VIK: 1Q26 Takes; Results Too Strong to Ignore, P/E Multiple Well Justified; Upgrading to OW

Research evidence excerpt

VIK: 1Q26 Takes; Results Too Strong to Ignore, P/E Multiple Well Justified; Upgrading to OW

/y driven by a strong mix shift towards high-yielding 2026E (0.11) A 1.26 E 1.37 E 0.77 E 3.28 E

itineraries, namely Egypt and Asia. We estimate Egypt/Asia contributed ~9pts of the Prior (0.13) E 1.15 E NC 0.76 E 3.15 E

growth in 1Q River yields despite only accounting for ~23% of total 1Q capacity and 2027E (0.02) E 1.61 E 1.73 E 1.03 E 4.35 E

the 2-week blackout period for Egypt itineraries. See our analysis below. This quarter Prior (0.10) E 1.45 E 1.67 E 0.94 E 3.96 E

illustrated just how much opportunity VIK has in the regions where it already dominates,

something we did not fully appreciate when we launched. Source:NA = NotCompanyAvailable,Data,NC =WellsNo Change,Fargo SecuritiesNE = Noestimates,Estimate and Factset.

Management Changes and More. Leah Talactac was promoted to CEO, while former CEO Trey Bowers, CFA

Tor Hagen will assume role of Executive Chairman and Linh Banh will replace Talactac as Equity Analyst | Wells Fargo Securities, LLC

Trey.Bowers@wellsfargo.com | 617-210-3724

CFO. We believe all of these changes were somewhat expected, a matter of when not if.

Nicholas WeichelAirfare may be a headwind on yields in 2H26, but we believe underlying trends are strong

Associate Equity Analyst | Wells Fargo Securities, LLC

enough to offset. The company now sits on a $4b+ cash position, which mgmt. views as a Nicholas.Weichel@wellsfargo.com | 646-717-0343

cushion in these turbulent times. Additional commentary below. Zachary Silverberg

Equity Analyst | Wells Fargo Securities, LLC

Upgrading to OW. We had very little to pick at when initiating coverage of VIK, and it has Zachary.Silverberg@wellsfargo.com | 212-214-1152

become more difficult to rationalize our EW rating.