Bittium Corporation
Inside Information
Inside Information: Bittium Corporation Updates its Long-Term Financial Targets
and Refines Its Strategy for 2026-2028
Bittium Corporation, Stock Exchange Release, 23 September 2025, at 8.30 am
(CEST+1)
The Board of Directors of Bittium Corporation has today approved the company's
updated long-term financial targets. The update is driven by the strong growth
in the defense market in recent years, which has accelerated the development of
Bittium's Defense & Security business.
Bittium aims for an average annual revenue growth of 20-30% and an operating
profit level of 10-20% in the long-term. During the years 2025-2026, the
operating profit level will be affected by the company's measures to accelerate
international growth, such as investing in the growth of international sales,
strengthening technological expertise, and scaling production. The company is
also exploring inorganic growth opportunities in all its Business Segments,
particularly to expand the tactical communication product portfolio in the
Defense & Security Business Segment.
Bittium seeks profitable growth in all three of its Business Segments, which are
Defense & Security, which offers products and services to the defense and
governmental markets; Medical, which provides solutions focused on measuring
biosignals; and Engineering Services, which offers R&D services and wireless
embedded solutions.
To achieve its long-term growth targets, the company has refined its strategic
focus areas. The pillars of the strategy period 2026-2028 are:
1. accelerating international sales and developing strategic partnerships to
support growth,
2. ensuring technological leadership by strengthening software and AI
capabilities,
3. expanding business into new markets and verticals in the Defense and
Security sector and exploring inorganic growth opportunities, and
4. transforming the operating model to be data-driven and scalable.
"Bittium has achieved a strong position as a technological leader in wireless
and embedded products and services through long-term development work. Together
with the Finnish Defence Forces, we have developed battle-proven tactical
communication solutions for the defense industry, which are now ready for
delivery. Global political uncertainty and related market changes have
significantly increased defense budgets, and many countries have launched new
projects to modernize their command-and-control systems. The momentum is very
interesting for Bittium, and we believe we are in an excellent position to meet
market needs with both our modern products and R&D services," says Petri
Toljamo, CEO of Bittium Corporation. "The development and growth of remote
diagnostics markets also create a significant opportunity for our medical
technology products to accelerate international business growth in the coming
years. The company's good financial situation and balance sheet support our goal
of achieving an average annual growth of 20-30% in the long term."
Defense & Security Business Segment
The Defense & Security Business Segment consists of two business areas: tactical
and secure communication solutions for the defense market (Defense business
area) and communication solutions offering the highest level of security for
government, public safety, and critical infrastructure markets (Security
business area).
Global geopolitical instability and resulting changes have increased defense
funds and the need to modernize tactical communication systems. Finland's
accession to the defense alliance NATO has increased the visibility of Bittium's
products in international defense and security markets, and the partnership
agreement with the Finnish Defence Forces creates a significant reference for
the company's internationalization through both system solutions and the
operating environment.
Bittium's tactical communication system and radios are extremely competitive in
terms of technical features. The company has a strong competitive advantage
thanks to its extremely resilient and secure wireless technology for tactical
communication, which is integrated into hardware and software intended for
military and public safety use. The company will continue to develop its
performance with software-based AI solutions, and to strengthen this, Bittium
has today acquired a 24.9% stake in MarshallAI, a provider of AI solutions (link
to the press release (https://www.bittium.com/investors/stock-exchange-press
-releases/?locate=PRM%2F2025%2F5217753)).
The modern software-based Bittium Tactical Wireless IP Network system and the
related software-based Bittium Tough SDR™ radios have been developed in
collaboration with the Finnish Defence Forces. Bittium's solutions are used in
five European countries as part of the defense forces' command-and-control
system, and their piloting is underway in several countries. Bittium may
consider licensing its software-based radio technology to third parties on a
case-by-case basis to enable the sale of its technology to countries with strong
domestic defense industry players, where Bittium's software-defined radio
technology can be integrated into the overall systems.
For government, public safety, critical infrastructure operators, and defense
markets, Bittium offers both hardware and software-based secure communication
solutions. Bittium's expertise in security is world-class, and the company is
internationally recognized as a manufacturer of secure mobile phones. The
increasing number of cyberattacks and the high computing power enabled by
quantum computers have increased the need to develop even stronger, quantum-safe
mobile security. The recently launched next-generation ultra-secure Bittium
Tough Mobile 3 (link to the press
release (https://www.bittium.com/investors/stock-exchange-press
-releases/?locate=PRM%2F2025%2F5208578)) addresses the growing security and
performance needs of mobile communications.
Bittium focuses particularly on its strong expertise in security technologies
and software and creates partnerships with leading players in the field, for
example, in the product manufacturing such as Tough Mobile 3 secure phones. As
part of its updated software strategy, Bittium's secure hardware and application
software can also be licensed to other hardware platforms.
The focus areas for the strategy period 2026-2028 for the Defense & Security
Business Segment are:
· ensuring technological leadership by strengthening software and AI
capabilities,
· accelerating international sales and developing strategic partnerships to
support growth,
· expanding business into new markets, and verticals and exploring inorganic
growth opportunities, and
· sharper market focus by utilizing the operational directions of defense
alliances with unified solutions.
Medical Business Segment
The Medical Business Segment's offering focuses on solutions for measuring
biosignals. The business is divided into four product areas: diagnostics of the
heart's electrical activity (EKG) (Cardiac), measurement and analysis of the
brain's electrical activity (EEG) (Neuro), home sleep apnea testing, HSAT
(Sleep), and measurement of muscle activation (EMG).
To focus and streamline the operations and improve the ability to bring new
innovative products to market, the company will focus on two product areas,
Cardiac and Sleep, during the upcoming strategy period, where the markets are
expected to grow significantly in the coming years. EEG and EMG solutions will
remain in the company's portfolio, but as the markets for these products are
still developing, the company will continue to analyse the market potential,
which is mainly in the US and develop the product portfolio accordingly.
The remote diagnostics market is expected to grow significantly in the coming
years, as diagnostics need to be done at an increasingly early stage and at-home
-environments rather than hospital settings. Reducing hospital and care days
increases the efficiency of healthcare processes and lowers costs. Accurate and
high-quality measurement in home environments is a prerequisite for remote
diagnostics.
In the remote diagnostics market for EKG, Bittium's competitive advantage is
based on high-quality and reliable biosignal measurement using embedded wireless
technology. The Bittium Faros™ EKG device, which has achieved gold standard
status in clinical studies, is designed to be easy-to-use and patient-friendly,
enabling both short-term Holter measurements and long-term EKG monitoring.
Bittium's customers in the EKG market are global device manufacturers, service
providers, and traditional medical device distributors.
During the upcoming strategy period, Bittium will focus on growing its Cardiac
business by bringing new competitive devices to market in the short and medium
-term in collaboration with existing international key customers and partners.
The company also aims to expand its overall offering by bringing competitive
disposable electrodes to market and creating partnerships with companies
offering AI-based analytics software.
The prevalence of sleep apnea has increased significantly in recent decades,
with nearly a billion people already suffering from sleep apnea. The home sleep
apnea monitoring market has developed since the late 2000s, and awareness of the
severity of the disease has increased significantly. The disease is
internationally underdiagnosed, and many people suffer from it without knowing
it. The prevalence of sleep apnea is significant among overweight adults and the
elderly, with over half of the elderly and up to 70% of overweight people
suffering from sleep apnea.
Bittium offers its customers the HSAT device (Home Sleep Apnea Testing), Bittium
Respiro™ for diagnosing sleep apnea at home. The device has medical device
approval in accordance with the European MDR requirements, and during the
upcoming strategy period, the company will focus on building sales channels and
strategic partnerships in Europe. The company is also analyses the requirements
for obtaining FDA (US Food and Drug Administration) sales approval for the US
market together with its partners.
The market for long-term EEG measurement is in its early stages of development.
The operating environment and customer base differ from Cardiac and Sleep
solutions, and the device is designed for use in intensive care. The greatest
market potential for Bittium BrainStatus EEG devices is in the United States,
but the product does not currently have FDA approval. Bittium continues to
analyse the market and develop the product in the long-term to meet market
requirements.
At the end of last year, Bittium launched an EMG device for measuring muscle
activation to the market. The device is based on Bittium's Faros technology and
is intended for monitoring the progress of rehabilitation or identifying various
muscle or movement disorders, such as Parkinson's disease. Bittium continues to
sell the device to its current customer but has decided not to make any broader
commitments in this product area.
The medical device markets are driven by regulatory approvals, international and
local treatment recommendations, and reimbursement practices. Recommendations
vary by country and are key to enabling broader distribution and use of
products. Remote EKG monitoring has good treatment and reimbursement practices
in the United States, while in Europe, reimbursement is lacking from the public
healthcare sector, limiting the large-scale scaling of products in the region.
Reimbursement practices for home sleep apnea tests are more advanced, and HSAT
measurements are well reimbursed in both the United States and the Europe in
both public and private healthcare.
The focus areas for the strategy period 2026-2028 for the Medical Business
Segment are:
· strengthening international growth in the remote EKG diagnostics market by
bringing new product innovations to market,
· expanding the market area for the HSAT sleep apnea test device
internationally and strengthening the clinical validation of the product,
· building the company's recognition in the United States in markets other
than remote EKG diagnostics, and
· focusing the sales channel on strategic partnerships.
Engineering Services Business Segment
In the Engineering Services Business Segment, Bittium offers its customers
product development services and wireless connectivity solutions to develop
innovative products in a secure and evolving wireless environment.
With digitalization, secure IoT (Internet of Things) is a significant
development area in almost all industries. IoT demand is driven by companies'
growing need to digitize their operations, collect data wirelessly, transfer
data to the internet and cloud services, and monitor and control devices and
systems remotely. Bittium has focused its product development service offering
around radio technology and embedded devices, and the company has world-class
expertise in the comprehensive development of products for demanding customers.
Embedded AI technology has developed to the point where sufficient computing
power can be achieved in small, relatively low-power devices. This increases the
possibilities for using AI and grows the demand for embedded AI. Embedded AI
builds intelligence into devices, enhancing and expanding the device's
functionality.
Bittium is investing in strengthening its AI expertise in its own operations,
focusing particularly on AI computing performed in embedded devices. Embedded AI
strengthens the comprehensive R&D services offering of Engineering Services,
which takes into account electronics, software, and connectivity. The next
generation of smart devices must be designed from the ground up as a whole,
including embedded AI. The collaboration announced today with Edge Impulse, a
Qualcomm company, is the first step in developing AI offerings and partnerships
(link to the press release (https://www.bittium.com/investors/stock-exchange
-press-releases/?locate=PRM%2F2025%2F5217749)).
The need for European countries to strengthen common defense has also created
new business opportunities for the Engineering Services Business Segment. Demand
has increased for various products and solutions manufactured in Europe and NATO
member countries. Bittium is uniquely positioned to meet the demand for R&D
services in the defense market thanks to its reputation, strong expertise, and
market knowledge. The company focuses on industrial players in the defense
industry in Europe, which have various high-tech smart devices serving the
defense sector in their product portfolios.
Developing a more customer-centric offering and productizing services has
strengthened customers' understanding of the company's comprehensive service
offering in creating added value throughout the product lifecycle. Bittium
complements its existing partner network with companies that complement its
expertise, for example, by providing cloud software services to customers.
The focus areas for the strategy period 2026-2028 for the Engineering Services
Business Segment are:
· strengthening embedded AI expertise and expanding the offering,
· leveraging strong defense market growth,
· developing a more customer-centric offering through productized services,
and
· building comprehensive value creation through partnerships.
Capital Markets Day 2025
Bittium is organizing a Capital Markets Day for investors, analysts, and media
representatives today, September 23, 2025. During the day, Bittium's CEO Petri
Toljamo and the company's Business Segment leaders will provide more detailed
information on the development of markets essential to the company, long-term
growth opportunities, and refined strategies.
The event will be held at Sanomatalo in Helsinki, and it can be followed via a
livestream broadcast.
Register and follow the event live stream: https://bittium.videosync.fi/cmd-2025
The recording of the event and presentation materials can be found after the
event at Bittium's Investor Relation internet pages at
https://www.bittium.com/investors. The presentations are held in English.
Oulu, Finland,
23 September 2025
Bittium Corporation
The Board of Directors
Further Information:
Petri Toljamo
CEO
Tel. +358 40 344 2789 (group communications)
Distribution
NASDAQ Helsinki
Main media
Bittium
As a trusted supplier in the Defense & Security market with 40 years of
experience in advanced radio communication technologies, we provide next
-generation resilient and mobile tactical communications systems for defense
forces and secure communication solutions for governments and authorities. Our
products and systems for tactical communications bring broadband data and voice
seamlessly to all troops across the battlefield. The offering is completed by
mobile devices and cyber security solutions certified up to CONFIDENTIAL and
NATO Restricted levels. In addition to the products and systems supplied to the
Defense & Security market, Bittium offers solutions focused on measuring and
processing of biosignals as well as R&D services and wireless embedded
solutions. Bittium's net sales in 2024 were EUR 85.2 million and operating
profit EUR 8.6 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com