Kraken Robotics Announces Record 2025 Financial Performance and Transformative Acquisition
ST. JOHN'S, Newfoundland and Labrador – Kraken Robotics Inc., a leading provider of advanced underwater technology solutions, has released its financial results for the fourth quarter and full year ended December 31, 2025. The company reported record annual revenue of $102.2 million and Adjusted EBITDA of $25.0 million, marking significant growth in its core markets.
Financial Highlights and Strategic Developments
The company's strong performance was driven by increased demand for its battery systems and Synthetic Aperture Sonar products, with expansion into new customer segments. Kraken also completed the strategic acquisition of 3D at Depth, Inc. in 2025, enhancing its LiDAR service capabilities.
In a major strategic move announced in March 2026, Kraken has entered into a definitive agreement to acquire Covelya Group Limited, a prominent international provider of mission-critical underwater technology solutions. The acquisition, valued at $615 million, is expected to close during the second quarter of 2026, pending customary closing conditions and regulatory approvals.
Product Innovation and Capacity Expansion
Kraken has made significant advancements in its product portfolio, including:
- Development of higher energy density battery systems
- Launch Launch and Recovery Systems for smaller Unmanned Surface Vehicles
- Introduction of circular Synthetic Aperture Sonar technology
- Completion of a new manufacturing facility in Nova Scotia to increase battery production capacity
The company has also strengthened its leadership team with several new executive appointments and independent directors joining the board.
Market Outlook and 2026 Guidance
Kraken has provided optimistic guidance for 2026, projecting revenue between $165 million and $175 million and Adjusted EBITDA ranging from $40 million to $50 million. The company has already secured $87 million in product orders during the early months of 2026, with demand spanning all product lines.
Greg Reid, President and CEO of Kraken Robotics, commented on the company's performance and strategic direction: "We are pleased to report another year of strong financial results, driven by significant demand for our products and services across a growing base of customers. This momentum reflects the differentiated capabilities of our subsea sensor and power technologies and the growing adoption of autonomous underwater systems in both defense and commercial applications."
Industry Trends and Growth Drivers
Reid highlighted the current market environment, noting that rising global instability is fueling increased defense spending and a push for national energy security. "Recent conflicts in Ukraine and the Middle East have demonstrated that uncrewed systems provide transformative, asymmetric capabilities," he stated. "Simultaneously, the energy sector is adopting these systems to lower costs and enhance the monitoring of remote assets."
This convergence of factors has created substantial demand for maritime drones and counter-drone technology, positioning both Kraken and Covelya Group to capitalize on growing market opportunities. The combined company is expected to issue updated guidance for 2026 following the completion of the Covelya acquisition.
Kraken's financial statements, management discussion and analysis, and annual information form for the year ended December 31, 2025, have been filed on SEDAR+ and are available for review by investors and stakeholders.
