Kraken Robotics (PNG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $21.7 million, a 35% increase year-over-year, driven by strong demand for subsea batteries and SAS products.

• Adjusted EBITDA was $3.0 million, up 7% from Q1 2025, with a margin of 14%.

• Net loss for Q1 2026 was $3.3 million, but adjusted net income excluding restructuring and acquisition costs was $0.3 million.

• The acquisition of Covelya Group for $615 million is on track to close by the end of Q2 2026.

Financial highlights

• Product revenue grew 50% year-over-year to $13.8 million, while service revenue rose 14% to $7.9 million.

• Gross profit increased 21% to $12.2 million, with a gross margin of 56% (down from 63% in Q1 2025).

• Cash position at quarter-end was $108.7 million, and working capital was $162.4 million.

• Capital expenditures were $7.0 million, reflecting investments in new manufacturing facilities and marine assets.

Outlook and guidance

• 2026 revenue guidance is $165–$175 million, with Adjusted EBITDA of $40–$50 million, excluding Covelya.

• Revenue and earnings are expected to be weighted toward the second half of the year due to seasonality.

• Capital expenditures for 2026 are projected at $15–$18 million.

• Updated guidance including Covelya will be provided after acquisition closing.