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Archer Aviation and Kraken Robotics: Two Defense-Focused Tech Stocks in the Spotlight
When defense budgets climb, two tech stocks—Archer Aviation and Kraken Robotics—step into the spotlight.
Archer Aviation (NYSE: ACHR), based in San Jose, California, has a market capitalization of roughly $4.2 billion as of mid‑June 2026. The company reported $1.6 million in revenue during the first quarter of 2025 and posted a net loss of $618.2 million for the year. Archer has yet to generate sales in the previous year, but it is preparing to launch commercial operations this calendar year. Its Midnight eVTOL aircraft, designed for urban air mobility, is slated to begin test flights in the United Arab Emirates this summer and is pursuing certification to operate in U.S. airspace.
Kraken Robotics (TSXV: PNG), headquartered in Newfoundland and Labrador, Canada, has a market cap of about $1.7 billion. In 2025 the company recorded sales of approximately 102 million Canadian dollars (about $72 million U.S. dollars) and a net income of 2.9 million Canadian dollars (roughly $2.1 million U.S. dollars). Kraken recently announced the acquisition of the Covelya Group for $615 million. The deal will be partially financed through a $350 million public offering of subscription receipts, and the transaction is expected to lift Kraken’s market value to close to $2 billion.
Both firms have forged partnerships with Anduril Industries, a company known for its next‑generation defense technologies. Archer is collaborating with Anduril to develop hybrid VTOL aircraft for military use, while Kraken’s batteries and sensor systems are integrated into Anduril’s GhostShark, Dive‑LD, and Dive‑XL unmanned underwater drones. Covelya’s Sonardyne technologies are also used in Anduril’s sea drones, creating cross‑selling opportunities across the two companies’ customer bases.
The defense sector’s expanding demand for advanced platforms provides a clear market for both Archer and Kraken. Archer’s eVTOL platform is designed for short‑range urban travel, with a claimed range of up to 100 miles and a top speed of 150 mph. The company’s first major corporate customer is United Airlines, which has ordered 200 Archer aircraft.
Kraken’s focus on subsea batteries, ocean‑floor mapping, Lidar, and mine‑detection systems aligns with the growing need for maritime surveillance and autonomous underwater operations. The acquisition of Covelya expands Kraken’s portfolio to include synthetic aperture sonar, acoustic imaging, and related technologies.
Financially, Archer’s operating losses are substantial, reflecting heavy investment in research, development, and certification. Kraken’s recent profitability, though modest, indicates a more mature revenue stream. The market’s reaction to each company’s performance has been mixed; Archer’s stock has seen a decline of about 20 % over the past year, while Kraken’s valuation has remained relatively stable.
Looking ahead, Archer’s commercial launch in the UAE and its pursuit of U.S. certification are critical milestones that could unlock revenue streams. Kraken’s integration of Covelya’s assets and the expected increase in market cap following the subscription‑receipt offering are key factors that investors will monitor.
In summary, Archer Aviation and Kraken Robotics both offer exposure to defense‑related growth, but they differ in size, financial health, and product focus. Archer is a larger company with a broader commercial ambition, while Kraken is a smaller, more specialized firm with a recent expansion into maritime technology. Investors will likely weigh the companies’ current losses, upcoming product launches, and partnership synergies when deciding which stock aligns best with their defense‑technology exposure.
Archer Aviation (NYSE: ACHR), based in San Jose, California, has a market capitalization of roughly $4.2 billion as of mid‑June 2026. The company reported $1.6 million in revenue during the first quarter of 2025 and posted a net loss of $618.2 million for the year. Archer has yet to generate sales in the previous year, but it is preparing to launch commercial operations this calendar year. Its Midnight eVTOL aircraft, designed for urban air mobility, is slated to begin test flights in the United Arab Emirates this summer and is pursuing certification to operate in U.S. airspace.
Kraken Robotics (TSXV: PNG), headquartered in Newfoundland and Labrador, Canada, has a market cap of about $1.7 billion. In 2025 the company recorded sales of approximately 102 million Canadian dollars (about $72 million U.S. dollars) and a net income of 2.9 million Canadian dollars (roughly $2.1 million U.S. dollars). Kraken recently announced the acquisition of the Covelya Group for $615 million. The deal will be partially financed through a $350 million public offering of subscription receipts, and the transaction is expected to lift Kraken’s market value to close to $2 billion.
Both firms have forged partnerships with Anduril Industries, a company known for its next‑generation defense technologies. Archer is collaborating with Anduril to develop hybrid VTOL aircraft for military use, while Kraken’s batteries and sensor systems are integrated into Anduril’s GhostShark, Dive‑LD, and Dive‑XL unmanned underwater drones. Covelya’s Sonardyne technologies are also used in Anduril’s sea drones, creating cross‑selling opportunities across the two companies’ customer bases.
The defense sector’s expanding demand for advanced platforms provides a clear market for both Archer and Kraken. Archer’s eVTOL platform is designed for short‑range urban travel, with a claimed range of up to 100 miles and a top speed of 150 mph. The company’s first major corporate customer is United Airlines, which has ordered 200 Archer aircraft.
Kraken’s focus on subsea batteries, ocean‑floor mapping, Lidar, and mine‑detection systems aligns with the growing need for maritime surveillance and autonomous underwater operations. The acquisition of Covelya expands Kraken’s portfolio to include synthetic aperture sonar, acoustic imaging, and related technologies.
Financially, Archer’s operating losses are substantial, reflecting heavy investment in research, development, and certification. Kraken’s recent profitability, though modest, indicates a more mature revenue stream. The market’s reaction to each company’s performance has been mixed; Archer’s stock has seen a decline of about 20 % over the past year, while Kraken’s valuation has remained relatively stable.
Looking ahead, Archer’s commercial launch in the UAE and its pursuit of U.S. certification are critical milestones that could unlock revenue streams. Kraken’s integration of Covelya’s assets and the expected increase in market cap following the subscription‑receipt offering are key factors that investors will monitor.
In summary, Archer Aviation and Kraken Robotics both offer exposure to defense‑related growth, but they differ in size, financial health, and product focus. Archer is a larger company with a broader commercial ambition, while Kraken is a smaller, more specialized firm with a recent expansion into maritime technology. Investors will likely weigh the companies’ current losses, upcoming product launches, and partnership synergies when deciding which stock aligns best with their defense‑technology exposure.
