Investors Want Concrete Orders as CSG’s US Offensive and €17bn Backlog Fail to Stop Stock’s Plunge
Published on 06/25/2026 at 12:43 | Redaktion boerse-global.de
Czechoslovak Group is pursuing the most ambitious expansion in its history – a Washington-led push into the American defense market backed by a record order book worth around €17 billion. Yet the stock just can’t catch a bid. Shares of the Prague-based arms maker tumbled to a fresh 52-week low of €12.39, barely 0.67% above the absolute year low of €12.31, as investors continue to demand tangible results rather than strategic blueprints.
The disconnect between the company’s operational strength and its market valuation is stark. Management reaffirmed its revenue guidance of an average €7.5 billion for the current financial year at the Eurosatory 2026 defense exhibition, alongside an operating margin target of roughly 24%. But the stock has shed over 65% from its January high of €36.05, and the sell-off has accelerated sharply: in the past 30 days alone, the share price has collapsed by more than a third. The 14-day relative strength index has sunk to 25.8, deep in oversold territory, while annualized volatility clocks in at 58.63%.
The market’s unease traces back to a short-seller report published in May 2026 that questioned CSG’s production capacity and financial transparency. The company dismissed the allegations, but trust has not been restored. Even the unveiling of the new “Trident” air defense system failed to shift the mood. Investors are now waiting for hard proof – confirmed order inflows and clean financials – before they reconsider the stock.
Should investors sell immediately? Or is it worth buying CSG?
To counter the skepticism, CSG is leaning hard on its North American ambitions. The group recently installed David Jacobs, a veteran of Northrop Grumman and Raytheon with over 15 years in the industry, as head of its newly created CSG Defense North America unit. Jacobs, who also spent a decade in investment banking at Merrill Lynch overseeing more than $200 billion in transactions, is setting up a Washington office and will report directly to majority owner Michal Strnad. His mandate includes coordinating acquisitions in the region and building relationships with U.S. agencies.
A first foothold was already secured last year when CSG’s U.S. subsidiary MSM Group won an army contract to build an artillery plant in Iowa, destined to produce 155-millimeter shells. Jacobs is now tasked with expanding production capacity and forging further partnerships, potentially including direct technology transfer. But so far, no concrete U.S. orders have landed – and that absence is precisely what the market is pricing in.
The next potential catalyst comes in early August, when CSG is due to release its half-year results. Until then, the key question is whether the current price level marks a technical bottom or whether the year low of €12.31 will be tested again. For a stock that has lost almost two-thirds of its value in six months, the burden of proof now rests squarely on management’s ability to convert strategy into signed contracts.
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