Bittium publishes its Q3 business review on Thursday, 29 October. Q3'26e sales are seen to increase 68% yoy to € 38.9m (eCons: € 34.4m), up 6% qoq from an already exceptional quarter (Q2'26: € 36.6m). Record backlog of c. € 102m and Indra-related deliveries are seen to support Q3 growth (eNuW). The latter should carry a high operating margin and support EBITDA to reach € 12.7m, at a 32.6% margin (eCons: € 10.2m / 29.7% margin). However, the Indra licensing deal accelerates amortisation and is thus seen to lift D&A to € 5.0m in Q3 (Q2'26: € 2.0m), staying elevated for the remainder of the year and thus offsetting the margin gain. This leaves our EBIT estimate at € 7.7m with 19.8% margin (eCons: € 6.6m / 19.2% margin).
Bittium enters year-end in a strong position: a record backlog, a margin-accretive Indra deal and growing OEM validation underpin the investment case. We reiterate BUY with a € 46 PT based on DCF.