Kraken Robotics Inc.

Good morning and welcome to the Kraken Robotics fourth quarter and year-end 2025 results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. My name is Drew and I will be your operator today. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then 1 On your telephone keypad, you will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I will now turn the call over to Sean Madian, Kraken's Director of Capital Markets. Please go ahead.

Thank you, operator. Good morning, everyone. And thank you for joining Kraken Robotics' earnings call for the three and 12 months ended December 31st, 2025. Joining today's call from Kraken is Greg Reed, President and CEO, and Joe McKay, Chief Financial Officer. Before we begin, I want to remind everyone that certain statements in this call may be forward-looking in nature. Matters discussed, including management estimates, statements involving known and unknown risks, uncertainties, and other factors could cause actual results to differ materially from those expressed or implied in our forward-looking statements, which reflect the company's judgment based on information available at the time of this call. I'd also like to refer you to forward-looking statements, risk factors, and additional detail on non-IFRS financial measures we have provided in our press release, MDMA presentation, and AIF, which are available on CDAR+, in addition to our website. Unless otherwise stated, all dollar amounts mentioned during this call are denominated in Canadian dollars. I'll now pass the call over to Greg Reid, our President and CEO. Greg?

Thanks, Sean. Good morning, everyone. During today's call, we'll start off by reviewing our key accomplishments and financial results during the past year. We'll then review our outlook for the business, including our guidance for 2026. And lastly, we'll revisit the strategic merits of our recently announced acquisition of the Covelia Group, which is expected to close during the current quarter. As background, for those of you new to the story, to the Kraken story, I'll start off by summarizing that Kraken's a marine technology company focused on transforming subsea intelligence. Our technologies are dual use and serve customers globally, supporting the defense industry in various commercial markets, such as offshore energy and scientific exploration. We're headquartered in Canada with manufacturing and service operations in Canada, the US, the UK, and Germany, and sales and R&D offices in Australia, Denmark, and Brazil. We report across two lines of business, products and services, For our products business, it's focused on sub-sea power solutions such as our sea power batteries, platforms such as our catfish towed system, and advanced sensors including our synthetic aperture sonar or SAS. We also provide services to the offshore energy and defense clients including sub-bottom imaging, LIDAR, and catfish solutions for seabed and sub-seabed imaging surveys. Looking back at our annual results, 2025 was a very successful year for Kraken. We generated record revenue and adjusted EBITDA, which was driven by significant demand for our sea power batteries and SAS products, as well as growth in our subsea service business. During the past year, we've taken several steps to help facilitate additional growth in our business, including the expansion of battery manufacturing capacity with the recent completion of our new facility in Nova Scotia, Continued product innovation including a new higher energy density battery design with approximately a 30% improvement in energy density for large and extra large underwater vehicles. And plans for more compact designs to address smaller and medium sized UUVs. We also developed a new launch recovery system to target smaller unmanned surface vessels and a dual frequency circular SAS that provides a higher fidelity plausible identification of objects from a single payload. We also enhanced our balance sheet strength and expanded our shareholder base through a successful equity financing, resulting in a cash position at over $120 million at year end. And we further strengthened our leadership team, including several new senior executives and board members that bring a diverse array of experiences and relationships. Strategically, we also executed the tuck-in acquisition of 3D at Depth in 2025, expanding our service offering to include optical LIDAR technology and our geographic presence within the U.S. Most recently, in March, we announced the acquisition of Covalia Group, bringing two leaders in underwater technology together to create a global marine supplier and mission-critical solutions for maritime security and critical underwater infrastructure inspection. I'll speak to this strategic acquisition in more detail later during the call. As we look closer at some of the work our teams executed this past year, we saw continued demand from both defense and commercial customers. Within our products business, which primarily sells into the defense market, we saw record sales of C-Power batteries and SAS units in 2025. The number of SAS units sold in 2025 were almost equal to the total units delivered from the previous two years. And in batteries, we have added multiple new UUB OEM customers since mid 2025. This highlights the growing demand for subsea technology and the continued adoption of unmanned underwater vehicles, as well as us winning market share in the battery business. We expect this trend of increased customers to continue in 2026, supporting our growth expectations and added diversification. Our catfish, or tow fish product on catfish. Sales were lower than expected during the past year due to the timing of expected project bids by various navies. Since year end, we've seen an increase in demand for catfish related products, including a recent order from the Polish Navy. In total, there are currently over a dozen programs of record for tow fish vehicles currently in the RFP stage or expected to go to RFP. from various navies worldwide with final selection expected over the next two to three years. In addition to these navy programs, we are seeing an uptick in inbound interest for our products given the recent developments in the Middle East, in particular related to solutions for mine countermeasures. Whether in the Middle East, Europe, Indo-Pacific or the Arctic, we are seeing an increasing trend towards accelerating investment in marine technology given geopolitical tensions and the need to protect critical underwater infrastructure. In the service side of our business, we worked on a number of offshore energy projects in 2025 for both major oil and gas and renewable companies and their offshore service providers. This work included site surveys, UXO site investigations, and table burial assessments for our sub-bottom imaging sensors throughout Europe, US, and Asia, For example, in the Black Sea, we worked on a deepwater oil development project where Kraken's scope of work was to perform non-ferrous UXO survey support along the export pipeline routes for which we utilized a suite of our sub-bottom imager systems. In Taiwan, we also performed cable burial assessments during the construction of wind farms, including both inter-array and export cables, which on a combined basis totaled almost 400 kilometers in length. Our LiDAR services group, which we acquired last April, worked on a number of projects in 2025, including subsea jumper metrologies and onshore nuclear projects located in South America, Europe, the Middle East, Australia, UK, and US. As we look forward, remain excited about the long-term prospects for this segment of our business, given the need for global energy. This is supported by the growing number of final investment decisions expected for major offshore oil and gas projects in the coming years, as well as the forecast for global offshore wind capacity. According to Riestead Energy, 42 deepwater final investment decisions are expected in 2026, compared to 37 in 2025, and increasing to approximately 75 in 2027. Before I pass it over to Joe to discuss our financial results and our 2026 guidance, I'd like to thank our employees for their continued hard work and execution during the quarter and throughout the past year. Joe?