OHB Secures €1 Billion IRIS² Order, Outlook Brightens

OHB SE has secured a nearly €1 billion order for the IRIS², the European Union’s secure communications network, reinforcing its position as a key player in the European space industry. The contract, announced today, covers the development and production of 18 medium Earth orbit (MEO) satellite platforms. This win is projected to generate annual sales peaking around 2028-29 as the program transitions from development to production.

The order arrives as analysts at NuWays AG have raised their target price for OHB to EUR 340, citing a strengthening order outlook. Beyond IRIS², the company is poised to benefit from progress on the Sentinel-3 Next Generation Topography mission, potentially adding approximately EUR 650 million in order intake. Discussions surrounding the SATCOMBw 4 program, a secure constellation for the German military, also suggest a substantial opportunity for OHB, with analysts now estimating the company’s potential share of the EUR 8-10 billion program at 50-70%, translating to EUR 5-7 billion in potential order value in the first half of 2027.

The positive outlook follows the appointment of Alexander Dahm as CEO of Rocket Factory Augsburg (RFA), a subsidiary, bringing industrialization expertise as the company approaches its maiden flight. While launch delays are possible due to winter weather, analysts believe this would not fundamentally alter the investment case. OHB’s total output is expected to increase by 16% year-over-year to EUR 347 million in the third quarter, driven by the existing backlog of approximately EUR 3.3 billion, which is anticipated to grow to EUR 4.2 billion by the end of the year.

These developments occur against a backdrop of increased geopolitical tensions, particularly the war in Ukraine, and a concurrent rise in defense spending across Europe, including Germany. This increased investment in secure communication and Earth observation capabilities directly benefits companies like OHB, positioned as a key supplier to both governmental and commercial entities. The company's ability to capitalize on these opportunities will be critical in the coming years.

OHB’s third-quarter results are expected to show continued growth, with EBITDA forecast to increase by 16% year-over-year to EUR 39 million, resulting in an 11.2% margin. The confirmation of contract values and allocation within these major programs—IRIS², Sentinel, and SATCOMBw 4—will likely serve as key catalysts for further share price appreciation.