Kraken Robotics (PNG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 23% year-over-year to $16.1 million, mainly due to a 42% drop in Product revenue as a major Canadian Navy project neared completion.

• Service revenue grew 38% year-over-year to $7.0 million, driven by demand for Sub-Bottom Imager and Acoustic Corer services.

• Gross profit increased 8% to $10.1 million, with gross margin rising to 62.7% from 44.8%, impacted by several one-time items.

• Adjusted EBITDA fell 32% to $2.8 million, with margin at 17.3% versus 19.6% a year ago.

• Net income was $0.2 million, down from $2.2 million in Q1 2024; EPS was $0.00 compared to $0.01.

Financial highlights

• Total assets rose to $178.8 million from $73.5 million year-over-year; cash increased to $58.3 million from $1.5 million.

• Working capital reached $94.6 million, up from $6.5 million a year earlier.

• Capital expenditures were $2.7 million, up from $0.8 million, reflecting investment in a new battery facility and internal assets.

Outlook and guidance

• 2025 revenue guidance remains $120–$135 million, with Adjusted EBITDA expected between $26–$34 million.

• Midpoint of guidance implies 40% revenue growth and 45% Adjusted EBITDA growth year-over-year.

• Capital expenditures for 2025 projected at $13–$17 million, with $10 million allocated to a new subsea power facility in Nova Scotia.

• Revenue expected to be more weighted toward the second half of 2025.