CSG reaffirms outlook, details ammunition capacity growth (updated)

CSG NV

20/05/2026 15:58

Adds information on minority holder, KNDS interest

By Jan Lopatka

PRAGUE, May 20 (Reuters) - Czech-based ammunition and arms producer CSG affirmed its 2026 outlook after posting an 8.7% rise in first-quarter operating earnings and said it continued to raise its large-calibre ammunition capacity. It added these details:

First-quarter operating earnings before interest and tax rose 8.7% to €372 million ($431.04 million), on a 13.8% revenue rise

Predicted an improvement in the U.S. market for small-calibre ammunition

Reaffirmed its 2026 guidance of revenue to reach €7.4-7.6 billion and operating EBIT margin of 24-25%

The order backlog rose to €17 billion from €15 billion at the end of 2025

Its artillery and tank production capacity across Greece, Spain and Slovakia has risen to 800,000 rounds annually in the first quarter, from 630,000 last year

Production of large-calibre ammunition would reach about 850,000 rounds by year-end, up from 550,000 in 2025

It expected more than half of large-calibre ammunition revenue would come from extended range shells

The company targets own-production capacity for large-calibre ammunition of 1.1 million in 2028

CEO and majority owner Michal Strnad said any liability that may arise from a request by a minority shareholder in CSG's Land Systems unit to sell his stake would be addressed to him and not CSG as a company

Strnad said Franco-German tank maker KNDS "potentially" on list of possible acquisition
targets.
 ($1 = 0.8630 euros)

 (Reporting by Jan Lopatka; editing by Barbara Lewis and Bernadette Baum)

 ((jan.lopatka@thomsonreuters.com; +420 234 721 614; Reuters Messaging: jan.lopatka.thomsonreuters.com@reuters.net/))