Märkte & Kurse

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Original-Research: Bittium Oyj - from NuWays AG

31.07.2026 / 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
     Target price:                EUR 40
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Julius Neittamo

Q2 preview: backlog supports growth, H2 has catalyst firepower

Bittium will publish its H1'26 report on August 7. Publicly announced orders
during Q2'26 totalled EUR 26.6m, the vast majority from FDF and set for
delivery during FY26. Growth this year is still supported by the very strong
order intake from December 2025 (EUR 84.4m from Indra, FDF and AAF), with
Indra placing a further EUR 20m order in January 2026. On this basis, Q2'26e
group net sales are seen to grow 18.8% yoy to EUR 27.2m, with Defense &
Security (D&S) contributing EUR 19m (+33% yoy; eNuW). Mind you, aggregate
growth in Q2 is expected to be below the FY26e run rate of +28% (eNuW),
consistent with commentary that net sales will be heavily weighed towards
H2'26, a pattern clearly exhibited between 2022-25.

Q2'26e EBITDA is seen at EUR 4.6m (vs EUR 2.9m a year-prior), implying a ~17%
margin (+4.3pp yoy; eNuW). Roughly 4pp of that gain reflects EUR 0.9m of
non-recurring Medical restructuring costs booked in Q2'25, with the
remainder driven by operating leverage. Q2'26e EBIT is expected at EUR 2.6m,
up from EUR 1.1m in Q2'25, implying a 9.6% margin (+4.7pp yoy; eNuW), which
remains well below the structural run-rate margin (~24%; eNuW), reflecting
back-ended profit delivery and elevated D&A from the Indra licensing deal.

FY guidance well in reach. The group order backlog stood at a record EUR 92.5m
in Q1'26, covering 70% of Q2-Q4'26 sales (EUR ~132m; eNuW), with D&S backlog
at EUR 84.4m, covering 80% of Q2-Q4'26 D&S sales (EUR ~106m; eNuW). While the
backlog has multi-year elements, it continues to provide a strong runway to
achieve the FY26 guidance (EUR 140 - 155m). Given the strong visibility and
additional order intake in Q2'26, beating the upper end of guidance would
require c. EUR25m of additional deliveries, in our view. Given the high
seasonality of the business, we see this beat as a likely event (eNuW). As
mentioned above, FY operating profit will be burdened by rising amortisation
from the Indra deal, yet FY26 EBIT is seen at EUR 27.5m (guidance EUR 26 - 32m)
or ~18% margin, 6pp below the structural margin (eNuW).

Focus will be on H2 pipeline commentary. In June it was disclosed that BAE
Systems (Bittium's tactical communications partner), had advanced to the
next round of the UK tender; though, it remains unclear when the tender will
come to a conclusion. Here, we see three serious contenders: BAE/Bittium,
Thales/Babcock and L3Harris. H2 is particularly promising on catalysts, as
Bittium has good odds to receive a first (double digit EURm) order from the
Swedish Armed Forces or to win a new military as a major customer (eNuW).

Given the seasonality and strong sales pipeline of Bittium we see current
price levels as an excellent entry point, with +44% upside to our price
target. We confirm our BUY rating and EUR 40 PT based on a DCF model.


You can download the research here:

https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=2ce0f42ff7c21660de64d42464124b31

For additional information visit our website:
https://www.nuways-ag.com/research

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
++++++++++
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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2375092 31.07.2026 CET/CEST

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