OHB ETR: OHB said it delivered profitable growth in the first half of 2026, citing rising demand across European institutional space, defense and launch markets, while reaffirming its full-year operating-performance and margin guidance.
The company reported total operating performance of €628 million for the first six months, representing double-digit growth. Adjusted EBITDA rose by more than 30% to €60 million, producing an adjusted EBITDA margin of about 9.6%, according to Chief Financial Officer Tim Tecklenburg.
OHB confirmed its 2026 outlook for approximately €1.4 billion in total operating performance and an adjusted EBITDA margin of 10.5% to 11%. Tecklenburg said the first half accounted for more than 44% of the company’s annual operating-performance target, compared with an average of 39% at the same stage in prior years.
Backlog and Market Pipeline
Management described the order environment as strong, although Chief Strategy Officer Markus Moeller said major contract awards are expected to be weighted toward the second half of the year. The company said its backlog remained at a record-high level, while its project pipeline totaled roughly €20 billion.
Moeller identified several expected near-term opportunities in European Space Agency and European Union programs, including negotiations related to the next-generation Sentinel constellation, the ClearSpace-1 space-situational-awareness and operations mission, and the first tranche of the Opstar navigation program.
OHB is also in active negotiations on the EU’s IRIS² satellite communications program. Moeller said OHB is involved in the medium-Earth-orbit segment, comprising 18 satellites, and that the European Commission has expressed an ambition to conclude negotiations for the broader constellation over the summer.
On the defense side, Moeller said large opportunities are not yet included in the company’s 2026 planning because German procurement processes are expected to begin materializing from 2027. He said the company expects a series of procurements through 2027, 2028 and 2029.
- ESA’s budget voted last year totals €22 billion, with more than 30% growth in projects expected to reach the market between 2026 and 2028, according to OHB.
- Management cited a €35 billion German budget envelope and said requests for proposals are beginning to move from planning to program execution.
- Defense-related activities represent about 40% of OHB’s pipeline, Tecklenburg said.
Capital Increase Strengthens Financial Position
OHB completed a capital increase in late June, listing about 1.6 million new shares and raising gross proceeds of approximately €480 million. Management said the Fuchs family did not sell shares and remained the majority shareholder with more than 60%, while KKR held about 20% and the remaining shares were in free float.
The company expects to be included in the SDAX and TecDAX later this year. OHB said proceeds from the capital raise will support investment in production facilities across Europe, lunar and exploration activities, other frontier applications and Rocket Factory Augsburg. Management also said it is evaluating potential acquisitions.
However, the company said significant acquisitions were not imminent. In response to an analyst question, management said M&A would be aimed at adding geographic breadth or distinctive technologies rather than expanding production capacity, which it characterized as a capital-expenditure matter.
Tecklenburg said the capital increase materially improved OHB’s financial flexibility. The company reported a net leverage ratio of negative 1.1 and an equity ratio above 40%.
Segment Growth and Cash Flow
Space Systems remained OHB’s largest segment, reporting first-half total operating performance of €472 million and a double-digit margin, according to Tecklenburg. The company also cited momentum in its other two segments, including more than 30% operating-performance growth in Access to Space and a 70% rise in backlog in the Digital segment.
Access to Space experienced a somewhat softer margin profile during the period due to planned ramp-up activity, including hiring and capacity investments, Tecklenburg said. He added that management expects margins in the segment to improve in the second half.
OHB reported positive pre-trade-working-capital cash flow and improved cash conversion despite one-off items. Tecklenburg said working capital reflected the company’s typical seasonal pattern and the ramp-up of large projects, including LISA. The company expects working-capital performance to improve in the second half, particularly in the fourth quarter, though Tecklenburg said positive free cash flow after working capital remained a target rather than a forecast.
Programs, International Expansion and Launch Activities
OHB highlighted progress across several programs and international sites. The company said its Bristol facility is being developed into what it described as England’s largest space clean room, and that it recently signed a significant contract related to the EnVision mission. OHB Czechspace was selected as prime contractor for the SOVA-S mission, while OHB Italia signed a contract for the PRISMA-2 hyperspectral satellite mission.
The company also said it completed a successful thermal-vacuum test campaign for the PLATO mission and is advancing the RAMSES planetary-defense mission, led by OHB Italia.
Rocket Factory Augsburg, or RFA, continues to target its first test flight later this year. Management said the rocket was removed from the pad at SaxaVord to inspect its tanks after data raised uncertainty about a tank issue. The team is examining the system before re-erecting the vehicle.
RFA was also selected as one of four companies for European Launcher Challenge agreements. Separately, OHB’s MT Aerospace business is benefiting from Ariane 6 ramp-up activity and supplies to U.S. launch vehicle providers, Tecklenburg said.
Management said demand for launch services remains high and that Europe may need to expand Ariane 6 capacity. While no decision has been made, OHB said a higher launch cadence would require discussions involving ArianeGroup, the European Space Agency, member states and potentially additional infrastructure investment in Kourou.
About OHB (ETR:OHB)
OHB SE operates as a space and technology company in Germany, rest of Europe, and internationally. The company operates through three segments, Space Systems, Aerospace, and Digital segments. The Space Systems segment focuses on developing and executing space projects. This segment primarily develops and manufactures low-orbiting and geostationary small satellites for navigation, research, communications, and earth and weather observation and reconnaissance, including scientific payloads; undertakes projects for the assembly and outfitting of the International Space Station; and prepares studies and models for exploring solar system, such as the moon, asteroids, and Mars.
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