Toronto, May 19, 2026, 17:07 EDT
- Kraken Robotics ended the day at C$7.44 on Tuesday, gaining 2.2%. Shares rose from Friday’s close of C$7.28.
- The stock rose even as Canada’s main index dropped 0.3%. The move looked driven by company news, not the wider market.
- Investors continue to price in the Covelya deal, the new defence contracts and the 2026 outlook.
Kraken Robotics Inc. shares edged higher Tuesday, rebounding after the long weekend. The TSX Venture name finished up 2.2% at C$7.44, trading between C$6.85 and C$7.69 on 1.48 million shares. This clawed back a piece of Friday’s 2.0% loss.
The shift stood out with the market down. Canada’s S&P/TSX Composite Index dropped 92.11 points, or 0.3%, to 33,741.24—its weakest close since May 5. Treegrove Investment Management president Michael Sprung told Reuters “oil remains expensive” and inflation expectations have climbed. Reuters
No new company update came out over the holiday. Kraken’s investor page continued to show its May 6 memorandum of understanding with SEFINE SISAM as the last release, keeping the focus on its current order book, the Covelya deal still in progress, and plans for bigger business.
Kraken said in its May 6 release it will work with SEFINE SISAM to add its KATFISH towed sonar system to mission-planning software and develop automatic target recognition for its synthetic aperture sonar. That sonar is used for high-res seabed imaging. Bernard Mills, Kraken’s executive vice-president of defence, said the work aims to improve the “speed, accuracy, and efficiency” of maritime security operations. Kraken Robotics
Kraken had indicated demand earlier. On April 16, the company announced about C$28 million in new SeaPower battery and synthetic aperture sonar orders from five clients. Two of those were new customers. Greg Reid, president and CEO, said Kraken products are integrated or in the process of being integrated into more than 30 uncrewed underwater vehicle platform types around the globe.
Scale is the main concern here. Kraken posted C$102.2 million in 2025 revenue and had adjusted EBITDA, which strips out interest, tax, depreciation, amortization and some company adjustments, of C$25.0 million. The company is calling for 2026 revenue between C$165 million and C$175 million, and adjusted EBITDA from C$40 million to C$50 million, not including Covelya.
Covelya is the big factor in play. Kraken said in March it would acquire the UK underwater tech firm for C$615 million, split between C$480 million cash and C$135 million in shares. Kraken says the purchase will broaden its line-up in navigation, positioning, communications, and imaging for maritime defence and commercial subsea.
Kraken raised C$402.5 million in a public offering of subscription receipts at C$8.50 apiece to help pay for the deal. These subscription receipts will convert to common shares once deal terms are met. The stock closed at C$7.44 on Tuesday, still under the offer price.
Kongsberg keeps pushing with its HUGIN autonomous underwater vehicle, which has sensors like synthetic aperture sonar and targets commercial, scientific, and defence jobs. Teledyne Marine has its own lineup, selling the Gavia, Osprey and SeaRaptor AUVs for military, commercial and scientific work. Thales is in the mix too, offering sonar and data-processing tech for anti-submarine warfare, mine countermeasures and fighting on the seabed.
The trade isn’t one-way. If Covelya’s deal closing takes longer, or regulators don’t sign off as fast as investors hope, or defence orders miss revenue timing, shares may give up Tuesday’s gains. Higher bond yields also weigh on growth stocks, cutting today’s value of future profits.
Kraken shares finished Tuesday up from last week but remain far off the 52-week peak at C$10.72. The key test is if the company moves backlog and deals into results fast enough to avoid a gap.
