CSG slows down in the third quarter due to delivery delays
Revenue forecasts have been confirmed, whilst EBIT is expected to be 21 per cent, compared with the previous estimate of between 24 per cent and 25 per cent.
CSG, the European arms manufacturer owned by the Czech entrepreneur Michal Strnad, has confirmed its sales forecasts for the full financial year, but has revised downwards its estimates for the operating margin (EBIT), now forecast at 21 per cent compared with the previous guidance of between 24 per cent and 25 per cent.
In detail, the Czech industrial group Strnad closed the first nine months of 2026 with revenue up 6.1 per cent to 4.76 billion euros, operating EBITDA of 1.22 billion (+0.5 per cent), operating profit of €1.1 billion (+0.4 per cent) and net profit for the period of €721 million (+40.9 per cent). During the first nine months of 2026, as noted in a press release, CSG was very active in the area of mergers, acquisitions and partnerships, whilst in the third quarter, the focus remained on transactions aimed at strengthening vertical integration, expanding production capacity, increasing the resilience of the supply chain and consolidating the group’s presence in key markets within the defence sector.
In the third quarter, however, there was a setback: revenue fell by 12 per cent year-on-year, coming in at €1.51 billion and falling short of the average analyst estimates compiled by Bloomberg. CSG clarified that around €300 million in revenue had been shifted from the third to the fourth quarter.
A statement emphasises that the decline reflects “delivery schedules, particularly within the Land Systems division, with part of the revenue being deferred to the fourth quarter”. EBITDA fell by 18.8 per cent to 359 million, operating profit by 20.9 per cent to 317 million and net profit by 26 per cent to 150 million. However, the total order book stands at a record level of 18 billion euros (December 2025: 15 billion euros), and the combined value of the order book and commercial opportunities currently under negotiation amounts to 47 billion euros.
Operating cash flow before tax was negative at 200 million, and the ratio of net debt to operating EBITDA for the last twelve months rose to 2.4 times, “reflecting the use of capital to support growth through investments in joint ventures and strategic shareholdings that expand the Group’s capabilities and its supply base (731 million euros), as well as financing aimed at increasing the production capacity of key subcontractors to support the Group’s growth (€700 million)’. The group confirms its revenue guidance for the full financial year 2026, ranging between €7.4 and €7.6 billion, and its medium-term financial forecasts, based on the expectation that deferred revenue will be recognised in the final three months of the year.
