Kraken Robotics (PNG) Q4 2025 earnings summary

Executive summary

• Achieved record revenue and adjusted EBITDA in 2025, driven by strong demand for SeaPower/subsea batteries, SAS products, and growth in subsea and LiDAR services, supported by the acquisition of 3D at Depth.

• Expanded manufacturing capacity with a new battery facility in Nova Scotia and completed the acquisition of 3D at Depth, enhancing LiDAR capabilities.

• Announced transformational acquisition of Covelya Group for $615 million, expected to close in Q2 2026, to create a global leader in marine technology and dual-use subsea solutions.

• Strengthened leadership team and Board with new executives and directors, and ended 2025 with over CAD 120 million in cash.

Financial highlights

• 2025 consolidated revenue reached $102.2 million (CAD 102 million), up from $91.3 million in 2024, with service revenue at $40.5 million and product revenue at $61.7 million.

• Gross profit increased to $63.4 million (62.1% margin), up 42% year-over-year, with Q4 2025 gross margin at 70.4%.

• Adjusted EBITDA rose to $25.0 million (24.4% margin), with Q4 adjusted EBITDA at $9.5 million (33.5% margin).

• Net income for 2025 was $2.9 million, impacted by $5.0 million in restructuring and acquisition costs.

• Year-end cash position was $120.5 million, with working capital at $171.6 million.

Outlook and guidance

• 2026 revenue guidance of $165–175 million, representing over 65% annual growth at midpoint, and adjusted EBITDA expected between $40–50 million, with margin over 26%.

• CapEx for 2026 projected at $15–18 million, down from $30.3 million in 2025.

• Revenue expected to be weighted toward the second half of 2026.

• Updated guidance to be issued after Covelya acquisition closes.