Defense & Security gaining traction; PT UP

Bittium announced two significant defense-related order intakes, underlining the strengthening momentum in its Defense & Security segment and increasing international traction for its software-defined radio (SDR) and tactical communications portfolio.

Firstly, Bittium received orders from the Finnish Defence Forces (FDF) with a total value of approximately € 15.9m, of which € 12.4m relates to deliveries of next-generation Bittium Tough SDR handheld and vehicular radios, with the remainder covering software development and related services. Deliveries and development work are scheduled across 2025/26.

The radios will gradually replace the FDF’s legacy analogue tactical radios and earlier-generation digital systems, providing materially improved performance and broadband tactical communications. Importantly, the radios are fully compatible with Bittium’s Tactical Wireless IP Network (TAC WIN) backbone already deployed by the FDF, reinforcing Bittium’s position as a long-term strategic supplier. The order was issued under the partnership agreement running through 2025-2036, providing long-term visibility and a structured framework for recurring annual purchases.

Secondly, the company received a € 18.5m purchase order via its Austrian partner Cancom Austria AG to expand the Austrian Armed Forces’ tactical communications network. The order covers product deliveries during 2025/26, while associated life cycle services will extend through 2038, supporting revenue visibility well beyond the initial delivery phase. This contract builds on a multi-year relationship that began in 2018 and further expands the installed base of TAC WIN, Tough Comnode devices and related accessories. The inclusion of long-term support, maintenance and test systems highlights the stickiness of Bittium’s solutions once embedded at system level.

Our take: Together, the two announcements represent roughly € 34m in orders, a meaningful addition relative to Bittium’s current Defense & Security segment sales (9M: € 40.6m). We view the orders as clear evidence of growing confidence among European defense customers in Bittium’s SDR technology, particularly in environments with heightened electronic warfare requirements. Mind you, the company is already supplying several countries such as Finland, Estonia, Austria and Croatia.

Importantly, we expect newsflow around Defense & Security order wins/intake to remain strong during the foreseeable future. In fact, we would regard potential first orders from its Spanish partner Indra as likely within the short- to mid-term. Keep in mind, that Spain cut ties with Israeli suppliers including Elbit Systems, one of Bittium’s most relevant competitors for tactical SDRs. First indications suggest that the Spanish government’s potential contract value to Indra and Bittium could be around € 770m (not yet included in our estimates).

We confirm our BUY rating with a new € 26.50 PT (old: € 23.50) based on DCF.