Original-Research: Bittium Oyj (von NuWays AG): BUY

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Original-Research: Bittium Oyj - from NuWays AG

31.03.2026 / 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 40

Target price on sight of: 12 months

Last rating change:

Analyst: Julius Neittamo

Bittium's tech edge widens while competitors falter

The Bundeswehr's D-LBO debacle continues. A leaked confidential report

paints a damning picture of the Bundeswehr's flagship program to modernise

radio communications. First reported by Der Spiegel and Welt am Sonntag, the

classified report reveals that a second operational test of the system was

aborted in late 2025 due to severe deficiencies; (i) the radios posed a

'danger to life and limb' during regular exercises, (ii) simple voice

communications were found to be unreliable, (iii) soldiers could not

reliably track the position of friendly units, and (iv) the system's radio

range fell short of minimum transmission distance requirements. The verdict:

the systems "cannot be recommended for use by the troops in its current

state of development".

Rohde & Schwarz, one of D-LBO's key partners, is in the eye of the storm. We

had already flagged Rohde & Schwarz's cumbersome integration of tactical

comms as a reason to discount their UK tender prospects. Noteworthy, the

D-LBO contract for tactical communications was never put out to tender (in

the name of fighting bureaucracy); rather, Rohde & Schwarz was awarded the

contract directly. Drawing on the Indra precedent, we would not rule out a

similar technology transfer arrangement between Rohde & Schwarz and Bittium,

one that could meaningfully accelerate the D-LBO integration while allowing

Germany to retain sovereignty over military communications tech.

Meanwhile, Bittium's already mature systems are making leaps forwards. In

two notable press releases this month, the company announced (i) a

collaboration with Sensofusion to ensure interoperability between Bittium's

tactical radios and anti-drone jamming systems, and (ii) the launch of FUSOR,

a next-generation software router enabling flexible and cost-efficient

expansion of defense networks.

The partnership with Sensofusion, a manufacturer of advanced anti-drone

systems, is particularly notable. Anti-drone systems create dense jamming

environments that typically degrade or jam own radio communications. Joint

testing has confirmed that Bittium's radios and backbone networks can

operate alongside Sensofusion's systems without performance degradation.

This is a critical capability, as both anti-drone systems and robust

tactical communications are a must-have on the modern battlefield.

With FUSOR, the battlefield just got more connected. FUSOR (Flexible

Unifying Software Router) enables Bittium's tactical battlefield networks to

connect seamlessly with broader infrastructure (e.g. fixed networks or 5G),

allowing forces to operate across a single, unified network regardless of

the underlying technology. Being software-based, it is easy to deploy and

scale. FUSOR is a further illustration of what we've previously flagged: the

software layer keeps growing, and we see this as a structural tailwind for

operating margins, with long-term EBIT margins seen at 24% (eNuW).

We remain firmly convinced of the Bittium story. At the last earnings call,

it was highlighted that Bittium is currently in discussions with more than

ten militaries regarding tactical communications renewals. With the

potential for further tender wins and thanks to compressed sales cycles due

to the war in Ukraine, we see a reasonable possibility for a top-line beat.

We also see M&A as increasingly plausible given the strong balance sheet.

Logical targets could include tactical headset manufacturers, a natural

adjacency to Bittium's existing portfolio, or drone systems, where resilient

communications are a battlefield necessity (eNuW). We reiterate our BUY

rating on continued momentum, with our DCF-based PT of EUR 40 unchanged.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=e7c8e3ace2ff0ee50ea3fa836632208b

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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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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2300920 31.03.2026 CET/CEST

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