Kraken Robotics Systems Inc (PNG) AI Stock Analysis

• Market Cap: C$2.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 131.3
• Beta (1Y): 1.76
• Revenue Growth: 11.77%
• EPS Growth: 45.13%
• Country: CA
• Employees: 283
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.01
• Shares Outstanding: 306,517,550
• 10 Day Avg. Volume: 2,786,085
• 30 Day Avg. Volume: 1,653,137
• PEG Ratio: 0.14
• Price to Book (P/B): 5.14
• Price to Sales (P/S): 6.85
• P/FCF Ratio: -38.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.31
• Price Target Upside: 3.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: C$9.00 ▲(12.22% Upside)

The score is primarily supported by strong revenue growth, healthy profitability, and a conservatively leveraged balance sheet, but is held back by negative operating/free cash flow and a very high P/E valuation. Technically, the trend is bullish, yet overbought momentum signals increase near-term downside risk.

Positive Factors

Consistent revenue growth

Sustained 13% TTM revenue growth indicates expanding demand for Kraken's AUVs, sonar and sensor solutions. Combined with recurring service and software licensing revenues, this trend supports durable top-line expansion and the ability to invest in product development and partnerships over the medium term.

High gross and net margins

Elevated gross margin (53.9%) and a healthy net margin (16.4%) reflect strong product-level pricing and cost structure, while ROE near 14% shows effective capital use. These profitability metrics suggest sustainable economics for R&D and competitive positioning in specialized marine and defense markets.

Conservative leverage and capital structure

Low debt-to-equity (0.31) and a high equity ratio indicate a conservatively financed balance sheet. This provides flexibility to fund development, absorb contract timing variability, and pursue strategic partnerships without excessive refinancing risk during multi-month government or offshore procurement cycles.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow despite profits undermines internal funding capacity and raises reliance on external financing. Over a multi-month horizon this constrains capital allocation for production scale-up, service deployment, and working capital during long contract lead times.

Declining operating efficiency

Declining EBIT/EBITDA margins point to rising operating costs or scaling inefficiencies. If not reversed, margin erosion can reduce reinvestment capacity and weaken pricing leverage, pressuring long-term profitability and the firm's ability to sustain investment in advanced sensor and AUV R&D.

Concentrated end-market exposure

Heavy exposure to defense, marine and offshore sectors concentrates revenue sensitivity to government procurement cycles and cyclic offshore spending. Such concentration can lengthen sales cycles and amplify demand volatility, complicating revenue predictability and multi-quarter planning.

Kraken Robotics Systems Inc Business Overview & Revenue Model

Company Description

Kraken Robotics Inc., a marine technology company, engages in the design, manufacture, and sale of software-centric sensors, batteries, and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications. It operates in two segments, Sensors and Platforms, and Power. The company offers AquaPix Miniature interferometric synthetic aperture sonar (MINSAS), a configurable MINSAS; and SeaVision, an underwater laser imaging system. It also provides Kraken Active Towed Fish (KATFISH), a towed underwater vehicle for high speed and high resolution seabed mapping; ThunderFish, an autonomous underwater vehicle; and ALARS, an autonomous launch and recovery system that enable an unmanned vehicle and its payloads to be brought aboard to a host ship. In addition, the company designs and manufactures pressure tolerant thrusters, drives, batteries, battery management systems, and electronics; and robotics as a service, as well as implements digital signal processing and user interface software for anti-submarine warfare sonar applications. It has operations in Canada, the United States, Europe, and internationally. The company was formerly known as Kraken Sonar Inc. and changed its name to Kraken Robotics Inc. in September 2017. Kraken Robotics Inc. is headquartered in Mount Pearl, Canada.

How the Company Makes Money

Kraken Robotics generates revenue through multiple streams, including the sale of its robotic systems and associated technologies, service contracts for maintenance and support, and licensing agreements for its proprietary software solutions. Key revenue streams include the direct sale of AUVs and sonar systems to government and commercial clients, as well as recurring revenue from maintenance services and software upgrades. The company also benefits from strategic partnerships with defense contractors and research institutions, which enhance its technological capabilities and expand its market reach, contributing significantly to its earnings.

Kraken Robotics Systems Inc Financial Statement Overview

Summary

Kraken Robotics Systems Inc demonstrates solid revenue growth and profitability with strong margins and a conservative balance sheet. However, cash flow management remains a concern, with negative operating cash flow indicating potential liquidity challenges.

Income Statement

Kraken Robotics Systems Inc has shown consistent revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 4.20%. The gross profit margin is strong at 50.95%, indicating efficient cost management. However, the net profit margin has slightly decreased to 20.95% from the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.16, indicating a conservative leverage position. The return on equity is robust at 26.68%, showcasing effective use of equity to generate profits. However, the equity ratio stands at 64.60%, suggesting a balanced but slightly lower reliance on equity financing compared to total assets.

Cash Flow

Kraken Robotics Systems Inc faces challenges in cash flow management, with a negative operating cash flow and free cash flow. Despite a positive free cash flow growth rate of 24.82%, the operating cash flow to net income ratio is negative, indicating potential liquidity issues. The free cash flow to net income ratio is positive at 1.35, suggesting that free cash flow generation is relatively strong compared to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.18M	91.29M	69.58M	40.91M	25.63M	12.28M
Gross Profit	48.62M	44.69M	33.96M	17.04M	11.32M	5.82M
EBITDA	13.68M	18.12M	11.72M	825.00K	-176.00K	-3.86M
Net Income	14.82M	20.09M	5.55M	-4.24M	-3.54M	-5.21M
Balance Sheet
Total Assets	184.27M	164.20M	76.42M	71.36M	65.47M	34.82M
Cash, Cash Equivalents and Short-Term Investments	32.87M	58.52M	5.17M	8.27M	6.75M	12.92M
Total Debt	37.43M	19.34M	16.20M	16.27M	15.26M	5.02M
Total Liabilities	65.26M	42.46M	44.36M	47.71M	37.86M	18.81M
Stockholders Equity	119.01M	121.73M	32.06M	23.66M	27.60M	16.01M
Cash Flow
Free Cash Flow	-15.78M	-16.06M	870.00K	93.00K	-16.54M	612.26K
Operating Cash Flow	-3.79M	-12.46M	8.43M	5.24M	-11.01M	2.79M
Investing Cash Flow	-36.00M	-5.15M	-9.81M	-3.37M	-7.24M	-3.24M
Financing Cash Flow	53.65M	69.88M	-2.15M	-41.00K	11.92M	11.10M

Kraken Robotics Systems Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNG, the sentiment is Positive. The current price of 8.02 is above the 20-day moving average (MA) of 7.02, above the 50-day MA of 6.23, and above the 200-day MA of 4.25, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PNG.

Kraken Robotics Systems Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTE	76 Outperform	C$11.64M	11.58	18.01%	―	-17.91%	-54.21%
PNG	62 Neutral	C$2.46B	131.26	11.18%	―	11.77%	45.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HEAT	48 Neutral	C$20.06M	-2.56	―	―	―	40.24%

Kraken Robotics Systems Inc Corporate Events

Kraken Robotics Lands $35 Million in SeaPower Battery Orders as UUV Demand Surges

Kraken Robotics has secured $35 million in SeaPower battery sales from three undisclosed customers, underscoring growing demand for its high energy density power systems used in unmanned underwater vehicles across defence, commercial, and research markets. The company is bringing new battery manufacturing capacity online in North America in early 2026, complementing its European operations and positioning Kraken to capitalize on rapid growth in the UUV segment, from extra-large to small platforms, by enabling longer, deeper, and more complex subsea missions.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Strengthens Leadership Team with New Chief People Officer

Kraken Robotics Inc. has appointed Terra Penrose as its new Chief People Officer, based in Nova Scotia, as the company navigates a period of strong growth. Penrose brings more than two decades of human resources experience across sectors such as defense, aerospace, shipbuilding, oil and gas, and municipal government, and previously served as Chief HR Officer at Airbus subsidiary Stelia Aerospace North America. The company expects her to strengthen its organizational structure, culture, and leadership practices, reinforcing Kraken’s ability to scale its global subsea robotics and sensor business and support its expanding, highly specialized workforce.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics and TKMS ATLAS UK Showcase Advanced USV Launch and Recovery System

Kraken Robotics Inc. has successfully demonstrated its KATFISH Unmanned Surface Vessel Launch and Recovery System (USV-LARS) in collaboration with TKMS ATLAS UK on an ARCIMS USV of the UK Royal Navy. This system provides a comprehensive autonomous survey package for maritime security, enhancing mine countermeasure operations and underwater infrastructure inspections. The integration of ARCIMS and KATFISH USV-LARS marks a significant advancement in delivering agile and cost-effective naval capabilities, allowing for faster deployment of advanced technologies and strengthening maritime security. The demonstration, conducted for NATO navies, showcased the system’s ability to autonomously navigate and collect high-resolution sonar data, which was streamed in real-time to shore-based command centers.

The most recent analyst rating on (TSE:PNG) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Strengthens Leadership with Key Appointments

Kraken Robotics has announced strategic additions to its leadership team with the appointment of Kim Butler to its Board of Directors and Bernard Mills as Executive Vice President, Defence. Kim Butler brings extensive experience in financial leadership and corporate governance, which will support Kraken’s mission to deliver innovative marine technology solutions globally. Bernard Mills, with his expertise in the defence and aerospace sectors, will enhance Kraken’s capability to manage complex integrated systems programs, positioning the company for significant expansion in the maritime defence industry.

The most recent analyst rating on (TSE:PNG) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Secures $12 Million in Orders for Sonar and Battery Systems

Kraken Robotics has announced receiving $12 million in orders for its synthetic aperture sonar and subsea batteries from multiple organizations, including Teledyne Marine, Terradepth, and two NATO navies. This highlights the company’s dual-use technology’s critical role across maritime security and offshore energy applications. The orders, which include integration on autonomous underwater vehicles, underscore Kraken’s platform-agnostic solutions’ versatility and their impact on expanding the company’s market reach in defense and commercial sectors.

The most recent analyst rating on (TSE:PNG) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Achieves Record Q3 2025 Financial Performance

Kraken Robotics reported record financial results for Q3 2025, with a 60% increase in revenue to $31.3 million, driven by strong sales of subsea batteries and synthetic aperture sonar to defense customers, as well as the acquisition of 3D at Depth Inc. The company’s gross margin improved to 59%, and its adjusted EBITDA rose by 92% to $8.0 million, reflecting robust growth in both product and service revenues. The financial performance underscores Kraken’s strategic positioning in the maritime defense and offshore energy sectors, as it continues to expand its capabilities and market reach.

The most recent analyst rating on (TSE:PNG) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Expands Reach in Australia and New Zealand with BlueZone Partnership

Kraken Robotics has appointed BlueZone Group as an authorized reseller for its Synthetic Aperture Sonar (SAS) and KATFISH towed SAS platform in Australia and New Zealand. This partnership enhances Kraken’s regional support, particularly for the Royal Australian Navy, and signifies a strategic move to strengthen local partnerships for critical naval operations. The collaboration is expected to bolster Kraken’s market presence in the region and ensure the Australian Defence Force has access to advanced maritime technologies, thereby safeguarding maritime interests and critical shipping lanes.

The most recent analyst rating on (TSE:PNG) stock is a Hold with a C$6.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.