Order Backlog Tops $262 Million as Kraken Robotics Gears Up for Covelya Integration

Kraken Robotics posts $262M order backlog, Q1 revenue up 35% to $21.7M, but margins slip. Pending $615M Covelya deal to close Q2, strengthening NATO ties.

Kraken Robotics has amassed a visible order book of more than $262 million, combining its own product orders of around $97 million with those from its pending acquisition target, Covelya Group, which has booked $165 million in orders so far this fiscal year. The backlog provides a multi-year revenue cushion as the Canadian underwater robotics specialist positions itself for a transformative merger.

The Covelya deal, valued at $615 million Canadian, is on track to close by the end of the second quarter. Kraken has already raised roughly $402.5 million through a share offering to fund the cash portion of the transaction, with the remainder paid in shares. Once completed, the combined entity will employ about 1,200 people and vault Kraken into the top tier of maritime surveillance technology providers through the addition of Covelya’s subsidiaries, including Sonardyne, EIVA and Forcys.

Q1 Revenue Rises, But Margins Feel the Strain

The company’s standalone performance for the first quarter of 2026 showed revenue climbing 35% to $21.7 million Canadian, with product sales jumping 50% on strong demand for underwater batteries and sonar systems. Yet rising operating costs tied to headcount expansion squeezed the EBITDA margin from 17% to 14%, resulting in a net loss of $3.3 million.

Management remains confident in its full-year standalone outlook, which calls for revenue between $165 million and $175 million Canadian and adjusted EBITDA of about $45 million. The balance sheet offers a solid foundation, with $108.7 million in cash and $162.4 million in working capital, more than enough to fund planned investments.

NATO Engagement Adds Strategic Weight

Kraken is using the MINWARA conference in San Diego to deepen ties with Western navies. The company participated for the first time in the SeaSEC Challenge "Data2Sea," an exercise led by defense ministries of six NATO countries, including Germany, the Netherlands and Finland. The push to embed its synthetic-aperture sonar technology into alliance procurement programs is seen as a strategic catalyst once the Covelya acquisition is finalized, strengthening Kraken’s negotiating position in upcoming tenders.

The stock currently trades at €4.83, roughly 29% below its March record of €6.79, but still up more than 200% over the past twelve months. Once the Covelya transaction closes, management plans to release a consolidated forecast that will reflect the combined group’s full growth story.