Baylin Technologies (BYL) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 declined to CAD 16.1 million from CAD 18.9 million year-over-year, mainly due to lower Satcom and wireless infrastructure sales amid softer market conditions.

• Gross profit was CAD 6.7 million, down from CAD 8 million, with gross margin at 41.5% versus 42.4% last year, partially offset by favorable product mix in Custom Antenna Solutions.

• Adjusted EBITDA remained positive at CAD 0.1 million, marking the ninth consecutive quarter of positive adjusted EBITDA, though down from CAD 0.7 million in Q1 2025.

• Net loss widened to CAD 2.3 million ($0.02 per share) from CAD 2 million ($0.01 per share) year-over-year, driven by operating loss and finance expenses.

• Backlog increased to CAD 22.9 million at March 31, 2026, up from CAD 20.4 million at year-end 2025, due to higher order intake in Wireless Infrastructure and Satcom.

Financial highlights

• Operating loss increased to CAD 1.5 million from CAD 1.1 million year-over-year, mainly due to lower gross profit.

• Adjusted EBITDA dropped to CAD 0.1 million from CAD 0.7 million in Q1 2025.

• Net debt stood at CAD 12.1 million as of March 31, 2026, down slightly from year-end 2025, reflecting positive working capital movements.

• Current assets rose 3% sequentially to CAD 40.6 million.

• Net loss margin was -14.4% in Q1 2026 versus -10.8% in Q1 2025.

Outlook and guidance

• Wireless infrastructure is expected to match 2025 performance in revenue, gross profit, and adjusted EBITDA, with stronger sales anticipated in multibeam and stadium deployments.

• Custom antennas are forecasted to see stronger full-year 2026 revenue and margin improvement, with demand recovery expected in Q2.

• Satcom's 2026 financial performance is projected to be weaker than 2025 due to slow order conversion and market conditions.

• Pro forma 2026 outlook (including Kaelus AB acquisition) projects revenue of CAD 131.8 million, gross margin of 46.2%, and adjusted EBITDA of CAD 14.9 million.

• The Kaelus acquisition is expected to close before the end of Q2 2026, enhancing product offerings and cross-selling opportunities.