OHB: When Europe Needs Its Own Sky

5-year stock timeline

Key Points

From recommendation (August 10, 2026)

• Record order backlog of approximately €3.35–3.4 billion secures multi-year revenue visibility
• Revenue growth of 8.3% and earnings growth exceeding 160% – a turning point is underway following a weak 2024
• Capital increase of approximately 500 million euros strengthens balance sheet and opens M&A options in a consolidating market
• Free float increased from approximately 6% to approximately 26% – materially improved liquidity and institutional relevance [1]
• Management raised medium-term ambition to over €4 billion in operating performance with approximately 13% adjusted EBITDA margin
• German Defense and Space Business Not Yet Fully Reflected in Order Book – Structural Upside Potential
• Guidance for 2026 confirmed, second half expected to outperform first half

Investment Thesis

From recommendation (August 10, 2026)

OHB is neither a classical defense contractor nor a pure technology company—it's both simultaneously, and that's precisely what makes the stock interesting in this geopolitical moment. The company builds satellites for Galileo, Copernicus, and SATCOMBw, programs where Europe stopped asking whether and now only asks how fast. The capital increase in mid-2026 wasn't a sign of distress but a strategic move: fresh capital for capacity expansion, acquisitions, and new launch systems, priced at 300 EUR per share—well above current levels. That creates an interesting starting point. Record-level order backlogs, EPS growth from 3.70 EUR to an estimated 5.17 EUR in the following year, and a pipeline in the German defense segment not yet fully booked all point to a growth story that's only gaining momentum. The valuation isn't cheap at a P/E of around 80 and a PEG of roughly 1.08—but for a company with this structural tailwind and this order visibility, it's not irrational either.

Key risks and downside factors

OHB SE operates as a mid-sized European space systems prime. It competes with large aerospace primes on institutional contracts (ESA, EU, national programmes) and commercial satellite work, while also facing pressure from specialist smallsat suppliers and rideshare operators focused on low-cost LEO constellations. The company carries meaningful risks: its revenue depends heavily on public-sector programmes, its order backlog shows concentration risk, larger consolidated competitors and low-cost entrants compress margins, and program execution remains vulnerable to supply-chain volatility across complex spacecraft and launch hardware.

• Reliance on public-sector funding through ESA, EU, and national programmes creates exposure to policy shifts, administrative delays, and budget constraints that could materially compress new awards or defer revenue recognition.
• A concentrated order backlog creates material risk. Loss, delay, or cost overruns on a handful of major contracts would have outsized effects on both cash flow and margins.
• Larger consolidated European primes and low-cost smallsat entrants create competitive pressure that could compress margins and win rates through pricing, financing, and scale disadvantages.
• Supply-chain and execution risk for complex space hardware and launch access stem from component shortages, supplier failures, and launch delays, each of which can materially increase costs and compress timelines.

Competitive landscape

OHB SE operates as a mid-sized European integrator of space systems and manufacturer of satellites. It pursues contracts from institutional buyers—primarily the European Space Agency and European Union bodies—alongside commercial work in Earth observation, navigation infrastructure like Galileo, and small-to-medium communications satellites. The company faces competition from established aerospace primes such as Airbus Defence & Space and Thales Alenia Space, which leverage scale and institutional relationships, as well as from specialized manufacturers and subsystem suppliers including Maxar, GomSpace, ISISpace, and Hensoldt. The business carries several material risks. Revenue concentration in a small number of large public-sector programs creates dependency on institutional funding cycles and political priorities. Satellite contracts typically involve extended lead times before revenue recognition, which constrains cash flow visibility. Geographic concentration in European markets limits diversification. Supply chain dependencies and launch capacity constraints can delay projects. Finally, the technical complexity of satellite integration and service delivery introduces execution risk and cost overrun exposure on individual contracts.

Catalysts

From recommendation (August 10, 2026)

• New contract awards in the German defense and space segment, not yet fully reflected in the order book
• Stronger H2 2026 according to confirmed guidance – operational improvement following Q2 loss as share price catalyst
• M&A Activity Enabled by Strengthened Balance Sheet Following Capital Increase in a Consolidating European Market
• Further ESA and EU programme awards in Earth observation and navigation (Copernicus follow-on contracts, Galileo expansion)
• Stabilization and Recovery of Price After Pullback – SMA50 as Key Technical Level

Analysis

From recommendation (August 10, 2026)

Performance Figures of OHB SE

in EUR

Historical valuation trends

How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.

Frequently Asked Questions

From recommendation (August 10, 2026)

Key Metrics

From recommendation (August 10, 2026)

Valuation Metrics

Profitability Metrics

Growth Metrics

Dividend history

Long-term record of paid dividends (amount per share and dividend yield at the time of payment).

Earnings history & estimates

Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.

Key financial figures

All figures in EUR

Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.