A new company report on Bittium from Juha following the Q1 results.
We reiterate our reduce recommendation for Bittium and adjust our target price to EUR 32.0 (previously EUR 34.0). The Q1 result clearly missed forecasts, as product deliveries in the Defense & Security segment remained quite low in the early part of the year. There is plenty of market activity, but no significant orders were secured in the beginning of the year, except for the Indra project. In our view, new significant orders are only a matter of time amid the modernization wave in tactical communications. However, our forecasts require these orders, and while waiting for them, the stock’s stretched valuation may cause downward pressure.
thanks for the question. The order backlog grew by a total of approx. EUR 14.6 million from the end of 2025 to the end of March 2026. The volume of new orders during the same period was approx. EUR 34.8 million. During the first quarter, there was one order that exceeded the materiality threshold and which the company announced via a stock exchange release: an order for technology and production transfer projects received from Indra, totaling EUR 20 million.
Disclosure thresholds increase automatically as the company’s total revenue grows. In accordance with our disclosure policy, we announce a significant order via a stock exchange release if the order is strategically or financially significant for the company. Otherwise, we announce orders via a press release, assuming we receive permission from the customer. Obtaining permission is not always a given, and last year we announced one order without naming the customer. Regarding financial materiality, we have defined the scope such that if the total value of an order is approximately 10% or more of the company’s published revenue from the previous year, the order is considered financially significant for the company. In other words, we have used roughly the same threshold as the MAR (Market Abuse Regulation) guidelines for acquisitions.
Bittium: change 12/25 → 3/26 = +EUR 14.6 million (volume of new orders during 1Q 26: EUR 34.8 million)
· 12/2025: 77.9
· 3/2026: 92.5
Defence & Security: change 12/25 → 3/26 = +EUR 13.5 million (volume of new orders during 1Q 26: EUR 26.3 million)
· 12/2025: 70.9
· 3/2026: 84.4
Medical: change 12/25 → 3/26 = +EUR 0.6 million during 1Q 26 (volume of new orders during 1Q 26: EUR 5.2 million)
· 12/2025: 4.8
· 3/2026: 5.4
Engineering Services: change 12/25 → 3/26 = +EUR 0.6 million (volume of new orders during 1Q 26: 3.3 MEUR)
Bittium Engineering Services was spun off from Bittium Wireless into its own company.
The demerger application and separation were recently processed by the PRH (Finnish Patent and Registration Office), and this new company was entered into the register on April 30, 2024.
Can you clarify this a bit—what is the background behind this move?
We shareholders would very much like to hear how the negotiations are progressing / we probably won’t get precise details, but if you could at least provide a comprehensive update on what information you are permitted to share.
In a normal situation, Sweden would have already placed an order with Bittium; are negotiations still ongoing, or is a potential mega-order on the way?
Do the prospects for the UK tender look good for a win for BAE / Bittium?
What about Germany, are we ready to shake hands on a deal yet?
Or will all these orders be made directly as a JEF procurement for 10 countries?
Small deal in Croatia.
Expanding operations from the navy and land forces into the air force (ground-based systems).
The release mentions 1.9+ MEUR, but these tend to be ‘sticky’, so there will likely be more over time.
Based on the Bittium Tactical Wireless IP Network™ (TAC WIN) system and Bittium Tough SDR Vehicular™ radios successfully deployed by the Croatian Navy and Land Forces, the next phase of the rollout continues the armed forces’ progress in modernizing command and control communications. The seamless IP-based network is now being expanded to include the Croatian Air Force’s ground-based communications, improving the execution of joint operations across different branches and environments.
The expansion is being carried out under a four-year framework agreement between IntellByte INFO, Bittium’s Croatian partner and IT solutions provider, and the Croatian Ministry of Defence. The agreement covers the delivery and integration of tactical communication systems for use by various branches of the Croatian Armed Forces. The value of the order received by Bittium for the latest expansion phase is approximately EUR 1.9 million. In addition to TAC WIN system products and Tough SDR Vehicular radios, the armed forces will be supplied with accessories, waveform software to enable communication in various use cases, device management software for the deployment and management of the radios, and life-cycle services.
