Canada's Kraken Robotics beats Q2 revenue estimates on strength in subsea battery, service businesses

Overview

• Kraken Q2 2025 revenue grows 16% to CAD 26.4 mln, beating analyst expectations

• Adjusted EBITDA for Q2 2025 falls to CAD 4.7 mln, margin impacted by expenses

• Company reports net loss of CAD 0.7 mln, compared to net income last year

Outlook

• Kraken Robotics maintains 2025 revenue guidance of C$120 mln to C$135 mln

• Company expects 2025 Adjusted EBITDA between C$26 mln and C$34 mln

• Strong RFP activity expected in naval defense from 2025 to 2027

Result Drivers

• SUBSEA BATTERIES - Significant growth in SeaPower subsea battery business, achieving highest quarterly revenue to date

• SERVICE REVENUE - Service revenue surged 180% due to organic growth and acquisition of 3D at Depth

• SONAR REVENUE DECLINE - Sonar revenue decreased as Canadian Navy RMDS project neared completion

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Kraken Robotics Inc is C$4.00, about 15.2% above its August 20 closing price of C$3.39

Press Release: ID:nGNX88vq2v