CSG shares rebound as Michal Strnad's defence business booms

Defence holding Czechoslovak Group (CSG), owned by Czech billionaire Michal Strnad, has reported strong results for the first half of 2026: revenue rose 17.2% to €3.25 billion, while net profit from continuing operations nearly doubled to €572 million. These are the company's first half-year results as a public company, and they arrive just as CSG shares are starting to recover from a prolonged slide.

The main growth driver remains the Defence Systems segment, whose revenue grew 27%. The order book, including contracts under discussion, reached €46 billion, with the largest share now held by the Land Systems division, which the holding set up in the US state of Michigan.

“Demand for our products remains steady. We are confirming our full-year guidance and heading into the second half of the year with confidence,” said CSG chairman and CEO Michal Strnad.

The company is ramping up production of large-calibre ammunition: it plans to produce around 850,000 rounds by the end of the year, up from 550,000 a year earlier, with capacity expected to rise to 1.1 million rounds a year by the end of 2027.

At the same time, Strnad's group is stepping up its presence in the world's largest defence market, the United States. Besides launching CSG Land Systems, the company has opened an office in Washington, and in July began building the Future Artillery Complex for the US Army in Iowa. Overseas it has also set up the Firecrest Aerospace joint venture to produce drone engines, and CSG recently acquired a strategic stake in the Canadian technology company North Vector Dynamics.

CSG went public on the Amsterdam exchange in January this year, raising €3.8 billion, but its share price has since fallen sharply more than once — partly on investor doubts about the company's business model — dropping to around €12. In recent weeks the shares have bounced off the bottom and are now trading at around €20.

The holding ended the half-year with net debt of €2.914 billion and negative operating cash flow, which the company attributes to strategic stockpiling of components — it expects to free up capital in the second half of the year. CSG confirmed its full-year guidance: 2026 revenue is expected to reach €7.4–7.6 billion. The company employs more than 14,000 people, and last year's revenue reached €6.7 billion — more than CZK 162 billion.