Baylin Technologies (BYL) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue was CAD 76.3 million, down 8.7% year-over-year, mainly due to lower demand in Embedded Antenna and Satcom, partially offset by strong Wireless Infrastructure sales and improved margin performance.

• Adjusted EBITDA rose 12.8% to CAD 6.1 million, driven by higher gross profit from Wireless Infrastructure and operational efficiency.

• Net loss narrowed to CAD 4.7 million from CAD 8.5 million in 2024, reflecting lower operating expenses and a favorable adjustment on convertible debentures.

• Gross margin improved to 44.7% from 41.1% in 2024, due to a better product mix and margin improvements in key business lines.

• Backlog at year-end was CAD 20.4 million, down from CAD 30.2 million, mainly due to a slowdown in Satcom order intake.

Financial highlights

• Q4 2025 revenue was CAD 18.2 million, down from CAD 20.8 million in Q4 2024; full-year revenue was CAD 76.3 million, down 8.7% from 2024.

• Q4 gross profit rose to CAD 8.4 million, with gross margin at 46.1% (up 8.2 points year-over-year); full-year gross margin improved to 44.7% from 41.1%.

• Q4 adjusted EBITDA was CAD 1.4 million (vs. CAD 1.8 million in Q4 2024); full-year adjusted EBITDA was CAD 6.1 million, up 12.8%.

• Q4 net loss improved to CAD 2.5 million (from CAD 4.9 million); full-year net loss improved to CAD 4.7 million (from CAD 8.5 million).

• Net debt reduced by CAD 1.9 million to CAD 12.4 million at year-end.

Outlook and guidance

• 2026 performance expected to be driven by Embedded Antenna sales recovery, continued Wireless Infrastructure strength, and leaner Satcom operations.

• Wireless Infrastructure anticipates stable revenue and margins, leveraging multibeam antenna advantages.

• Embedded Antenna expects slow demand recovery, with full-year 2026 revenue projected to exceed 2025.

• Satcom not expected to recover in 2026; backlog remains low, but cost structure has been aligned to lower volumes and defense-focused strategy is yielding new contracts.

• Pro forma 2026 combined revenue (with Kaelus) expected to decline, but gross margin to improve; adjusted EBITDA forecast at CAD 15.1 million.