CEO's review 19 February 2026

Year 2025 was a breakthrough year for the internationalization of the Defense business. The order backlog and EBITDA almost doubled

The year 2025 was a year of international growth for Bittium. The product development investments of the past years and the efforts to accelerate internationalization and commercialization under the new strategy began to materialize in the results. We were able to utilize the opportunities brought by Finnish cutting-edge technology in a way that strengthens our position in domestic and international markets. The deterioration of the global security situation and the increase in tensions between the major global powers have accelerated the European effort to reduce dependence on actors outside Europe. The strategic importance of European technology is also emphasized in the modernization of defense command and control systems, where Bittium has strong expertise and a clear technical competitive advantage. The demand for tactical networks and radios has grown significantly, and with the purchase orders received during the second part of the year, we increased our financial outlook for 2025.

The last quarter of 2025 was exceptionally strong for Bittium. Net sales grew by a record 62.5 percent compared to the previous year, which presented also a very strong growth, and amounted to EUR 53.9 million. The growth resulted particularly from the strong sales growth in the Defense & Security Business Segment. Operating profit for the last quarter grew to EUR 15.4 million, which corresponds to 28.5 percent of net sales.

The net sales of the full-year 2025 increased by 40.1 percent from the previous year and amounted to EUR 119.3 million. The strong growth was driven by the increasing demand in the defense market. Net sales in the Medical and Engineering Services Business Segments remained at the same level as in previous year. Full-year operating profit was EUR 19.4 million, corresponding to 16.3 percent of net sales. The significant growth in operating profit was driven by the growth in international product sales in the Defense & Security business.

In September, we updated our long-term financial growth expectations and specified our strategy to accelerate international growth. The work has started well and with the growth in our international product sales the order book has grown significantly. In line with the strategy, we have strengthened our delivery capacity by expanding our partner network. This maintains the flexibility and speed of our product deliveries, which is clearly one of our competitive advantages. Our delivery capacity still relies heavily on Finnish manufacturing partners, but we keep the possibility of expanding the network to other European countries as well. Scaling production with the help of a reliable partner network keeps the needs of growing our own production capacity moderate. Cash flow in 2025 weakened clearly, mainly due to the seasonal nature of the business and the timing of deliveries.

We strengthened our partnership network. We acquired a 24.9 percent stake in MarshallAI (Kradient Intelligence Oy), an artificial intelligence solutions provider. We have continued to explore inorganic growth opportunities with the aim of strengthening the tactical communications product portfolio with products that expand the use of the tactical network as part of the hybrid network sharing or alternatively open up access to a specific country market.

In the Defense & Security Business Segment, demand for tactical communications products and services has been high this year. The defense forces of several countries are transitioning from purchasing personnel carriers, weapons and ammunition to renewing their command and control systems with modern tactical communications systems. December’s order intake broke records as we received two significant orders for tactical backbone and SDR radios for our customers in Finland and Austria. In addition, we signed an agreement to license Tough SDR technology to our Spanish customer and received the first order related to the agreement.

Last year was a strategically significant year for the Medical Business Segment. We decided to focus on the Cardiac and Sleep product families to enable more efficient allocation of resources to support profitable growth. The organizational renewal in the summer strengthened the segment’s structure and clarified roles and responsibilities. Strengthening the collaboration with our key customer Boston Scientific through a new agreement was an important demonstration of our technological expertise. The collaboration has provided us with significant support for the development of a new product generation, strengthening the segment’s long-term growth potential.

In the Engineering Services Business Segment, we focused on renewing our offering and shifted our sales focus to the high-potential defense market. We started a collaboration with Edge Impulse, part of Qualcomm, and launched a new embedded AI offering. This ensures that our product development service offers our customers smarter, faster and continuously evolving technology utilizing AI.

Last year, we celebrated the company’s 40th anniversary together with customers, partners, personnel and owners. Once again, I would like to express my warm thanks to all our stakeholders for their long-term cooperation in achieving common goals, perseverance and strong trust. These have enabled us to develop and grow. I would also like to express my thanks and appreciation to our personnel, who have enabled modern technological innovations driving the international growth. You have done a great job and Bittium is now in an excellent position to continue its growth in line with our strategy well into the future.

Best regards,
Petri Toljamo