OHB's 660% Rally Reverses Sharply as the Company Prepares for a Rocket Launch and Share Sale

OHB shares drop sharply amid thin trading after meteoric rise; Rocket Factory Augsburg eyes July launch, while AGM and share placement aim to boost free float and fund record €3.35B order backlog.

The dizzying ascent of OHB's stock came to an abrupt halt this week, with the shares plunging nearly 16% in a single session after a meteoric 660% gain since the start of the year. The sell-off, which saw the price tumble from a close of €564.50 on Tuesday to an intraday low of €477.50 on Wednesday, stands in stark contrast to the company's operational momentum and ambitious expansion plans.

Wednesday's slide followed a 5.3% drop the previous day, together wiping out a significant chunk of the gains accumulated in recent weeks. The stock had touched a 52-week high of €688.00 just last month on May 21, before the reversal set in. No company announcement triggered the rout; the last regulatory filing was the Q1 release on May 7. Analysts point instead to the extreme thinness of the market — average daily turnover on Xetra is just 8,344 shares — meaning relatively small sell orders can trigger outsized moves. Despite the pullback, OHB still commands a market capitalisation of around €9 billion, a valuation that many see as stretched against its fundamental earnings.

Yet the operational story remains compelling. Rocket Factory Augsburg (RFA), OHB's subsidiary, has applied for a launch window on July 1 for the first test flight of the RFA ONE rocket. The vehicle is already in the integration hall at SaxaVord, with the Helix engines tested in Kiruna and the launch tower taking shape. The maiden flight is still expected within 2026, with serial production targeting up to 25 launches per year from 2028.

Sandwiched between this week's stock turbulence and the pending launch is the annual general meeting scheduled for June 8, to be held virtually. The agenda includes a proposed stock option programme covering up to 576,447 share rights, equivalent to a maximum of 3.0% of the current share capital. The authorisation would run until June 2031, allowing the company to grant options to board members, employees, and selected staff of affiliated companies. New shares would only be issued if options are exercised and OHB does not use treasury stock to settle them — a potential dilutive effect for existing holders, albeit not immediate.

More consequential for the capital structure is a parallel share placement that OHB is preparing. The bank syndicate has been expanded to seven institutions, with Berenberg and Commerzbank joining Jefferies, UniCredit, Deutsche Bank, Goldman Sachs and JPMorgan. The goal is to raise the free float to around 20% of the outstanding shares, with completion targeted for the first half of 2026, subject to market conditions. Proceeds are earmarked for concrete growth projects: pre-financing large satellite constellation contracts and expanding manufacturing capacity.

Those capex needs are underpinned by a record order book. At the end of the first quarter, OHB reported an order backlog of €3.354 billion, 45% higher than a year earlier. The Space Systems segment alone accounts for €2.683 billion, or 76% of the segment total. First-quarter total output rose 15% to €279.3 million, with adjusted EBITDA climbing 37% to €27.3 million and adjusted EBIT surging 63% to €16.8 million. A separate revenue figure stood at €200.8 million, also up 15%, with an adjusted EBITDA margin of 9.7%.

With no new operational catalysts expected before the AGM, the market will spend the coming days interpreting the volatility itself. The next confirmed milestones are the virtual shareholder meeting on June 8, the RFA ONE launch window opening on July 1, and second-quarter results due on August 6 — each providing a fresh test of whether OHB's underlying business can sustain the valuation that its stock once commanded.