Yahoo Finance

• Total Revenue (2024): $91.3 million, a 31% increase year-over-year.

• Product Revenue (2024): $66 million, a 26% increase, driven by growth in subsea battery business.

• Service Revenue (2024): $25 million, a 47% increase, driven by Sub-Bottom Imager jobs and Acoustic Corer projects.

• Gross Profit (2024): $44.7 million, a 32% increase, with a gross margin of 49%.

• Adjusted EBITDA (2024): $20.7 million, a 47% increase, with a margin of 22.7%.

• Net Income (2024): $20.1 million, up from $5.5 million in the prior year, including a deferred tax recovery impact of $9.7 million.

• Total Assets (End of 2024): $163 million.

• Cash (End of 2024): $58 million.

• Working Capital (End of 2024): $94 million.

• Q4 Revenue: $28.1 million, flat year-over-year.

• Q4 Gross Profit: $13.5 million, a 15% increase, with a gross margin of 48%.

• Q4 Adjusted EBITDA: $7 million, a 23% increase, with a margin of 25%.

• 2025 Revenue Guidance: $120 million to $135 million, representing 40% growth at the midpoint.

• 2025 Adjusted EBITDA Guidance: $26 million to $34 million, representing 45% growth at the midpoint.

• 2025 Capital Expenditures Guidance: $13 million to $17 million.

• Warning! GuruFocus has detected 4 Warning Signs with KRKNF.

Release Date: April 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kraken Robotics Inc (KRKNF) reported a 31% year-over-year revenue growth in 2024, reaching $91.3 million.

• The company achieved a 47% increase in adjusted EBITDA, amounting to $20.7 million, with an improved margin of 22.7%.

• Kraken Robotics Inc (KRKNF) successfully closed over $70 million in equity financings and secured $45 million in new committed credit facilities.

• The company expanded its sales pipeline significantly to over $2 billion, up from $900 million in the previous year.

• Kraken Robotics Inc (KRKNF) is strategically positioned for growth in defense and commercial markets, with strong demand for its subsea solutions.

Negative Points

• Revenue for Q4 2024 was flat at $28.1 million compared to the prior year, indicating potential challenges in maintaining growth momentum.

• The company experienced a decline in revenue from its catfish and remote mine disposal system segments.

• There is ongoing uncertainty in the US offshore wind market, which could impact future revenue streams.

• Kraken Robotics Inc (KRKNF) faces competitive pressures in the battery business, with customers seeking lower pricing.

• The sales cycle for defense contracts can be lengthy and unpredictable, posing challenges for revenue forecasting.

Q & A Highlights

Q: Can you explain the significant growth in your sales pipeline from $900 million to $2 billion? Is this due to new demand or increased visibility on existing opportunities? A: Greg Reid, President & CEO: It's a combination of both. We've gained more clarity on the size and timing of several new programs, and some opportunities have moved closer due to geopolitical activities. Growth is seen across our sonar, batteries, and services sectors.