PRAGUE, 3 April 2025 — Czech-based defence group CSG (Czechoslovak Group) is forecasting continued double-digit growth as European nations ramp up defence spending in response to ongoing security concerns and geopolitical tensions, particularly in light of wavering U.S. military support for Ukraine.

The privately held company reported a remarkable performance in 2024. Annual revenue more than doubled to €4 billion (A$6.1 billion), with EBITDA climbing 146% to €1.1 billion. CSG now holds an order backlog worth €11 billion (A$16.8 billion), primarily for large-calibre ammunition, howitzers, and armoured vehicles.

Shipments to Ukraine defending against the Russian invasion quadrupled last year, reaching €1.7 billion and representing 42.8% of the firm’s revenue. Contracts with other European countries made up an additional 43.5%, underscoring CSG’s growing role in strengthening NATO and EU defence capabilities.

“We closely monitor defence spending announcements across EU and NATO member states. This is a critical growth driver not just for us, but for the entire European and allied defence industry,” said CFO Zdenek Jurak. “We’re confident in sustainable growth over the medium term.”

To meet surging demand, CSG has significantly expanded its production capacity for NATO standard 155mm artillery shells, now able to produce “high hundreds of thousands” annually across its manufacturing sites in Spain, Slovakia, and other locations. However, global supply constraints are stretching delivery timelines from the pre-war average of 18 months to up to six years.

In a strategic move toward vertical integration, CSG is finalising the acquisition of a German nitrocellulose plant and has launched a joint venture in Greece for TNT and artillery shell production. It has also partnered with Ukraine’s Ukrainska Bronetechnika to begin joint artillery ammunition manufacturing in both Ukraine and the Czech Republic, with a production goal of 100,000 rounds in 2025, rising to 300,000 by 2026.

Last year, CSG completed its $2.2 billion acquisition of U.S. small-calibre ammunition producer The Kinetic Group — a key milestone that strengthens its transatlantic footprint. Results from this acquisition were included in CSG’s December financials.

For Australian defence stakeholders and suppliers, CSG’s rapid ascent signals opportunities for potential collaboration in advanced manufacturing, technology integration, and long-term procurement planning as Western alliances reinforce their defence readiness.
 
Source: https://www.reuters.com
Author: CzechTrade Australia