OHB SE Positions for Major Defense Contract Amid Strong Operational Performance

OHB SE, in a consortium with Airbus and Rheinmetall, is bidding for Germany's €10B SATCOMBw Stage 4 defense program. The company also reports strong 2025 order growth and raised medium-term targets.

German aerospace and technology group OHB SE has confirmed it is engaged in advanced partnership discussions for a landmark defense program. According to a Bloomberg report, the company is part of a consortium with Airbus Defence and Space and Rheinmetall, preparing a bid for the German Bundeswehr's SATCOMBw Stage 4 satellite communications initiative. The project's estimated value reaches as high as €10 billion.

Financial Health and Upcoming Catalysts

The company's operational strength is evident independent of this potential mega-contract. For the 2025 fiscal year, OHB reported a 24% increase in order intake to approximately €2.1 billion. Its firm order backlog expanded by an impressive 47% to over €3.1 billion. Management forecasts total output of €1.2 billion for the year with an EBITDA margin of 9%.

Investors' next focal point is the annual results press conference scheduled for March 19, where OHB will present its audited consolidated financial statements for 2025. A key area of scrutiny will be whether the robust order growth has successfully translated into profitable cash flows, particularly given significant investments in the project pipeline. The liquidity position is expected to be a primary focus.

Consortium Strategy for Sovereign Satellite Network

The SATCOMBw Stage 4 program is designed to provide the German armed forces with sovereign satellite communication capabilities, reducing dependency on US systems. The envisioned architecture involves a constellation of 100 to 200 satellites in low Earth orbit.

Within the planned bidding team, roles are clearly defined: Rheinmetall would lead military systems integration, while OHB would be responsible for satellite engineering and series production. OHB's strategic preparations for such a high-volume manufacturing scenario were underscored by its acquisition of a facility in Schöneck, Saxony, in October 2025, explicitly to build capacity for large-scale production.

Competition for the contract remains fierce. Airbus, as the operator of the existing SATCOMBw stages, has also confirmed talks with the German Defense Ministry. Furthermore, a potential merger of the space divisions of Airbus, Thales, and Leonardo could intensify the competitive landscape significantly. The final award decision for SATCOMBw Stage 4 is not expected for several months.

Growth Trajectory and Supplementary Contracts

During its Capital Market Day in January, OHB raised its medium-term growth targets. The company is aiming for total output of €1.4 billion with an 11% EBITDA margin by 2026. For 2027, the goals are €1.7 billion in output and a 12% margin. The company anticipates surpassing the €2.0 billion total output threshold from 2028 onward.

Adding to its contract portfolio, OHB's Italian subsidiary secured an €81.2 million contract from the European Space Agency (ESA) in February for the RAMSES mission. This project involves studying the asteroid Apophis during its 2029 close approach to Earth. Including preparatory work, the total mission volume amounts to roughly €150 million.