Kraken Robotics Shares Climb as Record Orders and Covelya Deal Lift 2026 Outlook

Shares of Kraken Robotics Inc. advanced more than 9% in early European trading Monday, reflecting continued investor focus on the company's expanded scale and strong order momentum following its largest acquisition to date. The stock traded near 3.85 euros on the Frankfurt exchange under the ticker 2KQ.

Kraken, a Canadian provider of underwater robotics, synthetic aperture sonar, subsea batteries and related marine technologies, closed its acquisition of Covelya Group Limited on July 2 for approximately 615 million Canadian dollars. The deal brought together Sonardyne, EIVA, Forcys, Voyis and Chelsea Technologies, creating a broader portfolio of mission-critical subsea intelligence solutions spanning sonar, navigation, positioning, imaging, power systems and data analytics.

Management promptly updated its 2026 financial guidance to reflect the transaction's contribution. Consolidated revenue is now expected in the range of 290 million to 320 million Canadian dollars, nearly double the prior standalone outlook of 165 million to 175 million dollars. Adjusted EBITDA guidance was raised to 65 million to 75 million dollars. Revenue is anticipated to be weighted toward the second half of the year as integration progresses.

On July 20 the company announced an additional 35 million dollars in new product orders from customers in maritime defense, offshore energy and ocean science. The awards covered navigation and positioning systems, multi-aperture sonar, monitoring systems from the Covelya businesses, and synthetic aperture sonar systems from Kraken. Combined with earlier bookings, total announced product orders for Kraken and Covelya on a combined basis reached approximately 327 million dollars year-to-date in 2026.

"Our product portfolio forms the backbone of a wide range of platforms used across both defence and commercial applications and we expect it to represent over 75% of consolidated revenue in 2026," Chief Executive Officer Greg Reid said in the July 20 statement. The products are integrated or being integrated across more than 30 autonomous underwater vehicle platforms worldwide, as well as crewed vessels, uncrewed surface vessels and remotely operated vehicles.

Demand has been particularly strong for Kraken's SeaPower subsea batteries, which offer higher energy density and lower weight compared with traditional systems, enabling longer-endurance missions for unmanned underwater vehicles. Synthetic aperture sonar systems used for high-resolution seabed imaging, mine countermeasures and critical infrastructure inspection have also contributed significantly. Covelya's navigation, positioning and advanced sonar technologies have added complementary strength in defense and commercial markets.

The combined group now operates with a larger global footprint and deeper relationships in the fast-growing defense and maritime surveillance sectors. Management has identified approximately 10 million dollars in cost synergies expected within 24 months. Leadership changes accompanied the closing, including the appointment of Bernard Mills as president and the addition of former Covelya executives to key roles.

Kraken reported first-quarter 2026 results in late May showing revenue of 21.7 million dollars, up 35% year over year, with product revenue rising 50% on battery and sonar demand. At that time the company reiterated its then-standalone guidance and noted strengthening order intake ahead of the Covelya close. Second-quarter results, which will begin to reflect the enlarged business, are scheduled for late August.

The company has expanded manufacturing capacity, including a new 60,000-square-foot battery facility in Nova Scotia, to support anticipated growth in unmanned underwater vehicle power systems. Dual-use technologies serving both defense and commercial customers position Kraken to benefit from rising global investment in autonomous maritime systems, mine warfare modernization and offshore energy infrastructure protection.

Despite the operational progress, the share price has experienced volatility since the acquisition announcement and closing. The stock remains well below its March peak even after the recent advance. Investors are monitoring integration execution, margin performance and the conversion of the substantial order backlog into recognized revenue. The company has indicated plans to apply for a listing on the Toronto Stock Exchange, subject to meeting applicable requirements.

Market participants are also watching broader trends in underwater autonomy and defense spending. Programs focused on mine countermeasures, critical underwater infrastructure protection and large autonomous underwater vehicles continue to generate procurement activity across North America, Europe, the Middle East and the Asia-Pacific region. Kraken's platform-agnostic approach and expanded technology suite are intended to capture a larger share of these opportunities.

With a record order book, updated growth targets and the Covelya integration underway, Kraken enters the second half of 2026 with greater scale and visibility than at any prior point in its history as a public company. The upcoming second-quarter report will provide the first formal look at combined operations and will be closely examined for evidence that the enlarged product portfolio and customer base are translating into sustained financial performance.