Classification of NuWays AG to Bittium Oyj

Company Name:	Bittium Oyj
ISIN:	FI0009007264
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 46
Target price on sight of:	12 months
Last rating change:
Analyst:	Julius Neittamo

Bittium is THE European champion in tactical comms; PT UP

Bittium signed a two-year Memorandum of Understanding (MoU) with Safran Electronics & Defense to develop tactical communications solutions for the French Ministry of Defence and the French Armed Forces, marking a significant milestone in its journey in becoming the European supplier in tactical communications. The MoU frames joint development, production and commercialisation in France, but carries no firm commercial order agreement at this time. Yet, this news is a major step forward. Safran, with the French army, have extensively tested Bittium's tactical communications solutions, which makes the MoU a key validation of Bittium's technology stack in a strategic market.

Safran does not intend to act as a mere reseller. Instead, the partners are set to jointly develop and market a single integrated solution, embedding Bittium's tactical communication technology directly into Safran's offering. According to the press release, the areas identified for joint exploration include ground-based air defence networking, counter-drone communications, communications for unmanned systems, mission networking, dismounted soldier radio, and secure communications. The scope covers the French army only (for now), which fields one of Europe's largest and most capable militaries, with ~200k active personnel.

The product fit appears compelling. While Safran leads in domains such as optronics, inertial navigation, soldier systems (FELIN) and drones, Safran has nevertheless a gap in tactical communication capabilities. Two examples illustrate how Bittium could close this gap. In dismounted operations, the Tough SDR Handheld would give Safran's FELIN soldier suite its own broadband voice and data link. In ground-based air defence, Bittium's solutions would connect Safran sensors to command posts and effectors, a use case Bittium already serves for air defence manufacturers.

Together, Safran and Bittium are set to challenge Thales on its home turf. Thales has long dominated the tactical communications market in France. Safran, the larger group and a French national champion, brings political weight while Bittium gains a clear foot in the door. The missing piece is a definitive agreement, which could take several forms, incl. a licensing deal similar to the one Bittium signed with Indra Sistemas in December 2025.

We rate the probability of a definitive commercial agreement between Safran and Bittium as high (eNuW). Following an exceptional Q2, the Nordics have also added to the momentum: This month, Sweden's Defence Materiel Administration placed a first order of ~€ 0.7m for Tough SDR radios for pilot use in the Swedish Army, likely paving the way for more orders (eNuW). Denmark has also joined the framework agreement. Beyond this, Bittium pursues talks with 10+ militaries in Europe and APAC, while the pending UK tender remains a significant catalyst.

Given the strong newsflow, which validates our thesis that Bittium is the European champion in tactical communications, we raise our medium and long-term sales estimates. We raise our PT to € 46 per share (old: € 42), and reiterate our BUY rating continued momentum.

You can download the research here: bittium-oyj-2026-09-23-update-en-fac67
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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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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