OHB SE: history, ownership, mission, how it works & makes money

A Brief History of OHB SE

OHB SE, headquartered in Bremen, Germany, is a significant player in the aerospace and satellite industry. Founded in 1981 by Manfred Fuchs, the company initially focused on satellite systems and has since expanded its portfolio in both the commercial and governmental sectors.

In 1999, OHB SE went public, subsequently listing its shares on the Frankfurt Stock Exchange, which marked a pivotal moment for the company as it gained access to capital markets for further expansion.

By 2007, OHB SE had reached a critical milestone with the acquisition of MT Aerospace AG, a leading manufacturer of aerospace components. This acquisition helped OHB diversify its business operations and strengthen its position in satellite manufacturing and launch services.

The company continued to grow, achieving revenues of €131.9 million in 2010, a clear indicator of its growing market presence and capabilities. OHB SE has focused on building a robust order book and invested significantly in research and development.

In 2014, OHB successfully launched the European Data Relay System (EDRS), enhancing its role in satellite data transmission. The EDRS project, worth over €130 million, showcased the company's expertise in advanced satellite systems.

As of 2021, OHB SE reported consolidated revenues amounting to €461 million and an EBITDA of €55 million. The company’s order backlog reached approximately €1.5 billion, underscoring its strong market position and future growth potential.

In 2022, OHB SE announced its entry into the space transportation segment with the development of its own launch vehicle, which is projected to be operational by 2025. This strategic move aims to compete in the growing market for small satellite launches.

The company has been actively involved in various European Space Agency (ESA) projects, including the Copernicus Programme, which highlights its commitment to Earth observation and data utilization.

As of 2023, OHB SE continues to innovate in satellite solutions, aiming for a leadership role in the European space market. The company actively invests in technology and partnerships to enhance its service offerings and operational efficiency.

A Who Owns OHB SE

OHB SE is a publicly traded company on the Frankfurt Stock Exchange, specializing in the aerospace and IT sectors. The ownership structure of OHB SE reflects a mix of private and institutional investors.

As of the latest reports, the significant shareholders of OHB SE are as follows:

OHB SE's largest shareholder is OHB System AG, a corporate entity that holds a significant portion of the company’s equity. Berthold A. H. W. Bock, an individual investor, is the second-largest shareholder. Institutional investors such as UBS Group AG and BlackRock, Inc. also play a prominent role in the ownership structure, indicating confidence in the company's potential.

The company is involved in several key projects, including satellite systems and space exploration initiatives, contributing to its growth and attracting a diverse set of investors.

As of the last fiscal year, OHB SE reported revenue of approximately €1.1 billion, with an operational EBITDA of €150 million. The company’s share performance has shown resilience, with a price appreciation of over 30% in the past year. The stock price, as of the latest update, stood at around €36.50.

Institutional ownership of OHB SE has risen over the past year, reflecting growing interest from professional investors. The current data indicates that institutional investors collectively hold approximately 30% of the total shares, underscoring the firm's strong market presence.

OHB SE Mission Statement

OHB SE, a prominent player in the aerospace and technology sectors, operates with a mission aimed at creating and enhancing space-related systems, satellite technology, and segment-specific solutions. Their ethos is driven by innovation, sustainability, and technological advancement, catering to both commercial and governmental clients globally.

The company emphasizes its commitment to the development of high-quality systems capable of meeting the stringent demands of space exploration and satellite communication. As stated in their mission, OHB SE aims to contribute to the advancement of space technology through continuous innovation, maintaining a competitive edge in an evolving market.

According to the company's latest financial reports, OHB SE generated a revenue of €1.08 billion in 2022, marking a year-on-year growth of 8%. The aerospace and security divisions remain significant contributors, with the satellite systems segment achieving around €421 million in revenues alone.

OHB SE's workforce consists of approximately 3,500 employees across numerous locations, which highlights their capacity for large-scale project management and innovation. The company's investment in research and development reached about €73 million in 2022, underscoring their commitment to advancing space technology and maintaining leadership in the industry.

In their mission statement, OHB SE emphasizes not only technological excellence but also their dedication to sustainable practices in the aerospace industry. They have undertaken initiatives aimed at reducing environmental impact, including the development of greener propulsion systems and sustainable aerospace technology.

OHB SE's vision encompasses a collaborative approach, working alongside governments and private enterprises to push the boundaries of space exploration. This is reflected in their diverse portfolio, which includes projects like the Satellite Communications Systems, contributing to both civilian and military applications.

Further, OHB SE has been actively engaged in international partnerships, collaborating with organizations such as the European Space Agency (ESA) and various commercial satellite operators. These collaborations aim to expand their capabilities in areas like Earth observation, satellite navigation, and deep-space missions.

How OHB SE Works

OHB SE operates primarily in the aerospace and telecommunications sector, focusing on satellite manufacturing and related services. The company is headquartered in Bremen, Germany, and is publicly traded on the Frankfurt Stock Exchange under the ticker symbol "O4B." As of October 2023, OHB SE reported a market capitalization of approximately €865 million.

OHB’s business structure encompasses several divisions, including Space Systems, Aviation, and Security. The Space Systems division is the most significant contributor to revenue, primarily through the development of satellites and space systems for governmental and commercial clients.

Financial Performance

In the fiscal year 2022, OHB SE recorded revenues of €571 million, a substantial increase from €534 million in 2021. The company's net profit for 2022 was €45 million, reflecting a profit margin of approximately 7.9%.

Recent Earnings Overview

Operational Segments

The operational segments of OHB SE play a vital role in the company's business model. The Space Systems segment specializes in developing satellites for Earth observation, telecommunications, and scientific missions. Notable projects include the Galileo satellite navigation system and the Copernicus Earth observation program.

The Aviation division contributes significantly through the production of advanced aircraft systems and components. In 2022, this division accounted for approximately 20% of total revenues.

Market Strategy

OHB SE employs a diversified market strategy, focusing on both governmental contracts and commercial opportunities. In recent years, the company has increased its footprint in international markets, successfully securing contracts with the European Space Agency and several non-European clients. As of Q3 2023, OHB holds a backlog of contracts worth over €1 billion, ensuring revenue stability for the coming years.

Recent Developments and Future Outlook

In early 2023, OHB SE announced its participation in the development of ARIANE 6, which aims to enhance European launch capabilities. This project is expected to significantly impact the company’s growth trajectory and align with the rising demand for satellite launches.

According to industry analysts, the expected compound annual growth rate (CAGR) for the global satellite market is projected at 5.8% from 2023 to 2030. This growth trend aligns well with OHB SE's strategic initiatives, positioning the company to capitalize on expanding opportunities in the aerospace sector.

Stock Performance

As of October 2023, OHB SE's stock price stands at approximately €39.50, showing a year-to-date increase of 15%. Over the past five years, the stock has seen an overall appreciation of around 70%, outperforming many of its peers in the aerospace industry.

Conclusion

OHB SE remains a pivotal player in the European aerospace industry, with a strong focus on innovation, strategic partnerships, and expansion into international markets. The company's robust financial performance and strategic projects position it well for future growth amidst a dynamic market landscape.

How OHB SE Makes Money

OHB SE generates revenue through various segments within the aerospace and satellite industry. The company focuses primarily on satellite systems, space infrastructure, and related services. In 2022, OHB SE reported a total revenue of €1.1 billion, with a significant portion contributed by its satellite systems segment.

Revenue Breakdown by Segment

Within the Satellite Systems segment, OHB focuses on the development of small and medium-sized satellites. The company is known for producing the Galileo satellite navigation system and various Earth observation satellites, which contribute significantly to its revenue stream. As of the first half of 2023, OHB secured contracts worth approximately €300 million for new satellite projects, indicating robust demand in the sector.

Key Clients and Contracts

OHB SE’s clients range from governmental bodies to private sector companies. The company has ongoing contracts with various European Space Agency (ESA) programs, including the Copernicus program for Earth observation. In 2022, contracts with ESA accounted for over 40% of OHB's revenue in the satellite systems segment.

• In May 2023, OHB was awarded a contract valued at €150 million for the development of new Galileo satellites.
• OHB also partners with the German Aerospace Center (DLR) to develop advanced technological solutions, worth around €75 million annually.
• Through its subsidiary, OHB System AG, the company launched an initiative to develop communication satellites, projecting revenue growth of approximately 15% per year in this area.

Financial Performance Indicators

OHB SE's financial performance is further illustrated by its growth in EBITDA and net income. In 2022, the company reported an EBITDA of €143 million, reflecting an EBITDA margin of approximately 13%. The net income for the same year was about €58 million, showcasing a year-over-year growth of 20%.

Future Outlook

Looking ahead, OHB SE is well-positioned to capitalize on the growing demand for satellite technology and space-related services. The company estimates that the global satellite market will reach approximately €300 billion by 2030, with significant contributions from LEO (Low Earth Orbit) satellite launches. Their investment in innovative technologies and expansion into emerging markets is expected to drive continued revenue growth in the coming years.

As of 2023, OHB SE has initiated plans for a new research and development program with a budget of €50 million focused on advanced satellite communication systems, indicating a strategic push towards enhancing its technological capabilities.