CSG is growing rapidly

The defense and engineering conglomerate Czechoslovak Group posted exceptional growth in 2025—driven by sustained high demand in the defense sector. Revenue jumped by about 72 percent to 6.7 billion euros, and profits also rose significantly.

For CEO Michal Strnad, the year marks a turning point: The results not only exceed expectations surrounding the initial public offering but also reflect the strategic expansion of the business. A key factor in this was the integration of the Kinetic Group, which has massively strengthened CSG’s position in the global ammunition market.

Growth Thanks to the Defense Boom

Momentum in the defense sector remains the key driver. CSG is benefiting from rising spending by many countries as they expand and modernize their military capabilities. The Land Systems and Munitions divisions, in particular, are expected to continue making the largest contribution to earnings in the future.

The company forecasts further growth for 2026: Revenue could rise to as much as 7.6 billion euros, with margins remaining consistently high. There are no signs of a slowdown in demand—even political détente would do little to curb the need for modernization and rearmament.

IPO and Doubts

Despite the strong figures, the capital market has recently shown signs of nervousness. The stock lost significant value following the release of the results and is trading well below the highs reached after the IPO.

Added to this are critical voices regarding the transparency surrounding the IPO. Recent media reports have questioned certain aspects of the prospectus, including information on tenders and minority stakes. The company rejects the allegations and emphasizes that it has met all regulatory requirements.

Regardless of the discussions, CSG remains one of the most influential industrial companies in the region—and a beneficiary of a structural trend: rising defense spending in Europe and beyond.