Baylin Technologies Inc.

Q2 revenue was $22 million, down from $22.5 million a year ago, and gross profit was $10.4 million. Gross margin improved to 47.1% from 46.3% in Q2 2025, helped by $1.3 million of tariff refunds; adjusted EBITDA was $3 million versus $3.4 million last year. Net loss was $3.2 million versus net income of $1.1 million in Q2 2025. For the first half, revenue was $38.1 million versus $41.3 million, gross profit was $17 million versus $18.4 million, gross margin was 44.8% versus 44.5%, adjusted EBITDA was $3.1 million versus $4.1 million, and net loss was $5.5 million versus $1 million. Net debt was $11.1 million at June 30, down $1.3 million from December 31. Guidance-wise, management said wireless infrastructure should be softer in 2026 but in solid territory, SATCOM will be below 2025 for the full year but better in the second half, and custom antenna solutions should be comparable to 2025; they also said Kaelus should outperform its internal second-half budget and much of its backlog should convert this year, with some SATCOM backlog slipping into late Q1 or potentially Q2 of next year.

Leighton Carroll framed the quarter as one of the most important in Baylin’s history because the company closed Kaelus, restructured debt, and rebuilt its capital structure while maintaining operational resilience. He was most upbeat about Kaelus, calling it “pure expansion” with no product overlap and emphasizing new products, geography, and engineering talent rather than cost cutting synergies. He also tied the business to longer-term themes like European RF buildout, defense communications, and a potential future rotation back toward wireless infrastructure as AI and edge connectivity grow.

Cliff Gary highlighted the quarter’s financial bridge: revenue of $22 million, gross profit of $10.4 million, gross margin of 47.1%, adjusted EBITDA of $3 million, and net loss of $3.2 million. He said the margin benefited from $1.3 million of tariff refunds, while the net loss was driven mainly by $2.1 million of acquisition-related expenses and higher foreign exchange losses. On liquidity and capital structure, he said net debt was $11.1 million, the company entered a new term credit facility with SAF Group, retired its RBC revolver, and financed the $47.4 million Kaelus purchase price with $10.6 million cash, $21.6 million deferred cash compensation, and $15.2 million of share capital.

Analysts focused on backlog conversion timing, 2027 outlook, early Kaelus integration learnings, and end-market demand trends. Management said a lot of the new backlog should convert this year, with Kaelus orders flowing relatively quickly and some SATCOM backlog extending into late Q1 or potentially Q2 next year. On 2027, Leighton said infrastructure and Kaelus should provide growth, SATCOM profitability should be materially better, and custom antenna should return to its normal trajectory, while also noting that satellite connectivity is improving but will not replace fiber and cellular in most use cases.