Underwater Robotics Becomes an Order Business: Inside Kraken’s C$355 Million Signal

Underwater robotics is moving from isolated demonstrators toward a market for complete sensing, power and data stacks. Kraken Robotics says announced 2026 orders now total approximately C$355 million on a combined basis with Covelya Group, which it acquired in July.

The figure is not quarterly revenue and should not automatically be treated as identical to reported backlog. It nevertheless indicates growing demand for sonar, navigation, pressure-tolerant batteries and monitoring systems used by unmanned underwater vehicles.

A solid quarter, but not a straight growth line

Standalone second-quarter revenue reached C$27.3 million, up 4% year on year. Adjusted EBITDA rose to C$5 million. The company recorded a C$7.5 million net loss, which included a provision for probable costs related to arbitration over an older supplier contract.

The quarter contains no contribution from Covelya because the acquisition closed on July 2. The third quarter will be the first to report the combined group. Full-year guidance remains C$290 million to C$320 million in revenue and C$65 million to C$75 million in adjusted EBITDA, including a half-year contribution from Covelya.

Sonar, batteries and autonomous platforms

During the quarter, Kraken delivered a KATFISH towed synthetic aperture sonar system for a naval customer’s mine-hunting programme. It also reported a record number of Vigilant forward-looking sonar deliveries. Those sensors can be integrated into unmanned underwater and surface vehicles for obstacle avoidance.

Kraken has additionally signed a long-term master supply agreement with an international conglomerate developing extra-large unmanned underwater vehicles. The company is to provide pressure-tolerant batteries. No minimum volume, contract value or delivery schedule was disclosed, so the agreement does not yet establish a fixed revenue contribution.

A dual-use infrastructure market

The underlying technology serves defence and commercial applications. Accurate sonar, resilient power and underwater navigation support mine countermeasures, but also offshore energy, ocean science, cable inspection and the protection of critical infrastructure.

Those shared technical requirements distinguish subsea autonomy from narrower robotics niches. A supplier can sell the same core capabilities across multiple platforms and markets, provided certification, integration and production capacity keep pace.

The Alpha Bionic view

The economically important unit is no longer just the underwater vehicle. Increasingly, value sits in the combined stack of perception, energy, positioning and data processing. Kraken’s C$355 million signal therefore points to underwater autonomy becoming a scalable infrastructure business.