CSG Reports Strong 9M 2025 Results, Accelerates Global Defence Expansion

PRAGUE, 18 November 2025 – Czechoslovak Group (CSG) posted strong financial performance for the first nine months of 2025 and announced a series of major strategic moves that further solidify its position as one of Europe’s fastest-growing defence conglomerates.

Major Strategic Developments

CSG continued reshaping its portfolio in 2025, focusing tightly on defence and ammunition:

• Acquired a minority stake in Germany’s Alzchem Group AG, strengthening its exposure to specialty chemicals and energetic materials.
• Signed a contract to build a new medium/large-calibre ammunition plant in the United States, expanding its industrial footprint in the key U.S. defence market.
• Entered a strategic partnership with Hungary’s Rába Járműipari Holding, deepening cooperation in military vehicle production and regional industrial development.
• Completed a new manufacturing facility at Excalibur Army, boosting capacity in land systems.
• Finalised a group-wide portfolio reorganisation, establishing two core segments: Defence Systems and Ammo+. A new “Advanced Systems” division was created to consolidate technologies such as drones, missiles and propulsion.
• Won a landmark Asia-Pacific small-calibre ammunition contract worth over USD 1 billion, supplying a regional ministry of defense.
• Acquired a majority stake in Czech ammunition producer ZVI Vsetín, expanding its 20–30 mm medium-calibre production capability.

Financial Performance

CSG recorded strong top-line and earnings growth across its businesses:

• Revenues reached €4.485 billion in 9M 2025, up roughly 30% year-on-year.
• LTM revenues climbed to €6.2 billion, a +20% increase.
• Adjusted operating EBITDA rose to €1.216 billion, up 31%, with a ~27% margin.
• Operating EBIT reached €1.1 billion, with the Defence Systems division contributing 91% of the figure.
• The Defence Systems segment alone generated €3.464 billion in revenue, +59% year-on-year, with a 29% EBIT margin.

Backlog, Pipeline and Capital Structure

The group reported:

• €14 billion order backlog and an additional €18 billion pipeline, totalling €32 billion in contracted and potential business.
• Net debt of €3.6 billion and gross leverage of 2.6×, in line with company policy.
• Operating cash flow of –€801 million, driven by a €1.9 billion working-capital build-up linked to contract execution and inventory expansion.

Outlook

CSG expects full-year 2025 revenues to exceed €6.4 billion, with pro-forma 2026 revenues projected at €7.4–7.6 billion. The company targets a medium-term operating EBIT margin in the mid-teens and working-capital intensity below 25% of revenue.

The group’s continued push into ammunition, land systems, defense electronics and advanced systems—combined with major international orders—positions it among the most rapidly expanding defense manufacturers in Europe.