OHB SE Poised for Major Defense Contract and Reports Strong Growth

German aerospace firm OHB, with Rheinmetall, bids for a major Bundeswehr satellite constellation while benefiting from the Ariane 6 rocket's commercial success and strong financial growth.

The German aerospace and technology group OHB SE is positioning itself for a transformative defense contract while simultaneously capitalizing on the ramp-up of Europe's new flagship rocket. In partnership with defense contractor Rheinmetall, the Bremen-based company is pursuing one of the largest procurement projects in the history of the German armed forces, the Bundeswehr.

Strategic Consortium Bids for Satellite Constellation

OHB and Rheinmetall are in negotiations to submit a joint bid for the SATCOMBw Stage 4 program. This initiative aims to establish a sovereign satellite communications network for the Bundeswehr, comprising between 100 and 200 satellites in low Earth orbit. The project, with an estimated value of up to €10 billion, is designed to reduce dependency on US systems. It marks a strategic shift from previous programs that relied on a handful of geostationary satellites at an altitude of 36,000 kilometers toward a large constellation similar in concept to SpaceX's Starlink.

The consortium has a clear division of responsibilities: Rheinmetall would act as the systems lead, handling military integration, while OHB would be responsible for satellite manufacturing and engineering. Preparations are already underway. In October 2025, OHB acquired a facility in Schöneck, Saxony, to build capacity for the potential series production of satellites, which could reach a three-digit number of units.

Competition for the contract is expected. Airbus Defence and Space, which operates the preceding SATCOMBw Stage 2 and 3 projects, is a key rival. Furthermore, the announced merger of the space divisions of Airbus, Thales, and Leonardo is creating another large European competitor.

Ariane 6 Program Provides Momentum

Separately, OHB is benefiting from the successful debut of the Ariane 6 launcher. On February 12, the rocket completed its first commercial mission, deploying 32 satellites for Amazon's broadband constellation into orbit. This is directly relevant for OHB, as its subsidiary MT Aerospace manufactures tanks and structural components for the Ariane 6, holding a 10% workshare in the program. Amazon has firmly booked 18 launches—the largest commercial contract in the history of launch provider Arianespace.

Since October 2025, MT Aerospace has been fully consolidated within the OHB Group. Consequently, all revenues from the increased production rate for Ariane 6 now flow directly into the group's accounts, strengthening its operational foundation.

Financial Performance and Raised Targets

OHB has reported robust financial growth. For the first nine months of 2025, total output increased by 21% to €863.5 million. EBITDA grew from €62.4 million to €75.5 million. The order backlog expanded by 47% to over €3.1 billion, while new orders received rose by 24% to approximately €2.1 billion.

During a Capital Market Day in January, the company's management significantly raised its medium-term targets. For 2026, OHB is now targeting total output of €1.4 billion with an EBITDA margin of 11%. The goal for 2027 is €1.7 billion in output with a 12% EBITDA margin. From 2028 onward, the group aims to achieve more than €2.0 billion in total output with an EBITDA margin exceeding 12%.

This growth trajectory is underpinned by rising budgets from the European Space Agency (ESA), the European Union, and national clients, with the defense market gaining substantial importance. In a parallel strategic move, OHB established the European Moonport Company, an entity tasked with consolidating future lunar activities and developing infrastructure for the commercial use of the Moon.

Critical Milestones on the Horizon

The coming weeks present key tests for the company. On March 19, OHB will publish its audited annual financial statements for 2025. A central focus for analysts will be whether profitability margins have kept pace with the strong revenue growth.

Concurrently, the SATCOMBw Stage 4 tender process continues. Winning this multi-billion euro contract would not only secure the company's order book for years to come but would also substantially elevate its standing in the expanding European defense market, propelling OHB into a new league.