Märkte & Kurse

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Original-Research: Bittium Oyj - from NuWays AG

19.11.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to Bittium Oyj

     Company Name:                Bittium Oyj
     ISIN:                        FI0009007264

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        19.11.2025
     Target price:                EUR 23.50
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Julius Neittamo

In our initiation earlier this month, we highlighted Bittium's exceptional
know-how in military-grade radio technology, leveraging a 40-year long
legacy in secure wireless communications. This builds on the back of their
long cooperation with the Finnish Defense Forces. Bittium's successful
integration of their radio systems with multiple European militaries,
contrasts sharply with the integration issues encountered by peers. For
instance, this is the case of Rohde & Schwartz (R&S) and their cumbersome
radio integration project with the Bundeswehr.

The Digitalisierung Landbasierte Operationen (D-LBO) is one of the most
important modernisation projects of the Bundeswehr, estimated at EUR 20bn. The
D-LBO's core objective is to link vehicles, troops and command nodes, in an
advanced, secure and unified communication network, that will facilitate
interoperability with allies. A spokesperson from Pistorius's office had
told Der Spiegel that the switch to digital radios for the Bundeswehr
represents "one of the most extensive and complex conversions", akin to an
"open-heart surgery". Here, R&S's role in the D-LBO is absolutely central.

The D-LBO is however, encountering major issues, as Tageschau reports in
November 2025. So far, integration of the new radio systems have been
largely unsuccessful. Military personnel had already stated, during tests in
May 2025, that the digital radios were "unsuited for military use".
Recently, German MoD internal documents further revealed that the situation
was "worsening". These issues do not date from this year alone. Already in
September 2023, Defense Minister Pistorius openly admitted delays in the
project, deemed top-priority.

One of the core issues is the complexity of retrofitting current systems;
according to budget officials, installation of a single digital radio in a
Leopard tank takes two technicians and 400 hours. Considering that the
Bundeswehr is composed of 16,000 vehicles of 200 different types, the task
ahead is enormous, timely and expensive. In reality, officials have already
indirectly acknowledged that the roll-out of digital radios has failed, as
it is now planned to roll-out a solution combining digital and legacy
radios. This makes the Bundeswehr not only vulnerable on the modern
battlefield, but also makes interoperability with NATO allies difficult.

An internal document from the German MoD explains to Bundestag MPs, that a
technical solution will be found in November 2025. Many top MPs are highly
skeptical, notes Tageschau. Interestingly, external consults from Capgemini,
PricewaterhouseCoopers and msg systems are planned to be subcontracted to
help fix the abovementionned problems, with rates estimated at EUR 1,200 per
consultant per day. We are highly skeptical of their real impact on the
matter.

This underpins Bittium's, exceptional know-how in the field of
military-grade radios. While we do not expect Bittium to get involved in the
D-LBO project at this time, we also don't exclude any scenarios. Afterall,
Indra Sistemas chose to partner with Bittium to pursue a contract from the
Spanish MoD, a deal which involves a technology transfer. We would not be
surprised to see Bittium win further cases with such procurement models, as
it allows clients to retain production sovereignity. We maintain our BUY
rating and PT of EUR 23.50.


You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=97346c21467750d96488cc83ead2b121
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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 Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2232268 19.11.2025 CET/CEST

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