Kraken Robotics delivered higher second-quarter revenue, gross profit and Adjusted EBITDA while maintaining its 2026 guidance, with approximately $355 million of announced orders on a combined basis with newly acquired Covelya Group strengthening visibility into future demand.
Key Investor Takeaways
- Kraken Robotics (USOTC:KRKNF) reported Q2 2026 revenue of C$27.3 million, up 4% year over year, while Adjusted EBITDA increased 7% to C$5.0 million.
- Excluding a C$1.5 million product revenue reversal, quarterly revenue would have increased 9% to C$28.8 million and Adjusted EBITDA growth would have reached 26%.
- Announced 2026 orders now total approximately C$355 million on a combined Kraken and Covelya Group basis, including more than C$27 million of additional product orders.
- Kraken maintained 2026 guidance for C$290 million to C$320 million of revenue and C$65 million to C$75 million of Adjusted EBITDA.
- The July 2 Covelya acquisition is not included in Q2 results, making the third quarter the first period to show the combined business.
Why KRKNF Stock Is in Focus
Kraken Robotics (USOTC:KRKNF) generated second-quarter revenue of C$27.3 million, compared with C$26.4 million a year earlier, as product sales and modest growth in subsea services supported the top line.
Reported growth was held back by a C$1.5 million reversal of previously recognized product revenue following a scope change on an integration project. Without that adjustment, revenue would have been C$28.8 million, representing 9% year-over-year growth.
Gross profit increased 10% to C$16.2 million, while gross margin expanded to 59% from 56%. Adjusted EBITDA reached C$5.0 million, up from C$4.7 million, with an 18% margin. Excluding the project adjustment, the company said its Adjusted EBITDA margin would have been 20%.
Kraken reported a C$7.5 million net loss compared with a C$0.7 million loss a year earlier. The latest quarter included a provision for probable costs associated with an arbitration proceeding involving a supplier contract entered into in 2017. Adjusted net income was C$0.8 million.
Why This Matters for Investors
The forward-looking order picture may carry more significance for investors than the modest headline Q2 revenue increase. Kraken and Covelya Group have announced approximately C$355 million of orders during 2026 on a combined basis.
Since July 2 alone, Kraken has secured more than C$27 million of additional orders across navigation and positioning systems, synthetic aperture sonar, monitoring products and ScanFish remotely operated towed vehicles.
The company has also signed a long-term Master Supply Agreement to provide pressure-tolerant subsea batteries to a major international conglomerate developing extra-large unmanned underwater vehicles. That agreement could strengthen Kraken’s exposure to autonomous underwater platforms while broadening its customer base.
The Covelya acquisition represents another major change to the investment narrative. Because it closed after quarter-end, none of Covelya’s contribution appears in the Q2 figures. Kraken expects Q3 to represent a significant step change as the first quarter of combined financial results.
The balance sheet has also expanded ahead of the transaction. Kraken held C$91.3 million in cash and C$151.8 million in working capital at June 30. Total assets of C$724.7 million included C$396.7 million of subscription receipt proceeds held in escrow to partially finance the Covelya acquisition.
What to Watch Next
Third-quarter results will provide the first financial indication of Kraken’s enlarged scale following the Covelya acquisition and will be important for assessing progress toward unchanged 2026 guidance.
Order conversion will also remain central. Investors may watch how the approximately C$355 million of announced combined orders translate into revenue and whether demand continues across defence and commercial subsea markets.
Further XL-UUV battery opportunities, defence program awards and the performance of Kraken’s expanded manufacturing capacity could provide additional indicators of the company’s post-acquisition growth trajectory.