Core Insights - Kraken Robotics Inc. reported a 31% increase in revenue to $91 million for the year ended December 31, 2024, with adjusted EBITDA rising 47% to $21 million [1][5] - The company's sales pipeline has more than doubled to $2 billion, indicating strong future growth potential [1][9] Financial Highlights for 2024 - Consolidated revenue increased to $91.3 million from $69.6 million in 2023, with product revenue up 26% to $66.3 million and service revenue up 47% to $25 million [5] - Gross profit rose 32% to $44.7 million, maintaining a gross profit margin of 49% [5] - Net income increased significantly to $20.1 million from $5.5 million in the prior year, with diluted earnings per share rising to $0.09 from $0.03 [5] Q4 2024 Financial Highlights - Q4 2024 revenue was flat at $28.1 million compared to $28.0 million in Q4 2023, with product revenue declining 6% to $18.6 million while services revenue increased 14% to $9.6 million [5][16] - Gross profit for Q4 2024 increased 15% to $13.5 million, resulting in a gross profit margin of 48% [5][16] - Adjusted EBITDA for Q4 2024 rose 23% to $7.0 million, with an adjusted EBITDA margin of 25% [5][16] Management Comments - The company experienced record growth in 2024, particularly in defense and offshore energy markets, with plans to expand manufacturing capacity in Canada [4][6] - The Subsea Power business, particularly the SeaPower batteries, is a key growth driver, alongside the Subsea Services business [4][6] 2025 Financial Guidance - For 2025, Kraken expects revenue between $120 million and $135 million, representing a growth of 40% at the midpoint, and adjusted EBITDA in the range of $26 million to $34 million [7][10] - Capital expenditures for 2025 are projected to be between $13 million and $17 million, with significant investment in a new subsea power manufacturing facility [8][10] Sales Pipeline and Market Opportunities - The sales funnel pipeline has increased to approximately $2 billion, more than double the $900 million reported in February 2024 [9] - The company anticipates that revenue will be weighted towards the second half of calendar 2025, driven by numerous defense program tenders [9][6]