CSG (CSG) H1 2026 earnings summary

Executive summary

• Revenue grew 17.2% year-over-year to €3.25bn in H1 2026, driven by Defence Systems and Land Systems expansion, with Land Systems now 46% of the backlog and strong diversification across geographies.

• Operating EBIT rose 12.7% to €784m, maintaining a 24.1% margin; net profit from continuing operations increased to €572m.

• Order backlog increased 15% to €17bn, with total backlog and pipeline at €46bn, providing strong multi-year revenue visibility.

• Major defence contracts secured in Southeast Asia, Europe, and the US, including a $2.5bn air defence deal; strategic investments in air defence, vertical integration, and US market expansion underpin future growth.

• Completed IPO on Euronext Amsterdam in January 2026, raising €3.8bn gross, with public free float now 15.2%.

Financial highlights

• H1 2026 revenue: €3.25bn; operating EBIT: €784m; EBIT margin: 24.1%; net profit from continuing operations: €572m.

• Net leverage at 1.6x, cash conversion at 86%, and capex intensity at 3.8% in H1.

• Net working capital at 40% of revenue (€2.9bn), expected to fall below 20% by year-end as inventory is released.

• Free cash flow was negative due to €1.15bn working capital build and higher tax payments.

• Total assets at June 30, 2026: €11.17bn; equity €3.35bn; cash and cash equivalents at €1.62bn.

Outlook and guidance

• FY 2026 revenue guidance reaffirmed at €7.4–7.6bn, with EBIT margin of 24–25% and capex intensity ~8.5%.

• Net leverage target below 1.3x by year-end; net working capital expected below 20% of revenue.

• Mid-term organic revenue CAGR in the mid-teens, margin 26–28%, capex intensity 4–5%.

• Over 90% of H2 Defence Systems revenue needed for FY guidance is already under contract.

• Own production of large-calibre ammunition expected to reach 850,000 rounds by year-end 2026.