Märkte & Kurse

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Original-Research: Bittium Oyj - from NuWays AG

30.12.2025 / 09:23 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:                        30.12.2025
     Target price:                EUR 31.50
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Julius Neittamo

Indra deal accelerates Bittium's market penetration; PT UP

Yesterday, Bittium announced a licensing agreement with major defense player
IndraSistemas, whereby Bittium licenses its Tough SDR technology to Indra.
The technology transferhas already begun, with Indra set to develop and
manufacture handheld, vehicular, and manpackradios for its customers. The
initial EUR 50m order targets the Spanish Armed Forces, with Bittiumestimating
an additional EUR 70m order over the next decade. Noteworthy, the deal also
allowsIndra to extend the manufacturing of SDRs for customers outside of
Spain.

As a result, Bittium raised its financial 2025 outlook. The company now
estimates Net Sales of EUR 116m - 120m (previously EUR 95m - 105m) while
Operating Result was significantly increased to EUR19m - 21m range (previously
EUR 10m - 13m).

The finalisation of the Indra deal has major positive ramifications for
Bittium:
1. The financial implications are overwhelmingly positive. The licensing
deal can be divided into threerevenue streams; (i) licensing, (ii)
technology transfer projects and (iii) royalties. Due to thenature of the
agreement, the first order of EUR 50m, should come with an EBIT margin of 70%
(EUR 35m) to be realised until the end of 2027. Noteworthy, the additional EUR
70m order is only arough estimate and could potentially be higher. As
mentioned, the deal permits Indra to developand manufacture Tough SDRs also
for countries outside of Spain, increasing Bittium's commercialreach in
regions where it is not yet strongly entrenched.

2. Bittium has transformed itself from a niche Nordic player, to a European
powerhouse in thefield of tactical backbone networks and secure radio
communications. We view thefinalisation of the Indra deal as confirmation of
Bittium's exceptional know-how in military-graderadio technology. Bittium
possesses a technological lead over major peers, some of whichstruggle due
to tech and integration issues, while others face challenging business
environmentsdue to politics. Bittium is now a major supplier of radio
technology for the militaries of Finland,Estonia, Austria, Croatia, and
Spain , and should win further tenders in the mid-term (eNuW).

Looking ahead, we continue to remain upbeat about the case. The company
looks well positioned tocross-sell to existing customers; for example, Tough
SDRs for the Austrian Armed Forces or TACWIN systems for the Spanish Armed
Forces. Importantly, we also see Bittium growing by winningfurther major
customers. For instance, we think that Scandinavia, especially Sweden,
represents ahigh potential market. As a reminder, in November 2025, the
Finnish Defence Forces, the SwedishArmed Forces and Bittium signed a
framework agreement in the field of command-and-controlsystems, which paves
the way for Sweden's first orders from Bittium. We are also awaiting a
highly anticipated tender in the United Kingdom, where Bittium will offer
its tactical backbonenetworks and Tough SDRs by way of a partnership with
BAE Systems.

We confirm our BUY rating with a new EUR 31.50 PT (old: EUR 26.50) based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=a4afc01593dd167545521708917f2079
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 Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2252588 30.12.2025 CET/CEST

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