Kraken Robotics (PNG) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with revenue up 31% to CAD 91.3 million and adjusted EBITDA up 47% to CAD 20.7 million, driven by strong global defense and offshore energy demand.

• Net income increased to CAD 20.1 million from CAD 5.5 million, aided by a CAD 9.7 million deferred tax recovery.

• Expanded product portfolio through the acquisition of 3D at Depth, enhancing subsea LiDAR and digital twin services.

• Strengthened operational foundation with investments in project management, engineering, and business development, and showcased technology at major industry events.

• Sales pipeline more than doubled to CAD 2 billion, driven by strong demand in defense and offshore energy markets.

Financial highlights

• Total revenue for 2024 grew 31% year-over-year to CAD 91.3 million.

• Adjusted EBITDA rose 47% to CAD 20.7 million, with an adjusted EBITDA margin of 22.7%.

• Net income increased to CAD 20.1 million from CAD 5.5 million, including a CAD 9.7 million deferred tax recovery.

• Cash at year-end was CAD 58 million, and working capital stood at CAD 94 million.

• Diluted EPS increased to CAD 0.09 from CAD 0.03 year-over-year.

Outlook and guidance

• 2025 revenue guidance: CAD 120–135 million, midpoint representing 40% growth over 2024.

• 2025 adjusted EBITDA guidance: CAD 26–34 million, midpoint representing 45% growth.

• Capital expenditures for 2025 expected to be CAD 13–17 million, with CAD 10 million allocated to a new subsea power facility in Nova Scotia.

• Sales pipeline has grown to over CAD 2 billion, up from CAD 900 million a year ago.

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