"Patience is a Super Power" - "The Money is in the waiting"
Showing posts with label Kraken Robotics. Show all posts
Showing posts with label Kraken Robotics. Show all posts

Wednesday, November 4, 2026

Expanding NATO visibility in Europe this week - Kraken Robotics Sub Sea technology

 


Kraken Robotics (TSX-V: PNG): November 2026 NATO and Naval Defence Events

My assessment: Kraken's increasing visibility at allied naval defence events is strategically positive, particularly following its acquisition of Covelya. The company is now presenting a much broader range of underwater defence technologies, rather than primarily promoting its KATFISH minehunting system.

There is, however, an important distinction between participating in a NATO-sponsored exercise, exhibiting at a naval defence trade show, and securing an actual NATO procurement contract.

1. Confirmed exhibition: EURONAVAL 2026

Paris, France — November 3–6, 2026

Paris Nord Villepinte Exhibition Centre

Kraken is exhibiting at Booth K121, showcasing its newly integrated naval technology portfolio, including KATFISH, synthetic aperture sonar, Sentinel underwater intruder detection, SeaPower batteries and navigation systems.

Kraken's November 4 LinkedIn announcement specifically highlights the integration of the former Forcys team into its broader defence offering.

LinkedIn+1

Why this matters: Kraken can now approach naval customers with complementary products for mine detection, underwater surveillance, infrastructure protection and autonomous underwater operations.

An especially interesting development is the company's announcement that it has shipped its first major Sentinel Intruder Detection System under the Kraken name, intended to protect multiple ports for an allied navy. That is evidence of actual commercial delivery, not simply exhibition activity.

LinkedIn

2. NATO Edge 2026 — Δ°zmir, TΓΌrkiye

November 17–19, 2026

This is a NATO-organized technology and procurement event, bringing together military decision-makers, defence contractors and technology suppliers.

Kraken's participation has not yet been independently confirmed.

NATO Edge is particularly relevant because it connects suppliers with NATO capability requirements and acquisition processes. Kraken's sonar, underwater navigation and surveillance technologies fit several of those requirements.

Events+1

I would watch for confirmation that Kraken or its Covelya subsidiaries are exhibiting or meeting procurement officials there.

3. Recent NATO operational demonstration — REPMUS 2026

Portugal — reported October 29, 2026

Unlike a trade show, REPMUS involves practical testing with allied naval forces.

Kraken, Sonardyne, Voyis and EIVA demonstrated combined mine-countermeasure capabilities.

Kraken reported detecting and classifying all 21 targets across eight survey areas, while its integrated imaging and navigation technologies achieved a 100% identification rate in the reported demonstration.

LinkedIn

This is arguably more significant than exhibiting at a trade show. It demonstrates technical interoperability between Kraken's newly combined businesses in an allied operational environment.

What does this mean for Kraken shareholders?

I see three important implications.

1. Improved access to defence procurement: Kraken is gaining opportunities to demonstrate its systems directly to naval operators, defence contractors and purchasing authorities.

2. Covelya acquisition benefits: The combination of Kraken sonar, Sonardyne navigation, Voyis imaging, EIVA software and Sentinel security systems creates opportunities to sell integrated solutions rather than individual components.

3. Potential for larger contracts: Successful operational demonstrations and broader product offerings could support future orders for mine countermeasures, underwater surveillance, autonomous vehicles and port security.

There is still a substantial difference between demonstrated capability and funded procurement. Exhibitions alone do not establish new orders or near-term revenue.

However, Kraken's expanding and cutting edge technology cannot be ignored as the expansion of NATO navies around the world, including Canada's, are beginning to spend billions on Sub Sea military and monitoring technology.  

Kraken has that technology in spades.





Investment verdict — PNG

Constructive for the 12–24-month investment thesis.

Kraken is increasingly positioned as a comprehensive underwater defence technology supplier. Its recent Sentinel shipment and REPMUS results strengthen that assessment.

Previous Articles:

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

Monday, November 2, 2026

Kraken Robotics (TSX: PNG) — Updated Investment Note - Oct 30th 2026

 



October 30, 2026 | Investment outlook: 6–18 months

Investment Thesis: Strengthening — Bullish

Kraken Robotics continues to evolve from a specialized Canadian underwater technology supplier into an increasingly important participant in NATO-aligned naval modernization, autonomous mine countermeasures and subsea defence systems.

The company's $24 million in defence orders, announced March 17, included more than 10 customers across five countries, three new defence customers, and another KATFISH sonar sale to the Polish Navy. Importantly, Poland is a repeat customer, having originally selected KATFISH in 2020. This strengthens Kraken's credibility as an established supplier rather than an experimental technology provider.

Kraken Robotics

Important developments

  • Defence orders expanding: In addition to March's $24 million announcement, Kraken disclosed $28 million in battery and sonar orders in April and another $35 million in new orders in July. These announcements demonstrate continued commercial momentum, although they should not be interpreted as entirely incremental revenue without reviewing delivery schedules.

  • Covelya acquisition: The July acquisition substantially expanded Kraken's underwater technology portfolio through Sonardyne, EIVA, Voyis and other specialized businesses, creating opportunities for integrated sensor, navigation, imaging and autonomy solutions.

  • REPMUS 2026: Kraken's recently reported NATO exercise results are particularly encouraging. Its synthetic aperture sonar detected and classified all 21 targets across eight survey areas, while Voyis and EIVA technologies achieved a reported 100% target identification rate. This provides valuable operational validation, although exercise performance does not guarantee future procurement contracts.

  • 2027 opportunity: Increasing NATO emphasis on autonomous minehunting, underwater surveillance and protection of critical subsea infrastructure should favour companies capable of supplying interoperable systems rather than individual components.

Kraken Robotics+1

Financial position and outlook

2026 revenue guidance

C$290–320M

2026 adjusted EBITDA guidance

C$65–75M

Combined 2026 orders announced by Aug. 27

~C$355M

June 30 cash, excluding escrow proceeds

C$91.3M

Company-reported figures. Guidance includes six months of Covelya operations; the C$355M order figure combines both businesses and is not equivalent to recognized revenue.
Kraken Robotics

Investment risks

Kraken's rapid expansion brings acquisition-integration risk, potential shareholder dilution, defence procurement delays and valuation sensitivity. Q2 standalone revenue grew only 4%, and the company recorded a C$7.5 million net loss, highlighting the need to distinguish order momentum from realized earnings.

Kraken Robotics (PNG): Beyond KATFISH — The New Technology Portfolio

Investment and technology review | November 2, 2026

Kraken Robotics is evolving from a specialist in high-resolution underwater sonar into something potentially much more valuable: an integrated supplier of underwater sensing, autonomous navigation, optical imaging, subsea intelligence and advanced batteries.

The acquisition of the Covelya Group companies is particularly significant. It gives Kraken the opportunity to combine technologies that previously belonged to separate businesses into complete underwater surveillance and mine-countermeasure systems.

For investors, the important distinction is between technologies Kraken invented, technologies it acquired, and new integrated capabilities it can now offer.

KATFISH remains a flagship product, but several other technologies deserve attention, particularly those applicable to NATO submarine operations, autonomous underwater vehicles (AUVs), Arctic surveillance and seabed infrastructure protection.

1. The technologies I consider most important

SeaPower advanced batteries — developed by Kraken

High investment significance

These pressure-tolerant batteries power underwater drones, allowing longer missions without surfacing. Kraken has developed a higher-energy-density design for large and extra-large UUVs, delivering approximately 30% improvement over its previous design, plus a compact design targeting smaller vehicles.

Why it matters: Kraken can supply batteries to competing underwater-drone manufacturers, regardless of whose sonar they use. A 2026 master supply agreement for XL-UUV batteries supports this opportunity.

NEWS RELEASE+1

Circular Synthetic Aperture Sonar (C-SAS) — developed by Kraken

Emerging technology

A dual-frequency sonar system designed to image seabed objects from a full 360-degree range of viewing angles. This can improve object classification and identification beyond conventional straight-line sonar passes.

Why it matters: Potentially valuable for confirming suspicious objects, identifying underwater hazards and inspecting seabed infrastructure. It is a development milestone, not yet evidence of widespread commercial adoption.

NEWS RELEASE

SPRINT-Nav — acquired through Sonardyne

Combines inertial navigation, Doppler velocity measurements and depth sensing to help underwater vehicles know their position when GPS signals cannot reach them.

Why it matters: Navigation is essential for virtually every autonomous underwater vehicle, whether deployed for minehunting, reconnaissance, submarine support or scientific surveys. It creates an opportunity for recurring platform sales beyond sonar.

GlobeNewswire

Sentinel Intruder Detection Sonar — acquired through Wavefront

An underwater security system that automatically detects, classifies and tracks divers, swimmer delivery vehicles and underwater drones approaching protected facilities.

Why it matters: Direct application to naval bases, ports, energy facilities and critical maritime infrastructure. Kraken reported new demand in Europe and the Middle East during 2026.

GlobeNewswire

Discovery Stereo and underwater optical imaging — acquired through Voyis

Advanced underwater cameras and optical perception systems capable of producing detailed imagery and supporting three-dimensional reconstruction of subsea objects.

Why it matters: Sonar finds suspicious objects at distance; optical imaging helps establish precisely what they are. Combining these capabilities can strengthen autonomous mine identification and infrastructure inspection.

NaviSuite and visual SLAM — acquired through EIVA

Software for underwater navigation, mission planning, survey processing and three-dimensional mapping. Visual simultaneous localization and mapping (VSLAM) helps vehicles estimate their position while building a map of their surroundings.

Why it matters: Software can turn separate sonar, camera and navigation products into an integrated autonomous mission capability. It also creates potential for software licensing and ongoing support.

Vigilant Forward-Looking Sonar — acquired through Sonardyne

Detects obstacles ahead of underwater and surface vehicles, helping them navigate safely in complex environments.

Why it matters: Obstacle avoidance is a fundamental requirement for autonomous underwater missions. Kraken reported record deliveries of Vigilant systems in its August 2026 update.

Kraken Robotics

2. Other technologies now within Kraken

Technology

Origin

Strategic application

Multi-Aperture Sonar (MAS)

Covelya

Underwater detection, classification and AUV missions

ScanFish remotely operated towed vehicles

EIVA

Seabed surveys and sensor deployment

Sub-bottom imaging and acoustic coring

Kraken / PanGeo

Locating buried objects and studying seabed geology

Underwater LiDAR

3D at Depth acquisition

Precision 3D inspection of pipelines, cables and infrastructure

Acoustic positioning and underwater communications

Sonardyne

Coordinating autonomous vehicles and underwater assets

Seabed pressure sensors

Covelya portfolio

Persistent subsea monitoring and detection applications

These are established or developing capabilities, not necessarily products invented since the July 2026 Covelya closing. Kraken's August disclosure specifically identified orders for monitoring systems, seabed pressure sensors and ScanFish vehicles.

Kraken Robotics+2

3. The most revealing development: REPMUS 2026

The recent NATO-aligned REPMUS exercise in Portugal provides an important illustration of the acquisition's strategic value.

As you previously highlighted, Kraken reported the following results:

Kraken synthetic aperture sonar

21/21

Targets detected and classified across eight survey areas

Voyis imaging + EIVA software

100%

Reported target identification rate in the exercise

The exercise demonstrated how the technologies complement one another:

Kraken SAS

Detects and classifies potential threats

Voyis optical imaging

Captures detailed images of identified targets

EIVA NaviSuite / VSLAM

Supports localization, mapping and target identification

Integrated underwater intelligence

More complete information for naval operators and autonomous systems

The results are encouraging evidence of interoperability, although controlled exercises do not establish performance under every operational condition.

An important qualification: these systems principally support mine detection, classification and identification. Physical mine neutralization or recovery generally requires additional equipment and procedures.

4. Which technologies have the greatest investment potential?

My ranking is based on addressable markets, potential adoption across multiple platforms and opportunities to increase Kraken's revenue per customer—not on announced product-specific profit margins.

Rank

Technology

2–4 year outlook

1

SeaPower batteries

Very high — growing UUV market and potential production-volume contracts

2

SPRINT-Nav and underwater positioning

Very high — essential equipment across multiple vehicle classes

3

Integrated SAS, Voyis and EIVA systems

High — differentiated end-to-end naval capability

4

Sentinel security sonar

High — ports, naval bases and critical infrastructure

5

Circular SAS

Promising — commercial uptake still needs validation

6

Underwater LiDAR and sub-bottom imaging

Moderate to high — attractive commercial and defence niches

The market opportunity is already extending beyond demonstrations. Kraken reported approximately C$355 million in combined announced 2026 orders by August 27, across Kraken and Covelya, covering products such as batteries, navigation, positioning, sonar and monitoring equipment. This is an announced-orders measure, not recognized revenue or a current backlog figure.

Kraken Robotics+1

5. My investment assessment

I believe the most significant consequence of the Covelya acquisition is that Kraken no longer needs to win the entire underwater-drone contract to benefit from it.

Consider an allied navy commissioning a fleet of autonomous underwater vehicles. Kraken may be able to supply the batteries, navigation, positioning, sonar, imaging and mission software, even when another defence contractor builds the vehicle itself.

This is a potentially powerful business model because it broadens Kraken's customer base and increases the value of its components on each platform.

It is particularly relevant to NATO's increasing interest in persistent underwater surveillance, protection of subsea cables and pipelines, and autonomous operations in challenging maritime environments.

The principal investment risks remain acquisition integration, defence procurement delays, competition from established naval technology suppliers, and the possibility that the share price already discounts substantial growth.

My conclusion: SeaPower batteries and the acquired Sonardyne navigation technologies could ultimately be as important to Kraken's commercial growth as KATFISH. The combination of Kraken SAS, Voyis optical imaging and EIVA software may become its most differentiated integrated defence offering.

The next evidence I would watch is whether Kraken begins winning substantial contracts explicitly bundling several of these technologies together, rather than selling individual components.

That would be a meaningful indication that the Covelya acquisition is delivering strategic value beyond simply adding six established companies and their existing revenues.



Investment verdict — BUY/HOLD, with discipline

My outlook remains bullish for 2027. Kraken's combination of advanced sonar, subsea batteries, autonomous systems integration and established NATO customer relationships gives it an increasingly attractive competitive position.


Saturday, October 3, 2026

Kraken Robotics 60,000 Sq Ft Battery Plant is now operational

 


October 2026 — Update to our August 7, 2025 article

When we wrote our original article, “Kraken Robotics – NATO Navy supplier is moving up the ladder with massive, undersea battery facility!”, one of the most important pieces of our investment thesis was Kraken Robotics' planned 60,000-square-foot SeaPower™ battery manufacturing facility in Nova Scotia.

At the time, it was still a plan.

Today, it is becoming an operating asset — and Kraken Robotics itself has evolved into a considerably larger company.Kraken Robotics Update: The Battery Expansion We Were Waiting For

From Promise to Production

In August 2025, Kraken had committed approximately C$10 million to establish the Nova Scotia facility. Management expected it to substantially increase SeaPower battery manufacturing capacity and ultimately help bring total potential battery production toward C$200 million annually.

That expansion is no longer theoretical.

Kraken subsequently confirmed completion of the new Nova Scotia manufacturing facility, and in March 2026 CEO Greg Reid said battery manufacturing there was coming online.

The company's April investor presentation subsequently identified Halifax, Nova Scotia and Rostock, Germany as its battery manufacturing locations.

This gives Kraken something increasingly important in the rapidly expanding autonomous-underwater market:

Significant SeaPower battery manufacturing capability on both sides of the Atlantic.

And The Customers Are Arriving

Capacity means little without demand.

This is where the story becomes particularly interesting.

In January 2026, Kraken announced C$35 million in SeaPower battery sales to three customers.

In March, Kraken announced another approximately C$24 million of defence orders across SeaPower batteries, KATFISH and Kraken SAS.

In April, another C$28 million in SeaPower battery and SAS orders followed, involving five customers. Kraken said its technology was then integrated, or being integrated, into more than 30 different UUV platform types worldwide.

The company has therefore moved well beyond proving that SeaPower works.

It is increasingly about scaling production.

The XL-UUV Development May Be Even More Important

One development since our original article deserves particular attention.

Kraken has signed a long-term Master Supply Agreement with a major international conglomerate developing extra-large unmanned underwater vehicles — XL-UUVs.

The customer has not been publicly identified.

That means we should not speculate that it is any particular defence contractor.

But the size of these underwater vehicles helps explain why this opportunity matters.

Kraken's April 2026 investor material indicated that an XL-UUV can contain approximately 50–60 of its 20-kWh SeaPower battery modules.

That changes the economics considerably.

A future in which large autonomous submarines are produced in meaningful numbers could require substantially more battery capacity than today's smaller UUV market.

And Kraken has been building the manufacturing infrastructure to participate in exactly that market.

A Better Battery Opens Another Market

Kraken has also introduced a more compact SeaPower architecture offering approximately a 30% improvement in energy density.

That is strategically important because SeaPower is no longer aimed principally at very large underwater vehicles.

The new architecture allows Kraken to address small and medium-sized UUVs as well.

Kraken therefore potentially participates across much of the autonomous underwater spectrum:

Small UUV → Medium UUV → Large UUV → XL-UUV

For an investor, this may ultimately be more important than any single battery contract.

Kraken is attempting to become an enabling technology supplier to the broader underwater-autonomy industry.

Kraken Is No Longer The Company We Wrote About In August 2025

There has been another major change.

Kraken completed its acquisition of Covelya Group in July 2026.

That brought businesses including Sonardyne, EIVA, Voyis, Wavefront Systems and others into the organization.

Kraken's technology portfolio now spans much more of the underwater stack:

CapabilityKraken/Covelya exposure
Subsea powerSeaPower batteries
Synthetic Aperture SonarKraken SAS
Mine huntingKATFISH
Underwater navigationSonardyne
Acoustic positioning & communicationsSonardyne
Mission/survey softwareEIVA
Optical subsea imagingVoyis
Intruder detection & forward-looking sonarWavefront
Subsea services/LiDAR3D at Depth

This is a very different company from the relatively specialized Canadian ocean-technology business we originally followed.

The Numbers Are Scaling Too

Kraken reported C$102.2 million of revenue and C$25.0 million of Adjusted EBITDA for 2025.

Following the Covelya acquisition, management's 2026 guidance increased dramatically.

Kraken currently expects:

Revenue: C$290–C$320 million

Adjusted EBITDA: C$65–C$75 million

Adjusted EBITDA margin: approximately 22%–23%

Perhaps even more significant, by the end of Q2 Kraken and Covelya had announced approximately C$355 million of combined 2026 orders.

This does not mean C$355 million automatically becomes 2026 revenue. Order timing and revenue recognition matter.

But it demonstrates the scale of the opportunity now confronting the company.

Why The Nova Scotia Plant Matters More Today Than It Did In 2025

When we first wrote about the plant, we viewed it primarily as a capacity expansion.

Today we see it somewhat differently.

It is potentially a strategic piece of North American allied-defence manufacturing infrastructure.

Kraken can manufacture subsea batteries in Canada while maintaining its European battery operation in Germany.

That provides geographic diversification and puts production closer to North American customers at precisely the time when autonomous maritime systems are becoming increasingly important to Western defence planning.

And the plant includes multiple pressure-testing tanks rated to 6,000 metres.

This is specialized infrastructure, not a conventional battery assembly operation.

Our Investment Thesis Has Evolved

Our original thesis was relatively simple:

Kraken possessed excellent subsea sonar and battery technology and was positioned to benefit from growing NATO and commercial demand for autonomous underwater systems.

We believe the thesis has broadened considerably.

Kraken is increasingly becoming a subsea technology platform supplying many of the technologies required to make autonomous underwater systems work:

POWER → NAVIGATION → COMMUNICATION → SONAR → IMAGING → SOFTWARE → DATA

The Nova Scotia SeaPower facility fills an especially important part of that stack: power and endurance.

Without sufficient energy storage, an autonomous underwater vehicle cannot stay underwater longer, travel farther or carry increasingly sophisticated sensor payloads.

That makes battery technology a potentially valuable technological chokepoint.

What We Are Watching Now

The next question is no longer:

“Will Kraken build the Nova Scotia battery plant?”

It has.

The questions for shareholders now become:

How quickly will production ramp?

How much of the potential C$200 million annual battery capacity can Kraken utilize?

Will the XL-UUV supply agreement turn into large recurring production orders?

How quickly will new small- and medium-UUV customers adopt the higher-density SeaPower architecture?

And finally:

Can Kraken successfully integrate Covelya while maintaining the growth and margins investors now expect?

Those are the metrics that should increasingly determine the investment case through 2027 and 2028.

Investment Perspective — October 2026

Our August 2025 article described a promising Canadian defence-technology company investing aggressively ahead of anticipated demand.

Fourteen months later, several pieces of that thesis have materially advanced.

The Nova Scotia battery plant has been completed.

SeaPower orders have increased.

Kraken has gained additional defence customers.

Its technology is being integrated across more than 30 UUV platform types.

A long-term battery agreement has been signed with a manufacturer developing XL-UUVs.

And the Covelya acquisition has transformed Kraken into a substantially larger international subsea-technology company.

There are still important risks: Covelya integration, execution, working-capital requirements, contract timing, defence procurement delays and the challenge of filling newly installed manufacturing capacity.

But there is an important distinction between the Kraken story of August 2025 and the Kraken story today:

In 2025, investors were largely buying the expectation of scale.

In late 2026, we are beginning to see that scale being built and commercialized.

Ed Note

We originally added to our PNG position on August 7, 2025 because we believed Kraken was sitting at the intersection of several long-duration trends: NATO naval modernization, autonomous underwater vehicles, mine warfare, subsea infrastructure protection and offshore energy.

The opening of the Nova Scotia SeaPower manufacturing operation strengthens that thesis.

In our view, the next major milestone is not another factory announcement.

It is utilization.

If Kraken can progressively fill this new battery capacity with recurring UUV and particularly XL-UUV production orders, the Nova Scotia facility could become one of the more important growth assets inside the expanded Kraken organization.

That is what we will be watching closely through 2027.

Further: the connections between the new German made subs being stationed in Halifax NS with Canada's East Coast Navy, the German battery manufacturing plant, The idea that these subs will eventually be "command platforms" for XLUUV clusters, and the fact that the Arctic is a major concern of CAF cannot be ignored either. 

Currently there is no factual evidence for these connections however, I have learned over many years that,  "If it walks like a duck, swims like a duck and quacks like a duck, It's probably a duck!

We've been busy adding to our position!

Previous Articles:

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


Friday, March 27, 2026

A powerful setup for exponential growth from combining two of Canada's smallcap stocks (PNG and FLT)

 


A structured, investor-grade case for combining both Kraken Robotics (TSXV: PNG) and Volatus Aerospace (TSXV: FLT) into a portfolio


 



πŸ‘‰ dual-use (commercial + defense) technologies leveraged into a historic NATO/Canada/U.S. defense supercycle.

(Ed Note: Disclosure - We are long both stocks and accumulating at these exceptionally low levels)


🧭 1. Macro Tailwind: A Once-in-Generation Defense Supercycle

Yesterday

Key facts (this is the foundation of this thesis):

  • NATO + Canada defense spending +20% YoY in 2025
  • Canada now at ~$63.4B annually (2% GDP) and rising
  • NATO targeting 5% of GDP by 2035 (massive structural shift)
  • Canada planning:
    • +85% defense R&D
    • +240% defense industry revenues
    • Domestic procurement shift (less reliance on U.S.)
  • Global defense spending heading toward $2.6 trillion annually

What this really means (investment lens):

This is not cyclical. It is:

  • A multi-decade reindustrialization of defense
  • A shift toward autonomous systems, AI, and unmanned warfare
  • A push for domestic suppliers (Canada/EU)

πŸ‘‰ This is exactly where Kraken + Volatus sit.


⚓ 2. Kraken Robotics — “Underwater AI + Robotics = Naval Force Multiplier”

πŸ“‘ Core Technology Advantage

Kraken builds:

  • Synthetic aperture sonar (SAS)
  • Underwater drones (AUV/ROV systems)
  • Subsea batteries (critical for autonomy)
  • Ocean mapping + intelligence systems

These are used for:

  • Mine detection
  • Submarine tracking
  • Infrastructure protection (pipelines, cables)
  • Arctic surveillance

Why this matters:

Traditional naval power:

  • $billions per ship
  • decades to deploy

Kraken systems:

  • Deploy in <1 year
  • Cover more area at lower cost
  • Act as force multipliers

πŸš€ Growth Drivers (Next 24 Months)

1. NATO Naval Modernization + Arctic Security

  • Arctic is now a strategic battlefield
  • Canada explicitly prioritizing Arctic sovereignty
  • Underwater drones = essential for vast coastlines

πŸ‘‰ Kraken is almost perfectly aligned with this need.


2. Shift to Autonomous Naval Warfare

Modern naval doctrine:

  • Move from crew-heavy platforms → autonomous fleets
  • Subsea domain = least monitored, highest risk

Kraken’s niche:

  • “Eyes and ears of the ocean”

3. Export Leverage (Already Proven)

  • ~90% of revenue from international customers
  • Customers in 30+ countries

πŸ‘‰ This is critical:

  • Not dependent on slow Canadian procurement
  • Already integrated into NATO ecosystem

4. Dual-Use Flywheel

Commercial markets:

  • Offshore energy (oil, wind)
  • Subsea infrastructure inspection
  • Ocean mapping

Defense demand → scales manufacturing → lowers cost → boosts commercial margins


πŸ“ˆ Investment Thesis (Kraken)

Why exponential growth is plausible:

  • Small base + high-margin tech
  • Positioned at critical naval chokepoint
  • Direct exposure to:
    • NATO spending
    • Arctic expansion
    • subsea infrastructure security (huge emerging theme)

πŸ‘‰ If defense contracts accelerate, revenue can scale non-linearly


🚁 3. Volatus Aerospace — “Airspace Control + Drone Warfare Layer”

πŸ›°️ Core Technology Stack

Volatus is not just drones — it’s a full-stack aerial intelligence platform:

  • UAV operations (inspection, surveillance, delivery)
  • Counter-drone systems (C-UAS)
  • AI-enabled airspace monitoring (SKYDRA platform)
  • Services + SaaS model emerging

  • ▶️ Volatus Aerospace enters a commercial contract to deploy remotely managed drones capable of delivering 100kg payloads to offshore wind turbines > > https://hubs.la/Q047vGMB0

πŸ”₯ Why Volatus is Strategically Important

1. The Drone War Era Is Here

Modern conflicts (Ukraine, Middle East):

  • Drones are now:
    • Surveillance tools
    • Strike weapons
    • Infrastructure threats

πŸ‘‰ Counter-drone = must-have capability

Market:

  • Counter-UAS expected >$20B by 2030

2. Defense + Civil Convergence

Volatus operates in:

  • Defense
  • Infrastructure inspection
  • Energy
  • Public safety

πŸ‘‰ Same platform → multiple revenue streams


3. Recurring Revenue Transition (Key Inflection)

  • SKYDRA = SaaS-based system
  • Moves business from:
    • Project-based → subscription model

πŸ‘‰ This is where valuation multiples expand.


4. Direct Tailwind from Canadian Policy

  • Canada explicitly pushing:
    • Domestic defense suppliers
    • Drone & surveillance capability
  • Volatus already positioned as:
    • Canadian-based operator with defense alignment


πŸš€ Growth Drivers (Next 24 Months)

1. Counter-Drone Demand Explosion

  • Airports, military bases, cities
  • NATO airspace protection mandates

2. NATO Infrastructure Protection

  • Pipelines, ports, energy grids
  • Requires:
    • Persistent aerial monitoring
    • Rapid deployment drones

3. Defense Contracts + Partnerships

  • Even small contracts → huge revenue impact (microcap effect)

4. SaaS + Platform Expansion

  • High-margin recurring revenue layer
  • Potential valuation re-rating event

πŸ“ˆ Investment Thesis (Volatus)

Why exponential growth is plausible:

  • Positioned at fastest-growing defense segment (drones)
  • Transitioning to software + recurring revenue
  • Benefiting from:
    • Defense spending
    • Civil infrastructure demand
    • AI-driven airspace control

πŸ‘‰ This is a classic small-cap asymmetry setup


⚖️ 4. Kraken vs Volatus — Complementary, Not Competing

CategoryKraken RoboticsVolatus Aerospace
DomainUnderwater (subsea)Airspace (UAV)
Core RoleNaval intelligenceAirspace control
Defense UseMine detection, surveillanceCounter-drone, ISR
Commercial UseEnergy, mappingInfrastructure, inspection
Revenue ModelHardware + servicesServices → SaaS shift
Strategic RoleOcean dominanceAirspace dominance

πŸ‘‰ Together they represent:
“Full-spectrum unmanned warfare exposure” (sea + air)


🧠 5. Why This Could Be an “Exponential Growth Window”

The Setup:

  1. Massive capital inflow (defense budgets)
  2. Structural shift to autonomy
  3. Domestic supplier preference (Canada/NATO)
  4. Small-cap companies with scalable tech

The Result:

  • Revenue growth is lumpy → then accelerates sharply
  • Contracts → backlog → scaling → margin expansion

⚠️ 6. Risks (It's Critical to Keep Grounded)

Kraken:

  • Procurement delays (Canada is slow)
  • Competition from large defense primes (Kongsberg, Thales)

Volatus:

  • Execution risk (microcap scaling)
  • Capital requirements / dilution
  • Fragmented drone market

🧭 7. Bottom-Line Investment View

Structuring this as I typically do:

πŸ”΅ Core Thesis:

“Autonomous warfare infrastructure is replacing traditional platforms — Kraken (sea) and Volatus (air) are early-stage suppliers to that shift.”

🟒 Portfolio Role:

  • Kraken = more proven, export-driven
  • Volatus = higher risk, higher upside (optionality)

⚡ Upside Scenario (2 years):

  • Kraken → steady contract scaling + margin expansion
  • Volatus → step-change growth if SaaS + defense contracts hit

🧩 Final Take

This is one of the rare setups where:

  • Macro (defense supercycle)
  • Technology (autonomy + AI)
  • Policy (domestic procurement)
  • Geography (Canada/NATO alignment)

πŸ‘‰ All point in the same direction

That’s exactly the environment where small-cap defense tech can go nonlinear.

Recent News:

Volatus Aerospace Reports Fiscal Year 2025 Financial Results

, from 8:30AM ET on Tuesday Mar 31, 2026 by Dow Jones

8:30AM ET on Tuesday Mar 31, 2026 by Dow Jones

   -- Revenue Growth of 26% year-over-year 
 
   -- Defence Equipment revenues more than 2x from 2024 
 
   -- Total Assets of C$92M+, up 60% year-over-year 
 
   -- Europe & UK revenue grew 150%, driven by NATO-aligned defence business 
 
   -- Current cash balance of C$41M 
 
   -- Secured a NATO defence contract valued at up to C$9M in Dec 2025 
 
   -- Establishment of the Volatus Innovation & Drone Manufacturing Facility in 
      Mirabel, QC 

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Friday, March 20, 2026

The massive spending spree on Defense in Canada and NATO will catapult this small cap into the big leagues!

 


Why Volatus Aerospace MAY BE One of the BEST Plays in This Theme

✔ NATO Defense Exposure (REAL, not theoretical)

  • NATO drone training contracts secured

  • ISR training systems worth up to ~$9M CAD

πŸ‘‰ This validates:

“They are now inside the NATO ecosystem”


✔ Dual-Use Platform (Huge Advantage)

  • Offshore heavy-lift drone logistics (wind + maritime)

  • Arctic + remote ops capability expanding

πŸ‘‰ This is critical:

Defense + energy + infrastructure = multiple revenue streams


✔ Government Alignment (Canada Strategy Tailwind)

  • Positioned within Canada’s defense industrial strategy

  • Focus on:

    • sovereign drone capability

    • regulated airspace ops

    • mission-critical infrastructure


✔ Funding + Momentum

  • Non-dilutive government funding (IRAP)

  • Stock has already shown explosive moves (+300% type runs)


The REAL Investment Thesis (This is the key insight)

Volatus is NOT just a drone company.

It sits at the intersection of:

✈️ Defense (ISR, training, logistics)

⚡ Energy (offshore wind logistics)

🧊 Arctic sovereignty (Canada’s #1 priority)

πŸ€– Autonomous systems (future warfare backbone)


πŸ‘‰ That makes it:

One of the few Canadian “pure-play autonomous warfare + logistics” companies


Where Volatus Aerospace Fits our style

(Correct Portfolio Positioning)

Instead of Core…

It belongs here:


🟣 “Asymmetric Strategic Bet” Bucket


CompanyAllocation
Kraken Robotics15%
Volatus Aerospace15%
HΓ©roux5%

πŸ‘‰ Why?

  • Kraken = subsea domain

  • Volatus = aerial autonomy domain

Together:

Full-spectrum autonomous warfare exposure


⚖️ 5. Bull vs Bear (Be precise here)

🟒 Bull Case (Why it could 5–10x)

  • NATO adoption expands beyond training → operations

  • Canada prioritizes domestic drone capability

  • Arctic + border surveillance contracts

  • Software (SKYDRA) scales → high margins


πŸ”΄ Bear Case (Real risks)

  • Dilution (very real at this stage)

  • Contract lumpiness

  • Execution risk scaling manufacturing

  • Competing vs larger global drone players


My Straight Answer 

Should Volatus have been included?

For a conservative institutional portfolio → No

For (Canadian, thematic, asymmetric investor) → YES, absolutely


🧠 Final Take (Important)

This is the cleanest way to think about it:

CAE / MDA

→ “Defense infrastructure certainty”

Kraken

→ “Naval asymmetry”

Volatus

→ “Autonomous warfare optionality”


πŸ”₯ Bottom Line

Volatus is not a safe defense play
It is a high-conviction, early-stage bet on how modern warfare is evolving

πŸ‘‰ It fits extremely well in our portfolio

 

Update: Apr 22, 2026

Strategic Military Brain Trust Added 

  • Volatus formed a high-level advisory board of NATO/NORAD leadership
  • Includes:
    • Former senior U.S. Air Force General (F-22/F-15 command)
    • Former Canadian Army Commander (chairing the board)
    • NATO and NORAD leadership figures

Why this matters:

  • Signals a serious pivot into defence-grade positioning
  • Direct ties to:
    • NORAD
    • NATO command structures
  • Enhances ability to win sovereign defence contracts in Canada + allies

πŸ‘‰ This is not cosmetic — it’s procurement access + credibility

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