Baylin Technologies (BYL) Small Cap Growth Virtual Investor Conference summary

Strategic transformation and growth

• Completed the transformative acquisition of Kaelus, adding four complementary product lines and expanding into new geographies, particularly Europe and Scandinavia.

• Infrastructure business became the largest segment, growing 40% in 2024 and projected to grow 32.5% in 2025, driven by unique intellectual property and high-margin products.

• Multibeam technology set new data records at major venues, leading to increased adoption by global carriers and installations in World Cup and Olympic facilities.

• Kaelus acquisition enables cross-selling, customer diversification, and access to tier 1 OEM channels with Nokia and Ericsson.

• Combined backlog with Kaelus reached CAD 51.2 million at Q3, supporting strong production and margin expansion.

Financial outlook and integration

• Pro forma revenue forecast of CAD 130 million and adjusted EBITDA of CAD 14 million, with gross margins at 46% and EBITDA margins at 10.8%.

• Acquisition funded through a mix of equity and cash, including a new CAD 30.9 million senior secured facility and CAD 10.3 million in subscription receipts.

• Leverage ratio expected to fall to low twos or below, strengthening the balance sheet and enabling future acquisitions.

• Integration playbook from prior large-scale mergers being applied, with backlog and margin growth as key milestones for success.

• Institutional investor base broadened post-acquisition, reducing concentration and attracting new interest.

Market opportunities and customer feedback

• Defense and government satellite demand is durable, with growing opportunities in North America and Europe, though sales cycles are long.

• Custom antenna and Satcom products already have a presence in Europe, with further expansion expected via Kaelus channels.

• Early customer feedback on the combined platform is highly positive, with major carriers and OEMs expressing strong support.

• Product and customer diversification provide revenue resiliency and margin expansion, with over 20% margin growth since leadership change.

• Capital allocation priorities post-integration include debt reduction, organic growth, and potential stock buybacks if undervalued.