OHB SE: Strategic Defense Contract and Robust Growth Trajectory in Focus

OHB SE in talks with Rheinmetall for a multi-billion euro military satellite contract (SATCOMBw). Strong 2025 results and Ariane 6 success fuel ambitious growth targets.

Shares of Bremen-based aerospace and technology group OHB SE are attracting significant market attention, driven by a potential landmark defense contract and strong operational momentum. The company is engaged in advanced discussions with German defense contractor Rheinmetall regarding a joint bid for a major military satellite program.

A Multi-Billion Euro Defense Opportunity

The focal point is the German Bundeswehr's "SATCOMBw Stage 4" initiative, a planned sovereign satellite communications network in low Earth orbit designed as a European counterpart to systems like SpaceX's Starlink. The project, slated for completion by 2029, represents a strategic move to ensure independent, secure military communications, reducing reliance on U.S. infrastructure. Industry estimates suggest the contract could be worth between €8 and €10 billion, involving the deployment of over 100 satellites.

This potential partnership with Rheinmetall arrives at a critical juncture for OHB. The European aerospace landscape is consolidating, with the announced merger of the space divisions of Airbus, Thales, and Leonardo creating a formidable competitor. Securing a role in this flagship program would provide OHB with long-term visibility and access to Germany's substantial €35 billion budget earmarked for military space technology.

Financial Performance and Ambitious Targets

Recent business figures underscore the company's current strength. For 2025, order intake surged by 24% to approximately €2.1 billion, while the firm order backlog expanded by an impressive 47% to over €3.1 billion. Management forecasts total output for the year to reach €1.2 billion, with an EBITDA margin of 9%.

Looking ahead, OHB has set ambitious medium-term goals. The company aims to increase total output to €1.4 billion in 2026 (targeting an 11% EBITDA margin) and €1.7 billion in 2027 (12% margin). From 2028 onward, the objective is to surpass €2.0 billion in annual output. To support this growth, the average yearly order intake is projected to be around €3 billion.

Operational Milestones Across the Portfolio

Beyond defense, OHB is achieving key milestones across its business segments. The successful maiden flight of the Ariane 64 rocket on February 12 marked a significant industrial achievement. Configured with four solid rocket boosters, the launch vehicle carried 32 satellites for Amazon's broadband constellation into orbit—nearly double the payload capacity of its base variant. OHB's subsidiary, MT Aerospace, manufactures critical components such as tank and shell structures, accounting for roughly 10% of the rocket's value. With Amazon having firmly booked 17 additional launches, and MT Aerospace fully consolidated into OHB's accounts since October 2025, the revenue from this ramp-up flows directly into group results.

The company's space science and exploration divisions are also active. On February 10, OHB Italia secured an €81.2 million contract from the European Space Agency (ESA) for the RAMSES mission. This project, planned for 2028, will study the asteroid Apophis ahead of its close Earth flyby in 2029, and has already passed its Critical Design Review successfully.

Concurrently, OHB established the European Moonport Company, headquartered in Oberpfaffenhofen. This new entity is tasked with consolidating future lunar activities and developing infrastructure for the commercial use of the Moon, ranging from landing platforms to energy and fuel systems.

Structural Tailwinds and Upcoming Catalyst

OHB also benefits from positive sector dynamics. The global market for Earth observation satellites is projected to grow to nearly $16 billion by 2035, providing structural tailwinds for the company's core competencies.

Investor attention is now turning to March 19, when OHB will publish its full-year 2025 financial statements. Market interest is expected to remain elevated until then, particularly regarding developments in the Bundeswehr tender process. The company itself has noted that its low free float can amplify share price movements, adding a layer of volatility to the ongoing narrative.