TORONTO, May 25, 2026, 13:04 (EDT)
- Kraken Robotics was up 8.9% at C$7.94 on the TSX Venture at 12:47 p.m. EDT.
- Canadian markets traded on Memorial Day while U.S. exchanges stayed closed.
- The next test comes with Kraken’s C$615 million Covelya deal, which is expected to close in the second quarter.
Kraken Robotics Inc. shares climbed Monday, bouncing back from Friday’s losses. Investors went back into the Canadian defence-tech name, looking for more detail on the pending Covelya acquisition update.
The stock traded up 8.9% to C$7.94 on the TSX Venture Exchange at 12:47 p.m. EDT. Shares opened at C$7.35 and hit C$7.94 earlier in the session. Trading volume was around 576,260 shares, according to Google Finance data.
No new company statement drove the move. Kraken’s investor page still shows its last press release was a May 6 MOU with SEFINE SISAM in Türkiye. The big item left for investors is the still-pending C$615 million purchase of Covelya Group, expected to close in the second quarter.
Canadian markets traded as usual Monday even with the U.S. out for Memorial Day. TMX CDS had May 25 on its schedule as a U.S. holiday, but CDS and Canadian exchanges operated. DTCC and the U.S. exchanges stayed closed.
Record for S&P/TSX as peace hopes stir markets
Canada’s benchmark index climbed to a new high Monday morning. The S&P/TSX Composite gained 0.7% to reach 34,778.98 at 10:21 a.m. ET, as traders eyed possible progress in U.S.-Iran talks. “Even a non-zero chance the conflict ends” was enough to move stocks up and oil down, Brian Madden, chief investment officer at First Avenue Investment Counsel, told Reuters. He added the market isn’t fully convinced yet. Reuters
Kraken dropped 4.95% Friday to C$7.29, with shares trading in a range between C$7.26 and C$7.97, per Investing.com data. Monday’s bounce wasn’t enough to push the stock near its March 2026 high of C$10.72, so the name stayed volatile and was not back in breakout territory.
Kraken Robotics builds subsea sensors, batteries and robotic tools for defense, offshore energy and marine science. Its key products are synthetic aperture sonar (SAS), which delivers high-res images of the seafloor, and SeaPower batteries. Both are driving the company’s growth.
Kraken posted record revenue for 2025, coming in at C$102.2 million, with adjusted EBITDA at C$25.0 million for April. Adjusted EBITDA here refers to earnings before interest, taxes, depreciation and amortization, with some line items removed. It’s not a standard profit metric and the calculation can vary. Kraken put out 2026 guidance calling for revenue between C$165 million and C$175 million. The company sees adjusted EBITDA landing in a C$40 million to C$50 million range, not including Covelya.
Kraken president and CEO Greg Reid said in April the company’s results got a boost from “significant demand for our products and services.” Reid cited a “surge in demand for maritime drones” as more defence and energy clients moved to uncrewed systems. Kraken Robotics
Orders still matter here. Kraken on April 16 said it landed about C$28 million in new SeaPower battery and SAS orders from five clients, two of them new. Reid said the batch included battery deals from three big global defence firms and a SAS order from a new uncrewed underwater vehicle maker in the commercial sector.
SEFINE signed on May 6 for another defence project, as Kraken said it will partner with SEFINE SISAM to bring KATFISH into mission-planning software and build automatic target recognition for its sonar systems. “The work advanced autonomous solutions for seabed warfare and mine countermeasures,” said Bernard Mills, executive vice president of defence at Kraken. Kraken Robotics
Kraken’s planned C$615 million acquisition of Covelya is the larger move. In March, Kraken agreed to pay C$480 million in cash and C$135 million in shares for Covelya. Covelya runs underwater tech firms like Sonardyne, EIVA, Forcys, Wavefront Systems, Voyis Imaging, and Chelsea Technologies.
Kraken raised C$402.5 million in March, selling subscription receipts at C$8.50 each in a public offering to help pay for the deal. The subscription receipts will turn into common shares if the deal goes through. If conditions aren’t met by Dec. 31, 2026, investors get their money back and a cut of the escrow interest.
The deal would give Kraken a bigger place in a space already packed with bigger maritime-tech names. Teledyne Marine sells autonomous underwater vehicles to military, commercial and science users. Kongsberg says its autonomous and uncrewed systems use robotics and sensors to map, monitor, and survey the ocean.
But there are risks for the rally. Kraken needs to finish the Covelya deal, fold in a bigger team, and prove that its guidance for the back half actually leads to revenue and cash flow. The April filing flagged that closing is subject to normal terms and regulatory sign-off. Any holdup or softer orders could leave Monday’s bounce looking weak.
