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Original-Research: OHB SE - from NuWays AG

01.12.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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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 EUR 16.9bn in 2022 to EUR 22.1bn, which
fully meets the director general's target of EUR 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 EUR 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 EUR 3.6bn (16% of budget), which
is a below average increase of 12%. The third largest contributor was Italy
with solid contributions of EUR 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 EUR 3.5bn,
which includes dual-use missions. Moreover, funding for Navigation has seen
a steep rise by 176%to EUR 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 EUR 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 EUR
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 EUR 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 EUR 141, based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=6f0d0e18b00d611f603dff21db0e0e33
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
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2237790 01.12.2025 CET/CEST

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