Canada's Baylin Q4 revenue falls 12%, gross margin rises
Overview
Canada wireless technology firm's Q4 revenue fell 12% yr/yr due to lower demand in Satcom, Embedded Antenna
Q4 gross margin improved to 46.1% from 37.9% on stronger product mix
Company announced acquisition of Kaelus AB, targeting completion in Q2 2026, pending financing and approvals
Outlook
Baylin expects 2026 performance driven by Embedded Antenna sales growth and Wireless Infrastructure strength
Wireless Infrastructure 2026 revenue, gross profit and adj EBITDA expected to be comparable with 2025
Pro forma 2026 revenue expected at $132.6 mln, adj EBITDA at $15.1 mln after completion of Kaelus acquisition
Result Drivers
WIRELESS INFRASTRUCTURE - Stronger sales and improved product mix in Wireless Infrastructure business line boosted gross margin and gross profit in Q4
LOWER DEMAND - Revenue decline in Q4 was due to lower sales volume in Embedded Antenna and Satcom business lines
Company press release: ID:nCNWsbLWZa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | C$18.23 mln | C$17.20 mln (1 Analyst) |
Q4 EPS |
| -C$0.02 |
|
Q4 Net Income |
| -C$2.53 mln |
|
Q4 Adjusted EBITDA |
| C$1.40 mln |
|
Q4 Gross Margin |
| 46.10% |
|
Q4 EBITDA |
| -C$875,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Baylin Technologies Inc is C$0.38, about 36.4% above its March 25 closing price of C$0.28
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