A structural step-up in institutional space funding by ESA (€ 22.3bn for 2026-28, +32% vs previous budget), the EU (€ 131bn proposed for defence and space 2028-34, several times above the current space allocation) and Germany (€ 35bn planned for 2026-30, a c. 23x increase vs the previous budget) underpins the secular growth outlook. Recent programme milestones provide evidence that OHB is well positioned to benefit as the company continues to (1) win new orders, (2) demonstrate execution capability and (3) strengthen its role within Europe's sovereign space infrastructure:
In February, ESA awarded OHB an € 81m contract for the RAMSES mission (c. € 150m total project volume by now), moving the programme into implementation. RAMSES supports planetary defence, meaning detecting, characterising, and mitigating risks from near-Earth objects (here: the asteroid Apophis). The award reinforces OHB's position as a trusted ESA contractor on complex, high-visibility institutional missions, and supports backlog quality.
The Meteosat Third Generation Sounder satellite (MTG-S1), built by OHB, has successfully begun delivering its first atmospheric data following launch and commissioning. This is one of the most meaningful execution validation points in the satellite lifecycle, providing evidence of OHB's ongoing ability to deliver on technically demanding missions. This further supports confidence in successful backlog conversion.
OHB recently established the European Moonport Company, targeting future European lunar exploration infrastructure. While the near-term financial impact seems limited, the move underpins OHB's early positioning in potential future lunar programmes.
The successful maiden flight of Ariane 6 in its heavy configuration represents an important step toward restoring a reliable European launch capability. Further, a 10% work share of OHB in the Ariane 6 industrial supply chain (via its subsidiary MT Aerospace) implies direct earnings exposure.
Net, OHB is positioned as a core beneficiary of the 2026+ European space capex cycle and we continue to expect c. € 27bn in cumulative order intake into 2030e. Order momentum is seen to mostly pick up in summer with ESA orders, including follow-on awards in meteorology, where OHB appears well positioned for the AWS successor constellation "EPS-Sterna", having built the AWS prototype. Orders from the German MOD look set to be placed in the later part of the year (eNuW).
As the only relevant European listed pure-play space OEM with strong execution and with catalysts on order intake, we maintain the BUY, PT € 260, based on DCF. Given the stock's limited liquidity and resulting volatility, we view share price weakness as an opportunity to build positions in a structurally attractive long-term story.
ISIN: DE0005936124
