News

Czechoslovak Group (CSG) has reported a significant increase in revenue and profitability for the full year 2025, supported by strong demand across its defence businesses and the integration of recent acquisitions.

The group recorded revenues of €6.7 billion, representing a year-on-year increase of 71.7%, while adjusted operating EBIT rose to €1.6 billion, up 60.7%. Operating margins remained in line with expectations at 24.1%. Net profit from continuing operations reached €872 million, an increase of 35.5% compared with the previous year.

CSG’s order backlog climbed to €15 billion, alongside a pipeline of €27 billion, providing what the company described as strong multi-year visibility. The group also reaffirmed its guidance for 2026 and its medium-term outlook.

Growth during the year was driven by continued demand for defence systems and the integration of The Kinetic Group, alongside a series of acquisitions aimed at strengthening vertical integration across key production inputs. These included MSM Walsrode, ZVI Vsetín, MUST Solutions and GAMA OCEL, as well as the establishment of a joint venture in Greece focused on TNT supply.

The company also secured several major contracts during the year. These included a seven-year framework agreement with the Slovak Ministry of Defence for up to €58 billion in medium and large-calibre ammunition, and a contract valued at more than $1 billion to produce tactical vehicles for a Southeast Asian customer.

Further strategic developments included a cooperation agreement with KNDS Deutschland relating to Leopard 2A8 main battle tank hull production, as well as the formation of a joint venture in India aimed at capitalising on defence procurement opportunities in the region.

CSG continued to expand its manufacturing capacity, including the introduction of licensed large-calibre ammunition production in Ukraine, automated 155mm filling lines in Slovakia, and the completion of a new facility at Excalibur Army.

The group also completed its IPO and listing on Euronext Amsterdam in early 2026, followed by inclusion in both the MSCI Standard and FTSE All-World indices. As part of its strategic restructuring, CSG streamlined its operations into two core segments, CSG Defence Systems and CSG Ammo+, while divesting more than 35 non-core entities and launching a new Advanced Systems division focused on propulsion, missile and UAV technologies.

Michal Strnad, chairman and chief executive officer of CSG, said: “2025 was a defining year for the Group. We delivered strong financial results in line or ahead of expectations set out at our IPO, while also executing at pace across the business. We secured major long-term contracts, expanded our production footprint and advanced our vertical integration strategy. At the same time, we undertook extensive preparation for becoming a public company, strengthening governance, reporting and capital structure. Building on that work, we successfully completed our listing on Euronext Amsterdam at the start of 2026, providing a strong platform for our next phase of growth.

“We are well placed to capitalise on a strong demand environment driven by near-term geopolitical developments, multi-year procurement frameworks and structural defence budget increases across NATO and allied nations. Our record order backlog of €15bn provides strong multi-year visibility.

“Our focus remains on disciplined execution. We have built scale in core defence systems, expanded capacity and strengthened control over critical inputs. Our order backlog, enhanced capacity and disciplined balance sheet give supports our ability to deliver sustainable growth and drive continued efficiency improvements. We look to the remainder of the year and beyond with confidence.”