Kraken Robotics - NATO Navy supplier is moving up the ladder with massive, undersea battery facility!

 

Technology for: NATO Navies, Energy companies, pipeline inspections, undersea exploration

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

Recent Developments

1. Massive SeaPower™ Battery Orders & Nova Scotia Expansion

• Kraken secured $34 million in SeaPower battery orders from three clients, including a $31 million order—its largest yet—from a UUV defense provider, plus $3 million from two commercial clients.finance.yahoo.com+15

• The company signed a lease and committed $10 million to establish a 60,000 sq ft battery production facility in Nova Scotia by late 2025. Once operational, capacity could nearly triple—approaching $200 million in annual battery output—and create around 200 advanced manufacturing jobs.Kraken Robotics+2ept.ca+2

  
  
  

2. Q1 2025 Financial Results & Forward Guidance

• Revenue dropped 23% YoY to C$16.1 million, driven by a 42% decline in product revenue offset by a 38% surge in service revenue thanks to strong demand for Sub-Bottom Imager™ and Acoustic Corer™ services.GlobeNewswire+5Kraken Robotics+5Ocean Science & Technology+5

• Gross margin improved sharply—from 44.8% to 62.7%—though Adjusted EBITDA dipped 32% to C$2.8 million (17.3% margin).Kraken Robotics+1

• Cash position soared to C$58.3 million, up from C$1.5 million a year earlier, with working capital rising to C$94.6 million—providing robust liquidity for growth.Ocean Science & Technology+3

• Kraken reaffirmed its 2025 guidance: projecting C$120 million–C$135 million in revenue and C$26 million–C$34 million in Adjusted EBITDA, with most of the year's gains expected in H2.Kraken Robotics+1

• Key achievements since year-end included ~$45 million in new subsea battery orders, 

  
  
   $3 million in SAS orders, launching its KATFISH SAS service for offshore energy markets, and completing its 3D at Depth acquisition
  
  
  (Texas, Colorado, UK).GlobeNewswire+8Kraken Robotics+8

3. $115 Million Bought-Deal Equity Financing

• On July 7, 2025, Kraken closed a C$115 million bought-deal public offering, issuing 43.24 million shares at C$2.66 each (including over-allotment).Kraken Robotics+4

• The raised capital is earmarked for accelerating strategic growth—such as funding acquisitions (especially in the US and Europe), bolstering the balance sheet for larger government and commercial contracts, and general corporate usage.Kraken Robotics+2

4. Board Strengthening with Defense Expertise

• On June 4, 2025, Kraken appointed Kristin Robertson—a veteran with experience at RTX, Boeing, and defense strategy—as a new member of its Board of Directors, enhancing its governance and defense-industry insight.Ocean Science & Technology+3

5. LiDAR Subsidiary Reaches Milestone

• Kraken’s recently acquired U.S, LiDAR firm, 3D at Depth, completed its 1,000th subsea metrology project for TotalEnergies, reflecting operational scale and service credentials.Kraken Robotics Science & Technology+6

  
  
  

6. Strong SAS Demand Continues

• The company also reported over C$3 million in new Synthetic Aperture Sonar (SAS) orders. These systems are being integrated across small and medium UUVs in the Asia-Pacific, Europe, and North America, including a project with the University of Southern Mississippi’s Roger F. Wicker Center.GlobeNewswire+7

  
  
  

---

Strategic Summary

Focus Area	Key Insight
Financing & Liquidity	C$115M raised, C$58M in cash, healthy working capital
Manufacturing Expansion	Nova Scotia facility enhances battery output & logistics
Product & Service Growth	Strong SeaPower, SAS, LiDAR orders bolster pipeline
Corporate Strengthening	Added board expertise and LiDAR operational scale
Forward Pathway	Well-positioned for upcoming contract fulfillment in 2025+

---

Kraken Robotics continues to build strategic momentum—boosting its financial runway, expanding production, winning key orders, and deepening its defense-industry capabilities. It’s clearly accelerating toward becoming a global prime contractor in subsea defense and energy markets.

Ed Note:  We added to our position in PNG Today, August 7th, 2025

A shadow war is brewing under the worlds oceans. 

Release "The Kraken"!

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:

---

💰 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.

---

🧪 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.

---

🏭 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.

---

📈 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.

---

🧭 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.

---

🎯 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.

---

✅ 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.

---

📊 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

---

🎯 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.

---

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:

---

📅 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) .

    
    
    

---

📈 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 .

---

🏆 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.

---

🧭 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.

---

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

---

🌐 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.

---

📣 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.

---

📈 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.

---

🧭 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.

---

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)