OHB SE Poised for Major Defense Contract Amid European Space Reshuffle

OHB eyes major role in Germany's €10B SATCOMBw Stage 4 satellite program. The company reports strong 2025 orders and a record backlog, bolstered by Ariane 6 and new ESA contracts.

A significant defense project with the potential to reshape the European competitive landscape is moving to the forefront for OHB SE. According to a Bloomberg report, Airbus Defence and Space is considering a joint bid with Rheinmetall and OHB for Germany's "SATCOMBw Stage 4" program. This Bundeswehr satellite initiative carries an estimated price tag of up to €10 billion. The central questions now are whether the consortium will be finalized and what portion of the massive contract would ultimately flow to OHB.

Operational Performance Provides Solid Foundation

Beyond the strategic prospects, OHB's current operational metrics show robust health. For the full 2025 fiscal year, the company reported a surge in new orders to approximately €2.1 billion, marking a 24% increase compared to the prior year. The total order backlog surpassed €3 billion for the first time, reaching €3.117 billion.

Financial performance in the first nine months of 2025 was equally strong, with total output climbing 21% to €863.5 million. EBITDA improved from €62.4 million to €75.5 million. The company also secured an additional €81.2 million contract from the European Space Agency (ESA) for the RAMSES mission on February 10.

Another key operational milestone was passed on February 12, when the Ariane 6 rocket completed its first commercial launch. This is materially relevant for OHB because its subsidiary, MT Aerospace, supplies tanks and structural components, holding a 10% workshare in the overall Ariane 6 program. Since its full consolidation in October 2025, all revenues from MT Aerospace's production ramp-up are now fully reflected in OHB's financial statements.

Consortium Takes Shape for Satellite Mega-Project

The Bloomberg information indicates that Airbus has formally notified the German procurement office of its intent to form a consortium with Rheinmetall and OHB for SATCOMBw Stage 4. This development would solidify a previously disclosed alignment; in late January, OHB confirmed via an ad-hoc announcement that it was in talks with Rheinmetall regarding cooperation on public sector tenders, with SATCOMBw Stage 4 as a central topic.

The project's goal is to establish a sovereign, Starlink-like communications network for the German armed forces by 2029, reducing reliance on U.S. systems. Unlike earlier phases, Stage 4 focuses on a constellation of at least 100 satellites in low Earth orbit.

Defined Roles and Prepared Capacity

A clear division of labor is envisioned for the proposed three-company team: Rheinmetall would be responsible for military systems integration, while OHB would handle satellite manufacturing and engineering. OHB has proactively built capacity for such an undertaking. In October 2025, the group acquired a facility in Schöneck, Saxony, specifically to enable the series production scale required for a program of SATCOMBw's magnitude.

Competition, however, remains a factor. Airbus already operates the existing SATCOMBw Stages 2 and 3 and has also confirmed discussions with Germany's Federal Ministry of Defence. Furthermore, OHB has pointed to the changing competitive environment posed by the announced merger of the space divisions of Airbus, Thales, and Leonardo, which would create a formidable European rival.

Financial Targets and Upcoming Reporting

OHB has outlined concrete, quantified financial objectives. For 2026, the company is targeting total output of €1.4 billion with an EBITDA margin of 11% (EBIT margin: 8%). The 2027 plan calls for €1.7 billion in total output and a 12% EBITDA margin (EBIT margin: 9%), with ambitions to exceed €2.0 billion annually from 2028 onward.

The next key date for investors is the annual results press conference scheduled for March 19, where OHB will present and discuss its audited consolidated financial statements for 2025. This event will provide clarity on how profitability is evolving relative to top-line growth and the extent to which operational momentum is translating into the financial figures.