Seraphim Space Investment Trust PLC (LSE:SSIT) shares jumped 5.5% to 100.4p after its largest portfolio holding, ICEYE, won a €1.7 billion contract through a joint venture with Rheinmetall to deliver satellite reconnaissance capabilities to the German armed forces.
The contract, awarded by the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), will see Rheinmetall ICEYE Space Solutions GmbH provide a dedicated synthetic aperture radar (SAR) satellite constellation.
The agreement covers constellation operations, ground infrastructure, and AI-driven image evaluation, with an initial term of five years from late 2025 and options for extension. The JV will deliver a very high number of images per day from Rheinmetall ICEYE Space Solutions' own sovereign constellation, with production of the first joint venture SAR satellites scheduled to begin in the third quarter of 2026 at the company’s site in Neuss.
James Bruegger, chief investment officer of the trust's manager, Seraphim Space Manager, called it a "landmark contract" that "reinforces ICEYE as the global leader in sovereign space-based intelligence and highlights a major shift in defence strategy by European governments from reliance on legacy systems to resilient, AI-enabled satellite constellations."
As of 30 September, ICEYE was valued at €2.4 billion following its €150 million Series E funding round and represented 34.7% of SSIT’s net asset value.
Following this contract award, Seraphim said ICEYE’s 31 December valuation "will revert to the comparable multiples methodology".
Shares in Seraphim are up over 150% over the past two years, after falling to below 30p, and are now back above their IPO issue price from 2021.