CSG Backs Up Short-Seller Rebuttal with Surging Munition Output and €17bn Order Book
Published on 05/21/2026 at 07:43 | Redaktion boerse-global.de
CSG has handed its management a powerful rejoinder to the bearish allegations that rattled its shares last month. The defence group’s first-quarter results released this week show an operating profit of €372 million, a margin of 24.1% that lands squarely inside its long-term target range, and an order backlog that swelled to €17 billion — up 15% from the previous quarter. The data gives concrete cover for the company’s rejection of the Hunterbrook Media report published on 18 May, which questioned munition production capacity and shareholder arrangements.
The strongest driver remains the defence systems division, where revenue climbed 26.5% and the order book now stands at €17 billion. Beyond that, a further €27 billion sits in the negotiated project pipeline, providing multi-year visibility. Behind those totals lies a rapid acceleration in large-calibre munition manufacturing: CSG expects to produce around 850,000 rounds in-house by year-end, up from 550,000 last year, plus roughly 400,000 rounds from reactivated production lines. More than half of artillery-munition revenue is set to come from long-range ammunition, underscoring the shift toward higher-value ordnance.
Total revenue for the quarter reached €1.544 billion, a 13.8% increase year-on-year, while operating cash flow before taxes improved by €476 million. Management attributed the cash-flow swing to planned working capital investments that underpin the capacity expansion. Capital expenditure is running at about 8.5% of revenue, as the group builds out facilities in Europe and North America.
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At the stock market, the reception was more cautious. The shares closed at €18.96, posting a 16.5% gain over seven days but still nursing a 9.89% loss on a monthly view. The stock remains well below its 50-day moving average of €22.40, while the 30-day annualised volatility sits at a heady 81.01%. With the equity still 43.85% off its 52-week high, the recent bounce has not repaired the chart damage left by the short-seller attack.
CSG is also diversifying its geographic footprint to reduce dependence on any single conflict theatre. The Ukraine share of revenue has fallen to roughly 20%. In Southeast Asia, the group secured a contract worth more than $300 million for over 100 Patriot armoured vehicles. In Europe, it is moving into Hungary by taking a 49% stake in 4iG Space & Defence Technologies, which gives it an indirect 37% holding in Rába Automotive Holding, and it has formed a joint venture with Hellenic Defence Systems in Greece to make large-calibre ammunition. The Lavrio facility is already producing 155mm rounds, with additional calibres and upstream steps planned.
For the full year, CSG sticks to its revenue forecast of €7.4 billion to €7.6 billion and an operating EBIT margin of 24% to 25%. CEO Michal Strnad reiterated that the structural drivers for the company’s solutions are durable and gaining momentum. The next major checkpoint comes on 7 August, when half-year results to 30 June are due. Analysts will then focus on whether the production ramp-up can sustain the strong margin and whether the swelling pipeline can begin to restore confidence in the equity after weeks of turbulence.
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