OHB SE Poised for Major Defense Contract as Operational Momentum Builds

OHB SE in advanced talks with Rheinmetall for a consortium bid on the €10B SATCOMBw Stage 4 project. The move follows strong Ariane 6 success and a 24% surge in 2025 orders.

The German aerospace and technology group OHB SE is in advanced discussions regarding a potential multi-billion euro partnership. The company is negotiating with defense contractor Rheinmetall to form a consortium bidding for a flagship German Bundeswehr project, a development that coincides with strong operational performance in its core launch vehicle business.

Strategic Alliance for Next-Gen Satellite Constellation

OHB has formally confirmed ongoing talks with Rheinmetall concerning cooperation on public tender procedures. The primary objective is a joint bid for SATCOMBw Stage 4, a secure military communications network. This ambitious project involves deploying a constellation of 100 to 200 satellites in low Earth orbit, designed to provide the German armed forces with global, secure connectivity independent of US systems. The estimated total project cost is up to 10 billion euros.

Within the proposed consortium, roles are clearly defined: Rheinmetall would act as the systems lead, handling military integration, while OHB would be responsible for satellite manufacturing and engineering. The partnership is expected to face competition from Airbus Defense and Space, which currently operates the predecessor systems.

In preparation for the high-volume production such a contract would require, OHB expanded its manufacturing footprint in October 2025 by acquiring a facility in Schöneck. This move is aimed at building capacity for serial production running into the hundreds of units.

Ariane 6 Success Provides Operational Foundation

Separately, OHB's core business is gaining significant traction from the successful debut of Europe's new launch vehicle. The Ariane 64 rocket's maiden flight on February 12 was a key milestone, successfully deploying 32 satellites for Amazon's broadband constellation into orbit. This four-solid-booster variant offers nearly double the payload capacity of the base model.

OHB derives direct benefit through its subsidiary MT Aerospace, which manufactures tanks and structural components and holds a 10% workshare in the Ariane 6 program. Following OHB's complete acquisition of MT Aerospace in October 2025, all revenues from this segment are now fully consolidated into the group's accounts.

Financial Targets Revised Upward on Strong Order Intake

The company's financial metrics show robust growth. For the full year 2025, order intake surged by 24% to approximately 2.1 billion euros. The firm order backlog jumped an impressive 47% to over 3.1 billion euros. For the first nine months of 2025, total output reached 863.5 million euros, representing a 21% year-on-year increase, while EBIT grew 32% to 46.0 million euros.

Based on this momentum, OHB has raised its medium-term targets. The company is now aiming for total output of 1.4 billion euros with an EBITDA margin of 11% in 2026. For 2027, the goal is 1.7 billion euros in output with a 12% margin. From 2028 onward, OHB targets annual output exceeding 2.0 billion euros. To support this growth, the company is targeting an average annual order intake of around 3 billion euros.

This optimistic outlook is underpinned by rising budgets from the European Space Agency (ESA), the European Union, and national customers, with the defense market becoming increasingly significant.

Audited 2025 Results to Offer Crucial Validation

Investors are awaiting the publication of OHB's audited group financial statements for 2025 on March 19. These figures will be scrutinized to determine if the company's substantial order growth is already translating into improved profitability. While the order backlog exceeding 3.1 billion euros provides a solid foundation, the market's focus will now shift to the group's operational execution and margin delivery.