Baylin Tech (5BT) Q2 2026 Earnings Report

The call presented a balanced message: strong strategic and operational positives including a transformational Kaelus acquisition, record backlog (up ~199%), improved gross margins and a tenth consecutive quarter of positive adjusted EBITDA. Offsetting these were near-term financial impacts — Q2 and YTD revenue declines, lower adjusted EBITDA year-to-date, a Q2 net loss driven by acquisition expenses and FX, and integration and macro risks. Management framed the negatives as largely transitional and highlighted the backlog and Kaelus order momentum as drivers for H2 2026 and 2027 growth.

Management kept its 2026 outlook stable and gave directional guidance that Kaelus will outperform its internal H2 budget and largely convert its contribution to revenue in 2026 — Kaelus booked $12.6M of new POs in its first month and helped drive a record backlog of $61M (up from $20.4M at year-end) — while SATCOM should see a stronger H2 (about half of the recent SATCOM backlog bump converting this year and the other half into early 2027) though full-year SATCOM will be below 2025; custom antennas are expected to be comparable to 2025 with improved margins; longer-term, meaningful carrier infrastructure spending is expected to resume in 2027. Key Q2/Q2‑YTD metrics referenced alongside this guidance included Q2 revenue $22.0M, gross margin 47.1%, gross profit $10.4M, adjusted EBITDA $3.0M (10th consecutive positive quarter), Q2 net loss $3.2M (driven by ~$2.1M acquisition expenses), 6‑month revenue $38.1M, YTD adjusted EBITDA $3.1M, YTD gross margin 44.8%, net debt $11.1M (down $1.3M from Dec 31), recognition of $1.3M tariff refunds, and the Kaelus purchase consideration of $47.4M (reported as $10.6M cash, $21.6M deferred cash, $15.2M share capital).