Kraken's $12M Win Signals Dominance in Dual-Use Subsea Technology

ST. JOHN’S, Newfoundland and Labrador – December 02, 2025 – A recent announcement from Kraken Robotics Inc. of approximately $12 million in new purchase orders might seem like just another transaction for the growing Canadian tech firm. However, a deeper look reveals a pivotal moment in the company's journey from prototype to profit. The orders for its advanced Synthetic Aperture Sonar (SAS) and SeaPower™ subsea batteries are not just a financial boost; they represent a powerful validation of a dual-use technology strategy that is successfully capturing both high-stakes defense contracts and burgeoning commercial markets.

The client list itself tells the story: orders have come from commercial subsea leader Teledyne Marine, data-as-a-service innovator Terradepth, and, significantly, two unnamed NATO member navies. This diverse customer base underscores Kraken’s successful commercialization, demonstrating its ability to translate cutting-edge innovation into essential components for the rapidly expanding world of underwater autonomy. As company President and CEO Greg Reid noted in the announcement, “Clients are from both defence and commercial organizations, highlighting how Kraken’s dual-use technology is critical across a variety of applications, from maritime security to offshore energy.”

The Core Technology: Seeing and Powering the Deep

At the heart of Kraken's success are two key product lines: its Synthetic Aperture Sonar and its SeaPower™ batteries. These are not just incremental improvements on existing technology; they represent a leap in capability that is enabling the next generation of autonomous underwater vehicles (AUVs).

Kraken’s SAS systems provide ultra-high-resolution seabed imaging, capable of producing detailed acoustic images with a resolution as fine as 2 centimeters by 2 centimeters, even at long ranges. For context, this allows operators to distinguish between a rock and a potential explosive device or identify minute signs of stress on a subsea pipeline. Unlike traditional side-scan sonars that lose resolution with distance, SAS technology synthesizes a long virtual sonar array to maintain clarity, enabling AUVs to survey vast areas of the ocean floor faster and with greater fidelity than ever before. This capability is transformative for applications ranging from naval mine countermeasures (MCM) to detailed geological surveys for offshore wind farms.

Equally critical is the power source. The endurance of an AUV is directly tied to its battery life. Kraken’s SeaPower™ batteries are pressure-tolerant, meaning they can operate in the crushing pressures of the deep ocean without the need for heavy, bulky, and expensive pressure vessels. This design innovation translates to higher energy density, lighter weight, and more available space for sensors and payloads on an AUV. By purposefully designing both its SAS and batteries to be "platform agnostic," Kraken has created a versatile and highly attractive offering that can be integrated into a wide array of AUVs, from small, man-portable units to extra-large uncrewed underwater vehicles (XLUUVs).

Strategic Integrations: Becoming an Industry Standard

The $12 million in orders are significant not only for their value but for who placed them. The inclusion of Teledyne Marine and Terradepth signals that Kraken's technology is becoming a go-to component for major players in the subsea ecosystem.

Teledyne Marine, a giant in the marine technology space, has ordered both SAS and SeaPower batteries for integration on its Gavia and SeaRaptor AUVs. These platforms are workhorses of the industry, used for a wide range of scientific, commercial, and defense tasks. By embedding its technology within Teledyne’s established vehicle platforms, Kraken moves beyond being a simple component supplier to becoming an integral part of a widely deployed solution. This is a classic commercialization strategy: piggybacking on a market leader’s distribution and reputation to accelerate adoption.

Similarly, the integration with Terradepth's Absolute Ocean operating system is a strategic coup. Terradepth is pioneering a new model for ocean data, aiming to create a comprehensive, cloud-accessible map of the subsea environment. By deploying Kraken's SAS on its self-recharging AUVs, Terradepth can execute the scaled, autonomous surveys necessary to build this ambitious data repository. For Kraken, this partnership places its sensors at the very forefront of the data-as-a-service revolution in the maritime domain, ensuring its technology is fundamental to how future ocean data is collected and monetized for both U.S. military and commercial clients.

Anchoring Growth in Defense and Diversification

While commercial partnerships provide avenues for rapid growth, the contracts with two NATO navies anchor Kraken's business in the stable, high-value defense sector. This is not a new area for the company; it has a proven track record of supplying its KATFISH™ towed SAS systems and minehunting solutions to several NATO members, including the Danish and Polish navies. Its systems are a key component of Poland's new KORMORAN II Mine Counter Measure vessels.

This dual-use strategy is a masterclass in risk diversification. Defense contracts are typically large and long-term, providing a predictable revenue base and driving technology to meet the most demanding specifications. The commercial market, while sometimes more cyclical, offers agility and a broader range of applications, from offshore energy to marine research. Innovations developed for the unforgiving military environment can be adapted for commercial use, giving Kraken a competitive edge. Conversely, the scale and cost-efficiencies demanded by the commercial sector can help make its defense products more competitive. This symbiotic relationship creates a resilient business model that is less vulnerable to downturns in any single sector.

Riding a Tsunami of Market Demand

Kraken’s recent wins are amplified by powerful tailwinds in the global subsea market. The AUV market alone was valued at $2.4 billion in 2024 and is projected to surge to nearly $6 billion by 2030. This growth is driven by a confluence of factors: geopolitical tensions are pushing navies to modernize with uncrewed systems for surveillance and maritime security, while the global energy transition is fueling a boom in offshore wind farm construction, all of which requires extensive seabed surveying.

The specialized markets for Kraken's core products are equally robust. The global SAS systems market is expected to more than double, reaching an estimated $2.9 billion by 2031. Likewise, the subsea battery market is forecast to grow at a compound annual growth rate of over 15%, driven by the need to power the expanding fleet of AUVs for longer missions. Kraken is not just participating in these markets; its technology is a key enabler of their growth.

This momentum is reflected in the company's financial performance and strategic planning. With revenues on track to potentially hit $135 million (CAD) in 2025, representing roughly 40% year-over-year growth, the company is investing heavily to meet demand. A recent $115 million (CAD) equity financing is funding a new 60,000-square-foot facility in Nova Scotia designed to triple battery production capacity. This move from prototype development to full-rate industrial production is the definitive sign of a company that has successfully navigated the treacherous path to commercial viability, with an eye on a potential Nasdaq uplisting to further broaden its investor base and fuel its next phase of expansion.