CSG rides the wave of European rearmament to historic growth
As Europe faces the most serious security challenges since the Cold War, defense budgets across the continent are rising fast—and with them, the fortunes of key players in the defense industry. Leading this surge is Czech-based holding Czechoslovak Group (CSG), which has emerged as one of the fastest-growing defense companies in Europe, fueled by rising demand for ammunition, armored vehicles, and strategic industrial cooperation.
Historic Growth Driven by Demand
In its freshly published financial results for 2024, CSG posted record-breaking revenues of €4 billion, a 131% increase year-over-year. Operational profit followed suit, with EBITDA nearly doubling to €1.1 billion, and net profits more than tripling to €526 million.
The company attributes this surge not only to an increase in orders from NATO countries and Ukraine but also to a sharp strategic pivot that included several high-impact acquisitions and production expansions.
"This is not just about wartime demand," said a company spokesperson. "We are building long-term industrial capacity that will serve the European and transatlantic defense space for decades."
Europe Rearms – and CSG Delivers
Central to CSG’s trajectory is the ongoing rearmament of Europe. Russia’s full-scale invasion of Ukraine has prompted NATO members and EU states to reverse decades of underinvestment in defense. According to a March 2025 policy brief from the European Commission, EU members are expected to collectively increase defense spending by more than 30% by 2027.
CSG has positioned itself to be a core supplier in this transformation, especially in the critical area of large-caliber ammunition. The group is now ramping up production of 155mm NATO-standard shells, with a target of over 300,000 units annually by 2026. This makes CSG one of the few companies in Europe with the capacity to meet rising battlefield and stockpile requirements.
Strategic Expansion and Global Reach
One of CSG’s most ambitious moves in recent months was its $2.2 billion acquisition of The Kinetic Group (TKG), a major U.S. manufacturer of small-caliber ammunition that owns renowned brands such as Federal, Remington, Speer, and HEVI-Shot. The acquisition makes CSG the largest small-arms ammunition producer in the United States—a position that provides it with enormous market leverage and cross-continental production flexibility.
At the same time, CSG increased its stake in Italian ammunition maker Fiocchi Munizioni and expanded partnerships across Europe, including joint ventures in Slovakia, Greece, and Ukraine.
The company also recently acquired a nitrocellulose plant in Germany, securing a critical input for ammunition production and further reducing supply chain dependency on non-European suppliers.
Ready for ReArm Europe
The European Commission’s “ReArm Europe” initiative, launched in 2025, aims to consolidate and accelerate the development of a sovereign and resilient European defense base. CSG’s multinational manufacturing footprint, combined with its innovation in ground systems, radar technology, and ammunition production, makes it a natural partner in this effort.
"We are a European company with a transatlantic mindset," said CSG CEO Michal Strnad in a recent statement. "Our focus is not just on supplying weapons, but on building sustainable, high-quality defense ecosystems that support our allies in the long term."
Looking Ahead
With an order backlog exceeding €11 billion and growing demand from both state and private clients, CSG appears poised for continued expansion. Its strategic vision, combined with the shifting security paradigm in Europe, positions the group as not just a beneficiary—but a driving force—of Europe's defense future.
As the continent braces for an increasingly uncertain geopolitical climate, companies like CSG will play an ever more central role—not just in delivering military equipment, but in shaping the strategic industrial foundation of European defense for years to come.
