Mr. Greg Reid reports

KRAKEN ROBOTICS ANNOUNCES $35 MILLION IN NEW ORDERS AND BUSINESS UPDATE

Kraken Robotics Inc. has continued momentum with $35-million in new product orders from customers in maritime defence, offshore energy and ocean science. By technology solution, these orders are across navigation and positioning systems, multiaperture sonar, positioning and monitoring systems from Covelya, as well as synthetic aperture sonar (SAS) from Kraken.

"Our product portfolio forms the backbone of a wide range of platforms used across both defence and commercial applications and we expect it to represent over 75 per cent of consolidated revenue in 2026," said Greg Reid, chief executive officer of Kraken Robotics. "These include crewed platforms such as ships and submarines, as well as uncrewed systems including autonomous underwater vehicles (AUVs), uncrewed surface vessels (USVs) and remotely operated vehicles (ROVs). Beyond vessel-based applications, our dual-use technologies are also deployed in unattended seafloor sensors."

The company has announced $327-million in total product orders to date in 2026 for Kraken and Covelya on a combined basis across defence and offshore energy customers, highlighting the strength and breadth of demand for the combined company's product portfolio. These orders have been driven primarily by Kraken's growing customer base for SeaPower batteries and SAS technology, together with demand for Covelya's navigation and positioning equipment and advanced sonar systems. The company's products are integrated, or are being integrated, across a broad range of crewed and uncrewed platforms, including more than 30 AUV platforms worldwide. Below is an overview of selected product segments within the company experiencing increased demand and growth opportunities:

Defence market

• Sentinel intruder detection sonar (IDS) systems -- The Sentinel IDS automatically detects, classifies and tracks subsea threats, from divers and swimmer delivery vehicles to AUVs, at hundreds of critical infrastructure sites worldwide such as power plants, liquified natural gas facilities, desalination plants and other waterside properties. Orders during 2026 reflect increased demand for port and harbour security from customers in the Middle East and Europe.
• Katfish remotely operated towed vehicle (ROTV) -- The company continues to see a large pipeline of opportunities and increased interest for its Katfish solution for mine countermeasures and the monitoring of critical underwater infrastructure. This opportunity set has largely been focused as of late in North America, Europe and the Middle East, and has recently expanded to the Asia-Pacific region. The company expects these programs to be awarded to industry starting in the second half of 2026.
• Synthetic aperture sonar (SAS) and multiaperture sonar -- The company's SAS and multiaperture sonar (MAS) products are being integrated into AUVs for defence customers across North America, the United Kingdom, Europe, the Middle East and Asia-Pacific region to perform a wide range of missions, including mine countermeasures (MCM); intelligence, surveillance and reconnaissance (ISR); and support for anti-submarine operations.
• SeaPower subsea batteries -- Demand for the company's high-energy-density batteries continues to grow, with multiple new defence customers added in 2026 across North America, the U.K., Europe and the Asia-Pacific region. This momentum reflects both expanding adoption and market-share gains, as multiple AUV customers have switched to Kraken from alternative battery suppliers. Kraken's battery customers now range from early stage prototype programs, which are expected to grow over time, to full-scale commercial production.
• SPRINT-Nav navigation and positioning system -- Sonardyne's SPRINT-Nav is an all-in-one acoustic-inertial navigation and positioning system used across small to extra-large AUVs, USVs, ROVs and SEAL delivery vehicles in both shallow- and deep-water environments. By integrating Doppler Velocity Logging (DVL), pressure sensing and inertial navigation into a single solution, SPRINT-Nav reduces system complexity while delivering precise real-time position, velocity and altitude data with improved power efficiency. The SPRINT-Nav family provides Kraken with added content per vehicle to its defence AUV customers with added exposure to growth in USVs and crewed vessels.
• Vigilant forward-looking sonar (FLS) -- Vigilant FLS is a low-power, forward-looking sonar that can operate as a standalone unit or integrate with a vessel's navigation and bridge systems to detect and help avoid collision hazards at ranges of up to 1,500 metres. This mission-critical technology has been installed to date on crewed vessels and AUVs, with growing interest and initial orders from notable USV companies, an emerging segment of the uncrewed vessel market.
• Optical imaging payloads -- The company's optical imaging payloads combine cameras and laser scanners to deliver high-speed data capture, three-dimensional modelling and improved visualization for faster, more informed decision-making. These systems support applications including MCM, ISR and target identification, and have been deployed on various ROVs, towed vehicles and AUVs for major defence customers.

Offshore energy market

In the offshore energy market, the company's technologies support field development activities from initial discovery and surveying through construction, installation, inspection, repair and maintenance, monitoring, and decommissioning. The company's product portfolio offering spans sonar, imaging, navigation, long baseline (LBL) and ultrashort baseline (USBL) positioning, communications and monitoring systems, as well as data acquisition and processing software.

The company's monitoring technology, which continues to expand into new growth areas, is now also being used to support both seismic data acquisition and carbon capture and storage applications as highlighted below.

• On-demand ocean bottom nodes (OD OBNs) -- In Brazil, Sonardyne has been collaborating with major oil and gas producers since 2018 to develop OD OBNs, a new technology designed to collect 4-D seismic data in offshore reservoirs using autonomous systems and subsea communications. This approach enables operators to conduct more frequent, on-demand seismic surveys with higher-fidelity data and at a fraction of the cost of conventional seismic survey methods. The qualification of OD OBNs for commercial use began with the deployment in early 2026 at the Petrobras operated Mero field offshore Brazil. The technology is expected to move into full commercial production in 2027. These OD OBNs, which incorporate Sonardyne's wireless optical and acoustic communications technology, transmit seismic information to ROVs or AUVs for data collection. Full-scale deployment in an offshore field is estimated to require hundreds or even thousands of OD OBNs.
• Carbon capture and storage (CCS) -- During the summer of 2026, the company will begin environmental baseline monitoring for the Northern Endurance Partnership (NEP) at the U.K.'s first offshore CCS site. Using autonomous seabed monitoring landers placed above and around the Endurance storage site, the system will ultimately help verify that captured CO2 (carbon dioxid) remains safely contained underground. The landers combine Sonardyne's Acoustic Doppler Current Profiler (ADCP) technology, alongside environmental sensing technologies and passive seismic monitoring to track conditions around the storage site. Sonardyne's proprietary underwater communication, data processing and power management technologies enable data to be collected and processed remotely, so that it can be delivered to NEP on demand, providing timely insights.

About Kraken Robotics Inc.

Kraken Robotics is a global marine technology company transforming subsea intelligence through advanced sensors, software and integrated systems. Serving defence, offshore energy and ocean science markets, the company delivers actionable insights in challenging underwater environments. Kraken's integrated subsea solutions span sonar, navigation, positioning, imaging, power, communications, monitoring and data analytics.

On July 2, 2026, Kraken Robotics acquired the Covelya Group, bringing together Sonardyne, EIVA, Forcys, Voyis and Chelsea Technologies. Together, the companies combine highly skilled global teams with a shared commitment to solving complex underwater challenges through world-class, dual-use technologies.

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