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Kraken Robotics Reports Q2 2026 Financial Results
TORONTO, Aug. 27, 2026 (GLOBE NEWSWIRE) — Kraken Robotics Inc. (“Kraken” or the “Company”) (TSX-V: PNG, OTCQB: KRKNF), has filed its financial results for the second quarter ended June 30, 2026 (“Q2 2026”). Please refer to the unaudited consolidated financial statements and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2026, filed on SEDAR+ at www.sedarplus.ca, for more information.
Q2 2026 results are for Kraken on a stand-alone basis and exclude any contribution from the acquisition of Covelya Group Limited (“Covelya Group”), which closed subsequent to the quarter on July 2, 2026.Unless otherwise specified, all dollar amounts in this release are denominated in Canadian dollars.
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Q2 2026 revenue of $27.3 million and Adjusted EBITDA1 of $5.0 million.
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New product orders of over $27 million, bringing announced orders in 2026 to $355 million on a combined basis for Kraken and Covelya Group.
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Signed a new long-term Master Supply Agreement (MSA) to deliver subsea batteries to an international conglomerate that is manufacturing extra-large unmanned underwater vehicles (XL-UUVs).
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2026 guidance, which includes a half-year contribution from Covelya Group, remains unchanged for revenue of $290 million to $320 million and Adjusted EBITDA of $65 million to $75 million.
“Our second quarter and year-to-date results reflect our continued focus on building for long-term growth, supported by recent product orders, an expanding customer base, increased manufacturing capacity and an enhanced organizational structure with several additions to our senior management team,” said Greg Reid, CEO of Kraken Robotics. “The closing of the Covelya Group acquisition early in the third quarter represents a major inflection point for Kraken, significantly expanding our total addressable market and strengthening our position across subsea defence and commercial markets.”
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Consolidated revenue increased to $27.3 million in Q2 2026, up 4% from $26.4 million in Q2 2025. Results were supported by strong product sales, including the delivery of a KATFISH towed synthetic aperture sonar (SAS) system that will be used by a Navy customer for its minehunting program, as well as modest growth in the subsea services division. Q2 2026 revenue was negatively impacted by a $1.5 million reversal of previously recognized product revenue due to a change in scope associated with an integration project that is nearing its completion and consequent decrease in contract value. Excluding this impact, consolidated revenue would have been $28.8 million, an increase of 9% on a year-over-year basis.
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Product revenue totaled $16.9 million during the quarter, up 2% from $16.5 million in the prior year. Q2 2026 results continued to reflect strong demand for Kraken’s sonar and subsea battery products, which were partially offset by the revenue reversal associated with the change in scope to the integration project mentioned above.
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Service revenue of $10.5 million in Q2 2026 was up 6% from $9.8 million in Q2 2025. Quarterly revenues and year-over-year comparisons can fluctuate significantly due to the timing of projects and seasonality in the offshore services business.
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Gross profit2 increased to $16.2 million, up 10% from $14.8 million in Q2 2025. The Company’s gross profit margin2 during the quarter equated to 59%, compared to 56%.
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Adjusted EBITDA of $5.0 million in Q2 2026, was up 7% from $4.7 million in Q2 2025. The Company’s Adjusted EBITDA margin3 equated to 18%, in line with the prior period. Excluding the impact from the change in scope to the integration project mentioned above, Adjusted EBITDA margins were 20% with Adjusted EBITDA growth of 26% on a year-over-year basis.
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Total assets on June 30, 2026, were $724.7 million, compared to $184.3 million on June 30, 2025. Total assets at the end of Q2 2026 included $396.7 million of subscription receipt proceeds held in escrow from the Company’s March 3, 2026 public offering, which was completed to partially fund the acquisition of Covelya Group, which closed subsequent to the quarter on July 2, 2026.
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Long-term obligations and lease liabilities as at June 30, 2026, were $39.7 million, compared to $37.4 million at the end of Q2 2025. Kraken held cash of $91.3 million as at June 30, 2026, up from $32.9 million at the end of Q2 2025, and working capital of $151.8 million, up from $71.8 million at the end of Q2 2025. The Company continues to maintain a strong balance sheet with minimal net debt4 post the closing of its acquisition of Covelya Group.
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Capital expenditures and intangible asset purchases totaled $8.9 million in the quarter, compared with $6.3 million in Q2 2025. Spending in the quarter continued to be allocated to new marine assets to support revenue growth and additional tools and equipment related to Kraken’s new subsea power manufacturing facility.
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The Company reported a net loss of $7.5 million in Q2 2026, or ($0.02) per share diluted, compared to a net loss of $0.7 million, or ($0.00) per share diluted, in the comparable quarter in the prior year period. The net loss for the quarter included a provision for probable costs associated with an arbitration proceeding related to a supplier contract entered in 2017. The Company reported adjusted net income5 in Q2 2026 of $0.8 million, or $0.00 per share diluted, compared to $1.3 million, or $0.00 per share diluted in the prior year period.
