CSG exceeded IPO expectations, with revenue rising to 6.7 billion euros0
In 2025, the global industrial and technology group CSG confirmed an exceptionally strong growth trajectory while demonstrating its ability to rapidly scale its operations while maintaining high profitability and financial discipline. In terms of overall results, it was a landmark year in which the company not only met expectations associated with its IPO but also exceeded them across a number of metrics. Revenue rose to €6.7 billion, representing a year-over-year increase of 71.7%, or 30.1% on a pro forma basis. The main driver of growth was primarily the continued strong demand for defense systems, particularly for medium- and large-caliber ammunition, as well as the full contribution of The Kinetic Group, which had been included only to a limited extent in the results for the previous period
Profitability also grew significantly. Adjusted operating EBIT reached €1.626 billion, representing a year-over-year increase of 60.7% and a margin of 24.1%. Net profit from continuing operations rose to €872 million. These figures demonstrate that CSG was able to translate the favorable market environment into very strong operating performance, despite higher input costs, integration costs, and higher financial expenses related to financing acquisitions and expanding production. At the same time, the company maintained a disciplined approach to capital expenditures, which amounted to 3.3% of revenue, and kept the net debt-to-adjusted EBITDA ratio at 1.7x, or 1.3x when including proceeds from the IPO.
A key indicator of future stability and growth is the volume of orders in progress and upcoming business opportunities. At the end of 2025, CSG reported a backlog of EUR 15 billion and a pipeline of EUR 27 billion. The total volume of opportunities thus reached EUR 42 billion, providing the group with a high degree of predictability regarding future revenues for several years ahead. The largest share of the backlog was in the M&L Ammunition segment, followed by the Land Systems segment. This structure confirms that the core of CSG’s growth remains in areas that are currently among the most in-demand segments of the European and global defense industry.
The year 2025 was also significant for CSG in terms of contracts secured. Among the most important was the signing of a seven-year framework agreement with the Slovak Ministry of Defense for the supply of medium- and large-caliber ammunition, with a potential value of up to 58 billion euros. In addition, there were contracts worth several hundred million dollars for the supply of small-caliber ammunition to a customer in Southeast Asia and a contract exceeding one billion dollars for the production of tactical vehicles for a customer in the same region. A contract with KNDS Deutschland for the production of hulls for Leopard 2A8 tanks was also of strategic importance, further solidifying CSG’s position within key European defense programs.
In addition to revenue growth and an expanding order portfolio, the group continued its consistent strategy of vertical integration. In 2025, CSG carried out several important acquisitions and investments aimed at strengthening control over key inputs, reducing dependence on external suppliers, and improving margins in the medium term. A significant step was the acquisition of the German MSM Walsrode plant, which is being converted to produce energy nitrocellulose, a key raw material for large-caliber ammunition. Another important investment is a project in Greece focused on resuming TNT production, which is intended to strengthen the security of explosives supplies. The Group further expanded its capabilities through the acquisitions of MUST Solutions, GAMA OCEL, and ZVI Vsetín, thereby strengthening its position in the areas of propulsion systems for unmanned aerial vehicles, armor materials, and medium-caliber ammunition. At the same time, it took full control of the Ammo+ platform by completing the acquisition of the remaining stake in Fiocchi and continued the integration of The Kinetic Group.
CSG has also undergone significant changes at the organizational and operational levels. The Group has streamlined its structure into two main segments—CSG Defence Systems and CSG Ammo+—and simultaneously established the Advanced Systems division, which focuses on promising areas such as propulsion systems, missile technologies, and next-generation unmanned systems. At the same time, it divested more than 35 entities outside its core business, further streamlining its portfolio and strengthening its focus on key defense activities.
From a segment perspective, the key growth driver was the Defence Systems segment, whose revenue rose by 55.3% to €5.346 billion and adjusted operating EBIT by 55.8% to €1.502 billion. The strongest growth was primarily driven by medium- and large-caliber ammunition, followed by ground systems. Although the Ammo+ segment grew significantly on a reported basis due to the full consolidation of The Kinetic Group, on a pro forma basis it recorded a decline in both revenue and EBIT as a result of weaker demand in the commercial small-caliber ammunition market in the United States and higher input costs. Management responded to this situation with targeted price adjustments and further efficiency improvements.
Geographically, CSG remains strongly focused on Europe and NATO countries. Approximately 65% of revenue in 2025 came from NATO countries, with Europe (excluding Ukraine) accounting for the largest share, followed by Ukraine and the United States. Customers from the defense sector accounted for 80% of revenue, confirming the Group’s clear positioning as one of Europe’s leading defense industry players.
A significant milestone after the end of the reporting period was the completion of the IPO and listing on Euronext Amsterdam on January 23, 2026. The offering generated gross proceeds of €3.8 billion and established a new framework for the Group’s continued growth as a publicly traded company. The IPO was also accompanied by a change in the company’s corporate structure and governance under Dutch law, including the appointment of independent non-executive members of the Board of Directors. Another positive signal for investors was the upgrade of the bond rating by Moody’s to investment grade Baa3 and the confirmation of the rating by Fitch Ratings.
The outlook for 2026 and the medium term remains positive. CSG expects to generate revenue of between €7.4 billion and €7.6 billion in 2026, while maintaining an adjusted EBIT margin of around 24% to 25%. In the medium term, it confirms organic revenue growth of around 15% annually, with the strongest growth expected in the Land Systems, Aerospace & Defense Electronics, and Advanced Systems segments. The completion of vertical integration by the end of 2027 and further capacity expansion should contribute to margin growth to a level of 26–28%.
Overall, it can be summarized that CSG entered 2026 in a very strong position. It is supported by an exceptionally favorable market environment, an extensive order portfolio, growing production capacity, and a well-thought-out acquisition and integration strategy. The results for 2025 show that CSG is no longer just a fast-growing regional group, but is becoming one of the key European defense industry players with a global reach, a high degree of predictability, and the ambition to further strengthen its role in the ammunition, ground systems, and advanced defense technologies segments.
