Czechoslovak Group (CSG) reported a significant increase in both revenue and profit for 2025, driven by strong demand for its defense products. The company’s revenue rose 72 percent year-over-year to €6.7 billion (approximately $7.3 billion USD), while net profit increased by 35.5 percent to €872 million (roughly $950 million USD).
The results, announced on March 26, 2026, align with expectations set during the company’s initial public offering and, in some areas, exceeded them. Growth was primarily fueled by the defense business, particularly the production of large and medium-caliber ammunition and land systems. The integration of previous acquisitions, including The Kinetic Group, also bolstered CSG’s position in the small-caliber ammunition segment.
The Defence Systems division, encompassing land technology, artillery ammunition and other defense technologies, accounted for the bulk of the business, with revenue increasing by more than 55 percent to €5.35 billion ($5.8 billion USD).
While the Ammo+ segment experienced a slight decline on a comparable basis, reported revenue increased due to the full consolidation of The Kinetic Group. The company attributed the weaker performance to lower demand in commercial markets in the United States and higher input costs.
CSG noted that its growth is not uniform across all parts of the group, with defense production in Europe, particularly ammunition and land systems, serving as the primary engine. Business tied to the civilian market in the U.S. Is currently weaker.
“2025 was a pivotal year for the group. We achieved excellent financial results that met or exceeded the expectations set during our IPO,” said Michal Strnad, Chairman of the Board and CEO of CSG.
“We also intensively prepared for the transformation into a public limited company and strengthened governance, management, accounting, and capital structure. Based on these efforts, we successfully completed our listing on the Euronext Amsterdam exchange at the beginning of 2026, creating a solid foundation for the next phase of our growth,” he added.
Strong Order Backlog
CSG emphasized a strong order backlog extending into future years, with orders totaling €15 billion ($16.4 billion USD) at the end of last year and an additional €27 billion ($29.5 billion USD) in projects under discussion. The majority of these orders are for ammunition and land systems, providing a high degree of revenue predictability.
In the fourth quarter alone, the group secured several large contracts, including a framework agreement with the Slovak Ministry of Defense for ammunition supply and orders for Tatra military vehicles for a customer in Southeast Asia.
Slovakia is a key part of the company’s growth strategy, with CSG continuing to expand ammunition production at its facilities in Dubnica nad Váhom and Nováky, investing in new filling capacities and automation to increase large-caliber ammunition output.
Following the end of the accounting period, the group announced further projects, including a memorandum of understanding with Eurenco for the production of artillery powder charges. CSG is also continuing its strategy of vertical integration, seeking to control as much of the production chain as possible, and recently acquired companies involved in the production of nitrocellulose, armor steel, ammunition, and propulsion systems for unmanned vehicles.
The company confirmed its outlook for 2026, expecting revenue to grow to between €7.4 billion and €7.6 billion ($8.1 billion and $8.3 billion USD), with operating margins remaining around 24 to 25 percent. Land Systems and ammunition segments are expected to be the primary drivers of growth.
According to company leadership, profitability should continue to be supported by expanding production, increased efficiency, and greater control over key raw materials and parts of the production process. In the medium term, the company anticipates average organic revenue growth of around 15 percent per year and further improvement in operating margins to a range of 26 to 28 percent.
However, rapid growth has also led to increased debt, with net debt at the end of the year reaching €3 billion ($3.3 billion USD), up from €1.77 billion ($1.9 billion USD) the previous year. CSG maintains that debt remains under control and is in line with previously communicated guidance, given its strong operating performance and proceeds from the January listing on the Amsterdam stock exchange. The IPO, the company said, has created a foundation for further expansion and strengthening of its capital structure.
