OHB SE: A Strategic Pivot Poised for Billions in Defense and Space

OHB SE forms a strategic alliance with Rheinmetall for a major German satellite contract, raises financial targets, and benefits from Ariane 6's success.

Bremen-based aerospace and technology group OHB SE is executing a bold strategic shift, positioning itself for what could become one of the largest defense contracts in German history. The company is forming a pivotal alliance with defense giant Rheinmetall, directly challenging the established dominance of Airbus. This move comes as OHB also reports robust operational progress and raises its medium-term financial targets, painting a picture of a company on a transformative trajectory.

Financial Ambitions Revised Upwards

The company's order books are swelling, providing a solid foundation for its upgraded outlook. In 2025, OHB's firm order backlog surged by 47 percent to exceed €3.1 billion. Bolstered by increasing budgets from the European Space Agency (ESA) and rising national defense expenditures, management has revised its forecasts for the coming years.

By 2028, the group aims to achieve total output of more than €2.0 billion. Concurrently, the executive board is targeting a significant improvement in profitability, with plans to lift the EBITDA margin above 12 percent. The company has stated that a delisting, a subject of market speculation, is not currently planned. All eyes will be on the annual results press conference scheduled for March 19, 2026, where OHB must demonstrate that its rapid order growth is already translating into improved profitability in its audited 2025 financial statements.

A Formidable Alliance to Challenge a Giant

At the heart of OHB's strategic breakout is a confirmed, far-reaching cooperation with Rheinmetall. The partnership is focused on the SATCOMBw Stage 4 project, a Bundeswehr initiative to deploy a constellation of 100 to 200 satellites in low Earth orbit. This network is designed to provide global connectivity for armed forces, utilizing a technical concept similar to SpaceX's Starlink system.

The potential contract value is enormous, with reports from the Financial Times suggesting it could reach up to €10 billion. Under the proposed division of labor, Rheinmetall would act as the systems integrator for military applications, while OHB would be responsible for satellite manufacturing and engineering. This alliance directly contests the previous monopoly held by Airbus Defense and Space. To meet the high-volume production requirements, OHB secured a facility in Schöneck, Saxony, as early as October 2025, dedicated to series production.

Civilian Sector Gains Momentum with Ariane 6

Alongside its defense ambitions, OHB is celebrating a key success in the civilian space sector. The European Ariane 6 rocket completed its first commercial flight on February 12, carrying satellites for Amazon. This milestone is of direct importance to OHB because its subsidiary, MT Aerospace, manufactures tanks and structural components for the launcher.

MT Aerospace, which holds a ten percent work share on the Ariane 6 program, stands to benefit immediately from the ramp-up in serial production. Amazon has already firmly booked 17 additional flights. The full consolidation of MT Aerospace's value contribution into OHB's financials became possible following its complete integration as a group subsidiary in October of the previous year.