Original-Research: Bittium Oyj (von NuWays AG): BUY

Classification of NuWays AG to Bittium Oyj

Company Name:	Bittium Oyj
ISIN:	FI0009007264
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 40
Target price on sight of:	12 months
Last rating change:
Analyst:	Julius Neittamo

Outstanding Q4 as expected, cautious FY26 guidance

Yesterday, Bittium reported record results and presented its financial guidance for FY26. The report was known to be very strong, as the company had recently raised its FY25 outlook. Group results beat many of our estimates, with a very strong Defense & Security segment, while Medical and Engineering Services disappointed. Guidance for FY26 is € 140-155m for net sales and € 26-32m for operating profit, broadly in line with our previous estimates. Yet, this remains a cautious guidance, that can be beat thanks to positive momentum. Our review in detail:

Q4’25 with outstanding Defense & Security performance: Group net sales grew 62.5% yoy to € 53.9m (beat eNuW +52.9%/€ 50.3m), achieving the highest quarterly revenue in Bittium’s history, supported by several new orders in Defence & Security. EBIT came in at € 15.4m (beat eNuW € 15m), while EBIT margin was 28.5% (vs eNuW 29.8%). Management used its discretion to accelerate depreciation of Tough SDR technology following the Indra licensing deal (depreciation € 7.6m in Q4 vs € 2.6m year prior).

Medical and Engineering Services (17% of group sales in Q4) dragged operating margins, both achieving EBIT € -0.1m (vs eNuW € +0.6m/€ +0.3m respectively).

Q4 new orders reached a record €97.9m, +152 yoy (FY25 orders jumped by 50% to € 153m), mainly driven by Defence deals: (i) Finnish Defence Forces €15.9m (Tough SDR radios), (ii) Austria €18.5m (TAC WIN systems) and, (iii) Indra € 50m licensing deal.

The board has proposed a € 0.15/sh. dividend on FY-25 results (0.10/sh. last year) and an extraordinary dividend of € 0.15/sh.

FY26 guidance was broadly in line at the midpoint, implying 17–30% sales growth to € 140–155m and 34–65% EBIT growth to € 26–32m. FY26 Outlook is well supported by a robust backlog of € 77.9m at the end of 2025 (vs. €45.1m year earlier). The sales guidance is cautious, given that the company is currently in talks with ~10 different militaries, while targets to win at least one “decent sized country” as customer this year. With the ongoing commercial momentum and newsflow, the guidance can be beat. Note that the recent success with Indra positions Bittium as a legitimate partner for the larger European militaries, increasing expectations for key auctions in 2026, notably the upcoming tender for renewing tactical communication systems for the British Armed Forces.

We make a few adjustments to the DCF model: Our FY26 net sales is slightly increased and lands at € 154m (+29% yoy), on the upper end of the guidance, to reflect a higher contribution from Indra. In FY26, EBIT is reduced from € 30.8m (20.7% margin) to € 27.6m (18% margin) due to the aforementioned higher depreciation driven by the Indra licensing deal. New estimates results in an unchanged PT, due to higher working capital needs. We reiterate our BUY rating on continued momentum.
 

You can download the research here: bittium-oyj-2026-02-20-update-en-aa9a5
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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