The German aerospace and technology group OHB SE has confirmed its participation in consortium talks for a substantial new defense project, potentially positioning the company for a multi-billion euro award. This development coincides with the release of preliminary annual figures showing a significant expansion in the company’s order backlog, raising questions about its operational capacity to support such ambitious growth.
Preliminary Figures Reveal Strong Momentum
Recent unaudited results for the 2025 fiscal year provide a solid foundation for OHB’s aspirations. The company reported a 24 percent increase in new orders, which reached approximately €2.1 billion. More notably, the firm’s confirmed order backlog surged by 47 percent to over €3.1 billion. This growth is largely attributed to increased budgets from the European Space Agency (ESA) and the European Union, coupled with rising demand within the defense sector. Recent contract wins, such as an €81 million agreement for the ESA’s RAMSES asteroid mission and ongoing involvement in the Ariane 6 launcher program, underscore this positive trajectory. In response, management has raised its mid-term targets, aiming for total output to exceed €2 billion by 2028 with a target EBITDA margin of over 12 percent.
Consortium Eyes €10 Billion Satellite Network
The major opportunity on the horizon is the SATCOMBw Stage 4 program, a defense initiative to establish an independent communications infrastructure for the German armed forces by 2029. According to media reports, a consortium comprising Airbus Defence and Space, Rheinmetall, and OHB is being formed to bid for the contract. The project involves deploying a constellation of 100 to 200 satellites in low Earth orbit, with an estimated total value of up to ten billion euros. OHB confirmed the ongoing discussions via an ad-hoc announcement earlier this week.
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Within the proposed consortium, roles are becoming defined. OHB, headquartered in Bremen, would be responsible for satellite manufacturing, while Rheinmetall would oversee military systems integration. In preparation for the potential serial production required, OHB proactively acquired a manufacturing facility in Saxony last October to secure the necessary capacity.
Financial Health and Upcoming Scrutiny
The key question for investors is whether the company’s profitability can keep pace with its rapid expansion in orders. All eyes are now on March 19, when OHB will hold its annual financial press conference and present the audited group financial statements for 2025. Given the substantial upfront investments needed for planned satellite serial production and other large-scale projects, the development of the company’s liquidity will be a primary focus. The capital market is expected to closely examine the extent to which the record order backlog is already translating into robust cash flows.
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