met by March 31, 2026, these contracts can be terminated by us or the shipyard. In November 2025, we amended the shipbuilding contracts to accelerate the delivery dates for Ship XXI and Ship XXII by six months each as reflected in the table below. Ocean Ships Expected Delivery Ship XXI 2030 Ship XXII 2031 In 2024 and 2025, we secured the following options for additional ocean ships: Ocean Ships - Options Expected Delivery Option Exercise Date Ship XXIII 2032 July 2026 Ship XXIV 2032 July 2026 Ship XXV 2033 July 2027 Ship XXVI 2033 July 2027 Ship XXVII 2034 July 2028 Ship XXVIII 2034 July 2028 Expedition Newbuilds In February 2026, we entered into shipbuilding commitments for the ships outlined below conditioned upon certain financing and other conditions. Expedition Ships Expected Delivery Expedition Ship III 2030 Expedition Ship IV 2031 58 Table of Contents Revolving Credit Facility In 2024, we entered into an agreement for a revolving credit facility, which we amended and upsized in November 2025. The Revolving Credit Facility provides for the borrowing of up to an aggregate principal amount of $1.0 billion. The Revolving Credit Facility matures on November 14, 2030. The obligations of VCL under the Revolving Credit Facility are guaranteed by VHL and certain of VCL’s direct and indirect wholly-owned subsidiaries and are secured by VCL’s rights under the intercompany loan agreement with VRC AG, which, in turn, is secured by mortgages over the following river vessels: Viking Odin, Viking Idun, Viking Freya, Viking Njord, Viking Eistla, Viking Bestla, Viking Embla, Viking Aegir, Viking Skadi, Viking Bragi, Viking Tor, Viking Var, Viking Forseti, Viking Rinda, Viking Jarl, Viking Atla, Viking Gullveig, Viking Ingvi and Viking Alsvin. As of December 31, 2025 and 2024, no amounts were drawn on the Revolving Credit Facility. Summarized Financial Information for Guarantors of the Unsecured Notes As a result of VHL’s guarantee of certain financial obligations, including VCL’s 7.000% Senior Notes due 2029, 9.125% Senior Notes due 2031 and 5.875% Senior Notes due 2033 (collectively, the “Unsecured Notes”), our reporting obligations may be satisfied with financial information of VHL so long as we also provide the information that would be required by SEC Rule 13-01 of Regulation S-X. See Note 14 to our audited consolidated financial statements included elsewhere in this Annual Report for further information on financial instruments. Our assets, liabilities, revenues, expenses and other comprehensive income either exist at or are primarily generated by the subsidiaries that issue or guarantee the Unsecured Notes. Accordingly, we meet the criteria in Rule 13-01 of Regulation S-X to omit the summarized financial information for the assets and liabilities and operating results of the issuer and guarantors of the Unsecured Notes from our disclosures. The following tables set forth summarized financial information as of and for the year ended December 31, 2025 as required by SEC Rule 13-01 of Regulation S-X for the issuer and guarantors of the Unsecured Notes, on a combined basis after elimination of intercompany transactions and balances among the issuer and guarantors. Additionally, investments in and equity in the earnings of non-guarantor subsidiaries have been eliminated. December 31, 2025 (in thousands) Assets (a) Non-current Assets $ 7,599,484 Current Assets $ 4,654,467 Liabilities (b) Non-current Liabilities $ 5,334,242 Current Liabilities $ 5,963,882 (a)Includes intercompany amounts due from non-guarantor subsidiaries to the issuer and guarantors of $552.4 million. (b)Includes intercompany amounts due to non-guarantor subsidiaries to the issuer and guarantors of $489.5 million. Year Ended December 31, 2025 (in thousands) Total Revenue (a) $ 5,973,823 Operating income $ 1,411,557 Income before income taxes $ 1,043,235 Net income (b) $ 1,030,763 Net income attributable to Viking Holdings Ltd $ 1,030,763 (a)Includes total revenue recognized by the issuer and guarantors from non-guarantor subsidiaries of $6.0 million from net intercompany charges. (b)Includes net losses recognized by the issuer and guarantors from non-guarantor subsidiaries of $785.0 million from net intercompany charges. 59 Table of Contents C. Research and Development, Patents and Licenses Not applicable. D. Trend Information Other than as disclosed elsewhere in this Annual Report, we are not aware of any trends, uncertainties, demands, commitments or events since December 31, 2025 that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions. E. Critical Accounting Estimates Our management’s discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which we have prepared in accordance with IFRS Accounting Standards as issued by the IASB. The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported revenues and expenses during the reporting periods. Actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are more fully described in the notes to our consolidated financial statements appearing elsewhere in this Annual Report, we believe that the accounting policies discussed below are critical to our financial results and to the understanding of our past and future performance, as these policies relate to the more significant areas involving management’s estimates and assumptions. We consider an accounting estimate to be critical if: (1) it requires us to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time we were making our estimate and (2) changes in the estimate could have a material impact on our financial condition or results of operations. Fleet Accounting—Useful Lives, Depreciation and Residual Value Our fleet includes vessels and ships, our most significant assets, which we record at cost less accumulated depreciation and impairment. To compute depreciation expense for our vessels or ships, we estimate the useful lives of the major components of the vessels or ships as well as their residual values. Estimates for useful lives and residual values may differ between our ocean and expedition ships, which are exposed primarily to salt water and generally operate year-round, and our river vessels, which are exposed primarily to fresh water and generally operate for approximately eight to nine months per year. Depreciation expense for our vessels and ships is computed net of the residual value on a straight-line basis. We estimate the useful lives of our vessel or ship components based on our estimated period of economic benefit, the seasonal usage of river vessels, the comparable market for ocean and expedition ships, historical experience with river vessels, differences in salt water and fresh water deterioration rates and brokers’ assessments of the useful lives, when available. Given the large and complex nature of our ships, our relatively young fleet and limited market information for river vessels, our accounting estimates related to vessels and ships require considerable judgment and are inherently uncertain. If factors or circumstances cause us to revise our estimates of vessel or ship service lives or projected residual values, depreciation expense could be materially lower or higher. The estimated useful lives of our vessel and ship components generally are as follows: River vessels Hull and superstructure 40 - 50 years Machinery 40 - 50 years Hotel and restaurant 10 years Navigation equipment 5 years Ocean and expedition ships Hull, deck and machinery 32 years Interior 24 years We estimate the residual value of our vessels and ships based on our long-term estimates of their resale value at the end of their useful life to us but before the end of their physical and economic lives to others, the comparable market for ocean and expedition ships, the historical resale value of our river vessels and the higher resale value potential of vessels exposed primarily to fresh water. We estimate the residual value of our vessels or ships at approximately 15% to 20% of the original vessel or ship cost. We believe we have made reasonable estimates for vessel and ship accounting purposes. However, should certain factors or circumstances cause us to revise our estimates of vessel or ship useful lives or projected residual values, depreciation expense could 60 Table of Contents be materially lower or higher. If circumstances cause us to change our assumptions in determining whether vessel or ship improvements should be capitalized, the amounts we expense each year as repairs and maintenance costs could increase, partially offset by a decrease in depreciation expense. If we had reduced our estimated vessel and ship component useful lives by one year, depreciation expense for the year ended December 31, 2025 would have increased by approximately $16.0 million. If our vessels and ships were estimated to have no residual value, depreciation expense for the year ended December 31, 2025 would have increased by approximately $34.3 million. Impairment of Vessels and Ships, Including Right-of-Use (“ROU”) Vessel and Ship Assets We review our property, plant and equipment, including ROU assets, principally vessels and ships, for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We evaluate asset impairment at the lowest level for which there are largely independent cash inflows. Impairment exists when the carrying value of an asset exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. Impairment loss is recognized in depreciation, amortization and impairment in the consolidated statements of operations. For our vessels and ships, the lowest level for which there are largely independent cash inflows is generally the individual vessel or ship. We consider that the following factors may be indicators of potential impairment: the decision to lay up a vessel or ship, which is to take a vessel or ship out of service, for more than one season; the carrying value of a vessel or ship exceeds the broker estimate of the value of the vessel or ship; significant physical damage to a vessel or ship; significant, adverse changes in the yields or booking curves associated with the vessel or ship; and other general economic factors. The fair value less costs of disposal for vessels and ships may be based on broker estimates. Value in use for vessels or ships is calculated using a discounted cash flow model. The future cash flows are derived from past actual performance and management’s assessment of future performance for the vessel’s or ship’s remaining useful life under multiple scenarios reflecting variability in possible results. The value in use is sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows. We perform this impairment assessment when there are circumstances that indicate that the carrying value of any of our vessels or ships may not be recoverable. However, our conclusions may change if factors or circumstances cause us to revise our assumptions in future periods. We did not identify any impairment indicators related to vessels and ships as of December 31, 2025 and 2024. For the years ended December 31, 2025, 2024 and 2023, we did not recognize any impairment loss related to vessels and ships. Recent Accounting Pronouncements See Note 2 to our audited consolidated financial statements included elsewhere in this Annual Report for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of the date of this Annual Report. 61 Table of Contents