TORONTO, July 3, 2026, 13:13 EDT
- Kraken Robotics Inc. (CVE:PNG) was up 4.7% at C$6.67 near midday in Toronto. The stock outpaced the TSX Venture index, though it stayed 38% off the 52-week high.
- The new 2026 revenue midpoint is now C$305 million, a 79% jump over the earlier figure after finishing the Covelya deal.
- Shares were still trading 21.5% under the C$8.50 per share price from the acquisition deal.
Kraken Robotics Inc. (CVE:PNG) traded higher Friday after it closed the C$615 million Covelya Group acquisition. Shares were up 4.71% to C$6.67 at 12:49 p.m. EDT. Market cap sat at C$2.05 billion, according to Google Finance. Volume was 745,380 shares against an average of 1.41 million.
Canadian markets traded as usual, not on holiday hours. Activity data on TMX Money was still updating at 12:53 p.m. ET.
| Midday market read | Last | Day change | Investor read |
|---|---|---|---|
| Kraken Robotics | C$6.67 | +4.71% | Beats TSXV, but still well below its top |
| S&P/TSX Venture Composite | 936.25 | +2.39% | Small caps led the move |
| S&P/TSX Composite | 35,271.48 | +0.87% | Wider Canadian market gave support |
The stock ended up 2.32 points ahead of the Venture index. Still, it stayed 37.8% under the C$10.72 52-week high, and 21.5% under the C$8.50 deemed issue price for shares paid to Covelya’s seller. That matters since Kraken already put out the deal stock using a higher reference price than the common shares are trading at now.
Kraken said July 2 it completed the Covelya deal, paying about C$615 million, pending closing adjustments. “This acquisition positions Kraken as a global provider of mission-critical, dual-use subsea intelligence solutions,” CEO Greg Reid said. GlobeNewswire
Kraken raised its 2026 revenue outlook sharply to C$290 million to C$320 million, up from the old range of C$165 million to C$175 million. The company also took up adjusted EBITDA guidance, now C$65 million to C$75 million, versus C$40 million to C$50 million before. But adjusted EBITDA margin guidance was cut to 22% to 23% from an earlier 24% to 29%.
| 2026 measure | Prior midpoint | New midpoint | Change |
|---|---|---|---|
| Revenue | C$170.0 mln | C$305.0 mln | +79.4% |
| Adjusted EBITDA | C$45.0 mln | C$70.0 mln | +55.6% |
| Adjusted EBITDA margin | 26.5% | 22.5% | -4.0 pct pts |
| Capex/intangibles | C$16.5 mln | C$30.0 mln | +81.8% |
The order book lets investors track progress on the new sales goal. Kraken reported 2026 orders at about C$110 million for Kraken and C$182 million for Covelya, totaling C$292 million between the two. That’s 96% of the updated revenue midpoint. The company still hasn’t guaranteed all orders will convert to 2026 revenue.
Financing is in focus. Kraken paid C$615 million, broken out as C$480 million cash and C$135 million from 15.88 million shares at C$8.50. On top of that, it set up a C$125 million secured term loan and boosted its revolver to C$60 million. The seller now holds about 4% of Kraken, with staged lock-ups at 12, 18 and 24 months after the deal and subscription receipt sale.
Canaccord Genuity’s Aravinda Galappatthige held a Buy on Kraken as of July 2 and kept the C$9.50 price target, TipRanks said. That’s about 42% higher than where shares traded midday.
Canada’s main index rose around 1% in morning trading, getting a boost from miners as softer U.S. jobs numbers pushed gold higher and lowered rate hike expectations. “Weaker U.S. job data reduced expectations of further interest rate hikes,” said Matt Manara, executive vice president and portfolio manager at Avenue Investment Management. Reuters
Kraken said it expects Q2 results in late August. Q3 earnings, out in late November, will reflect Covelya in the numbers. Kraken said it’s planning to apply to move its common shares to the TSX, pending approval, and expects to finish the process by the end of 2026 or early 2027.
