Kraken Robotics Reports 2024 Financial Results

Revenue increased 31% to $91 million, adjusted EBITDA increased 47% to $21 million, and sales pipeline more than doubles to $2 billion

ST. JOHN’S, Newfoundland and Labrador, April 28, 2025 (GLOBE NEWSWIRE) — Kraken Robotics Inc. (TSX-V: PNG, OTCQB: KRKNF) (“Kraken” or the “Company”), announced it has filed its financial results for the fourth quarter and year ended December 31, 2024 (“Q4 2024”). Please refer to the Audited Consolidated Financial Statements, Management’s Discussion and Analysis (“MD&A”) and the Annual Information Form for the year ended December 31, 2024, filed on www.sedarplus.ca for more information. Unless otherwise specified, all dollar amounts are denominated in Canadian dollars. The Company has also scheduled a webcast to discuss results today at 8:30 am ET (details below).

Financial Highlights for year ended December 31, 2024

• Consolidated revenue increased 31% to $91.3 million, compared to $69.6 million in 2023.
• Product revenue increased 26% to $66.3 million, compared to $52.6 million in the prior year and was driven by significant growth in our SeaPower™ subsea battery business offset by lower revenue in our sensor business.
• Service revenue was $25.0 million, a 47% increase compared to 2023 and was driven by an increased number of Sub-Bottom Imager™ and Acoustic Corer™ projects.
• Gross profit for the year increased 32% to $44.7 million, compared to $34.0 million in 2023, implying a gross profit margin percentage of 49%, unchanged from the prior year.
• Adjusted EBITDA¹ for the year increased 47% to $20.7 million, compared to Adjusted EBITDA¹ of $14.1 million in 2023. Adjusted EBITDA¹ margin improved to 22.7% compared to 20.3% in the comparable year.
• Total assets were $162.6 million on December 31, 2024, compared to $76.4 million on December 31, 2023. Cash at the end of the year totaled $58.5 million, compared to $5.2 million in the prior year, while working capital totaled $94.4 million, compared to $3.6 million in the prior year.
• Capital expenditures/intangible assets purchased were $5.1 million for the year, compared to $7.6 million in 2023.
• Net income for the year increased to $20.1 million, compared to $5.5 million in the prior year. Diluted earnings per share of $0.09 compared to $0.03 in the prior year. Net income in the year benefited from a deferred tax recovery of $9.7 million.

Q4 2024 Financial Highlights

• Consolidated revenue for Q4 2024 was flat at $28.1 million, compared to $28.0 million for the quarter ending December 31, 2023. SeaPower subsea batteries, services revenue and sonar sensor revenue grew in the quarter, while KATFISH™ and Remote Mine Disposal System (RMDS) revenue declined.
• Product revenue in the quarter declined 6% to $18.6 million, compared to $19.6 million in the prior year. Services revenue in the quarter increased 14% to $9.6 million, compared to $8.4 million in the prior year. Quarterly revenues can fluctuate significantly due to the timing of product orders and shipments and seasonality in our offshore services business.
• Gross profit in Q4 2024 increased 15% to $13.5 million, implying a 48.0% gross profit margin percentage compared to 41.8% in Q4 2023. The year-over-year improvement relates to a change in revenue mix over the prior year.
• Adjusted EBITDA¹ increased 23% in the quarter to $7.0 million, compared to $5.7 million in the comparable quarter due to improved gross margins and cost control. Adjusted EBITDA¹ margin in the quarter stood at 25.0%, compared to 20.5% in the comparable quarter.

Management Comments

“2024 was another record year for Kraken, driven by strength across defense and offshore energy end markets where there is increased focus on surveillance and security of critical underwater infrastructure. Our Subsea Power business featuring our SeaPower batteries is seeing significant growth, and we announced plans to significantly increase our manufacturing capacity with a new facility in Canada in addition to our current facility in Germany. Our Subsea Services business had another record year as our offshore energy customers require high resolution subsea data to help better plan and manage risk in the construction, operation, and maintenance of their critical subsea infrastructure. We look forward to offering our Subsea Service customers additional capabilities including subsea LiDAR from our recently acquired 3D at Depth and KATFISH seabed surveys for the commercial market. While our sensor products business in 2024 saw revenue decline after several strong years of growth, our pipeline of opportunities in this space has never been better, and numerous significant defense programs are out for tender and coming to tender this year and next. We have significantly strengthened our balance sheet with more than $115 million of new equity and committed credit facilities over the last 12 months. With a strong product portfolio and notable reference customers, we expect to win our fair share of opportunities driving strong growth metrics,” said Kraken President and CEO Greg Reid.

Recent Company Highlights

Since the end of Q3, Kraken Robotics announced:

• Several meaningful new orders, including almost $60 million in subsea battery orders.
• Plans to open new battery production facility in Nova Scotia to meet increasing defense market demand.
• The acquisition of subsea LiDAR company 3D at Depth.
• The introduction of KATFISH synthetic aperture sonar service for the global offshore energy market.

2025 Financial Guidance

For 2025, we currently expect revenue between $120 million and $135 million and Adjusted EBITDA¹ margin in the $26 million to $34 million range. The midpoint of guidance represents 40% revenue growth and 45% Adjusted EBITDA growth.

Capital expenditures in 2025 are expected to range from $13 million to $17 million with approximately $10 million of this spending related to a new subsea power manufacturing facility that is expected to be operational in Nova Scotia near the end of 2025.

Our sales funnel pipeline, a combination of opportunities across three areas: sensor products, subsea power, and subsea services, continues to be strong and has increased significantly in the last 12 months. Kraken’s sales funnel pipeline currently stands at ~ $2 billion, more than double year over year from the $900 million we reported in February 2024.

Consistent with prior years, revenue is expected to be weighted toward the second half of calendar 2025.

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, 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.

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

Webcast Details

• Date: Monday, April 28, 2025
• Time: 8:30am ET
• URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ktSbjyD1

A recording of the webcast and supporting materials will be made available in the investor’s section of the Company’s website at https://www.krakenrobotics.com/investors.

Figure 1: KATFISH towed synthetic aperture sonar system returning from testing in Halifax Harbour

ABOUT KRAKEN ROBOTICS INC.

Kraken Robotics Inc. (TSX.V: PNG) (OTCQB: KRKNF) is transforming subsea intelligence through 3D imaging sensors, power solutions, and robotic systems. Our products and services enable clients to overcome the challenges in our oceans – safely, efficiently, and sustainably.

Kraken’s synthetic aperture sonar, sub-bottom imaging, and LiDAR systems offer best-in-class resolution, providing critical insights into ocean safety, infrastructure, and geology. Our revolutionary pressure tolerant batteries deliver high energy density power for UUVs and subsea energy storage.

Kraken Robotics is headquartered in Canada with offices in North America, South America, and Europe, supporting clients in more than 30 countries worldwide.

LINKS:

www.krakenrobotics.com

SOCIAL MEDIA:

FORWARD LOOKING STATEMENTS

The Company and its management believe that the statements regarding 2025 revenue and adjusted EBITDA contained in this press release are reasonable as of the date hereof, are based on management’s current views, strategies, expectations, assumptions and forecasts, and have been calculated using accounting policies that are generally consistent with the Company’s current accounting policies. These statements are considered future-oriented financial outlooks and financial information (collectively, “FOFI”) under applicable securities laws. These statements and any other FOFI included herein have been approved by management of the Company as of the date hereof. Such FOFI are provided for the purposes of presenting information about management’s current expectations and goals relating to the Company’s expected growth in its Products and Services groups. However, because this information is highly subjective and subject to numerous risks, including the risks discussed in the disclaimer for forward-looking statements below, it should not be relied on as necessarily indicative of future results. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the FOFI prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although management of the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any FOFI, whether as a result of new information, future events or otherwise, except as required by securities laws.

Certain information in this news release constitutes 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, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. 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 and other factors set out in the Company’s public disclosure documents. 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 such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such 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. 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 Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQB has neither approved nor disapproved the contents of this press release.

For further information:

Erica Hasenfus, Director of Marketing
erica.hasenfus@krakenrobotics.com

Joe MacKay, Chief Financial Officer
(416) 303-0605
jmackay@krakenrobotics.com

Greg Reid, President & CEO
(416) 818-9822
greid@krakenrobotics.com

Sean Peasgood, Investor Relations
(647) 955-1274
sean@sophiccapital.com

¹Adjusted EBITDA is a non-GAAP financial measure and gross margin, and adjusted EBITDA margin are non-GAAP ratios, in each case with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the “Non-GAAP Measures” section of this press release.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ef5c93ce-998b-451e-b2f2-803c800617da