OHB's €3.35 Billion Backlog and New Capital Mandate: Navigating Growth, Dilution, and KKR's Exit

OHB shareholders approve convertible bonds and subscription rights; KKR plans €1B+ block trade. Stock triples YTD but faces dilution and volatility.

OHB shareholders have granted management a sweeping financial mandate at the same time the Bremen-based space contractor’s order book swells to a record €3.35 billion. The twin developments — a freshly approved capital framework and an impending block trade by private equity investor KKR — create a complex backdrop for a stock that has already more than tripled this year.

On June 8, the virtual annual general meeting approved a suite of financing tools. The board may now issue convertible or warrant bonds worth up to €1.2 billion, and an additional program of up to 576,447 subscription rights — representing roughly 3% of existing share capital. The new equity-linked instruments give OHB flexibility to fund large-scale satellite projects, but they also introduce potential dilution for current holders. Shareholders also confirmed a steady dividend of €0.60 per share, unchanged from the prior year.

The operational picture remains robust. First-quarter adjusted operating profit surged 63% to €16.8 million, while total output reached approximately €279 million. The backlog hit an all-time high of €3.35 billion at the end of March, with the Space Systems division accounting for nearly €2.7 billion. A recent example of the division's momentum is the RAMSES asteroid-defence probe for the European Space Agency, a contract worth around €150 million. Management targets full-year total output of €1.4 billion and an operating margin of 11% by 2028.

Yet the shares are wrestling with a structural overhang. KKR, which holds roughly 29% of OHB, plans to place about 20 percentage points of that stake by the end of June. Several banks are preparing the block transaction, which would be worth well over €1 billion at current prices. The founding Fuchs family retains control with 65% of the voting rights, but the impending sale has kept a lid on the stock.

The market’s response has been a high-wire act. The shares closed Tuesday at €387.00, representing a year-to-date gain of approximately 218%. That rally has been extraordinarily volatile — the annualized volatility stands at 147% — and the stock remains about 44% below its May record high. The ongoing ILA Berlin air and space show gives OHB a prominent platform for new contract announcements, but the near-term direction hinges on the KKR placement. Once that closure is confirmed, a major uncertainty lifts.

Meanwhile, the supervisory board receives a high-profile addition. Dr. Theodor Weimer, a former CEO of Deutsche Börse, joins the control body for a three-year term, succeeding Claire Wellby. His appointment brings deep capital-markets experience as OHB navigates the tension between record orders, costly space missions, and the financial mechanics of a large shareholder exit. The tools approved at the AGM — from convertible bonds to subscription rights — now sit ready for deployment. Whether management uses them to accelerate growth or to shore up the balance sheet will shape the stock’s trajectory through the second half.