Key Takeaways
Bittium Corporation reported a 10.2 percent year-over-year increase in net sales to EUR 21.3 million for the first quarter of 2026, driven by strong performance in its defense business.
"The year 2026 started as expected and the financial development in the first quarter was good," CEO Petri Toljamo said in the report. "The direction is right and growth is expected to focus on the second half of 2026."
The company's operating result rose to EUR 1.5 million from EUR 0.4 million in the same period last year. Earnings per share increased to EUR 0.031 from EUR 0.011. The order backlog grew to a record EUR 92.5 million, up from EUR 36.5 million a year earlier.
The strong results, fueled by geopolitical demand, reinforce the company's strategy of investing in high-security products. Bittium maintained its full-year guidance, projecting net sales of EUR 140-155 million, which would represent significant growth over the EUR 119.3 million reported for 2025.
The Defence & Security segment was the primary growth engine, with net sales jumping 24.1 percent to EUR 13.3 million. The Medical segment also saw growth of 9.5 percent to EUR 5.2 million. However, the Engineering Services segment's net sales declined by 27.3 percent to EUR 2.8 million due to a challenging market.
Growth in the defense business was supported by a EUR 20 million purchase order from Spain's Indra Group for technology transfer related to Bittium's Tough SDR radios. The segment's order backlog swelled to EUR 84.4 million, accounting for the vast majority of the company's total backlog.
Cash flow from operating activities showed significant improvement, increasing to EUR 28.1 million from EUR 9.2 million in the prior-year period. The company's outlook for 2026 remains unchanged, with net sales and operating profit expected to be weighted toward the second half of the year.
The record order backlog provides strong visibility for future revenue, particularly in the defense sector which is benefiting from increased security spending in Europe. Investors will watch for the conversion of this backlog into sales through the second half of the year to meet the company's ambitious annual guidance.
This article is for informational purposes only and does not constitute investment advice.
