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

Bittium plugs drones into its secured tactical network

Yesterday, Bittium announced two significant developments. The first is a software upgrade adding AI and electronic warfare (EW) capabilities to its radios, through its partnership with MarshallAI. The second is a product launch, Tough SDR Unmanned, which capitalises on Bittium's extensive expertise in secure wireless communications to address unmanned vehicles' most critical battlefield challenge: reliable connectivity under jamming.

Tough SDR Unmanned is a dedicated radio module that integrates unmanned land, air and maritime platforms directly into the tactical IP network used by soldiers and commanders. Until now, drones and unmanned ground vehicles have relied on fragile point-to-point links, disconnected from the broader operational picture and highly vulnerable to jamming. Tough SDR Unmanned is set to eliminate these deficiencies. In this new setup, unmanned platforms become active network nodes, rerouting communications, the same way Bittium's vehicular or hand-held radios do. Bittium has spent years building a deep R&D base in secure wireless communications, which has allowed it to compete with defence giants such as Thales and L3Harris for tactical communications. This technological moat is now being applied to the unmanned platforms market, a segment that critically needs exactly this kind of expertise.

Announced on the same day, the MarshallAI partnership takes the product portfolio a step further. Via software update, Bittium's tactical radios gain ISTAR-capable EW sensing: The AI autonomously scans the radio frequency spectrum, detects unknown signals and switches to safer channels before disruptions occur. The AI processing runs entirely on-device, with no cloud dependency. This update effectively means that all soldiers and vehicles equipped with a Bittium radio contribute to a distributed EW capability, feeding real-time electromagnetic analysis into command and control (C2) systems.

We view both product launches as structurally significant: Bittium is evolving beyond tactical communications into a broader battlefield capability provider, now addressing EW sensing and unmanned integration within the same ecosystem, resulting in a more comprehensive offering. This stands in contrast to pure-play drone communication vendors, which are largely trying to solve a point-to-point resilience problem, keeping a single platform connected under jamming. Here, Bittium solves a fundamentally different and more valuable challenge: integrating unmanned platforms into a resilient, self-healing, AI-aware tactical network.

The first Tough SDR Unmanned products are not expected before 2027, and therefore we do not expect any material contribution to 2026 sales. Nevertheless, the addition of AI-enabled EW capabilities and secure wireless communications for unmanned platforms strengthens Bittium's product portfolio, enhancing its competitiveness and supporting its ability to win future tenders, including in the near-term (eNuW).

Pending further developments regarding the UK tender and other near-term opportunities, we make no changes to our estimates. We remain highly convinced by Bittium's long-term prospects, keeping our BUY rating and PT of € 40 unchanged at this time.

You can download the research here: bittium-oyj-2026-06-10-update-en-53ec9
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
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