Kraken Robotics Reports Q2 2026 Financial Results

(MENAFN- GlobeNewsWire - Nasdaq) TORONTO, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (“Kraken” or the“Company”) (TSX-V: PNG, OTCQB: KRKNF), has filed its financial results for the second quarter ended June 30, 2026 (“Q2 2026”). Please refer to the unaudited consolidated financial statements and management's discussion and analysis (“MD&A”) for the three and six months ended June 30, 2026, filed on SEDAR+ at , for more information.

Q2 2026 results are for Kraken on a stand-alone basis and exclude any contribution from the acquisition of Covelya Group Limited (“Covelya Group”), which closed subsequent to the quarter on July 2, 2026. Unless otherwise specified, all dollar amounts in this release are denominated in Canadian dollars.

KEY HIGHLIGHTS

• Q2 2026 revenue of $27.3 million and Adjusted EBITDA¹ of $5.0 million.
• New product orders of over $27 million, bringing announced orders in 2026 to $355 million on a combined basis for Kraken and Covelya Group.
• Signed a new long-term Master Supply Agreement (MSA) to deliver subsea batteries to an international conglomerate that is manufacturing extra-large unmanned underwater vehicles (XL-UUVs).
• 2026 guidance, which includes a half-year contribution from Covelya Group, remains unchanged for revenue of $290 million to $320 million and Adjusted EBITDA of $65 million to $75 million.
  

MANAGEMENT COMMENTS

“Our second quarter and year-to-date results reflect our continued focus on building for long-term growth, supported by recent product orders, an expanding customer base, increased manufacturing capacity and an enhanced organizational structure with several additions to our senior management team,” said Greg Reid, CEO of Kraken Robotics.“The closing of the Covelya Group acquisition early in the third quarter represents a major inflection point for Kraken, significantly expanding our total addressable market and strengthening our position across subsea defence and commercial markets.”

Q2 2026 FINANCIAL HIGHLIGHTS

• Consolidated revenue increased to $27.3 million in Q2 2026, up 4% from $26.4 million in Q2 2025. Results were supported by strong product sales, including the delivery of a KATFISH towed synthetic aperture sonar (SAS) system that will be used by a Navy customer for its minehunting program, as well as modest growth in the subsea services division. Q2 2026 revenue was negatively impacted by a $1.5 million reversal of previously recognized product revenue due to a change in scope associated with an integration project that is nearing its completion and consequent decrease in contract value. Excluding this impact, consolidated revenue would have been $28.8 million, an increase of 9% on a year-over-year basis.
  
• Product revenue totaled $16.9 million during the quarter, up 2% from $16.5 million in the prior year. Q2 2026 results continued to reflect strong demand for Kraken's sonar and subsea battery products, which were partially offset by the revenue reversal associated with the change in scope to the integration project mentioned above.
  
• Service revenue of $10.5 million in Q2 2026 was up 6% from $9.8 million in Q2 2025. Quarterly revenues and year-over-year comparisons can fluctuate significantly due to the timing of projects and seasonality in the offshore services business.
  
• Gross profit² increased to $16.2 million, up 10% from $14.8 million in Q2 2025. The Company's gross profit margin² during the quarter equated to 59%, compared to 56%.
  
• Adjusted EBITDA of $5.0 million in Q2 2026, was up 7% from $4.7 million in Q2 2025. The Company's Adjusted EBITDA margin³ equated to 18%, in line with the prior period. Excluding the impact from the change in scope to the integration project mentioned above, Adjusted EBITDA margins were 20% with Adjusted EBITDA growth of 26% on a year-over-year basis.
  
• Total assets on June 30, 2026, were $724.7 million, compared to $184.3 million on June 30, 2025. Total assets at the end of Q2 2026 included $396.7 million of subscription receipt proceeds held in escrow from the Company's March 3, 2026 public offering, which was completed to partially fund the acquisition of Covelya Group, which closed subsequent to the quarter on July 2, 2026.
  
• Long-term obligations and lease liabilities as at June 30, 2026, were $39.7 million, compared to $37.4 million at the end of Q2 2025. Kraken held cash of $91.3 million as at June 30, 2026, up from $32.9 million at the end of Q2 2025, and working capital of $151.8 million, up from $71.8 million at the end of Q2 2025. The Company continues to maintain a strong balance sheet with minimal net debt⁴ post the closing of its acquisition of Covelya Group.
  
• Capital expenditures and intangible asset purchases totaled $8.9 million in the quarter, compared with $6.3 million in Q2 2025. Spending in the quarter continued to be allocated to new marine assets to support revenue growth and additional tools and equipment related to Kraken's new subsea power manufacturing facility.
  
• The Company reported a net loss of $7.5 million in Q2 2026, or ($0.02) per share diluted, compared to a net loss of $0.7 million, or ($0.00) per share diluted, in the comparable quarter in the prior year period. The net loss for the quarter included a provision for probable costs associated with an arbitration proceeding related to a supplier contract entered in 2017. The Company reported adjusted net income⁵ in Q2 2026 of $0.8 million, or $0.00 per share diluted, compared to $1.3 million, or $0.00 per share diluted in the prior year period.
  

EXECUTIVE APPOINTMENT

• Kraken is pleased to announce the appointment of Joanne Roberts as Executive Vice President, Systems & Services, a newly created role within the Kraken Robotics operating business announced on July 2, 2026. Joanne previously served as Head of Engineering at Drumgrange, an independent British engineering company specializing in electronics and communications systems for the maritime and land defence and security sectors. Prior to that, she was Vice President of Ultra Maritime and a Systems Engineering Manager at Thales. Starting in October, Joanne will be based in the U.K. and report to Bernard Mills, President.
  

NEW PRODUCT ORDERS AND OTHER HIGHLIGHTS

• Since its news release on July 2, 2026, the Company has secured additional product orders totaling over $27 million across a number of technology products including navigation and positioning systems, SAS, monitoring solutions, including its intruder detection system and seabed pressure sensors, and platform sales of its ScanFish remotely operated towed vehicle (ROTV). The company has also delivered a record number of Vigilant Forward Looking Sonars (FLS), which can be integrated on UUVs and USVs for obstacle avoidance. Announced orders in 2026 now total approximately $355 million on a combined basis for Kraken and Covelya Group.
  
• Kraken recently signed a long-term MSA with a major international conglomerate developing XL-UUVs as part of its autonomous underwater offerings. Under the agreement, Kraken will supply pressure-tolerant subsea batteries, further supporting its growth outlook and broadening its customer base.
  
• Kraken will be participating in the annual Robotic Experimentation and Prototyping with Maritime Unmanned Systems (REPMUS) exercise in Portugal next month, representing Kraken's fifth consecutive year supporting REPMUS. The 2025 REPMUS exercise brought together more than 30 nations, 2,000 participants, and 250 autonomous assets to test naval interoperability in realistic operational environments.
  

OUTLOOK

With the Covelya Group acquisition completed in early July, Q3 2026 will be Kraken's first quarter of combined results and is expected to mark a significant step change for the business. The Company's annual financial guidance remains unchanged from the guidance most recently provided on July 2, 2026.

Following this acquisition, the Company's product portfolio is well positioned to benefit from growth across multiple subsea verticals, including crewed platforms, uncrewed systems and stationary seabed sensors. Given the dual-use nature of Kraken's technology, demand for its products is coming from both new and existing defence and commercial customers.

Within defence, Kraken continues to see a strong pipeline of opportunities and growing interest in UUV solutions for mine countermeasures and critical underwater infrastructure. This includes recent demand across North America, Europe, the Middle East and Asia Pacific. In anticipation of these industry program awards that are gaining momentum, Kraken has been prudently building inventory across its technology offering.

2026 FINANCIAL GUIDANCE

A summary table of the Company's 2026 guidance range is provided below. This annual guidance includes a half-year contribution from the acquisition of Covelya Group, which closed at the beginning of Q3 2026.

($ 000s)	2026 Guidance Range
	Low	High
Consolidated Revenue	$290,000	$320,000
Adjusted EBITDA6	$65,000	$75,000
Adjusted EBITDA Margin6	22%	23%
Capital Expenditures/Intangible Assets	$27,000	$33,000

CONFERENCE CALL DETAILS

Kraken management will host a conference call today, August 27, 2026, starting at 8:30 a.m. ET to discuss the financial results. Participants can listen to this event at the webcast details below, or by dialing 1-833-752-3301 (North America) or +1-647-846-2734 (International) for operator assistance. A recording will also be made available following the call.

Webcast Details:

Figure 1: Kraken's KATFISH and USV-LARS on a SEFINE RD-22 USV
during a demonstration in early 2026 off the coast of İstanbul, Türkiye

NON-IFRS MEASURES

The Company has included certain non-IFRS financial measures and non-IFRS ratios in this press release, including Adjusted EBITDA, Adjusted EBITDA margin, gross profit, gross profit margin, Adjusted net income and working capital. Management believes that non-IFRS financial measures and non-IFRS ratios, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS financial measures and non-IFRS ratios do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Adjusted EBITDA and Adjusted EBITDA Margin

The Company believes that, in addition to conventional measures prepared in accordance with IFRS, Adjusted EBITDA is useful to securities analysts, investors and other interested parties in evaluating operating performance by presenting the results of the Company on a basis which excludes the impact of certain non-operational items which enables the primary readers of the press release to evaluate the results of the Company such that it was operating without certain non-cash and non-recurring items. Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization, stock-based compensation expense and non-recurring impact transactions, if any.

($ 000s)	Q2 2026	Q2 2025	YTD 2026	YTD 2025
Net (loss) income	(7,518)	(699)	(10,844)	(484)
Income tax	(1,818)	(16)	(2,421)	288
Financing costs	897	981	1,650	1,682
Interest income	(605)	(208)	(1,244)	(519)
Depreciation and amortization	3,189	2,339	6,071	3,918
EBITDA	(5,855 )	2,397	(6,788)	4,885
Restructuring and acquisition costs	1,963	912	4,761	1,247
Share-based compensation	1,850	672	2,759	1,076
Foreign exchange loss	134	693	364	260
Other loss	6,911	-	6,911	-
Adjusted EBITDA 1	5,003	4,674	8,007	7,468
Adjusted EBITDA Margin	18 %	18 %	16 %	18 %

<sup>Note:
1. Composition of Adjusted EBITDA has been changed in Q2 2026 to exclude the impact of“Other loss”, a non-cash, non-recurring item that management considers not to be indicative of operating performance.</sup>

Gross profit is defined as revenue less cost of total sales. Gross profit margin is defined as gross margin divided by total sales.

($ 000s)	Q2 2026	Q2 2025	YTD 2026	YTD 2025
Revenue	27,320	26,390	49,025	42,518
Cost of Sales	11,083	11,628	20,552	17,638
Gross profit	16,237	14,762	28,473	24,880
Gross profit margin	59 %	56 %	59 %	59 %

Adjusted Net Income and Adjusted Net Income per Share

Adjusted net income is calculated by adding to and deducting from net income, as applicable, certain expenses, costs, charges or benefits incurred which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of the business.

($ 000s)	Q2 2026	Q2 2025	YTD 2026	YTD 2025
Net loss	(7,518)	(699)	(10,844)	(484)
Restructuring and acquisition costs	1,963	912	4,761	1,247
Other loss	6,911	-	6,911	-
Amortization of intangible assets related to business combination	690	643	1,380	926
Income taxes related to above items	(1,277)	467	(231)	652
Adjusted net income 1	769	1,323	1,977	2,341

<sup>Note:
1. Composition of adjusted net income has been changed in Q2 2026 to exclude the impact of“Other loss”, and“Amortization of intangible assets related to business combination”, which are non-cash, non-recurring items that management considers not to be indicative of operating performance.</sup>

Adjusted net income per share diluted represents Adjusted net income divided by the weighted average number of fully diluted shares outstanding during the period.

($ 000s, except outstanding shares)	Q2 2026	Q2 2025	YTD 2026	YTD 2025
Adjusted net income	769	1,323	1,977	2,341
Weighted average number of fully diluted shares outstanding	319,138,136	269,685,156	318,011,341	269,521,252
Adjusted net income per share diluted	$ 0.00	$ 0.00	$ 0.01	$ 0.01

ABOUT KRAKEN ROBOTICS INC.

Kraken Robotics is a global marine technology company transforming subsea intelligence through advanced sensors, software, and integrated systems. Serving defence, offshore energy, and ocean science markets, the company delivers actionable insights in challenging underwater environments. Kraken's integrated subsea solutions span sonar, navigation, positioning, imaging, power, communications, monitoring, and data analytics.

On July 2, 2026, Kraken Robotics acquired the Covelya Group, bringing together Sonardyne, EIVA, Forcys, Voyis, and Chelsea Technologies. Together, the companies combine highly skilled global teams with a shared commitment to solving complex underwater challenges through world-class, dual-use technologies.

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FORWARD LOOKING STATEMENTS

This news release contains statements that constitute“forward-looking information” as defined under applicable Canadian securities laws (collectively,“forward-looking statements”). When used in this news release, the words“may”,“would”,“could”,“will”,“intend”,“plan”,“anticipate”,“believe”,“seek”,“propose”, "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: impacts of the Covelya Group acquisition on the business and financial outlook of the Company; expected growth of the autonomous underwater systems industry; business objectives; expected growth of the Company; expected orders of products and services; maritime security matters and the expanding role of mine countermeasures; new product offerings; technology development partnership plans; expected financial performance for the remainder of 2026; expectations regarding results of operations, performance, business projects and opportunities, and financial results; and 2026 guidance (including consolidated revenue, Adjusted EBITDA, Adjusted EBITDA margin, and capital expenditures/intangible assets) and financial estimates. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions, ability to successfully integrate the operations and realize the anticipated benefits of the Covelya Group acquisition, risks related to technology development partnerships and commercialization of new product capabilities, fluctuations in demand for the Company's products and services, macroeconomic uncertainties and other factors set out in the Company's continuous disclosure materials filed from time to time with the Canadian Securities Administrators, including the Company's most recent annual information form under the section entitled“Risk Factors”, quarterly and annual reports, and supplementary information, which are available under the Company's profile on SEDAR+ at . Additional risks and uncertainties not presently known to the Company or that Kraken believes to be less significant may also adversely affect the Company. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and accordingly, forward-looking statements should not be unduly relied upon.

Guidance for 2026 is provided as of July 2, 2026 to assist analysts and shareholders in formalizing their respective views on the year ending December 31, 2026. The reader is cautioned that using this information for other purposes may be inappropriate. This information constitutes forward-looking statements, based on multiple estimates and assumptions about future events. Actual results may differ, and such differences may be material. Expectations are also subject to a number of risks and uncertainties as well as material assumptions contained in this press release and in Kraken's MD&A for the three and six months ended June 30, 2026 as filed on SEDAR+ at . Guidance for 2026 is based on management's current views, strategies, expectations, assumptions and forecasts, and has been calculated using accounting policies that are generally consistent with the Company's current accounting policies. The Company cautions that the assumptions used to prepare the 2026 outlook could prove to be incorrect or inaccurate. Accordingly, the Company's actual results could differ materially from the Company's expectations as set out in this press release. The Company's revenue for 2026 assumes the following: Product revenue guidance range is driven by growth in the combined company's portfolio of power, sensors and integrated systems, along with organic growth in its service business. Product revenue is supported by existing orders and expected orders related to identified opportunities. Service revenue is based on stable to growing investment in offshore energy projects, both oil and gas and offshore renewables, and demand for critical underwater infrastructure inspection and repair. Revenue is expected to be weighted towards the second half of the year based on historical customer purchasing patterns. Adjusted EBITDA guidance assumes gross profit margins for its products and services consistent with prior year levels.

Forward-looking statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

Erica Hasenfus, Director of Global Marketing
...

Kraken Robotics Inc.
+1 709-757-5757
...

__________________________________
¹ Adjusted EBITDA is a non-IFRS financial measure with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. See“Non-IFRS Measures” in this press release.
² Gross profit is calculated as total revenue minus cost of sales. Gross profit margin is calculated as gross profit divided by total revenue.
³ Adjusted EBITDA margin is a non-IFRS financial ratio based on Adjusted EBITDA, with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. See“Non-IFRS Measures” in this press release.
⁴ Net debt refers to long-term debt, including its current portion and deferred financing costs, and bank indebtedness, net of cash and cash equivalents, and leases.
⁵ Adjusted net income is a non-IFRS financial measure, and adjusted net income per share diluted is a non-IFRS ratio based on adjusted net income with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. See“Non-IFRS Measures” in this press release. Adjusted net income is calculated by adding to and deducting from net income, as applicable, certain expenses, costs, charges or benefits incurred which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of the business.
⁶ Adjusted EBITDA guidance is a non-IFRS financial measure, and Adjusted EBITDA margin guidance is a non-IFRS ratio based on Adjusted EBITDA, each of which is forward-looking. See“Non-IFRS Measures” and“Forward-Looking Statements” in this press release.

A photo accompanying this announcement is available at:

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