Bittium Corporation
Interim report (Q1 and Q3)
Bittium Corporation's Business Review January-September 2025
Bittium Corporation's Stock Exchange Release on 24 October 2025, at 8.00 am
(CEST+1)
Bittium continued to grow in the third quarter: net sales and operating result
increased significantly from previous year
Figures in parentheses refer to the corresponding period a year earlier, unless
otherwise stated.
Summary July-September 2025
· Net sales grew 64.9 percent from the previous year and were EUR 23.1 million
(EUR 14.0 million).
· Product-based net sales were EUR 15.8 million (EUR 7.0 million),
representing 68.2 percent (50.1 percent) of total net sales.
· Service-based net sales were EUR 7.4 million (EUR 7.0 million), representing
31.8 percent (49.9 percent) of total net sales.
· EBITDA was EUR 4.6 million (EUR 1.3 million), representing 20.0 percent of
net sales (9.2 percent).
· The operating result was EUR 2.5 million (EUR -0.3 million), representing
10.8 percent of net sales (-2.0 percent).
· The result for the period was EUR 2.3 million (EUR -0.6 million) and
earnings per share were EUR 0.065 (EUR -0.016).
· Cash flow from operating activities was EUR 1.6 million (EUR 7.9 million).
· Net cash flow was EUR -2.4 million (EUR 5.9 million).
· Bittium Corporation's subsidiary Bittium Wireless Ltd and Indra Group signed
a Letter of Intent concerning strategic cooperation related to tactical radio
communication solutions.
· Bittium released the new secure Bittium Tough Mobile 3 phone and entered
into a strategic partnership with HMD Secure Oy.
· The company updated its long-term financial targets and refined its strategy
for 2026-2028.
Summary January-September 2025
· Net sales grew 25.7 percent from the previous year and were EUR 65.3 million
(EUR 52.0 million).
· Product-based net sales were EUR 41.7 million (EUR 29.6 million),
representing 63.8 percent (57.0 percent) of total net sales.
· Service-based net sales were EUR 23.7 million (EUR 22.3 million),
representing 36.2 percent (43.0 percent) of total net sales.
· EBITDA was EUR 9.4 million (EUR 8.7 million), representing 14.4 percent of
net sales (16.7 percent).
· The operating result was EUR 4.0 million (EUR 2.6 million), representing 6.2
percent of net sales (5.1 percent).
· The result for the period was EUR 3.8 million (EUR 1.7 million) and earnings
per share were EUR 0.108 (EUR 0.048).
· Cash flow from operating activities was EUR 10.8 million (EUR 10.8 million).
· Net cash flow was EUR -2.5 million (EUR 3.0 million).
· Order backlog was EUR 33.0 million (EUR 39.4 million).
· Number of personnel at the end of the period was 527 (503).
7-9/2025 7-9/2024 1-9/2025 1-9/2024 1
-12/2024
GROUP 3 months 3 months 9 months 9 months 12
months
(MEUR)
Net sales
23.1 14.0 65.3 52.0
85.2
Change of 64.9 % 0.8 % 25.7 % 4.9 %
13.2%
the net
sales, %
EBITDA
4.6 1.3 9.4 8.7
17.3
EBITDA, % 20.0 % 9.2 % 14.4% 16.7%
20.3 %
of net
sales
Operating
profit / 2.5 -0.3 4.0 2.6
8.6
loss
Operating 10.8% -2.0 % 6.2 % 5.1%
10.1%
profit /
loss, % of
net
sales
Result of
the 2.3 -0.6 3.8 1.7
7.3
period
Earnings
per share 0.065 -0.016 0.108 0.048
0.205
(EUR)
Total R&D
expenses 2.8 2.8 10.8 10.6
13.5
R&D 12.3% 19.8% 16.6% 20.4 %
15.9%
expenses, %
from net
sales
Capitalized
R&D 0.9 0.9 3.1 4.8
5.6
expenses
Net cash
from 1.6 7.9 10.8 10.8
24.4
operating
activities
Net cash
from -3.8 -1.7 -9.0 -5.8
-6.7
investing
activities
Net cash
from -0.3 -0.3 -4.3 -2.0
-4.3
financing
activities
Net change
in cash -2.4 5.9 -2.5 3.0
13.4
and cash
equivalents
Cash and
other 19.3 11.4 19.3 11.4
21.8
liquid
assets
Net gearing 1.4% 10.0% 1.4% 10.0%
-0.7 %
(%)
Equity 69.6 % 71.2% 69.6 % 71.2%
69.9 %
ratio (%)
Average
personnel 527 500 527 506
507
during the
period
Personnel
at the 527 503 527 503
511
end of the
period
Bittium's CEO Petri Toljamo
The development of the net sales and operating result in the third quarter 2025
was excellent. Net sales grew 64.9 percent year-on-year to EUR 23.1 million. In
January-September the net sales grew 25.7 percent year-on-year to EUR 65.3
million. The third quarter operating profit was EUR 2.5 million, representing
10.8 percent from net sales and in January-September EUR 4.0 million,
representing 6.2 percent of net sales. The growth was mainly generated in the
Defense & Security Business Segment, where third-quarter growth was 123.5
percent from last year and in January-September 45.3 percent. Bittium's
January-September operating result was burdened by non-recurring costs in the
Medical Business Segment during the second quarter due to change negotiations
and other measures aimed at streamlining operations and processes. The order
backlog remained at a good level. The development of the order backlog reflects
the seasonal nature of the business and the timing of orders.
Driven by the strong growth in the defense market, we updated our long-term
financial targets in September. We set an average annual revenue growth target
of 20-30 percent and an annual operating profit level of 10-20 percent over the
long term. The target includes both organic and inorganic growth potential. The
revenue level will be affected by the company's measures to accelerate
international growth, such as strengthening sales and expertise, and investments
related to the scaling of operations.
To meet our long-term growth goals, we have refined our strategic focus areas,
which are: 1) accelerating international sales and developing strategic
partnerships to support growth, 2) ensuring technological leadership by
strengthening software and AI capabilities, 3) expanding the business into new
markets and verticals in the defense and security sector and exploring inorganic
growth opportunities, and 4) transforming our operating model to be data-driven
and scalable. As part of our growth strategy, we are also exploring inorganic
growth opportunities across all of our Business Segments, particularly in the
Defense & Security segment to expand our tactical communications product
portfolio.
As part of our strategy, we will develop AI-based functionalities in our product
families. To support this goal, we acquired approximately 25 percent of the
share capital of Finnish MarshallAI (Kradient Intelligence Oy). The growth
investment in MarshallAI will strengthen our capabilities with software-based AI
-based solutions in all business areas, with a particular focus on defense and
information security technology. According to the cooperation agreement, we
license the AI tool developed by MarshallAI, which will help us develop new
additional services in an agile manner and create business opportunities and
customer value in our customer field.
We continued to invest in accelerating international sales by growing our own
sales team and local presence close to our customers. The new office in London
strengthens our collaboration with BAE Systems and supports our other sales
efforts in the UK. We have continued to invest in scaling operations, including
in production and testing, to prepare for future product deliveries.
The demand for Bittium solutions in the defense market is strong and we will
continue to invest in growth and internationalization. We are committed to
maintaining our position as a technological pioneer, which is reflected in our
recent strategic activities and investments. The growth of the business is also
reflected in the increase in the number of employees, especially in the Defense
& Security Business Segment. We are at the beginning of our growth path and I am
confident that we will be able to meet the strong market demand with reliable
and sustainable Finnish solutions.
Defense & Security Business Segment
The third quarter 2025 net sales grew 123.5 percent year-on-year and was EUR
15.5 million. Operating profit was EUR 2.4 million, corresponding to 15.2
percent of net sales. January-September net sales grew 45.3 percent year-on-year
and was EUR 40.6 million. Operating profit was EUR 4.4 million, corresponding to
10.9 percent of net sales. Order backlog decreased year-on-year as no new
significant orders were scheduled for the third quarter.
The defense market continues to grow strongly and the development is reflected
in the continued interest in our products. Our position as a supplier of
advanced tactical communications solutions is highlighted in our interactions
with the defence forces and authorities of various countries.
In July, we signed a Letter of Intent with the Spanish Indra Group to begin a
strategic collaboration to develop a software-defined radio solution, a key
technology in defense modernization. The purpose of the collaboration is to
license Bittium's software-defined radio technology for tactical communications
to Indra.
Cooperation with our existing customers has continued well both domestically and
internationally. In the third quarter, we delivered Tough SDR radios and other
tactical communications products to customers in Finland, Estonia and Croatia,
as well as as to our European customer's providing air defense systems.
We further strengthened our competitiveness by introducing the new Bittium TAC
WIN Smart Link 360™ functionality for the waveform used in our tactical networks
and radios. Smart Link 360 is the world's first solution with adaptive and fully
automated directional antenna functionality that further enhances extreme
immunity from interference and significantly improves performance for broadband
tactical communications on the battlefield.
We will invest in developing our products, among other things, by using an
artificial intelligence tool developed by MarshallAI. Their product and solution
portfolio focuses on artificial intelligence-based signal processing solutions
for defense and industrial needs. We will agilely develop new additional
services and functionalities for our products, which will create significant
value-add in our customer field.
In September, we made an important decision to continue our secure phone product
family with a 5G phone and launched the new secure Bittium Tough Mobile 3 phone.
The ever-increasing number of cyberattacks and the high computing power enabled
by quantum computers have increased the need to develop even stronger, quantum
-secure mobile security, which is what we plan to focus on in the future
according to our strategy. The new Tough Mobile 3 will use a platform designed
for security use by our partner HMD Secure Oy, and manufactured in cooperation
with them at their factory in Europe. Our security software will make the
Bittium Tough Mobile 3 the most secure phone on the market. The collaboration
includes a licensing agreement regarding selected Bittium security features. We
will receive license income from these resold security features in the future.
Medical Business Segment
The third quarter 2025 net sales grew 4.2 percent year-on-year and was EUR 4.3
million. Operating profit was EUR 0.5 million, corresponding to 12.3 percent of
net sales. January-September net sales decreased 0.6 percent year-on-year and
was EUR 13.7 million. Operating result was EUR -0.5 million, corresponding to
-3.3 percent of net sales. The operating result was weakened by non-recurring
costs in the second quarter, resulting from the change negotiations held in the
Medical Business Segment's Finnish company, and other measures aimed at
improving the efficiency of operations and processes. The order backlog
decreased from the previous year, although the number of new orders in the third
quarter increased from a year ago.
In September, we made an important decision for our growth strategy to focus on
two business areas in the coming strategy period: Cardiac (measurement and
diagnosis of the electrical activity of the heart) and Sleep (HSAT sleep apnea
measurement). We will launch new ECG diagnostics product innovations and expand
the market areas of the HSAT sleep apnea measurement device internationally.
Focusing on two commercially mature product areas allows us to invest in
strategically important activities that are key to building growth. These
include, among others, clinical validation of products and strengthening
strategic partnerships.
The cooperation with our US customer Boston Scientific Cardiac Diagnostics
stayed strong and product deliveries to them have continued steadily. Sales of
disposable ECG electrodes increased in the third quarter in Europe, but
regarding the ECG measuring device sales, there haven't been any significant
changes outside the US. Sales efforts for Respiro, used for diagnosing sleep
apnea, continued in the European market and the commercial pilots of the
solution progressed as planned.
New product development projects in the Cardiac business area are progressing
according to the planned schedule. In line with our strategy, we will bring new
innovations to the market for remote ECG monitoring in both the short and medium
term. We are also developing Respiro based on feedback from customer pilots.
Engineering Services Business Segment
The third quarter 2025 net sales grew 11.5 percent year-on-year and was EUR 3.3
million. Operating profit was EUR 0.2 million, corresponding to 5.1 percent of
net sales. January-September net sales grew 7.8 percent year-on-year and was EUR
11.1 million. Operating profit was EUR 0.6 million, corresponding to 5.4 percent
of net sales. Order backlog decreased year-on-year.
As part of our strategy update, we launched a new Embedded AI offering that
brings on-device AI solutions to the IoT and defense markets. This ensures that
our end-to-end product development services leverage AI to deliver smarter,
faster, and more evolving technology to our customers.
The launch of Embedded AI is an important step in our growth strategy. It
combines expertise, technology and partnerships to enable both us and our
customers to leverage intelligent, business-enabling solutions. These solutions
will set the course for the next generation of innovation. As part of this, we
have partnered with Edge Impulse, a US-based company, part of Qualcomm. Edge
Impulse's industry-leading Edge AI tool chain simplifies data creation, model
training and on-device deployment.
Cooperation with our long-term key customers continued to be good and we won
follow-up projects for ongoing product development projects. In line with the
updated strategy, we are focusing more strongly on offering our design services
to the rapidly growing defense market, where our long-term industry expertise
and market knowledge provide a good foundation for generating added value for
our customers. The general market situation for product development services has
continued to be challenging and we do not expect any changes in demand during
this year.
Key Figures of the Reportable Segments
DEFENSE & 7-9/2025 7-9/2024 1-9/2025 1-9/2024 1
-12/2024
SECURITY 3 months 3 months 9 months 9 months 12
months
BUSINESS
SEGMENT,
MEUR
Net sales
15.5 7.0 40.6 27.9
51.6
EBITDA
3.6 0.5 7.5 5.4
13.6
EBITDA, % 23.4 % 6.9 % 18.6% 19.2%
26.4 %
of net
sales
Operating
profit / 2.4 -0.3 4.4 2.1
8.6
Loss
Operating 15.2% -4.4 % 10.9% 7.5 %
16.7%
profit /
loss, % of
net sales
R&D
expenses 1.7 1.2 5.8 5.2
6.3
Capitalized
R&D -0.5 -0.5 -1.8 -3.1
-3.6
expenses
New orders
7.1 9.2 31.2 34.1
68.4
Order
backlog 24.5 27.6 24.5 27.6
34.5
Personnel
at the end 267 230 267 230
233
of the
period
MEDICAL BUSINESS 7-9/2025 7-9/2024 1-9/2025 1-9/2024 1-12/2024
SEGMENT, MEUR 3 months 3 months 9 months 9 months 12 months
Net sales 4.3 4.1 13.7 13.8 19.3
EBITDA 0.7 -0.2 0.2 0.9 0.7
EBITDA, % of net 16.7% -4.9 % 1.7% 6.8 % 3.5 %
sales
Operating profit / 0.5 -0.5 -0.5 -0.2 -0.9
Loss
Operating profit / 12.3% -11.4% -3.3 % -1.7% -4.5 %
loss, % of net
sales
R&D expenses 0.9 1.2 4.4 3.9 5.3
Capitalized R&D -0.4 -0.3 -1.3 -1.3 -1.4
expenses
New orders 5.8 4.1 13.8 13.9 19.9
Order backlog 4.9 5.6 4.9 5.6 6.1
Personnel at the 89 101 89 101 103
end of the period
ENGINEERING 7-9/2025 7-9/2024 1-9/2025 1-9/2024 1
-12/2024
SERVICES 3 months 3 months 9 months 9 months 12
months
BUSINESS
SEGMENT,
MEUR
Net sales
3.3 3.0 11.1 10.3
14.3
EBITDA
0.2 0.0 0.6 0.5
1.2
EBITDA, % 5.8 % 1.3% 5.8 % 5.0 %
8.3 %
of net
sales
Operating
profit / 0.2 0.0 0.6 0.5
1.2
Loss
Operating 5.1% 1.3% 5.4 % 4.9 %
8.2 %
profit /
loss, % of
net sales
R&D
expenses 0.2 0.1 0.4 0.4
0.5
Capitalized
R&D 0.0 0.0 0.0 0.0
0.0
expenses
New orders
0.4 2.3 10.2 10.9
14.0
Order
backlog 3.5 6.2 3.5 6.2
4.5
Personnel
at the end 120 125 120 125
129
of the
period
GROUP 7-9/2025 7-9/2024 1-9/2025 1
-9/2024 1-12/2024
FUNCTIONS, 3 months 3 months 9 months 9
months 12 months
MEUR
Net sales
EBITDA
0.1 1.0 1.0
1.9 1.8
EBITDA, %
of net
sales
Operating
profit / -0.4 0.5 -0.5
0.3 -0.3
Loss
Operating
profit /
loss, % of
net
sales
R&D
expenses 0.0 0.3 0.2
1.1 1.5
Capitalized
R&D 0.0 -0.1 0.0
-0.4 -0.6
expenses
Personnel
at the 51 47 51
47 45
end of the
period
Outlook for 2025 (Unchanged)
Bittium expects the net sales in 2025 to be EUR 95 - 105 million (EUR 85.2
million in 2024) and the operating result to be EUR 10 - 13 million (EUR 8.6
million in 2024).
More information about Bittium's market outlook is presented in this report
under the chapter describing the development of the Business Segments, as well
as on the company's internet pages at www.bittium.com.
Risks and Uncertainties
Bittium has identified several business, market, and finance-related risk
factors and uncertainties that can affect the level of sales and profits. Global
geopolitical instability and recent political discussions regarding import
tariffs between the United States and Europe cause various risks related to
demand and supply and increased uncertainty.
Further information on risks and uncertainties is presented on the company's
internet pages at www.bittium.com.
In Oulu, Finland, 24 October 2025
Bittium Corporation
The Board of Directors
Further Information:
Petri Toljamo
CEO
Tel. +358 40 344 2789 (group communications)
Karoliina Malmi
Vice President, Communications & Sustainability
Tel. +358 40 344 2789
Distribution:
Nasdaq Helsinki
Main media
Bittium
Bittium specializes in the development of reliable, secure communications and
connectivity solutions leveraging its 40-year legacy of expertise in advanced
radio communication technologies. Bittium provides innovative products and
services, customized solutions based on its product platforms and R&D services.
Complementing its communications and connectivity solutions, Bittium offers
proven information security solutions for mobile devices and portable computers.
Bittium also provides healthcare technology products and services for biosignal
measuring in the areas of cardiology and neurophysiology. Net sales in 2024 were
EUR 85.2 million and operating profit EUR 8.6 million. Bittium is listed on
Nasdaq Helsinki. www.bittium.com