Kraken Robotics is “up to its eyeballs in orders”, Beacon says

Beacon Securities Ltd. is maintaining its Buy rating and $3.25 target, based on 25x CY26e EV/EBITDA, for Kraken Robotics (Kraken Robotics Stock Quote, Chart, News, Analysts, Financials TSXV:PNG).

On April 10, Kraken Robotics announced that it received new orders totaling $11-million for SeaPower pressure-tolerant batteries for uncrewed underwater vehicles. This brings year-to-date new battery orders to $45-million, driven predominantly by UUVs for the defense industry. Kraken said it is well-positioned for continued strong growth in its subsea power business and announced plans to open a new battery facility in Nova Scotia, which will more than triple production to meet defense industry demand.

Kraken is also developing new form factors to power small and medium class UUVs, due to be released in late 2025.

Beacon analyst Gabriel Leung said Kraken is up to its eyeballs in battery orders.

“With YTD battery orders at $45 million, we believe the company’s pending new battery facility in Nova Scotia will remain a priority,” he said. “The new facility is expected to go online towards the end of CY25. Once fully operational, we believe Kraken’s battery production could reach ~$200-million annually.”

Leung projects that PNG will post $26.9-million in Adjusted EBITDA on revenue of $116.1-million in fiscal 2025. He expects those numbers will improve to $33.4-million on revenue of $129.4-million in fiscal 2026.