Kraken Robotics (PNG) Investor presentation summary

Strategic overview and acquisition rationale

• Acquisition of Covelya Group for $615 million enhances scale, technology, and global reach, with $480 million in cash and $135 million in equity issued to Covelya's shareholder.

• The deal is expected to close in Q2 2026, subject to regulatory approvals, and will result in two business units: Defence and Commercial.

• Covelya brings advanced manufacturing, a deep technical team, and a strong portfolio of patents, expanding the total addressable market and cross-selling opportunities.

• The acquisition is immediately accretive, with anticipated revenue and cost synergies and enhanced business diversification.

• Financing includes a $150 million credit facility and $402.5 million from a subscription receipt offering, resulting in a combined net leverage of 0.3x.

Financial performance and outlook

• Combined 2025E revenue projected at $364 million, with combined adjusted EBITDA of $88 million and a 24% margin.

• Kraken's 2025 standalone results: $102 million revenue and $25 million adjusted EBITDA (24% margin).

• Covelya's 2025E revenue estimated at $262 million with $63 million adjusted EBITDA (24% margin).

• Combined revenue CAGR (2023-2025E) is 23%, and combined adjusted EBITDA CAGR is 39%.

• Strong balance sheet with low leverage and significant production capacity (>450,000 sq ft across 25 facilities in 8 countries).

Market positioning and growth drivers

• Dual-use technology portfolio targets defense, maritime surveillance, and offshore energy, with applications in mine countermeasures, ISR, and critical underwater infrastructure.

• Over 700 customers globally, including major navies, defense primes, and energy companies.

• UUV market expected to grow at a 24% CAGR from 2025 to 2035, driven by defense and offshore energy demand.

• Geopolitical and macro trends, such as increased defense spending and offshore energy investment, support long-term growth.

• Enhanced R&D and innovation capabilities, with >110 patents and a highly skilled workforce of ~1,200 employees.