Czech Defense Giant CSG Reports Record €18 Billion Order Backlog
Czech defense manufacturer CSG reported a record €18 billion order backlog and €4.76 billion in nine-month revenue as military vehicle and ammunition demand drives expansion.
Czechoslovak Group (CSG), one of Europe's largest defense manufacturers, reported a record order backlog of €18 billion for the first nine months of 2026, reflecting strong demand for ammunition, military vehicles and air defense systems.
The Czech industrial group generated €4.76 billion in revenue between January and September, an increase of 6.1% compared with the same period in 2025, according to financial results released on November 11.
Operating earnings before interest and taxes (EBIT) reached approximately €1.1 billion, with a margin of 23.1%.
The company's backlog increased from €15 billion at the end of 2025 to €18 billion at September 30, while its additional pipeline of opportunities under negotiation reached €29 billion.
Together, the two categories represent €47 billion in potential business, although the pipeline does not constitute contracted revenue.
Military Vehicles Become CSG's Largest Order Segment
Land Systems now accounts for 57% of CSG's total backlog, overtaking ammunition as the group's largest segment by future order value.
Medium- and large-caliber ammunition accounts for approximately 32%, while smaller shares come from the group's commercial ammunition, electronics and advanced systems businesses.
Several important contracts contributed to the group's industrial expansion during 2026.
In Poland, CSG signed three contracts with Huta Stalowa Wola worth more than €150 million to supply Waran 4x4 and Heron 6x6 vehicle chassis. A separate agreement worth more than €100 million with Dezamet covers components for 155 mm artillery ammunition.
CSG is also participating in a Latvian military modernization program centered on the MORANA self-propelled howitzer and multiple rocket launcher systems, with an estimated value in the hundreds of millions of euros.
The developments strengthen CSG's position within Central and Eastern Europe's expanding military supply chain.
German Investment and Ammunition Production
The group has continued investing in manufacturing capacity, including the acquisition of a 57-hectare industrial site in Gnaschwitz, Saxony.
CSG plans an initial investment exceeding €100 million to establish production of nitroglycerin, ammunition and related components at the German site.
Combined with its existing Walsrode operation, the investment is intended to strengthen the group's European supply of energetic materials.
The company is targeting annual production capacity of 1.1 million medium- and large-caliber ammunition rounds by the end of 2027, alongside increased in-house production of propellants and energetics.
In the United States, AdriaDefense recently reported that CSG's MSM North America was selected as one of the contractors eligible to compete under a U.S. Army ammunition plant modernization framework worth up to $4.2 billion.
Revenue Forecast Maintained Despite Margin Pressure
CSG reaffirmed its full-year 2026 revenue guidance of €7.4 billion to €7.6 billion.
However, the company lowered its expected annual operating EBIT margin to approximately 21%, from a previous forecast of 24% to 25%.
The adjustment reflects changes in ammunition demand, lower prices for standard-range ammunition sold from inventory and the growing contribution of military vehicle programs that have not yet reached mature production margins.
Despite those pressures, CSG's order position provides considerable visibility into future demand.
The results illustrate how the European defense industry's expansion increasingly depends on long-term manufacturing capacity, control of critical supply chains and the ability to deliver military equipment at scale.
