A €10 Billion Alliance Forms for Europe's Military Space Ambitions

Europe's aerospace and defense sector is witnessing the formation of a powerful new consortium. Bremen-based space technology group OHB SE is joining forces with industry giants Airbus and Rheinmetall to pursue one of the decade's most valuable defense contracts. The partnership aims to secure a pivotal project for the German armed forces, focusing on achieving technological sovereignty in space rather than merely manufacturing hardware.

Strategic Consortium Targets Major Defense Contract

The alliance solidified over the weekend as Airbus entered an existing cooperation framework between OHB and Rheinmetall. The trio is setting its sights on the German military's flagship SATCOMBw Stage 4 initiative. Codenamed "Sovereign Constellation," the program calls for establishing a highly secure military communications network comprising approximately 100 satellites by 2029. The financial scale of the undertaking is substantial, with estimates placing its total value between eight and ten billion euros.

Within this bidding group, OHB and Airbus will contribute their combined technological expertise in satellite manufacturing. Concurrently, Rheinmetall will be responsible for integrating the new system into the armed forces' existing infrastructure. Market observers interpret this coalition as a robust strategic response to Europe's escalating demand for secure, sovereign military communication capabilities.

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Strong Financial Performance Provides Foundation

Management laid the groundwork for such ambitious large-scale projects in mid-March with the release of its 2025 financial results. OHB significantly exceeded its own profitability targets. Total revenue advanced by 21 percent to just under €1.25 billion. Simultaneously, the company's adjusted operating profit (EBIT) increased 17 percent to reach €84 million.

A key driver behind these figures is a record order backlog valued at €3.19 billion. The majority of this backlog is attributed to the Space Systems segment. According to CEO Marco Fuchs, the company's consistent strategic focus on the industrialization of space activities is now yielding visible results. This positive trajectory is further accelerated by rising budgets at the European Space Agency (ESA) and increased military investment across the continent.

Public Listing Viewed as Strategic Asset

The company's approach to its shareholder structure is noteworthy in this context. Despite the involvement of financial investor KKR, management currently has no plans to delist its shares, which trade around €257. The leadership views the public listing as a crucial element in building essential trust with government contractors. It also ensures continued access to capital markets, which will be vital for financing future major contracts.

Consequently, the executive board has adopted an optimistic outlook, raising its financial forecasts. OHB is now targeting total revenue exceeding two billion euros by 2028. Investors will receive the next detailed operational update on May 7, when the company publishes its quarterly figures for the first three months of 2026.

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