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
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 € 50m order targets the Spanish Armed Forces, with Bittiumestimating an additional € 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 € 116m - 120m (previously € 95m - 105m) while Operating Result was significantly increased to €19m - 21m range (previously € 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 € 50m, should come with an EBIT margin of 70% (€ 35m) to be realised until the end of 2027. Noteworthy, the additional € 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 € 31.50 PT (old: € 26.50) based on DCF.

You can download the research here: bittium-oyj-2025-12-30-update-en-67531
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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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