Q2 2026 Bittium Oyj Earnings Call Transcript
Key Points
- Bittium Corp (STU:JOT) reported a 60% net sales growth in Q2 2026, with EBITDA margin at 27.5% and operating profit margin at 22.2%, exceeding long-term financial targets.
- The defense and security segment drove strong performance, with net sales growing 67.8% in H1 2026 and an operating margin of 24.5%, supported by a record order backlog of EUR 102.2 million.
- Operating cash flow was exceptionally strong at EUR 36.9 million in H1, making the company net debt-free and strengthening its financial position for future investments.
- The medical segment is showing a successful profitability turnaround, with operating margin improving to 5.5% in H1, and cardiac business outside the US growing 33% year-on-year.
- Strategic partnerships and new product launches (e.g., HIMERA, AI integrations, FUSAR, mission net) are expanding Bittium's market reach, particularly in defense and security, and the company is scaling production capacity to meet growing demand.
- The engineering services segment continues to struggle, with net sales declining 20.9% in H1 and negative operating margins, due to a weak market and ongoing turnaround efforts.
- The company's heavy reliance on defense and security (92% of order backlog) increases concentration risk, and the cyclicality of deliveries leads to significant quarterly fluctuations in sales and margins.
- Despite the medical segment's improvement, management is not yet satisfied with its growth and profitability levels, and the segment's order book remains relatively small at EUR 5.4 million.
- The outlook for new defense orders, particularly from large national deals (e.g., UK, Sweden), remains uncertain and difficult to predict, with potential delays in decision-making.
- R&D investments as a percentage of sales decreased due to the significant sales growth, which could impact future innovation if not sustained, and the company faces challenges in the engineering services market that may persist through 2026.
Good morning everyone and welcome to this webcast. My name is Karolina Malmi and I'm Head of Communications and Sustainability at Pictium.
And with me here are our CEO Petri Toljama and CFO Petri Hiljanen.
Today we are going to talk about our financial development of the second quarter of this year and the first half of this year and of course the main events resulting to the results. (Operator Instructions)
And before we start today about forward booking statements, they may have risks and uncertainties and may occur differently. So bear that in mind. But without further ado, I will let Petri you to start.
All right.
Thank you, Karolina. So I'll start with the highlights for the second quarter, '26. So first, our net sales grew 60%, EBITDA was 27.5% and operating profit was 22.2% of the net sales.
Our operating cash flow was eur8.8 milliono, our new orders order intake was eur46.3 millionos and we have personnel at the end of the Q2 575 employees.
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