CEO’s review 7 August 2026

Net sales, profitability and order backlog grew significantly

The financial development in the second quarter of 2026 was excellent. Net sales increased by 60.1 percent from the previous year and amounted to EUR 36.6 million. Profitability improved and operating profit increased significantly compared to the previous year. Operating profit amounted to EUR 8.1 million, which corresponds to 22.2 percent of net sales. The growth and improved profitability were due to the growth and increased product deliveries of the Defence & Security business segment. Net sales of the Medical business segment increased slightly and the operating result was positive. Net sales of the Engineering Services business segment decreased due to the weak market situation and the result remained negative. The development of net sales was also influenced by the allocation of personnel to projects in the Defence & Security business segment.

Net sales for January-June increased by 37.2 percent year-on-year to EUR 57.9 million. Operating profit was EUR 9.6 million, representing 16.6 percent of net sales. Thanks to strong growth in the Defence & Security business, net sales growth exceeded our long-term growth target of 20–30 percent, and the operating profit level was in line with our strategic target range.

The key focus of our strategy is to accelerate international growth. We have continued to build new customer relationships and deepen existing partnerships. During the first half of the year, the order intake was EUR 81.0 million, which increased the order backlog to a record of EUR 102.2 million. 92.2 percent of the order backlog is from Defence & Security business segment.

The financial development of the review period was also reflected in strong cash flow. Cash flow from operating activities in January–June strengthened significantly to EUR 36.9 million, mainly due to payments received from trade receivables. Cash and cash equivalents increased by EUR 25.6 million to EUR 46.5 million during the period. The company’s financial position is now very strong creating a solid foundation for the implementation of our strategy.

Technological leadership is the basis of Bittium’s competitive advantage. During the review period, new product launches and AI integrations in the Defence & Security business expanded our offering to new verticals and customer segments. In the Medical segment, we continued our product development investments, which are laying the foundation for the next-generation diagnostic solutions. In the Engineering Services segment, we strengthened our embedded AI expertise, which is building a foundation and opening up new opportunities, especially in the defence industry market.

During the review period, we continued to improve our production and delivery capabilities to meet growing demand. By manufacturing products in advance, we are able to shorten delivery times for our customers. We ensured the availability of critical components for a longer period by ordering them into stock, which increased our inventories slightly.

Strong growth and internationalization require that our internal operating model also evolves at a similar pace. Building a data-driven and scalable operating model is one of the cornerstones of our strategy. We continued to invest in renewing our processes and developing our IT systems.

The significant growth of the Defence & Security business led to a change in Bittium’s international ICB industry classification used in the capital markets, and the company’s new subsector is now “defence”. This change has enabled Bittium to become part of the investment funds that track international defence indexes. The number of analysts following Bittium increased to seven, which indicates increased interest in the company among investors. The expanded analyst coverage increases the company’s visibility in the capital markets, supports the liquidity of the share, and provides both owners and investors with a more diverse and comparable information base to support investment decisions.

I am satisfied with the achievements of the first half of the year and look forward to the future with confidence. Growing defence investments and healthcare technology markets, as well as the growing adoption of AI are opening up new opportunities across all our businesses. We have a clear strategy, a skilled team and a record order backlog. These provide visibility for the rest of the year and a good foundation for the future.

Best regards,
Petri Toljamo