The aerospace and technology group OHB SE is positioning itself for what could become one of the most significant procurement programs in German military history. Company officials confirmed discussions this week regarding the formation of a consortium to bid on the SATCOMBw Stage 4 satellite network project, a contract with an estimated value reaching €10 billion. Securing this deal would substantially elevate the group’s already robust order backlog.
Strong Operational Momentum Provides Foundation
Independent of this potential mega-contract, OHB’s core business is demonstrating considerable strength. The company reported a 24% increase in new orders for 2025, reaching approximately €2.1 billion. Its firm order backlog experienced an even more dramatic surge, jumping 47% to over €3.1 billion. This growth is supported by key project wins, including a recent European Space Agency (ESA) contract for the RAMSES asteroid mission and ongoing involvement in the Ariane 6 launcher program.
In response to this positive trajectory, management revised its medium-term targets upward in January. The company now aims for total revenue of €1.4 billion with an EBITDA margin of 11% by 2026. Furthermore, OHB projects it will surpass the €2 billion revenue threshold from 2028 onward, driven primarily by expanding budgets at European space agencies and increasing defense sector importance.
Consortium Aims for Sovereign Satellite Communications
The SATCOMBw Stage 4 initiative plans for a constellation of 100 to 200 satellites in low Earth orbit. Its objective is to provide the German armed forces with a secure, sovereign communications network independent of US systems by 2029. To compete for the award, a powerful alliance is reportedly taking shape, with Airbus Defence and Space seeking a joint bid alongside Rheinmetall and OHB.
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Roles within the potential consortium are clearly defined. Rheinmetall would lead military systems integration, while OHB would be responsible for satellite manufacturing and engineering. Evidence of OHB’s strategic preparation for a project of this scale emerged last autumn. The company is expanding a recently acquired production facility in Schöneck, Saxony, specifically to align with the serial production capabilities required for SATCOMBw.
Investors Awear Key Financial and Contract Milestones
The next critical event for shareholders is the annual results press conference scheduled for March 19. When presenting the audited financial statements for 2025, market attention will focus intensely on whether the tremendous growth in orders has successfully translated into profitable cash generation. Given the substantial upfront investments needed for its project pipeline, the development of OHB’s liquid funds is a crucial metric to watch.
A final decision from the German Bundeswehr on the multi-billion euro SATCOMBw contract is still several months away. The upcoming financial results will therefore provide investors with an essential reality check on the core business’s profitability ahead of any potential award.
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