Baylin Technologies Q2 Earnings Call Highlights

Key Points

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• Record backlog: Baylin Technologies' backlog reached CAD 61 cardinal successful Q2 2026, up from CAD 20.4 cardinal astatine year-end 2025, driven by the Kaelus acquisition and caller Satcom orders.

• Kaelus expands maturation opportunities: The CAD 42 cardinal acquisition added RF infrastructure, defence communications and anti-jamming products, generated CAD 12.6 cardinal successful first-month orders and is expected to outperform its second-half budget.

• Profitability remains mixed: Revenue declined somewhat to CAD 22 cardinal and adjusted EBITDA fell to CAD 3 million, portion the institution posted a CAD 3.2 cardinal nett nonaccomplishment owed mostly to acquisition costs and foreign-exchange losses. Baylin's absorption is present connected converting backlog into revenue, integrating Kaelus and improving margins.

Baylin Technologies (TSE:BYL) reported a grounds backlog of CAD 61 cardinal for the 2nd 4th of 2026 arsenic the institution completed its acquisition of Sweden-based RF exertion supplier Kaelus, restructured its indebtedness and converted definite securities into communal shares.

The backlog, the highest successful Baylin's much than 40-year history, roseate from CAD 20.4 cardinal astatine the extremity of 2025. Chief Executive Officer Leighton Carroll said the summation reflects contributions from Kaelus arsenic good arsenic caller orders successful the company's Satcom division.

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Second-quarter gross was CAD 22 million, down 1.9% from CAD 22.5 cardinal a twelvemonth earlier. Gross borderline improved to 47.1% from 46.3%, portion adjusted EBITDA was CAD 3 million, compared with CAD 3.4 cardinal successful the prior-year period. Baylin recorded its 10th consecutive 4th of affirmative adjusted EBITDA.

The institution reported a nett nonaccomplishment of CAD 3.2 million, compared with nett income of CAD 1.1 cardinal successful the 2nd 4th of 2025. Chief Financial Officer Cliff Gary said the nonaccomplishment was chiefly attributable to CAD 2.1 cardinal successful acquisition-related expenses and higher foreign-exchange losses included successful concern expense.

Kaelus acquisition expands RF portfolio

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Baylin completed its acquisition of Kaelus connected May 29 for a nett acquisition terms of CAD 42 million. The acquired concern is headquartered successful Sweden and volition run arsenic Kaelus, a Galtronics company. Galtronics is 1 of Baylin's operating brands.

Carroll said Kaelus adds products that bash not overlap with Baylin's existing Galtronics offering, including precocious antenna systems, RF conditioning products, GNSS synchronization solutions, anti-jamming capabilities and test-and-measurement tools. He said the transaction astir doubled the fig of products Baylin tin connection customers portion adding engineering endowment and geographic reach.