10 Worst Performing Defense Stocks So Far in 2025

8. Nauticus Robotics, Inc. (NASDAQ:KITT)

YTD Decline in Share Price: -31.61%

Nauticus Robotics, Inc. (NASDAQ:KITT) develops autonomous robots for the ocean industry. The company is also a key player in the defense sector. With a year-to-date dip of nearly 32% in its share price, KITT is among the worst performing stocks in 2025.

In January this year, Nauticus Robotics, Inc. (NASDAQ:KITT) forged a strategic alliance with Leidos to advance subsea autonomy solutions. This builds on a successful past collaboration between the two organizations, which was well-received by their mutual customer. The partnership aims to combine the expertise of the two to build next-gen autonomous underwater systems for tackling complex missions.

On March 20, Nauticus Robotics, Inc. (NASDAQ:KITT) announced an earlier-than-scheduled closure of its acquisition of SeaTrepid International, LLC, a company that provides subsea robotic services. The strategic acquisition is likely to result in significant revenue growth for the company in the fiscal 2025.

Nauticus Robotics, Inc. (NASDAQ:KITT) has been under pressure over the last several months to comply with NASDAQ’s listing requirements, which it regained in late February. However, the stock price has been declining over the past week and risks falling below the $1 mark again.

The company is also facing significant financial challenges. During the third quarter of fiscal year 2024, Nauticus Robotics, Inc. (NASDAQ:KITT) reported a revenue of $0.4 million, down from $1.6 million during the prior year’s period. Net loss was recorded at $11.4 million, up by $6 million sequentially.