OHB Lands ESA Mission, KKR Lines Up €1 Billion Exit as Backlog Hits Record

OHB's 400% stock surge triggers KKR block sale while securing ESA's SOVA-S earth-observation contract; record backlog and high valuation pose risks.

The Bremer space group is juggling two seismic developments this week: a fresh contract from the European Space Agency and a planned secondary offering that could reshape its shareholder base. While the ESA win provides a steady stream of science-driven revenue, the block trade orchestrated by private equity giant KKR signals that the stock’s parabolic run has reached an inflection point.

OHB Czechspace, a wholly owned subsidiary, has been confirmed as prime contractor for the SOVA-S Earth-observation mission — short for “Satellite Observation of Waves in the Atmosphere – Scout”. Following a ten-month evaluation, the ESA selected SOVA-S and one other project – Hibidis – from a field of four final concepts. Both are slated to enter the implementation phase in January 2027. The satellite will carry a short-wave infrared imager to measure atmospheric gravity waves at altitudes of 80 to 120 kilometres by detecting airglow, a faint light emission from chemical reactions. These gravity waves, which influence the Earth’s climate, remain poorly captured by current models. The data is expected to sharpen climate projections and improve GNSS positioning. OHB Czechspace leads the consortium, with support from Berlin Space Technologies and OHB System; the science team is headed by a principal investigator from DLR.

The contract lands against a backdrop of exceptional operational momentum. In the first quarter of 2026, OHB posted revenue of €200.8 million, a 15% year-on-year increase. Adjusted EBITDA came in at €27.3 million, representing a 9.7% margin. The order backlog swelled to €3.354 billion — up nearly 45% from €2.314 billion a year earlier — a record high. The lion’s share, roughly €2.7 billion, sits in the Space Systems segment. Management has laid out ambitious medium-term targets: total output of €1.4 billion for 2026, €1.7 billion for 2027, and above €2.0 billion for 2028, with an adjusted EBITDA margin of 11% in the current fiscal year.

Yet the valuation has become a talking point in its own right. At a price-to-earnings multiple near 250, even a minor operational miss could trigger a sharp re-rating. The stock traded at €635 on Xetra on Thursday, up 11.4% on the day after the SOVA-S confirmation. Year to date, the shares have surged more than 400% from €116.60 at the close of 2025, pushing the market capitalisation to roughly €10.88 billion.

That eye-popping rally is now being monetised by a major shareholder. KKR, which holds around 29% of OHB, plans to place a block of roughly 20% of the company’s shares in the market, a deal likely worth over €1 billion. To handle the transaction, the bank syndicate has been expanded to seven institutions: Berenberg and Commerzbank join Goldman Sachs, JPMorgan, Jefferies, UniCredit and Deutsche Bank. The placement is expected to close in the first half of 2026 and would lift free float to about 20%. Critically, the founding Fuchs family retains 65% of the voting rights, so the balance of control remains unchanged.

The secondary offering comes at a moment when the stock is consolidating near €567 after its blistering ascent — a pullback that analysts attribute partly to profit-taking ahead of the deal. The placement’s success will depend on whether institutional appetite can absorb such a large slug of paper without destabilising the price.

Investors now face a packed calendar. On 9 June 2026, the stock trades ex-dividend for the proposed €0.60 per share payout. The annual general meeting is scheduled for 24 June 2026, and second-quarter results are due on 6 August 2026. Whether the share placement crosses the finish line before or after those milestones will determine the level of near-term volatility.

Meanwhile, the SOVA-S win underscores that OHB is not solely dependent on defence-linked space programmes — the joint venture KIRK, focused on tactical space reconnaissance, has been a key catalyst for the rally. Long development cycles on the military side mean meaningful earnings contributions are still some way off, but the steady flow of ESA science contracts provides a reliable counterweight. With a record order book and a major shareholder exiting the gate, OHB’s stock is entering a new, more liquid — and potentially more turbulent — chapter.