Original-Research: OHB SE (von NuWays AG): BUY

Classification of NuWays AG to OHB SE

Company Name:	OHB SE
ISIN:	DE0005936124
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 141
Target price on sight of:	12 months
Last rating change:
Analyst:	Henry Wendisch

Strong ESA budget increase at OHB's sweet spots

Last week, the ESA ministerial conference decided on a sharp increase of the European civil space budget for the next three years. Here are our key takeaways for OHB:

The ESA budget grew by 30%, rising from € 16.9bn in 2022 to € 22.1bn, which fully meets the director general’s target of € 22bn. This increase shows that member states recognise the growing importance of civil space missions. It also reflects a major change, as funding is now being provided for dual-use missions for the first time.

OHB’s home country shows strong commitment. Germany was again the largest contributor and expedited its commitment by 44% to € 5.1bn, making up 23% of the total budget. This is the largest absolute increase in commitment from any member states. France came in second at € 3.6bn (16% of budget), which is a below average increase of 12%. The third largest contributor was Italy with solid contributions of € 3.5bn (16% of budget), growing by 12%. As a reminder, OHB’s largest subsidiaries are located in Germany and Italy.

Solid increases in OHB’s key domains. For the domain Earth observation, OHB’s core competence field, the ESA budget will grow by 28% to € 3.5bn, which includes dual-use missions. Moreover, funding for Navigation has seen a steep rise by 176%to € 969m, particularly for a new low Earth orbit (LEO) navigation service, where OHB also has a strong track record. The domain of Science (also one of OHB’s sweet spots) expanded by 19% to € 3.8bn, with long-term science missions like “L4 to Enceladus” receiving funding. Importantly, the domain Space Transportation saw a massive hike by 57% to € 4.4bn, showing ESA’s increased focus on access to space. Especially new market entrants from micro-launchers (e.g. OHB’s Rocket Factory Augsburg, RFA) are seen to be supported further under the “European Launcher Challenge”, while ESA continues support for Ariane 6 (where OHB subsidiary MT Aerospace has a 10% work share) and Vega-C. In the field of Human and Robotic Exploration, ESA continued is large budget of € 3bn (+10%), where joint ESA-NASA moon missions (Artemis) are underway. For this, OHB is already sub-contracted to build vital parts of the lunar lander “Argonaut”.

Now that funding is secured, the planned missions and programs should be ready for tender in the next 12-18 months. As a reminder, ESA operates with a geo-return principle, for which OHB is well positioned and should thus secure a solid share of these tenders, especially due to Germany’s strong budget contributions. However, it is still too early to estimate concrete order intake figures, so we keep our assumptions for order intake and output growth unchanged.

Against this backdrop, we reiterate our BUY recommendation with an unchanged PT of € 141, based on DCF.
 

You can download the research here: ohb-se-2025-12-01-update-en-9fd2e
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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