Kraken Robotics Inc.

For full-year 2024, consolidated revenue increased 31% to just over $91 million. Product revenue rose 26% to just over $66 million, while service revenue increased 47% to $25 million. Gross profit increased 32% to $44.7 million, with gross margin unchanged at 49%. Adjusted EBITDA rose 47% to $20.7 million from $14.1 million, and adjusted EBITDA margin improved to 22.7% from 20.3%. Net income increased to $20.1 million versus $5.5 million, helped by a $9.7 million deferred tax recovery. Q4 revenue was flat at $28.1 million; gross profit increased 15% to $13.5 million with gross margin at 48% versus 41.8%, and adjusted EBITDA rose 23% to $7 million with margin at 25%. Cash stood at $58 million and working capital at $94 million at year-end. For 2025, management guided to revenue of $120 million to $135 million, adjusted EBITDA of $26 million to $34 million, and capex of $13 million to $17 million. Management said the midpoint implies about 40% revenue growth and 45% adjusted EBITDA growth versus 2024, and they said free cash flow should be about $15 million at the midpoint of revenue and capex guidance.

Greg Reid framed Kraken as a marine technology company serving defense and offshore energy customers, with demand supported by geopolitical tensions, naval modernization, and the need to protect subsea infrastructure. He emphasized that Kraken is seeing opportunity across all three businesses—sonar, batteries, and services—and said the company is investing in capacity, R&D, and customer-facing teams to support long-term growth. His tone was upbeat and confident, stressing that the business can continue growing 30% to 40%-plus annually and that the team is aligned with shareholders.

Joseph Mackay highlighted the company’s 2024 financial outperformance: revenue just over $91 million, gross profit $44.7 million, gross margin 49%, adjusted EBITDA $20.7 million, and year-end cash of $58 million. He also pointed to a stronger balance sheet, with total assets of $163 million and working capital of $94 million, and noted that deferred tax assets added a $9.7 million benefit to net income. On 2025, he reiterated guidance for revenue of $120 million to $135 million, adjusted EBITDA of $26 million to $34 million, and capex of $13 million to $17 million, adding that working capital should be positive in 2025 as contract assets and liabilities reverse and that free cash flow should be about $15 million at the midpoint.

Analysts focused on the jump in the pipeline to over $2 billion, asking how much was new demand versus better visibility on existing opportunities; management said it was a mix of both, with more clarity on defense programs and some opportunities pulled closer by geopolitical developments. Questions also centered on batteries, including whether current capacity is already secured, with management saying the German plant is running full out and the 2025 battery business looks very solid, while they expect to sign an additional XL vehicle customer by year-end. Analysts asked about U.S. offshore wind weakness and working capital; management said there was no 2025 impact from U.S. offshore wind in the model and that working capital should improve as the Canadian Navy RMDS contract winds down and contract liabilities reverse.