Original-Research: Bittium Oyj (von NuWays AG): BUY
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Original-Research: Bittium Oyj - from NuWays AG
30.10.2026 / 09:00 CET/CEST
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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
Exceptional Q3 beat on Indra licence; guidance up
Bittium Q3 numbers beat consensus by a wide margin, combining robust Defense
& Security (D&S) deliveries with a substantial licence milestone from the
Indra technology transfer. Sales nearly doubled yoy to EUR 45.8m (eNuW: EUR
38.9m, eCons: EUR 34.9m), a 31% beat vs consensus. D&S sales rose c. 145% yoy
to EUR 38.1m (eNuW: EUR 31.2m, eCons: EUR 27.3m), 40% above consensus, driven by
product deliveries and Indra licence revenue. The latter should have
contributed EUR 18-22m in Q3. If our Indra contribution holds, D&S still grew
by mid-teens without the licence revenue (eNuW).
Medical delivered a strong quarter, with sales up 18.5% yoy to EUR 5.1m (eNuW:
EUR 4.4m, eCons: EUR 4.5m), supported by c. 25% growth in Cardiac sales outside
the US and the launch of the Faros Pro ECG device. Engineering Services were
flat and in line with eCons/eNuW at EUR 3.3m despite a weak market for product
development services and returned to profit at the EBIT level.
On profitability, group EBITDA reached an exceptional EUR 27.0m (eNuW: EUR
12.7m, eCons: EUR 10.5m), a 59.0% margin (+39.0pp yoy), lifted by the
high-margin Indra licence income. Group EBIT came in at EUR 16.5m (eNuW: EUR
7.7m, eCons: EUR 6.6m), a 36.0% margin (+25.2pp yoy). This was despite
significantly elevated D&A of EUR 10.5m (Q2'26: EUR 2.0m; eNuW: EUR 5.0m), driven
by accelerated amortisation linked to the Indra licence. Medical displayed
solid profitability with an EBIT of EUR 0.6m (as expected), an 11.0% margin
(-1.3pp yoy).
Ahead of the report, Bittium raised its FY26 EBIT guidance to EUR 29-36m (old:
EUR 26-32m), as 9M'26 EBIT of EUR 26.1m had already reached the lower end of the
previous guidance.
Typical for a third quarter, order intake was seasonally soft at EUR 14.7m
(Q3'25: EUR 13.4m), implying a book-to-bill of 0.32x, with D&S orders at EUR
6.9m (Q3'25: EUR 7.1m). Group backlog more than doubled yoy to EUR 71.7m (Q2'26:
EUR 102.2m), of which EUR 63.3m sits in D&S.
Looking ahead, whether further Indra milestones fall in Q4 remains open, but
with D&A only seen to normalise in 2027e, we expect some additional Indra
licence revenue to land in Q4, albeit well below the Q3 level (eNuW). We
previously estimated that the EUR 50m licensing deal from last December
contributed c. EUR 10m in Q4'25, and we now estimate a further c. EUR 20m was
recognised in Q3'26. This leaves max EUR 20m still to be recognised, which is
seen to be spread across Q4'26 and FY27 (eNuW).
With a backlog of EUR 71.7m, Bittium is well positioned to deliver on this
year's sales guidance, and we stay slightly above the range at EUR 156m
(guidance: EUR 140-155m). Order intake in Q4 remains the key item to monitor
for 2027 runway, and given the typical seasonality of the business, we
expect a strong Q4 once again.
Raised FY26 EBIT estimates. We keep our FY26 sales estimate at EUR 156m but
cut Q4'26 sales from EUR 59.3m to EUR 52.3m, as Bittium recognised a larger
share of the Indra milestones earlier than we anticipated. We raise our FY26
EBIT estimate to EUR 34.7m (old: EUR 29.2m), in the upper half of the new
guidance (EUR 29-36m), reflecting the outstanding margin profile, as displayed
by the Q3 print.
We reiterate our BUY rating and EUR 46 PT on continued momentum.
You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=365f9ad1acf571118bed52790cb29c60
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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
++++++++++
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2425068 30.10.2026 CET/CEST
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