OHB SE Positioned for Key Space Contracts Amid Slowing Growth

OHB SE has been recommended as a "BUY" by NuWays AG, with a target price of EUR 340 over the next 12 months. The firm demonstrated margin expansion in Q2, though growth slowed to 9% year-on-year, down from 15% in Q1. Adjusted EBITDA rose by 27% to €33 million, with the firm maintaining a net cash position.

Operational challenges include a delay in RFA's maiden flight, but crucial contracts like the PRISMA Second Generation have been secured. The upcoming IRIS² contract will solidify OHB's role in EU space initiatives before 2030, with additional ESA awards on the horizon.

Looking ahead, the award cycle is expected to widen from 2027 with significant ESA, German, and EU investments in space and defense projects, including Germany's anticipated SATCOMBw4 program.