OHB Wins Nearly 1 Billion Euro IRIS2 Contract for 18 MEO Satellite Platforms
Europe's IRIS2 secure-connectivity program moved into full implementation in August with 66 additional low-Earth-orbit satellites, taking the main constellation to 348 spacecraft: 330 in LEO and 18 in medium Earth orbit. The satellite count tells governments what system they intend to own. It does not tell shareholders which supplier has captured the economics.
OHB now has the clearest answer. On Aug. 31, the German space company signed a contract with SES worth nearly 1 billion euros to develop and build all 18 MEO satellite platforms. OHB calls it the first major contract under the IRIS2 concession. Each platform is designed for roughly 15kW of maximum power and a launch mass around 2.6 tonnes.
That award is more investable than the aggregate constellation expansion because it contains a named customer, a defined work package and an approximate contract value. The 66 additional LEO satellites still sit across a broader industrial chain that includes Airbus Defence and Space, Thales Alenia Space, OHB, Aerospacelab and other suppliers. Without disclosed workshare, the extra spacecraft cannot be translated into company revenue simply by multiplying satellite count by an assumed price.
The financing architecture also deserves more attention than the sovereignty narrative. The original 12-year concession was costed at about 10.6 billion euros: 6 billion euros from the EU, 550 million euros from ESA and more than 4 billion euros from the private sector. The European Commission noted when awarding the concession that EU contributions span multiple financial perspectives and that amounts after Dec. 31, 2027 depend on successor-program adoption and available appropriations.
The Aug. 6 implementation agreement reduces design uncertainty. The Commission and SpaceRISE say they have now confirmed system design, capacity, deployment schedule, target price and the private operators' investment. The public announcement does not disclose every revised financial parameter, so investors should not assume that the old 10.6 billion euro envelope maps one-for-one onto the expanded 348-satellite configuration.
Contracted workshare is arriving before margin visibility
First launch is envisaged for 2029, with service targeted around 2030. Between now and then, satellite builders must convert the public-private concession into production, qualification, launch and ground-system milestones.
For OHB, the near-1 billion euro MEO award already establishes a revenue opportunity of real scale. It does not disclose the margin, payment profile or working-capital curve. Those terms determine how much shareholder value sits inside the contract rather than its headline backlog value.
IRIS2 has therefore crossed two separate thresholds. The political system is now a funded, legally binding concession moving into implementation, and one listed supplier has captured a defined major work package. The 66-satellite expansion broadens the program; the OHB contract is what makes part of that program measurable. Supplier upside from the remaining LEO work should wait for equally concrete awards.
Sources
European Commission - IRIS2 implementation agreement · ESA - IRIS2 funding and concession structure · OHB - Near-1bn-euro contract for 18 MEO platforms · EUSPA - Expanded 348-satellite architecture