OHB’s Satellite Factory Ambitions Get a €1.2 Billion Backing as New COO Takes the Helm

Shareholders approve convertible bonds up to €1.2B to fund large satellite constellations. OHB shifts from bespoke to series production amid dilution risk and board changes.

The German space group OHB is betting big on scale. Shareholders have approved a financing framework that allows management to raise up to €1.2 billion via convertible and warrant bonds until 2031, giving the company the firepower to pre-finance large satellite constellations and expand its production lines. The vote, cast at a virtual annual general meeting, also authorised the issuance of up to 576,447 subscription rights, equivalent to roughly three per cent of existing capital — a move that could dilute current holdings if exercised.

That dilution risk, however, is being weighed against a clear strategic shift. OHB is moving from bespoke spacecraft to industrial-scale series production. To drive that transformation, the board is being strengthened: from July, Luis Alejandro Orellano will take the newly created role of chief operating officer, tasked with scaling up manufacturing processes. The company’s Saxon facility in Schöneck, the former Technisat plant, is being lined up as the centre of that mass production push.

Meanwhile, the supervisory board has been refreshed with a high-profile appointment. Theodor Weimer, a seasoned figure in German finance, joins the control body for a three-year term, replacing Claire Wellby. The changes come as OHB juggles prestige projects alongside its industrial overhaul. Technicians in Bremen are currently assembling the RAMSES probe destined for the asteroid Apophis, with a tight launch window in spring 2028. On the commercial side, the company is using this week’s ILA Berlin air show to hunt for new contracts that could boost capacity utilisation.

The operational momentum is backed by solid numbers. At the end of March, OHB’s order backlog stood at €3.35 billion, the lion’s share — nearly €2.7 billion — coming from the Space Systems division. First-quarter group revenue climbed to around €279 million, while adjusted operating profit rose to €16.8 million. Shareholders will also receive a stable dividend of €0.60 per share, unchanged year-on-year, with the ex-dividend date already passed.

Yet the market’s reaction has been decidedly cool. The stock fell 4.49 per cent on Wednesday to €372.00, giving back some of its stellar year-to-date gains, which still stand at roughly 206 per cent. That long-run performance masks a volatile ride: the shares trade about 44 per cent below their May record high, and the annualised volatility of nearly 147 per cent underscores the extreme swings.

Investors are now watching for near-term catalysts, particularly fresh order announcements from the ILA show. The legal framework for future fundraising is in place; whether management exercises the new instruments soon for concrete large-scale projects will likely dictate the stock’s trajectory in the second half of the year. For now, OHB is balancing a legacy of bespoke space engineering with the financial and operational muscle needed to become a serial producer of satellites.