Canada's Kraken Robotics Q1 revenue rises 35% on product demand

Kraken Robotics

28/05/2026 11:40

Overview
Canada subsea technology firm's Q1 revenue rose 35% yr/yr on strong product demand
Adjusted EBITDA for Q1 increased 7% yr/yr but margin declined due to higher admin expenses
Company reiterates 2026 revenue and EBITDA guidance; Covelya acquisition expected to close end-Q2

Outlook
Kraken Robotics sees 2026 revenue of C$165 mln to C$175 mln
Company expects 2026 Adjusted EBITDA of C$40 mln to C$50 mln
Company plans to update guidance after Covelya Acquisition closes near end of Q2 2026

Result Drivers
PRODUCT DEMAND - Revenue growth was primarily driven by increased demand for subsea batteries and SAS products
SERVICE REVENUE - Service revenue increased, supported by the 3D at Depth acquisition
HIGHER ADMIN COSTS - Adjusted EBITDA margin declined due to higher administrative expenses from a larger employee base

Company press release: ID:nGNXbZ5Ldr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
 
-C$3.30 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and 1 "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$10.25, about 25% above its May 27 closing price of C$8.20
The stock recently traded at 76 times the next 12-month earnings vs. a P/E of 90 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)