Kraken Robotics had a strong if imperfect 2024, according to the undersea technology startup’s yearly earnings.
The St. John’s, Nfld.-based company reported a net profit of $20.1 million CAD in 2024 versus $5.5 million in 2023. It also saw its consolidated revenue jump 31 percent, from $69.6 million to $91.3 million.
“2024 was another record year for Kraken, driven by strength across defence and offshore energy end markets where there is increased focus on surveillance and security of critical underwater infrastructure.”
Greg Reid, CEO
Services were the highlight rather than hardware. Product revenue climbed 26 percent to $66.3 million, as a dip in sensor sales partly offset growth in its subsea battery business. However, Kraken’s service revenue spiked 47 percent to $25 million thanks to more projects using its seabed imaging technology.
There were problems in the fourth quarter of last year, including flat year-over-year revenue of $28.1 million due to sagging demand for Kraken’s mine disposal tech and towed sonar vehicle. Product revenue also dipped six percent to $18.6 million, although Kraken cautioned that its quarter-to-quarter revenues can change “significantly” due to order timing and seasonality.
Company CEO Greg Reid was nonetheless happy with the year’s overall results.
“2024 was another record year for Kraken, driven by strength across defence and offshore energy end markets where there is increased focus on surveillance and security of critical underwater infrastructure,” Reid said.
RELATED: New Blue Action Canada oceantech accelerator launches backed by Coast and Founders Factory
The executive was also optimistic for 2025, pointing to the $24.5-million acquisition of Colorado-based 3D at Depth. The move will add subsea LiDAR (Light Detection and Ranging) scans to the company’s imaging mix. Reid also touted plans for a Canadian manufacturing facility, and claimed that sensor tech opportunities have “never been better,” despite the 2024 shortfall.
There are “numerous significant defense programs” either out for tender (offered) or coming soon, the CEO added. There is also $11 million in battery orders in the pipeline. Kraken currently expects its revenue to grow by at least 31 percent in 2025 to $120 million…
Karl Kenny, who died earlier this year at age 64, founded Kraken in 2012 and helped make it one of Newfoundland’s most valuable tech companies before he retired from the CEO position in December 2022. In February, it topped the TSX Venture Exchange’s 2025 TSX Venture 50 List, outperforming mostly mining-oriented rivals in the financial performance chart. This was Kraken’s fourth appearance on the list since 2015.
Feature image courtesy of Kraken Robotics.