Bruce Campbell (2) Kraken Robotics Inc. PNG-X TOP PICK Jul 09, 2025

Net income rose 31% year-over-year to $2.6M. Revenue rose 67%(!) year-over-year to $22.8M. Product revenue increased 83% year-over-year driven by increased sales across key products. Adjusted EBITDA increased 79% in the quarter to $5.4M. PNG maintained its outlook for the full year 2024 expecting revenue between $90M to $100M and Adjusted EBITDA in the $18.0M to $24.0M range. This outlook is, "driven by contracts in hand and reflects strength across both our Product and Service groups addressing defense and offshore energy customers." Another very strong quarter for PNG continuing its run and the stock has hit another high today. 
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Phenomenally good performance. Now at inflection point. Seeing more and bigger contracts both on surveillance and on batteries. Hopefully this is just getting started and it doesn't get bought out before the long runway of earnings growth and share price appreciation materializes.

It is a submarine stock and is on the cutting edge. It has military contracts which have good margins and provide recurrent revenue.

He owned it last year after shares jumped. It's a great business, but the 40x PE is too high and risky. That said, they are doing well.

EPS of $0.06 beat estimates of $0.016 and revenues of $28.11M beat estimates of $27.86M. Sales grew 31%, gross profits were up 32%, with a steady gross margin of 49%. Its product revenue grew 26%, driven by SeaPower subsea batteries. Management plans to expand manufacturing in Nova Scotia to meet growing defense demand, and 2025 revenue guidance is $120M to $135M, around a 40% growth rate. The CEO noted growth in defense and offshore energy sectors. These were strong results, and we are encouraged by its guidance. Shares are not cheap at 52X forward earnings, but its growth rate, margins, and geographic and product expansion are all moving in the right direction. While it is difficult to predict the share price one year out, given its strong sales growth rate of 30%+, in a positive market backdrop, we could see the stock hitting new highs (20%+ from here). We would be comfortable buying PNG today.
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Really cool products like deep-sea drones. New CEO has done an outstanding job. He doesn't own now because valuation is at a premium. Government contracts can take a long time to materialize; but when they do, they're large. Good way to get exposure to the space.

A 6-bagger over the last 3 years, and revenues have tripled in that time. Underwater technology is being taken into the field for oil & gas.

Really likes it, and so do his firm's fundamental analysts. Strong fundamental story. Technicals are awesome. Good run. Add on weakness. Expect a consolidation or correction in next month or two, and that's when he'd be looking to add.

It is involved in the next frontier which is oceans, Makes submersible drones, small to big which will allow the military to expand under the seas where they haven't been able to in the past. It is very good in sonar and battery technology which can stand the under water pressure. In its quarterly reports expectations have been met. Its valuation has increased but growth is good.