Photo: Kraken Robotics (Illustration)

Kraken Robotics expects 100% revenue growth in 2021

Canadian Kraken Robotics is expecting a revenue of $24 million to $28 million for the year ending on 31 December 2021, which would represent a more than 100% growth compared to $12.3 million in 2020.

The growth is due to recent contract wins for KATFISH 180 towed sonars, as well as ALARS for the Danish and Polish Navies, and various orders and expected orders for AquaPix MINSAS and SeaPower batteries, Kraken said.

Contracts have already been signed accounting for more than 80% of the $26 million midpoint of the company’s 2021 revenue forecast range.

Adjusted EBITDA for 2021 is expected to be in the range of $2 million to $4.5 million, compared to an adjusted EBITDA loss of $2.7 million the year before.

The expected revenue boost is said to exlude any contribution from the proposed acquisition of PanGeo Subsea, announced in April.

Our product sales pipeline is very robust and we expect more than 100% top line growth in 2021. This, combined with the maturing of Kraken’s service capabilities and the proposed acquisition of PanGeo Subsea, provides a strong platform for growth in 2021 and beyond,” said Kraken’s CEO Karl Kenny.

“As our top line growth continues and we near completion of major R&D programs in 2022 (multispectral SAS and ThunderFish XL), we expect to see an acceleration in operating leverage with targeted EBITDA margins in the 30%-35% range from a balance of product sales and recurring services revenue.”

Kraken Robotics plans to report the final Q1 2021 results at the end of May.