Kraken Robotics offers one of the best risk-reward setups in defense, giving exposure to Anduril's autonomy trend at a fraction of the valuation. It supplies SeaPower subsea batteries for Anduril's underwater drone programs, has 2026 product orders of $327-355M and guides to $290-320M revenue and $65-75M adjusted EBITDA, yet sits near a sub-$1B market cap after a 60%+ drop. It plans a full TSX listing in late 2026 or early 2027, and $10 is the target. x.com 

Kraken Robotics is the subsystem prime for underwater drones, putting $3-5 million of content per hull in reach as Anduril and navies scale uncrewed fleets. Its offering spans batteries, sonar and navigation via Covelya/Sonardyne. Funds that bought near CAD $2 two years ago have spent four months clearing their positions, and that selling is mostly past. x.com  x.com  x.com 

Kraken Robotics is stuck in a trap as its key catalyst, the Anduril subsea ramp, is delayed by at least a year. That ramp likely needs a US battery facility and a Navy order to confirm, and the defense budget showed no large FY27 subsea-drone order. The market has also turned on drone and defense stocks after they ran ahead of a multi-year buildout, and without an uplisting from its junior exchange institutional ownership and volume stay thin. Second-half earnings may bring some support. x.com 

Kraken Robotics' customer base is broadening, and on its earnings call it said it just landed one of the largest US defense companies as a customer, unnamed. It announced $28 million of SeaPower battery and SAS orders, including battery contracts from three large international defense companies and a SAS order from a new commercial UUV maker. CEO Greg Reid said its products are integrated, or being integrated, into more than 30 UUV platform types worldwide. x.com  x.com  x.com 

Kratos and Kraken Robotics are falling on sector macro, not business decline, so a strong year-end close looks likely. Both hit 52-week lows, down 68% and 64% from this year's highs. Per Bernstein, peace headlines and a stalled US budget put defense at a 12% discount to the S&P, but it expects the 2027 budget to rise over 10%. Raymond James notes tax-loss selling hits YTD losers into mid-October, and they often lead the rebound. Kratos has a record $2.08B backlog; Kraken guides $290-320M. x.com 

Kraken Robotics is not yet a buy despite falling almost 60% from its high. It should first report combined results with Covelya that preserve a credible growth and margin path, and the stock should form a base; the defence factor remains deeply out of favor. @DeepSailCapital argues it is near a bottom, expecting CAD 0.20 of 2028 EPS, mid-20s to 30s revenue growth and product ramps with Anduril. x.com  x.com 

Recent US Navy unmanned-vehicle contracts are a big deal for Kraken Robotics that the market is ignoring. HII, a confirmed Kraken sonar customer, won a medium unmanned vessel award of 10 vessels at $40M each, and three of four finalists for the CAMP large underwater vehicle, including Anduril, have strong ties to Kraken. With revenue above $300M after the Covelya deal, smaller contracts move the needle less, and at 15x NTM EBITDA the stock may bottom near $4. x.com  x.com  x.com  x.com 

These five defense autonomy companies can each 10x on fast-growing drone, unmanned and counter-drone businesses. Kraken Robotics makes subsea drones, batteries and sonar for autonomous underwater warfare. Ondas grew TTM revenue 979% to $174M and guides 2026 to $525M-$550M. Kratos has a $2B backlog in unmanned systems, hypersonics and missile defense. AeroVironment grew TTM revenue 84% to $2.0B on military drones, and Red Cat grew 867% with a 2026 target of $150M-$180M. x.com 

Kraken Robotics looks expensive at 11x sales, or 2x next year's, when the industry usually gets 1x. At 1x next year's sales, give or take 12%, fair value is about $1.86-$2.37, leaving the $2.91 US-listed price 23% above the high end. The estimate leans on forecast sales 128% above trailing. This is a valuation-level read only, not fundamental work. x.com 

Kraken Robotics' organic results are strong, and adding Covelya should make the picture even better. Per Kraken Robotics, Q1 2026 revenue grew 35% year over year and 2026 guidance was reiterated. x.com