Net sales rose 97.8% to EUR 45.8 million and operating profit reached EUR 16.5 million, driven by Defence & Security Guidance now has operating profit of EUR 29-36 million, up from EUR 26-32 million; net sales guidance remains EUR 140-155 million.
Bittium Oyj · Q3 2026 · Reported 29 Oct 2026 · Nordic
Key figures
Million EUR | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Net sales | 45.80 | 23.10 | +97.8 % |
Earnings per share (EUR) | 0.364 EUR/share | 0.065 EUR/share | +460.0 % |
EBITDA | 27.00 | 4.60 | +487.0 % |
EBITDA, % of net sales | 59.0 % | 20.0 % | +39.0 pp |
Operating profit / loss, % of net sales | 36.0 % | 10.8 % | +25.2 pp |
R&D expenses, % from net sales | 9.3 % | 12.3 % | -3.0 pp |
Net gearing (%) | -33.2 % | 1.4 % | -34.6 pp |
Equity ratio (%) | 74.9 % | 69.6 % | +5.3 pp |
Figures in EUR, as reported. Changes in ratios are in percentage points.
Defence & Security produced most of the doubling in sales
Net sales were EUR 45.8 million against EUR 23.1 million a year earlier, up 97.8% 2. Defence & Security net sales grew 144.8% to EUR 38.1 million from EUR 15.5 million, while Medical grew 18.5% and Engineering Services fell 1.1% 23. Product-based net sales were EUR 37.8 million against EUR 15.8 million, or 82.4% of the total against 68.2% 2.
The CEO attributes the growth to product deliveries and licensing of tactical communication systems 3. Medical generated EUR 5.1 million of net sales, but the group result rests on a single segment 4.
Profit grew far faster than sales, helped by licensing and delivery timing
EBITDA was EUR 27.0 million against EUR 4.6 million, a margin of 59.0% against 20.0% 2. Operating profit was EUR 16.5 million, or 36.0% of net sales against 10.8%, and earnings per share were EUR 0.364 against EUR 0.065 2. Defence & Security alone earned an operating margin of 42.9% against 15.2% 5.
I read this as heavy depreciation, which fits the earlier guidance that depreciations related to the 2026 license income would weigh on operating result 6. Management also says individual orders or deliveries can shift profit between quarters significantly, so a 36.0% margin is not a run rate 6.
Cash flow and the balance sheet moved with the profit
Cash flow from operating activities was EUR 27.0 million against EUR 1.6 million a year earlier, with a result for the period of EUR 12.9 million against EUR 2.3 million 2. In January-September operating cash flow was EUR 63.8 million, which the CEO attributes mainly to payments received from trade receivables 3. So part of the cash reflects collection of earlier sales rather than quarterly earnings alone.
Cash and other liquid assets were EUR 65.3 million against EUR 19.3 million a year earlier 3. Net gearing was -33.2% against 1.4%, and the equity ratio was 74.9% against 69.6% 3. An additional dividend of EUR 0.15 per share was paid in August 2.
Order intake was modest and Engineering Services is being restructured
Order intake was EUR 14.7 million against EUR 13.4 million, and the CEO calls this weaker than other quarters, as is typical for the third quarter 2. Defence & Security booked EUR 6.9 million of new orders in the quarter, but its backlog stood at EUR 63.3 million at quarter end, within a group backlog of EUR 71.7 million 24.
In Engineering Services, change negotiations ended 22 employments, with annual savings of about EUR 2.0 million expected from 2027 and about EUR 0.5 million of non-recurring costs in the fourth quarter 5. The segment will merge with Defence & Security from 1 January 2027 4.
What to watch next
Management guides 2026 net sales of EUR 140-155 million, unchanged, and raised operating profit guidance to EUR 29-36 million from EUR 26-32 million; nine-month operating profit was EUR 26.1 million 26.
Net sales and operating profit are expected to be weighted toward the second half, and the timing of individual orders and deliveries may influence quarters significantly 6.
Fourth-quarter costs of about EUR 0.5 million from the Engineering Services restructuring, and whether Defence & Security order intake rebuilds after the EUR 6.9 million quarter 5.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.