Kraken Robotics (PNG) Q2 2026 earnings summary

Executive summary

• Closed transformative acquisition of Covelya Group on July 2, 2026, expanding technological capabilities, manufacturing capacity, and market reach.

• Achieved strong revenue growth in Q2 and H1 2026, with Q2 revenue up 4% year-over-year to $27.3 million, driven by both product and service segments.

• Enhanced organizational structure with new leadership appointments and integration of Covelya subsidiaries.

• Maintained a strong balance sheet, supporting financial flexibility and future growth.

• Focused on long-term growth in defense and commercial markets, leveraging dual-use technologies.

Financial highlights

• Q2 2026 consolidated revenue was $27.3 million: $16.9 million from products (+2% YoY), $10.5 million from services (+6% YoY).

• Gross profit rose to $16.2 million (+10% YoY), with gross margin improving to 59% from 56% in Q2 2025.

• Adjusted EBITDA reached $5.0 million (18% margin, +7% YoY); excluding a $1.5 million scope change, margin would be 20%.

• Capital expenditures totaled just over $8.9 million in Q2 2026, mainly for new marine assets and manufacturing expansion.

• Cash position at quarter-end was $91.3 million; working capital $151.8 million; minimal net debt post-Covelya acquisition.

Outlook and guidance

• 2026 guidance: annual revenues of $290–$320 million, adjusted EBITDA of $65–$75 million, capex of $27–$33 million.

• Over 75% of 2026 revenue expected from products, remainder from services.

• Majority of second-half growth to come from Covelya acquisition, with Q4 weighted stronger than Q3 for both products and services.

• Guidance includes partial year contribution from Covelya and ~$10 million in expected cost efficiencies over 24 months.

• Visibility into 2026 remains strong, with key execution risk tied to securing a KATFISH contract.