CSG is Europe’s fastest-growing major defence company
The industrial-technological group Czechoslovak Group (CSG) announced its audited consolidated financial results for 2024 and simultaneously released pro-forma results incorporating the full-year performance of The Kinetic Group.
Pro-forma revenues of the Group, including The Kinetic Group for the full year 2024, reached €5.2 billion. The Kinetic Group transaction was finalized at the end of November 2024 and contributed only one month to the consolidated revenues of the CSG Group for 2024. As a result, the Group’s consolidated revenues reached €4 billion, representing a 131% increase compared to €1.7 billion in 2023, driven primarily by strong organic growth.
Pro-forma operating EBITDA, including The Kinetic Group for the full year 2024, amounted to €1.4 billion. Consolidated operating EBITDA, which includes one month of The Kinetic Group’s results, reached €1.1 billion, more than doubling from €0.4 billion in 2023 (an increase of 146%), while simultaneously improving the EBITDA margin to 26.9%. With these results, the CSG Group has confirmed its status as the fastest-growing major defense company in Europe.
"Europe is in a pivotal period where the defence industry is no longer just an economic sector but a cornerstone of our sovereignty and security. The dramatic rise in defence spending across the continent reflects a clear understanding of this reality, and CSG’s record results in 2024 prove we are ready to meet this historic challenge. Our growth is more than numbers—it’s about ensuring European democracies have the tools to protect freedom in an increasingly unstable world," said Michal Strnad, owner of CSG.
The defence sector accounted for 83.6% of revenues, with the CSG Defence division alone generating 77.6% of total revenues (€3.3 billion), reinforcing its role as the Group’s growth engine. NATO markets contributed 49.6% of sales, while non-NATO markets (primarily Ukraine) accounted for 50.4%. When Ukraine is included among NATO-aligned markets, exposure to NATO rises to 92.4%. The workforce grew to over 14,000 employees, working primarily across 37 production facilities, mostly in the EU and the U.S., with products delivered to more than 110 countries worldwide.
This increase in employees was largely driven by the acquisition of The Kinetic Group, positioning CSG as the leading manufacturer of small-caliber ammunition in the U.S. and one of the largest globally. Despite this record acquisition, the Group’s debt remains low, with a stable net debt-to-EBITDA ratio of 1.3x. A positive outlook is further supported by a backlog of unfilled orders exceeding €11 billion. The ambition of Michal Strnad, the Group’s owner, is to establish CSG as one of Europe’s two most significant defence companies.
"In 2024, CSG strengthened its position as Europe’s fastest-growing major defence company, more than doubling both revenue and EBITDA through organic growth and strategic investments. Our low debt levels, even after the landmark acquisition of The Kinetic Group, demonstrate strong cash flow and disciplined financial management. The Group’s backlog, exceeding €11 billion, underscores our ability to secure long-term contracts and our position as a trusted partner in global defence markets," said Zdeněk Jurák, Member of the Board of Directors and Chief Financial Office.
When we asked whether the group is preparing for the introduction of tariffs between the United States and the European Union, Zdeněk Jurák replied, "Not particularly, and I believe that it does not affect us too much, because in the United States we are a producer, not an importer. It may be secondary to components or critical materials, for example. I believe that through our work on efficiency and the vertical integration of the company, we will be as little dependent on these influences as possible, and that will allow us to keep the overall impact of tariffs to a minimum."
