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

Q1 missed, but order intake momentum remains exceptional

Yesterday, Bittium published its Q1'26 business review. Group sales increased 10.2% yoy to € 21.3m vs. eNuW € 26.9m and BBG cons. € 27.6m, with the miss mainly stemming from deliveries timing, thus not a cause for concern (eNuW). EBITDA came in at € 2.8m vs. eNuW € 5.2m and BBG cons. € 6.4m, while EBIT of € 1.5m was in line with eNuW but below BBG cons. € 2.9m. As guided in February, sales and operating profit are expected to be heavily H2-weighted, reflecting the typical seasonality of the business. Performance per segment:

• Defence & Security grew 24.1% yoy to € 13.3m (miss vs. eNuW € 20.5m), with an 11.5% EBIT margin. As mentioned above, the miss was mainly driven by deliveries timing.
• Medical grew 9.5% yoy to € 5.2m (beat vs. eNuW € 4.0m), with an 8.8% EBIT margin, a positive surprise driven by orders from new distributors and stronger deliveries to Boston Scientific.
• Engineering Services decreased 27.3% yoy to € 2.8m (beat vs. eNuW € 2.4m), with an -8.4% EBIT margin, reflecting the softer market conditions.

Order backlog increased across all segments, with demand in Defense & Security remaining exceptionally strong. Group order intake was strong at € 34.8m (vs. € 11.2m year-prior), lifting the aggregate order backlog qoq from € 77.9m to € 92.5m. Defense & Security order intake was € 26.3m, implyling a book-to-bill of ~2x. Defense & Security's backlog increased from € 70.9m to € 84.4m, covering 80% of eNuW Q2-Q4'26 segment sales. Noteworthy, part of the backlog extends into FY27. Management confirmed no internal capacity constraints, citing manufacturing investments made last year and a pre-built component inventory buffer ahead of the Iran war, which will support meeting Q2-Q4'26 delivery commitments without incremental capex.

FY26 guidance is unchanged. Given the seasonality of the business and the strong backlog, we remain confident Bittium will achieve its guidance of € 140-155m sales and € 26-32m EBIT (eNuW). The group’s visibility is noticeably better than it was at this point in prior years; Q1'26 order backlog covers ~70% of Q2-Q4'26 sales; this was 47% in Q1'24 and 37% Q1'25.

Sales pipeline remains very strong. As flagged in our Q1'26 preview, many deal-driven catalysts give reasons to be upbeat about Bittium. Among others, a first order for the Swedish Armed Forces is to be expected this year (eNuW). The UK tactical communications tender, due to conclude in June 2026, should yield a decision or an update by Q3 at the latest. While not entirely discounting the chances of other peers, we see the pairs Thales/Babcock and Bittium/BAE Systems as the frontrunners for the UK tender, with either or both well-positioned to capture meaningful portions, if not the entirety, of the contract.

We keep our BUY rating and € 40 PT unchanged, based on DCF.

 

You can download the research here: bittium-oyj-2026-04-30-previewreview-en-ed138
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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