Kraken Robotics: A Strategic Buy in the Emerging Underwater Robotics Revolution

The underwater robotics revolution is no longer a distant promise—it’s here, and Kraken Robotics is at the helm. With geopolitical tensions spiking and the global push for offshore energy accelerating, the demand for advanced underwater surveillance and AI-integrated robotics is surging. Kraken, a Canadian tech innovator, is uniquely positioned to capitalize on this dual-force tailwind, leveraging its military-grade expertise and commercial adaptability to dominate a market poised for explosive growth.

Military Demand: NATO Contracts and Subsea Security

The recent sabotage of submarine cables in the Baltic Sea has forced NATO and its allies to prioritize subsea infrastructure protection. Kraken Robotics has already secured a $359,100 contract under NATO’s 2025 Work Package 1 for USV (Uncrewed Surface Vehicle) interception systems, a critical component of modern maritime defense [1]. This contract is part of a broader NATO initiative to deploy autonomous systems for detecting and neutralizing threats to undersea cables, pipelines, and naval assets.

Moreover, Kraken’s synthetic aperture sonar (SAS) technology is becoming indispensable for defense operations. The company’s KATFISH towed SAS system, with its 3cm x 3cm real-time resolution, has been deployed to classify mine-like objects during exercises like REPMUS 2024. In fact, Kraken’s SAS systems were instrumental in identifying over 50 such objects during the exercise, showcasing their reliability in contested environments [2]. With $13 million in new SAS and battery orders from the U.S., Norway, and Turkey, Kraken is not just a supplier—it’s a strategic enabler of modern naval warfare [3].

Commercial Expansion: From Defense to Offshore Energy

While military demand is robust, Kraken’s commercial pivot is equally compelling. The company recently launched a SAS rental service for the offshore energy sector, targeting applications like offshore wind farm surveys and subsea cable inspections. This service, built around the KATFISH system, reduces survey times by 40% and cuts carbon footprints—a critical selling point for ESG-focused energy firms [4].

A game-changing partnership with Verlume, a leader in energy storage, further underscores Kraken’s commercial potential. By integrating Kraken’s military-grade SeaPower batteries into Verlume’s Axonn system, the duo is creating scalable power solutions for subsea operations. This is the first time defense-grade battery tech has entered the commercial energy market, opening a $1.2 trillion offshore energy storage opportunity [5].

AI Integration: The Next Frontier

Kraken isn’t just selling hardware—it’s building the brains for the underwater world. The company’s SeaVision® 3D laser scanner, combined with AI control software, is being tested in projects like ARIM and RoboVaaS for autonomous navigation and obstacle avoidance. These systems enable real-time decision-making for UUVs (Uncrewed Underwater Vehicles), a capability that’s becoming table stakes in both defense and commercial sectors [6].

What’s more, Kraken plans to launch a high-energy-density battery in Q4 2025, specifically designed for AI-driven UUVs. This product, coupled with its existing AI-optimized sonar systems, positions Kraken to lead the next wave of autonomous underwater innovation [7].

Financials and Momentum

Kraken’s Q2 2025 results highlight its accelerating momentum. Despite the completion of a major Canadian Navy project, the company reported a 16% increase in consolidated revenue, driven by surging demand for subsea batteries and SAS rentals [8]. With $13 million in new orders and a growing backlog, Kraken’s revenue diversification is reducing risk while expanding its addressable market.

Why This Is a Buy

Kraken Robotics is a rare blend of military necessity and commercial scalability. Its NATO contracts ensure a steady revenue stream, while its SAS and battery innovations open doors to the booming offshore energy sector. The integration of AI into its systems isn’t just a feature—it’s a strategic moat, differentiating Kraken from competitors who are still playing catch-up.

For investors, the calculus is simple: Geopolitical tensions will keep defense budgets inflated, and the global energy transition will fuel demand for subsea tech. Kraken, with its dual-market expertise and first-mover AI advantages, is the stock to own in this high-stakes, high-growth arena.

Source:
[1] Contracting - NATO's ACT,
https://www.act.nato.int/opportunities/contracting/
[2] Kraken Robotics Announces $13 Million in Synthetic Aperture ...,
https://finance.yahoo.com/news/kraken-robotics-announces-13-million-103000987.html
[3] Kraken Robotics Secures $13M in Sonar and Battery Orders,
https://www.stocktitan.net/news/KRKNF/kraken-robotics-announces-13-million-in-synthetic-aperture-sonar-and-q3p7mj8ug0ck.html
[4] New Synthetic Aperture Sonar Service for Offshore Energy ...,
https://www.unmannedsystemstechnology.com/2025/04/new-synthetic-aperture-sonar-service-for-offshore-energy-by-kraken-robotics/
[5] Verlume, Kraken Team Up to Develop Subsea Power,
https://www.hartenergy.com/exclusives/verlume-kraken-team-develop-subsea-power-storage-tech-213956
[6] Kraken Awarded $900000 Contracts for Evaluation of SeaVision® Sensors and Artificial Intelligence Software,
https://www.krakenrobotics.com/news-releases/kraken-awarded-900000-contracts-for-evaluation-of-seavision-sensors-and-artificial-intelligence-software/
[7] Kraken Robotics Reports Q2 2025 Financial Results and ...,
https://finance.yahoo.com/news/kraken-robotics-reports-q2-2025-103000757.html
[8] Kraken Robotics Secures Major SeaPower Battery Orders for Deep-Sea UUVs,
https://www.unmannedsystemstechnology.com/2025/04/kraken-robotics-secures-major-seapower-battery-orders-for-deep-sea-uuvs/