- Adjusted EBITDA* increased $0.7 million over fiscal 2024.
- Gross margin* of 44.7%, an increase of 8.8% over fiscal 2024.
Investor Conference Call on March 26, 2026 at 4:00 p.m. ET
TORONTO, March 25, 2026 /CNW/ – Baylin Technologies Inc. (TSX:BYL) (OTCQB:BYLTF) (the “Company” or “Baylin”), a leading diversified global wireless technology company focused on research, design, development, manufacture, and sale of passive and active radio frequency products, satellite communications products, and supporting services, today announced its financial results for the three and twelve months ended December 31, 2025. All amounts are stated in Canadian dollars unless otherwise indicated.
FISCAL YEAR SUMMARY
- Revenue of $76.3 million compared to $83.6 million in fiscal 2024, due mainly to lower demand in the Embedded Antenna and Satcom business lines in fiscal 2025, partially offset by strong sales volume increase in the Wireless Infrastructure business line compared to the prior fiscal year.
- Gross margin of 44.7% compared to 41.1% in fiscal 2024. The higher gross margin in fiscal 2025 was mainly due to improved product mix from stronger sales of multibeam, small cell and other innovative antennas of the Wireless Infrastructure business line, as well as improved gross margin from Embedded Antenna business line.
- Gross profit of $34.1 million compared to $34.4 million in fiscal 2024, primarily due to the decrease in revenue in the Embedded Antenna and Satcom business lines as discussed above, while largely offset by the increase in revenue and favourable gross margin in Wireless Infrastructure business line in fiscal 2025.
- Adjusted EBITDA of $6.1 million in fiscal 2025, an increase of $0.7 million or 12.8% compared to fiscal 2024, mainly due to higher gross profit generated by Wireless Infrastructure business line in fiscal 2025.
- Net loss of $4.7 million compared to $8.5 million in fiscal 2024, due mainly to lower operating expenses and a favourable adjustment on the fair market value of the Company’s convertible debentures in fiscal 2025. On a per share basis, a net loss of $0.03 per share in fiscal 2025 compared to a net loss of $0.05 per share in fiscal 2024.
- Net debt* of $12.4 million at December 31, 2025, a reduction of $1.9 million from December 31, 2024, mainly attributable to the Company’s efficient management of cash and working capital in fiscal 2025.
- Backlog* of $20.4 million at December 31, 2025 compared to $30.2 million at December 31, 2024. The change was primarily due to a slowdown in order intake in the Satcom business line during fiscal 2025. Backlog was $22.2 million at February 28, 2026.
FOURTH QUARTER SUMMARY
- Revenue of $18.2 million compared to $20.8 million in the fourth quarter of 2024. The decrease in the fourth quarter of 2025 was due to lower sales volume in the Embedded Antenna and Satcom business lines as discussed above.
- Gross margin of 46.1% compared to 37.9% in the fourth quarter of 2024. The higher gross margin in the fourth quarter of 2025 was mainly attributable to improved product mix.
- Gross profit of $8.4 million in the fourth quarter of 2025 was an increase of $0.5 million or 6.6% compared to the fourth quarter of 2024, primarily due to the Wireless Infrastructure business line which generated stronger revenue and favourable gross margin in the fourth quarter of 2025.
- Adjusted EBITDA of $1.4 million compared to $1.8 million in the fourth quarter of 2024. Adjusted EBITDA in the fourth quarter of 2024 included a reclassification of $2.0 million from cash based to non-cash based share compensation.
- Net loss of $2.5 million compared to $4.9 million in the fourth quarter of 2024. The net loss in the fourth quarter of 2024 included an impairment charge of $2.6 million for Satcom business line. On a per share basis, a net loss of $0.02 per share in the fourth quarter of 2025 compared to a net loss of $0.03 per share in the fourth quarter of 2024.
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* This is a non-IFRS measure. See notes in “Selected Financial Information”. |
RECENT DEVELOPMENTS
Acquisition of Kaelus AB
On December 1, 2025, the Company announced that it had entered into a share purchase agreement with the shareholders of Kaelus AB (“Kaelus”) to acquire 100% of the shares of Kaelus for a purchase price of approximately $42 million (subject to adjustment and net of excess cash). The purchase price will be satisfied through a combination of common shares and cash, comprising approximately 52.2 million common shares and $26 million in cash.
The cash portion of the purchase price payable at closing will be funded in part from the proceeds of an offering of 41,250,000 subscription receipts at a price of $0.25 or $10.3 million, which was completed in December 2025. The proceeds of the offering are being held in escrow pending completion of the acquisition and the satisfaction of other required conditions (the “Escrow Release Conditions”). Assuming satisfaction of the Escrow Release Conditions, one common share will automatically be issued in exchange for each subscription receipt, and the net proceeds will be released to the Company. If the Escrow Release Conditions are not satisfied, the proceeds will be returned to investors plus interest.
At the time of the announcement of the acquisition, the Company entered into a non-binding term sheet with a Canadian private lender (the “Lender”) to provide a senior secured term loan (the “Loan”), which would be guaranteed by certain of the Company’s subsidiaries. The Loan would be used to fund part of the cash portion of the purchase price of the acquisition, repay in full the Company’s revolving credit facility with its principal lender, and for general corporate purposes. The Company and the Lender are continuing to negotiate the terms of the Loan. Subject to agreement on those terms, the Company is targeting completion of the acquisition early in the second quarter of 2026. However, there can be no assurance that the parties will be able to reach agreement on the terms of the Loan. In that case, the Company would explore alternative options for the financing required to complete the acquisition, failing which the acquisition may not be completed.
The Company has received foreign investment approval in Finland for the acquisition and conditional approval from the TSX for the issuance of common shares related to the acquisition and the subscription receipt offering, subject to receipt of shareholder approval. The Company intends to rely on section 604(d) of the TSX’s Company Manual under which, in certain circumstances, the TSX may permit a listed issuer to provide the TSX with written evidence that holders of more than 50% of voting securities of the issuer, and who are familiar with the proposed transaction, are in favour of the transaction. The Company intends to seek shareholder approval in reliance on this provision.
SELECTED FINANCIAL INFORMATION
The table below discloses selected financial information for the periods indicated.
|
(in $000’s except per share amounts) |
|||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||
|
2025 |
2024 |
Change |
Change |
2025 |
2024 |
Change |
Change |
||
|
$ |
$ |
$ |
% |
$ |
$ |
$ |
% |
||
|
Profit and Loss |
|||||||||
|
Revenue |
18,231 |
20,792 |
(2,561) |
(12.3 %) |
76,307 |
83,589 |
(7,282) |
(8.7 %) |
|
|
Gross profit |
8,412 |
7,888 |
524 |
6.6 % |
34,094 |
34,390 |
(296) |
(0.9 %) |
|
|
Gross margin |
46.1 % |
37.9 % |
8.2 pp |
21.6 % |
44.7 % |
41.1 % |
3.6 pp |
8.8 % |
|
|
Net loss from continuing operations |
(2,532) |
(4,942) |
2,410 |
(48.8 %) |
(4,674) |
(8,460) |
3,786 |
(44.8 %) |
|
|
Net income from discontinued operations |
– |
3,706 |
(3,706) |
(100.0 %) |
– |
606 |
(606) |
(100.0 %) |
|
|
Net loss |
(2,532) |
(1,236) |
(1,296) |
> 100.0% |
(4,674) |
(7,854) |
3,180 |
(40.5 %) |
|
|
Basic and diluted net loss per share from continuing operations |
($0.02) |
($0.03) |
$0.01 |
(33.3 %) |
($0.03) |
($0.05) |
$0.02 |
(40.0 %) |
|
|
Basic and diluted net income per share from discontinued operations |
– |
$0.03 |
($0.03) |
(100.0 %) |
– |
$0.00 |
$0.00 |
N/A |
|
|
Basic and diluted net loss per share |
($0.02) |
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