^ Original-Research: Bittium Oyj - from NuWays AG

19.11.2025 / 09:00 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group. The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of NuWays AG to Bittium Oyj

Company Name: Bittium Oyj ISIN: FI0009007264

Reason for the research: Update Recommendation: Buy from: 19.11.2025 Target price: EUR 23.50 Target price on sight of: 12 months Last rating change: Analyst: Julius Neittamo

In our initiation earlier this month, we highlighted Bittium's exceptional know-how in military-grade radio technology, leveraging a 40-year long legacy in secure wireless communications. This builds on the back of their long cooperation with the Finnish Defense Forces. Bittium's successful integration of their radio systems with multiple European militaries, contrasts sharply with the integration issues encountered by peers. For instance, this is the case of Rohde & Schwartz (R&S) and their cumbersome radio integration project with the Bundeswehr.

The Digitalisierung Landbasierte Operationen (D-LBO) is one of the most important modernisation projects of the Bundeswehr, estimated at EUR 20bn. The D-LBO's core objective is to link vehicles, troops and command nodes, in an advanced, secure and unified communication network, that will facilitate interoperability with allies. A spokesperson from Pistorius's office had told Der Spiegel that the switch to digital radios for the Bundeswehr represents "one of the most extensive and complex conversions", akin to an "open-heart surgery". Here, R&S's role in the D-LBO is absolutely central.

The D-LBO is however, encountering major issues, as Tageschau reports in November 2025. So far, integration of the new radio systems have been largely unsuccessful. Military personnel had already stated, during tests in May 2025, that the digital radios were "unsuited for military use". Recently, German MoD internal documents further revealed that the situation was "worsening". These issues do not date from this year alone. Already in September 2023, Defense Minister Pistorius openly admitted delays in the project, deemed top-priority.

One of the core issues is the complexity of retrofitting current systems; according to budget officials, installation of a single digital radio in a Leopard tank takes two technicians and 400 hours. Considering that the Bundeswehr is composed of 16,000 vehicles of 200 different types, the task ahead is enormous, timely and expensive. In reality, officials have already indirectly acknowledged that the roll-out of digital radios has failed, as it is now planned to roll-out a solution combining digital and legacy radios. This makes the Bundeswehr not only vulnerable on the modern battlefield, but also makes interoperability with NATO allies difficult.

An internal document from the German MoD explains to Bundestag MPs, that a technical solution will be found in November 2025. Many top MPs are highly skeptical, notes Tageschau. Interestingly, external consults from Capgemini, PricewaterhouseCoopers and msg systems are planned to be subcontracted to help fix the abovementionned problems, with rates estimated at EUR 1,200 per consultant per day. We are highly skeptical of their real impact on the matter.

This underpins Bittium's, exceptional know-how in the field of military-grade radios. While we do not expect Bittium to get involved in the D-LBO project at this time, we also don't exclude any scenarios. Afterall, Indra Sistemas chose to partner with Bittium to pursue a contract from the Spanish MoD, a deal which involves a technology transfer. We would not be surprised to see Bittium win further cases with such procurement models, as it allows clients to retain production sovereignity. We maintain our BUY rating and PT of EUR 23.50.

You can download the research here: https://eqs-cockpit.com/c/fncls.ssp?u=97346c21467750d96488cc83ead2b121 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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. View original content: https://eqs-news.com/?origin_id=c5930287-c51a-11f0-be29-0694d9af22cf&lang=en

---------------------------------------------------------------------------

2232268 19.11.2025 CET/CEST

°

Quelle: dpa-Afx