1149 ET - Kraken Robotics posted a disappointing 1Q when the industry and its peers are soaring. ATB Cormark's Nicholas Boychuk notes that revenue for products and services were nearly 40% below already low expectations due to "timing-related revenue slippage in both product and service segments." While management insists the weakness is temporary, Boychuk says the explanation "doesn't align with the momentum and industry activity," observed at CANSEC, a Canadian defense and security trade show. The analyst also points to rising competitive pressure, with one rival now selling sonar systems independently and customers questioning the "cost of synthetic aperture sonar relative to the rapidly falling costs of autonomous vessels." With the soft start in 1Q, Boychuk says the setup "puts significant pressure on the back half of the year." (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

May 29, 2026 11:49 ET (15:49 GMT)

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