Michal Strnad's CSG: revenue down 12%, shares drop 17% in Q3

Czechoslovak Group (CSG), the defense group of the richest Czech, Michal Strnad, disappointed analysts in the third quarter: revenue came to €1.51 billion, down 12% year on year. The company’s shares reacted by falling 17%.

In the first nine months of 2026, CSG’s revenue reached €4.76 billion (almost 116 billion crowns), just 6.1% more than a year earlier. For the third quarter, Bloomberg had expected €1.86 billion, so the result came in well below the forecast (36.77 billion crowns when converted).

What is dragging revenue down

CSG’s main revenue driver, the Defence Systems division, lost 16% over three months and brought in only €1.17 billion. The Ammo+ segment, by contrast, grew by 11%. The remaining business lines contributed just €8 million, 72% less than a year earlier.

Strnad, CSG’s chairman and CEO, blamed the shortfall on shifting delivery dates and the mix of activities. According to him, the revenue expected in the third quarter will be recognized in the fourth: roughly €300 million has moved there.

Guidance maintained, margin under pressure

The group confirmed its full-year revenue forecast of €7.4 billion to €7.6 billion (roughly 180–185 billion crowns). At the same time, CSG lowered its operating margin forecast because of higher costs linked to numerous deliveries of ground vehicles.

EBITDA, or gross operating profit, rose to €1.2 billion (29.7 billion crowns). The order backlog reached €18 billion, with a further €29 billion under negotiation.

New contracts and construction

In the third quarter, CSG was chosen as a supplier for the police forces of Sweden, Finland, Norway, Denmark and Iceland. The group also completed the purchase of the Gnaschwitz site in Germany and began construction of its Future Artillery Complex in Iowa in the United States.

By the Around Prague newsroom