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# CSG Reports Strong 9M 2025 Results, Accelerates Global Defence Expansion
- URL: https://www.adriadefense.com/csg-reports-strong-9m-2025-results-accelerates-global-defence-expansion/
- Published: 2025-11-18T14:49:49.000Z
- Updated: 2025-11-18T14:49:49.000Z
- Description: Czechoslovak Group delivered strong 9M 2025 results, posting €4.5B in revenue and announcing major strategic moves including a U.S. ammunition plant, a $1B Asia-Pacific contract, and new manufacturing facilities. The group continues its rapid expansion across defence systems and ammunition.
- Author: AdriaDefense Desk
- Tags: Czech Republic, Czechoslovak Group, CSG, Michal Strnad, Prague, #Rába Járműipari Holding, Excalibur Army, ZVI Vsetín, Industry

**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.