OHB Sees Red on SpaceX Setback but Builds European Space Bona Fides with Dual ESA Projects

OHB shares slid 6.95% after SpaceX Starship test flight abort, but the company secured ESA's SOVA-S mission and proposed VORTEX-S spaceplane with Dassault, while order backlog hit €3.3B.

OHB shares took a hit on Friday, sliding 6.95 percent by the close as a delayed SpaceX Starship test flight rattled sentiment around the stock. The abort of the twelfth test flight due to a hydraulic issue — rescheduled for May 23 — spooked investors who had piled into OHB on the back of the impending SpaceX IPO, slated for June 12 with an estimated valuation of $1.75 trillion. The pullback was severe compared to peers Airbus and Leonardo, which lost less than one percent each, leading market observers to point to profit-taking after a staggering 769 percent gain in the past twelve months and nearly 98 percent in the last month alone.

But beneath the surface noise, the Bremen-based space group is quietly racking up strategic wins that reinforce its role as a cornerstone of European space independence. Just days earlier, the European Space Agency awarded OHB the SOVA-S Earth observation mission after a ten-month review. Under the Scout programme, which favours small satellites and fast development cycles, OHB Czechspace will serve as prime contractor for the €35 million project, with a targeted launch in less than three years. SOVA-S will study atmospheric gravity waves at altitudes of 80 to 120 kilometres using a specialist infrared imager, sharpening climate and space weather models while delivering more accurate GNSS position data for aviation. Separately, OHB and Dassault Aviation have jointly proposed the VORTEX-S orbital spaceplane to ESA. Dassault takes the role of architect and integrator — its 2025 revenue of €7.43 billion and order book exceeding €46 billion bring significant heft — while OHB provides the service module. The project fits squarely into Europe’s drive to build autonomous transport capacity, decoupling from reliance on US launch providers.

The financials underscore a robust operating picture that continues to attract long-term institutional interest. OHB reported first-quarter total output of roughly €279 million, with adjusted operating earnings climbing 37 percent. The order backlog swelled to a record €3.3 billion, giving the company exceptional forward visibility. The SOVA-S award, while modest in immediate revenue terms, solidifies OHB’s position as a lead contractor in the fast-growing small-satellite segment and opens the door to further ESA budget allocations. At the same time, the VORTEX-S proposal, if approved, would deepen the company’s ties with a deep-pocketed partner in Dassault.

With a market capitalisation of €11.2 billion, OHB remains one of Europe’s priciest space stocks. How much of that valuation reflects fundamental earnings power versus a sentiment premium tied to the SpaceX IPO hype will become clearer once the New-Space euphoria cools. For now, the group’s dual-track approach — advancing institutional contracts while riding the wave of commercial-space enthusiasm — gives it rare manoeuvring room in a notoriously volatile sector.