Kraken Robotics Inc.

Good morning everyone and welcome to the Kraken Robotics second quarter 2026 results conference call. As a reminder, all participants are in a listen-only mode. The conference is being recorded. My name is Jamie and I will be your operator today. Following prepared remarks, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star and then 1 on your telephone keypads. Should anyone need assistance during the conference call, they may reach an operator by pressing star and zero. I would now like to turn the floor over to Sean Madian, Director of Capital Markets.

Good morning, everyone, and thank you for joining Kraken Robotics' earnings call. The three and six months ended June 30, 2026. 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 the forward-looking statements, risk factors, and additional detail on non-IFRS financial measures we have provided in our AIF Press release, MD&A, and presentation, which are either available on CEDAR Plus or our website. Unless otherwise stated, all dollar amounts mentioned during this call are denominated in Canadian dollars. Joining today's call from Kraken Robotics is Greg Reid, Chief Executive Officer, and Joe MacKay, Chief Financial Officer. I'll now pass the call over to Greg for his opening remarks. Greg?

Thanks, Sean, and good morning, everyone. During today's call, we'll start off with some key highlights during the year. Quick review of our second quarter results, followed by an update of our business post the closing of our transformative acquisition of Covalia Group, which we closed on July 2nd this year, so just after the quarter ended. Some recent highlights, looking back at our results during the second quarter and the first half of 2026, we continue to focus on building the business for long-term growth. In addition to closing our Cobellia acquisition, these growth initiatives were supported by five key points. First, our enhanced organizational structure, which includes several new additions to our senior leadership team. 355 million of product orders to date in 2026 for both Kraken and Cobellia, including over 27 million incremental product orders since our last corporate update in July. and expanding customer base with new customer relationships, including a recent long-term master supply agreement with an international manufacturer of extra large UUVs, or what's known as XL UUVs, and increased manufacturing capacity, including our new facility in Nova Scotia, Canada, alongside our new building at our campus in the UK, which we take possession of in Q3. Lastly, our ongoing discipline to maintain a strong balance sheet. Through our Covalia acquisition, we have significantly increased our technological capabilities, total addressable market in the overall ocean economy, and our ability to provide both products and services to a range of customers with our dual-use technologies. We are in the early stages of what we believe will be a significant growth cycle. This growth is expected to be driven by the defense industry due to geopolitical drivers, an industry upgrade cycle, and the changing nature of warfare towards autonomous and hybrid fleets. For commercial sectors such as offshore energy, companies are continuing to transition to automation and robotics to deliver long-term, reliable energy in a safe and cost-effective manner. This upgrade cycle is already occurring with applications of our technology already in various end markets such as mine countermeasures, intruder detection, critical underwater infrastructure inspection, anti-submarine warfare, and intelligence surveillance and reconnaissance, among others. On a similar note, our commercial applications include projects relating to asset integrity for key infrastructure, marine construction, offshore oil and gas, offshore wind, cable installations, subsea mining, carbon capture and storage, and maritime shipping, in addition to ocean science and environmental research. As a trusted engineering group to the challenging maritime industry, We continue to work with our customers on such projects and help to develop new solutions that will require our systems and technology. Before I pass things over to Joe to review our Q2 results, I want to expand on a new organizational structure, which we created as part of the integration plan with Cobellia, alongside some of the key appointments we have made to the team. Our new structure consists of Kraken Group, led by myself as CEO, and several executives focused on the financial, governance, corporate development, Legal, Enterprise Systems and Security, and Human Resource related aspects of the overall business. Reporting into the Kraken Group is a clearly delineated Kraken Robotics operating business that is led by Bernard Mills, who was recently promoted to president from his previous role as executive vice president of Kraken's defense business. Bernard brings a wealth of experience from running large global organizations and previously served as CEO and managing director of a subsidiary of the Airbus Group, Prior to that, he was president of Ultra Sonar Systems, a division of Ultra Maritime, who are a leader in anti-submarine warfare solutions that's being acquired by Lockheed Martin. As illustrated on slide eight, the operating side of the business will include teams led by various members from Covalia and Kraken, alongside a new recruit, Joanne Roberts. Based in the UK, Joanne starts in October and brings relevant experience from defense companies such as Drone Range, Ultra, and Calus. This structure allows us to integrate Covalia alongside its various subsidiaries in an efficient manner with clear leadership and accountability, a structured go-to-market, and ensuring we develop the connective tissue between our previously independent organizations. With this new organizational structure, our integration efforts are well underway, including identified revenue enhancement opportunities and execution against our targeted cost synergies. With that, I'll now pass the call over to Joe to review our Q2 results.