Outstanding Q4 as expected, cautious FY26 guidance

Q4’25 with outstanding Defense & Security performance: Group net sales grew 62.5% yoy to € 53.9m (beat eNuW +52.9%/€ 50.3m), achieving the highest quarterly revenue in Bittium’s history, supported by several new orders in Defence & Security. EBIT came in at € 15.4m (beat eNuW € 15m), while EBIT margin was 28.5% (vs eNuW 29.8%). Management used its discretion to accelerate depreciation of Tough SDR technology following the Indra licensing deal (depreciation € 7.6m in Q4 vs € 2.6m year prior).

Medical and Engineering Services (17% of group sales in Q4) dragged operating margins, both achieving EBIT € -0.1m (vs eNuW € +0.6m/€ +0.3m respectively).

Q4 new orders reached a record€97.9m, +152 yoy (FY25 orders jumped by 50% to € 153m), mainly driven by Defence deals: (i) Finnish Defence Forces €15.9m (Tough SDR radios), (ii) Austria €18.5m (TAC WIN systems) and, (iii) Indra € 50m licensing deal.

The board has proposed a € 0.15/sh. dividend on FY-25 results (0.10/sh. last year) and an extraordinary dividend of € 0.15/sh.

FY26 guidance was broadly in line at the midpoint, implying 17–30% sales growth to € 140–155m and 34–65% EBIT growth to € 26–32m. FY26 Outlook is well supported by a robust backlog of € 77.9m at the end of 2025 (vs. €45.1m year earlier). The sales guidance is cautious, given that the company is currently in talks with ~10 different militaries, while targets to win at least one “decent sized country” as customer this year. With the ongoing commercial momentum and newsflow, the guidance can be beat. Note that the recent success with Indra positions Bittium as a legitimate partner for the larger European militaries, increasing expectations for key auctions in 2026, notably the upcoming tender for renewing tactical communication systems for the British Armed Forces.

We make a few adjustments to the DCF model: Our FY26 net sales is slightly increased and lands at € 154m (+29% yoy), on the upper end of the guidance, to reflect a higher contribution from Indra. In FY26, EBIT is reduced from € 30.8m (20.7% margin) to € 27.6m (18% margin) due to the aforementioned higher depreciation driven by the Indra licensing deal. New estimates results in an unchanged PT, due to higher working capital needs. We reiterate our BUY rating on continued momentum.