Kraken Robotics (PNG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 16% year-over-year to CAD 26.4 million, driven by strong subsea battery and service business performance, and the 3D at Depth acquisition, while sonar revenue declined due to project timing.

• Gross profit margin improved to 56% in Q2, up from 51% last year, reflecting a favorable revenue mix and higher-margin projects.

• Adjusted EBITDA was CAD 4.7 million (18% margin), down from CAD 5.4 million (24% margin) last year due to increased administrative expenses.

• Net loss for the quarter was CAD 0.7 million, compared to net income of CAD 2.6 million in Q2 2024; basic and diluted loss per share were CAD 0.00.

• The company maintained its annual guidance of CAD 120–135 million in revenue and CAD 26–34 million in adjusted EBITDA, expecting a back-end weighted year.

Financial highlights

• Q2 2025 consolidated revenue: CAD 26.4 million (up 16% year-over-year).

• Service revenue surged 180% to CAD 9.8 million, fueled by organic growth and the 3D at Depth acquisition.

• Subsea battery revenue up 26% year-over-year; service business organic growth of 27% (excluding 3D at Depth).

• Gross profit: CAD 14.8 million (56% margin), up from 51% margin in Q2 2024.

• CapEx and intangibles: CAD 6.3 million in Q2, CAD 9 million year-to-date, mainly for battery expansion and marine equipment.

Outlook and guidance

• Annual revenue guidance remains CAD 120–135 million, with adjusted EBITDA of CAD 26–34 million.

• Guidance midpoints imply 40% revenue growth and 45% Adjusted EBITDA growth for the year.

• Second half of 2025 expected to see significant revenue and EBITDA growth, driven by defense and commercial markets.

• Strong sales pipeline, especially in defense, with multiple large RFPs and contract opportunities anticipated.

• Additional subsea battery manufacturing capacity coming online.