Baylin Technologies (BYL) Q2 2026 earnings summary

Executive summary

• Achieved a record backlog of CAD 61 million at June 30, 2026, up from CAD 20.4 million at year-end, driven by the Kaelus acquisition and strong Satcom orders.

• Completed the acquisition of Kaelus for a net purchase price of CAD 42 million on May 29, 2026, expanding product offerings, RF technology portfolio, and international reach with no product overlap.

• Q2 2026 revenue was CAD 22 million, down 1.9% year-over-year, mainly due to lower Satcom sales, partially offset by Kaelus revenue.

• Net loss of CAD 3.2 million in Q2 2026 versus net income of CAD 1.1 million last year, mainly due to acquisition and financing costs.

• Restructured debt and improved capital structure, including a new term credit facility and conversion of debentures and preferred shares to common equity.

Financial highlights

• Q2 2026 revenue: CAD 22 million (down 1.9% year-over-year); six-month revenue: CAD 38.1 million (down 7.8%).

• Gross margin improved to 47.1% from 46.3% year-over-year, aided by CAD 1.3 million in tariff refunds.

• Adjusted EBITDA for Q2 2026 was CAD 3 million, positive for the 10th consecutive quarter, though down from CAD 3.4 million last year.

• Net debt at June 30, 2026, was CAD 11.1 million, down CAD 1.3 million from year-end.

• Net loss per share was CAD 0.03 in Q2 2026.

Outlook and guidance

• Backlog expected to convert largely within the year, especially for Kaelus and Satcom; some Satcom backlog extends into Q1/Q2 2027.

• 2026 outlook remains stable; 2027 expected to benefit from cross-selling, new product certifications, and resumed carrier spending.

• Satcom profitability anticipated to improve in 2027, driven by defense demand and cost reductions.

• Custom Antenna Solutions expected to return to normal growth trajectory as supply chain issues ease.

• Combined 2026 forecast (including Kaelus): revenue CAD 107.4 million, Adjusted EBITDA CAD 10.7 million.