Bullboard - Stock Discussion Forum Kraken Robotics Inc V.PNG

Alternate Symbol(s): KRKNF

Kraken Robotics Inc. is a Canada-based marine technology company providing complex subsea sensors, batteries, and robotic systems. The Company’s high-resolution three-dimensional (3D) acoustic imaging solutions and services enable clients to overcome the challenges in oceans. The Company operates through two segments: Products and Services. The Products segment is engaged in the design... see more

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Kraken Robotics Inc > David Fawcett- Epic Capital - Linkedin

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Post by Possibleidiot01 on Mar 31, 2024 7:43am

David Fawcett- Epic Capital - Linkedin

Innovation in the US Defense Sector, bolstered by Anduril's leading role, is supporting outsized growth for Kraken Robotics

Kraken is leaning into the strong momentum in the US Defense sector's shift toward autonomous vehicles, providing significant growth opportunities to its key customers. Anduril stands at the forefront of this transformative movement.

The U.S. is actively driving innovation within its defense sector, focusing on autonomous vehicles for their cost-efficiency, operational effectiveness, and reduced risk to military personnel. This strategic direction was emphasized in Deputy Secretary of Defense Kathleen Hicks' keynote address on 'The Urgency to Innovate' back in the summer. The escalating situation in Ukraine and ongoing tensions in the Middle East, compounded by the growing concern over China's military posture, have prompted the US Department of Defense to accelerate the integration of unmanned systems, especially in air and sea operations.

Kraken is the battery provider for Anduril's advanced underwater vehicle, the Dive-LD. Anduril has set forth ambitious growth targets, as highlighted in the Financial Times article attached, aiming to reach $1 billion in revenue by 2026—a significant increase from its $311 million revenue base in 2022.

During our due diligence session last fall with Bill Lebo, co-founder of Dive Technologies and VP/GM at Anduril Industries, he predicted a significant increase in demand for their midsize and large underwater vehicles by 2025. Such a surge in the market bodes well for the demand for Kraken’s batteries. The Kraken executive team has indicated that this anticipated increase in demand will exceed the capacity of their existing production facilities, prompting discussions on expanding their operations to include up to two new facilities to meet the projected demand.

In conclusion, we advocate for Kraken investors to keenly observe the US Defense Department's decisive advancement towards autonomous vehicles, as well as Anduril's leading role in this field. This trend is expected to be a substantial contributor to Kraken’s strategic aim of achieving 40% organic growth.

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