Kraken Robotics in a great position to help supply NATO navies with their sub sea technology - July Update!

 

Did Desjardin just Release the Kraken? - Kraken Robotics Investment and Business Report (June 2025)

Kraken Robotics’ recent momentum as a growing business and investment opportunity, now including these strategic dimensions:

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💰 1. C$100 Million Bought-Deal Financing

• What’s new: Kraken announced a bought‑deal public offering in June 2025—raising roughly C$100 million with a 15% over-allotment.

• Why it’s positive:

  • Bolsters liquidity, enabling aggressive expansions or debt reduction.

  • Supports continued investment in acquisitions and manufacturing scale-up.

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🧪 2. Acquisition of 3D at Depth (Closed April 2025)

• What happened: Kraken acquired U.S.-based LiDAR specialist 3D at Depth for US$17 million in cash money.tmx.com+11krakenrobotics.com+11jpt.spe.org+11.

• Strategic plus:

  • U.S. presence: Adds offices in Texas and Colorado, strengthening Kraken’s position amid trade tensions weareaquaculture.com+4krakenrobotics.com+4jpt.spe.org+4.

  • Market diversification: Begins direct manufacturing and sales in a politically critical region.

  • Technical synergy: Enhances SeaVision with deep-water (>300 m) laser capabilities; 3D at Depth recently completed its 1,000th project krakenrobotics.com+8krakenrobotics.com+8jpt.spe.org+8.

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🏭 3. Nova Scotia Subsea Battery Facility

• What happened: Plans for a high-energy SeaPower™ battery plant in Halifax slated for late 2025 krakenrobotics.com+2krakenrobotics.com+2krakenrobotics.com+2.

• Why it matters:

  • Strategic location: Halifax—Canada East Coast Navy HQ and major NATO port—offers logistical and defense synergies.

  • Defense reach: Perfect staging for contracts, including those with NATO navies. Infrastructure and proven naval partnerships are already in place.

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📈 4. Robust Q1 2025 Results & Backlog

• What happened: Q1 revenue was C$16.1 M with 62.7% gross margin, C$58 M in cash (up sharply YOY), and C$94.6 M in working capital.

• Why it’s positive:

  • Confirms improved profitability, operational efficiency, and a strong cushion for growth.

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🧭 5. Growing Bookings & Service Expansion

• What happened: Since Q4 2024, Kraken received ~$45 M in subsea battery orders and ~$3 M in sonar bookings.

  
  
  

• Why it matters:

  • Reflects sustained demand in defense and offshore energy sectors.

  • Validates product-market fit across diverse offerings.

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🎯 6. Defense & NATO Engagement

• What happened: Ongoing contracts include $50 M+ for Royal Canadian Navy mine hunting systems in Halifax and past contracts with NATO navies (Australia and UK).

  
  
  

• Why it’s important:

  • Halifax facility aligns geographically with Kraken’s East Coast naval customers.

  • Strengthens NATO interoperability and trust amid global naval tensions.

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✅ 7. Comprehensive Subsea Ecosystem & Diversification

• What’s evolving: Kraken now offers sonar (KATFISH™), LiDAR (SeaVision + 3D at Depth), subsea batteries (SeaPower™), and RaaS.

  
  
  

• Pipeline inspection through Kraken Seapower

• Why it’s smart:

  • Reduced reliance on a single revenue stream.

  • Offers integrated solutions for underwater defense and infrastructure clients.

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📊 Summary Table

Strength	Details
Financial Power	C$100M financing + C$58M cash = strong investment capability
North American Reach	U.S. operations via 3D at Depth + Halifax manufacturing
Defense Ecosystem	Halifax ties to RCN and NATO; major contracts secured
Tech Portfolio	Integrated sensors + power + service delivery
Proven Demand	Order backlog and major contracts affirm market traction

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🎯 Why This Update Matters for Investors

• Global Expansion: A U.S. footprint hedges geopolitical trade risks, unlocking access to American contracts.

• Strategic NATO Positioning: Halifax location and facility align with allied naval operations, reinforcing defense supply chain credentials.

• Integrated Tech Stance: Offers deep-tech defense clients everything from data to power, buoyed by recurring service demand.

• Financial Firepower: Strong capital reserves enable execution of strategy without dilution or debt stress.

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In combining financial strength, geographic diversification (Canada + U.S.), purpose-built naval infrastructure, and a full-stack subsea solution, Kraken Robotics has elevated its status to more than a sensor company—it’s now a strategically aligned defense-tech enabler with actual commercial momentum. These developments make it a more compelling long-term investment.

Here’s a deeper look into Kraken Robotics (PNG/KRKNF) covering contract timelines, valuation considerations, and the competitive landscape:

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📅 Contract Timelines & Execution

• Royal Canadian Navy Remote Mine hunting & Disposal System (RMDS)

  • Awarded: December 2022, with formal kickoff in January 2023.

  • Acquisition phase: 24 months, through end-2024, followed by a 5‑year integrated logistics support (ILS) program ($40 M acquisition + $10 M ILS) .

  • Operational readiness: RMDS installations expected fully operational in 2025 .

• KATFISH Sonar System for Royal Danish Navy

  • Integration began in 2023, achieving full operational capability in early 2024.

  • Sustenance contract spans 7 years with potential extensions up to 21 years .

• NATO Vessels Upgrade Contract

  • Roughly US $9 M follow-on deal secured in late 2022 for additional KATFISH units, tentacle winches, and autonomous launch-recovery systems (ALARS) .

    
    
    

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📈 Valuation Snapshot & Market Outlook

• Analyst price targets: Average 12% upside to CA $3.40 (range CA $3.28–$3.68) over the next 12 months .

• Intrinsic value vs market price:

  • Simply Wall St: Fair value ~CA $3.28, placing current price ~7% below fair value .

• Key metrics:

  • Trailing P/E around 38× (Yahoo Finance), forward P/E not yet meaningful .

  • P/E ~42× vs industry avg. ~31× (Simply Wall St) .

  • EV/EBITDA ~28× vs sector avg. ~18× .

• Growth: Earnings projected ~8% annually; last year saw ~136% growth .

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🏆 Competitive Positioning

Strengths:

• Integrated solution platform: Combines advanced sonar (KATFISH™, AquaPix™), subsea LiDAR (SeaVision + 3D at Depth), batteries (SeaPower™), AUVs, and RaaS—enhancing defensibility.

• Long-term contracts:

  • Danish results show FOC achieved and a multi-year sustainment contract .

  • Canadian RMDS creates 7+ years of recurring revenue .

• Global adoption: 

• Deployed across the U.S., U.K., Australia, Denmark, Poland—plus mounting interest from NATO .

Risks:

• High valuation relative to peers: Premium multiples imply investor expectations for continued growth.

• Execution risk: Meeting ambitious contract delivery timelines across multiple large-scale programs.

• Geopolitical dependency: Much revenue tied to defense budgets, which can be cyclical.

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🧭 Investment Implications

Metric	Insight
Cash flow & margins	Large multi-year contracts with sustainment provide stable, predictable revenue.
Geographic diversification	U.S. and NATO footprint hedges trade/tension risks; Halifax location aligns with naval operations.
Valuation debate	Disagreement between growth-based models (Simply Wall St) and DCF-based (Alpha Spread); current price sits between fair-value estimates.
Catalysts

• RMDS ramp in 2025

• Further U.S./EU contracts via 3D at Depth presence

• Continued deployment of KATFISH on NATO-MCM vessels |

Conclusion: Kraken’s strategic positioning, recurring revenue pipelines, and expanding global engagement present a compelling growth narrative. However, execution reliability and valuation premiums warrant careful monitoring—especially given its ~40× P/E.

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Here’s a refined look at how NATO’s new 5% GDP defense‑spending pledge bolsters Kraken Robotics’ strategic positioning—and why it matters:

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🌐 NATO’s 5% Defense Commitment

• At the June 2025 Hague Summit, NATO members agreed to raise combined defense and defense‑related spending to 5% of GDP by 2035, defining 3.5% for core military expenditures (troops, weapons, ops) and up to 1.5% for resilience, infrastructure, cybersecurity, and industrial base ft.com+7sipri.org+7apnews.com+7usglobaletfs.com+9reuters.com+9en.wikipedia.org+9.

• While Spain received an exception, most members—including Canada and Eastern European nations—endorsed the target en.wikipedia.org+1atlanticcouncil.org+1.

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📣 What This Means for Kraken Robotics

1. Boost in Core Defence Procurement

   • With NATO countries winding up core defense budgets, there's greater emphasis and funding available for equipment like sonar systems (e.g. KATFISH™), underwater LiDAR, power systems, and autonomous platforms—all in Kraken’s portfolio.

2. Infrastructure Spending Tailwinds

   • The additional 1.5% of GDP aimed at dual-use infrastructure—ports, bridges, cyber, and shipyards—aligns perfectly with Kraken’s Halifax battery plant and its sensor systems used for marine infrastructure monitoring and readiness.

3. Special Defense Focus on Canada & Allies

   • Canada (currently ~1.3% GDP on defense) is expected to scale up significantly. Kraken’s Halifax facility—on the East Coast naval hub at a major NATO port—is primed to capture more contracts as defense budgets grow.

4. Leverage European/NATO Industrial Expansion

   • As NATO boosts its defense-industrial base under this plan, Kraken stands to benefit from increased R&D and procurement contracts across the alliance, particularly in the U.S., Canada, and Europe.

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📈 Strategic & Investment Implications for Kraken

Axis	Positive Impact
Revenue Growth	Larger NATO defense budgets widen pipeline opportunities for sonar, LiDAR, batteries, AUV deployments, and sustainment contracts.
Geographic & Industrial Push	Kraken's U.S. and Canadian build-out is well‑aligned with NATO’s spending surge, increasing its positioning as a key supplier.
Valuation Upside	Given Kraken’s high multiples (P/E ~40×), securing new, credible NATO contracts supports earnings growth and validates premium valuation.
Execution Risk	While budget increases help, Kraken must still deliver projects on-time and scale its capabilities to meet heightened demand.

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🧭 Bottom Line

NATO’s 5% GDP commitment is a paradigm shift in defense spending—a ramp-up that directly plays to Kraken Robotics’ strengths:

• Its full-stack subsea offerings — sonar, LiDAR, batteries, AUV deployment — become increasingly relevant.

• Its Halifax and U.S. footprint aligns with infrastructure investments and defense-alliances.

• With large-scale defense budgets unlocking in the coming decade, Kraken is uniquely positioned to capitalize.

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Related NATO defense‑spending news

NATO leaders agree to hike military spending and restate 'ironclad commitment' to collective defense

thetimes.co.uk

Nato summit 2025 - as it happened

Related Articles:

A shadow war is brewing under the worlds oceans. 

Release "The Kraken"!

Did Desjardin just Release the Kraken? - Kraken Robotics Investment and Business Report (June 2025)

We bought Hyundai Motors today (HYMTF) and here's why we like it!

 

Hyundai Motor Company (KRX:005380 / OTC: HYMTF) is increasingly attractive as an investment, especially if you're seeking exposure to the convergence of robotics, electric vehicles (EVs), and autonomous driving. Here's a breakdown of why Hyundai may be a solid investment right now, based on current dynamics:

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✅ Bull Case for Hyundai – July 2025

1. Boston Dynamics Integration = Unique Robotics Edge

• Hyundai is one of the only global automakers with full control over a top-tier robotics firm.

  
  
  

• Use of Spot, Stretch, and soon Atlas robots in factories, logistics, and inspection gives Hyundai a first-mover advantage in smart manufacturing.

  
  
  

• This enhances productivity, reduces downtime, and may accelerate AV system testing (e.g. physical AI, real-time perception).

“Tens of thousands” of robots will be deployed across Hyundai and Kia plants — that's not R&D; that’s operational transformation.

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2. Strong EV Momentum

• Hyundai’s Ioniq lineup is highly rated (Ioniq 5 and 6), competing well with Tesla on quality, design, and price.

  
  
  

• Major EV production plants in Georgia (U.S.) are ramping up, giving Hyundai a serious foothold in North America.

• Hyundai’s battery partnerships (SK On, LG Energy) strengthen its supply chain.

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3. AV Partnerships & Strategy

• Motional (joint venture with Aptiv) is testing Level 4 robotaxis in the U.S. using Hyundai EV platforms.

• Integration of sensor fusion, real-time mapping, and AI navigation systems is being tested now — a strong sign of future readiness in the AV space.

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4. Undervalued Compared to U.S. Peers

• Hyundai trades at much lower valuation multiples than Tesla, GM, or even Ford:

  • P/E ratio often under 8–9x

  • Price-to-book well under 1.0

• Despite growing global EV sales, its valuation doesn’t yet reflect the robotics + AI upside that Tesla is often credited with.

• June total sales of hybrid vehicles jumped 3%, resulting in the best June ever for hybrid and total electrified vehicle sales.
  
  Q2 and First Half Highlights
  
  Hyundai sold 235,726 units in Q2, for a total sales increase of 10% compared with Q2 2024. Hyundai set total and retail sales records in Q2 for Elantra N, Santa Fe HEV, Tucson PHEV, Tucson HEV and Palisade. Hybrid vehicle sales for the quarter rose 16%.
  
  Hyundai sold 439,280 total units in the first half of 2025, a 10% increase compared to the first half of 2024 and the best ever first half sales results. First half retail sales rose 5%. Total electrified vehicle sales saw an increase of 20% year-over-year.

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5. Dividends & Global Growth

• Hyundai pays a solid dividend (~2.5%–3% yield, depending on share class and FX).

• It's expanding aggressively in India, Southeast Asia, and North America, growing both ICE and EV market share.

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❌ Risks to Consider

Risk	Details
Geopolitical exposure	Korea-based; vulnerable to tensions with North Korea, China, U.S. tariffs
Competitive landscape	Faces Tesla, BYD, VW, and new AV entrants like Apple or Xiaomi
AV timeline uncertainty	No firm timeline for fully commercial AV products
BD not yet monetized	Boston Dynamics is still a cost center, not a profit engine—yet

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📈 Investment Summary

Factor	Grade
Robotics edge via BD	★★★★☆
AV development (Motional)	★★★★☆
EV lineup & sales	★★★★☆
Valuation	★★★★★
Market momentum	★★★☆☆

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🧭 My Take:

Hyundai is underappreciated by Western investors despite being:

• A global top 5 EV manufacturer,

• An early adopter of humanoid and autonomous robotics, and

• Positioned for long-term gains in AV, factory automation, and battery EV sectors.

If you're building a robotics + EV portfolio, Hyundai is a compelling stock to pair with ETFs like BOTZ, ARKQ, and DRIV.

Full disclosure:

We bought Hyundai today and own BOTZ. 

ARKQ and DRIV are on our watch list!

We added to our position in Viking Therapeutics last week as the summer of Bio Tech M&A moves forward!

 

Lipid and metabolic disorders are a broad group of conditions that affect how the body processes fats (lipids) and energy. 

Here's a breakdown of the types of diseases in this category and Viking Therapeutics' role in treating them:

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🧬 Common Lipid and Metabolic Disorders

These can be genetic or acquired and often overlap with obesity, diabetes, and cardiovascular disease:

1. Lipid Disorders

• Hypercholesterolemia (high LDL/"bad" cholesterol)

• Hypertriglyceridemia (high triglyceride levels)

• Familial hypercholesterolemia

• Mixed dyslipidemia (elevated LDL + triglycerides, low HDL)

2. Metabolic Disorders

• Non-alcoholic fatty liver disease (NAFLD) and its more severe form:

  • Non-alcoholic steatohepatitis (NASH)

• Type 2 diabetes mellitus

• Obesity and metabolic syndrome

• Gaucher disease, Fabry disease, Pompe disease (rare, inherited)

• Mitochondrial disorders (affecting cellular energy production)

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🧪 Viking Therapeutics' Focus and Lead Assets

Viking is primarily focused on metabolic and endocrine diseases, with particular emphasis on:

✅ 1. VK2809 – Lead candidate for NASH and lipid disorders

• A thyroid hormone receptor beta (TRβ) agonist.

• Designed to reduce liver fat, improve lipid profiles, and treat NASH.

• In Phase 2b clinical trials (as of mid-2024) with promising results.

• Shown significant reductions in liver fat and improvements in LDL/triglycerides.

✅ 2. VK2735 – GLP-1 receptor agonist for obesity and metabolic disease

• Part of the GLP-1 class, like semaglutide (Ozempic/Wegovy).

• Targets weight loss and possibly type 2 diabetes.

• Both injectable and oral formulations are in development.

• Competing in the high-growth obesity/diabetes market.

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📊 Does Viking Have a Lead?

Viking is not yet a commercial-stage company, but:

• VK2809 is a strong contender in the NASH race, potentially rivaling Madrigal's resmetirom (Rezdiffra), which got FDA approval in 2024.

• VK2735 is part of the ultra-competitive GLP-1 weight loss/diabetes market, where Novo Nordisk and Eli Lilly currently dominate.

So while Viking is not a market leader yet, it has:

• Best-in-class potential in NASH with VK2809.

• A promising pipeline that could disrupt obesity treatment with VK2735.

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As Viking Therapeutics (VKTX) advances its high-potential assets in NASH and obesity, it becomes an increasingly attractive acquisition target, especially in the context of:

• The massive commercial potential of NASH (non-alcoholic steatohepatitis) and obesity markets

• Its de-risked clinical programs, with strong Phase 2 data and growing investor interest

• The patent-protected, next-generation nature of its GLP-1 and thyroid hormone receptor beta (THR-β) drug candidates

Here’s a breakdown of potential suitors and why they might be interested:

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🧬 Top Potential Acquirers of Viking Therapeutics

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🔹 1. Pfizer (PFE)

Why?

• Pfizer has struggled post-COVID to find new growth drivers.

• It lacks a strong obesity or NASH program after setbacks like the discontinuation of danuglipron (oral GLP-1) due to side effects.

• Viking's VK2735 (GLP-1 agonist, injectable and oral) could revive Pfizer's ambitions in metabolic disease.

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🔹 2. Eli Lilly (LLY)

Why?

• Already dominating the obesity/diabetes market with Mounjaro (tirzepatide) and Zepbound.

• A strategic acquisition of Viking could:

  • Lock in next-gen GLP-1 competition.

  • Add a THR-β asset (VK2809) to expand into NASH—a logical adjaceny to obesity and T2D.

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🔹 3. Novo Nordisk (NVO)

Why?

• The world leader in GLP-1 therapies (Ozempic, Wegovy).

• Could acquire Viking to:

  • Defend its dominance against oral GLP-1 competition.

  • Enter the NASH market via VK2809, complementing obesity treatment.

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🔹 4. Madrigal Pharmaceuticals (MDGL)

Why?

• Approved Rezdiffra (resmetirom) for NASH, first of its class.

• Viking’s VK2809 is a direct TRβ rival with differentiated liver targeting.

• A defensive or complementary acquisition would eliminate its main clinical-stage competitor.

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🔹 5. Roche / Genentech or Merck (MRK)

Why?

• These Big Pharma players have limited or no current exposure in obesity and NASH.

• Both are actively seeking pipeline expansion via acquisition.

• Viking’s pipeline offers a clean, focused portfolio with first-in-class and best-in-class potential.

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🧪 Summary: Why Viking is Attractive

Feature	Strategic Value
VK2809 (THR-β)	Potentially best-in-class NASH therapy
VK2735 (GLP-1)	Oral and injectable forms offer flexibility
Market Tailwinds	Obesity + NASH markets projected to hit $100B+
Clean Cap Table	No legacy liabilities or marketed products to manage
Small Cap	Easier acquisition (<$7B market cap) vs. peers

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Will 2025 bring a buyout offer for Viking Therapeutics and their cutting edge drug pipeline? Stay tuned!

"NASH" is a serious healthcare problem and it is one important reason why Viking Therapeutics might become a takeover target!