As OHB’s Order Book Hits €3.35 Billion, a KKR Exit and €1.2 Billion Convertible Plan Rattle the Stock

OHB shares fall 18% in a week as KKR plans to cut stake to single digits and shareholders vote on €1.2B convertible bond proposal, despite record backlog and growth.

The Bremer space group OHB SE finds itself in a curious bind: its operations have never looked healthier, yet its stock has been hammered by a double-barrelled dose of shareholder exit and dilution anxiety. Within a week, the shares have lost nearly a fifth of their value — and the selling pressure may not be over just yet.

The immediate trigger is KKR’s decision to wind down its position. The private equity firm currently owns roughly 29% of OHB and plans to cut that to a single-digit holding by the end of June. That means about 20% of the company’s equity is heading for the market in a block placement orchestrated by a seven-bank syndicate including Deutsche Bank, Goldman Sachs and JPMorgan. For a stock that currently trades with a free float of merely 6%, the sudden supply is crushing the price. On Thursday, OHB shares slid more than 6% to around €365, taking the seven-day decline to almost 18%.

Yet there is a constructive side to KKR’s retreat. The free float will swell to roughly 26% once the placement is completed, dramatically improving liquidity and making OHB a viable candidate for inclusion in major indices. That long-term benefit, however, is being overshadowed by short-term overhang — and by a second headache on the AGM agenda.

At the annual general meeting on 8 June, shareholders will vote on a proposal to authorise the issuance of convertible or warrant bonds with a total nominal value of up to €1.2 billion through June 2031. The conditional capital tied to the plan represents about 20% of the existing share capital. Management argues the firepower is needed to pre-finance a pipeline that includes the EPS-Sterna weather satellite constellation and defence-related small-satellite programmes. The order book backs up that claim: at the end of the first quarter of 2026, OHB reported a record backlog of €3.35 billion, up roughly 45% year-on-year. The Space Systems division alone accounts for €2.68 billion of that total, fuelled by ESA contracts and rising defence budgets.

Operationally, the company is firing on all cylinders. First-quarter total output climbed 15% to €279.3 million, while EBITDA reached €25.7 million. OHB Sweden, a subsidiary, recently secured a €7.6 million subcontract from AAC Clyde Space to supply 21 units of two subsystem types for the EPS-Sterna satellites. That work forms part of a €248 million ESA prime contract awarded in March under which OHB Sweden will build 20 small satellites aimed at improving polar-orbiting weather data, with the first launch slated for 2029.

The convertible bond plan, however, injects a layer of uncertainty over the stock’s immediate direction. Investors are left guessing about the timing, structure and exact volume of any future deals — a nagging doubt that, combined with the KKR placement, has pushed the shares 47% below the 52-week high of €688 touched on 21 May. The RSI of 43.5 does not scream oversold, but the 50-day moving average near €349 offers the next technical support. Despite the recent sell-off, the stock remains up more than 200% year-to-date.

On the AGM agenda, alongside the financing authorisation, is a proposed dividend of €0.60 per share — a modest payout that reflects the group’s need to reinvest heavily. If the majority backs the convertible framework, management will have substantial flexibility to pursue growth, though the precise dilution for existing holders remains undefined.

Looking further ahead, OHB’s rocket subsidiary Rocket Factory Augsburg aims for the first test launch of its RFA ONE vehicle on 1 July. A successful liftoff would provide a powerful operational counter-narrative to the current market turbulence — proof that beneath the technical noise, the company’s underlying trajectory remains firmly upward. For now, OHB investors must endure a turbulent June as two major events shake out before a clearer picture can emerge.