Kraken Robotics Inc (KRKNF) (Q2 2026) Earnings Call Highlights: Record Orders and Covelya ...

This article first appeared on GuruFocus.

• Revenue: Consolidated revenue for Q2 totaled CAD27 million, including product revenue of approximately CAD17 million and service revenue of over CAD10 million.

• Revenue Growth: Excluding a CAD1.5 million impact from a change in scope on an integration project, consolidated revenue increased approximately 10% year-over-year.

• Product Revenue Growth: Excluding the scope change, product revenue grew 11% in the quarter and 25% for the first half of the year.

• Service Revenue Growth: Service revenue grew 6% in the quarter year-over-year, or 9% for the first half of the year.

• Gross Profit: Gross profit increased to over CAD16 million in Q2.

• Gross Margin: Gross profit margin remained strong at 59%, up slightly over the prior year.

• Adjusted EBITDA: Adjusted EBITDA increased slightly to CAD5 million, with an adjusted EBITDA margin of 18%.

• Adjusted EBITDA Growth: Excluding the scope change, adjusted EBITDA margins would have been 20%, with adjusted EBITDA growth of 26%.

• Capital Expenditures: Capital expenditures and tangible assets purchased totaled just over CAD9 million in Q2, compared to CAD6 million in the prior year.

• Cash Position: Cash position was just over CAD91 million at quarter-end.

• Working Capital: Working capital was CAD152 million at quarter-end.

• Long-Term Debt: Long-term debt and obligations and lease liabilities were approximately CAD40 million.

• 2026 Guidance: The company expects annual revenues of CAD209 million to CAD320 million, adjusted EBITDA between CAD65 million and CAD75 million, and capital expenditures in the range of CAD27 million to CAD33 million.

Release Date: August 27, 2026

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

Positive Points

• Closed transformative acquisition of Covelya Group, significantly expanding technological capabilities and total addressable market.

• Strong product demand with CAD355 million in product orders year-to-date, including CAD27 million in incremental orders since July.

• Gross profit margin remained strong at 59%, up slightly year-over-year.

• Expanded customer base with new long-term master supply agreement with an XL UUV manufacturer and added nearly 10 new battery OEM customers.

• Strong balance sheet with cash of CAD91 million and minimal net debt post-acquisition.