CSG (CSG) H2 2025 earnings summary

Executive summary

• Revenue reached €6.7bn in 2025, up 30–71.7% year-over-year, exceeding IPO expectations, with a 24.1% adjusted operating EBIT margin, among the highest in the sector.

• Record order backlog and pipeline totaled up to €42bn, supporting multi-year revenue visibility.

• Strategic expansion included major contract wins in Slovakia and Southeast Asia, targeted M&A, and new partnerships, notably in ammunition and land systems.

• Diversified customer base: 65% NATO, 27% Ukraine, 8% other, supporting resilience and growth.

• Completed IPO on Euronext Amsterdam in January 2026, raising €3.8bn gross proceeds.

Financial highlights

• Adjusted operating EBITDA reached €1.6–1.78bn, with a 24.1% margin; net profit from continuing operations was €872m.

• Net leverage at year-end was 1.7x (1.3x post-IPO); net debt at €3bn.

• Cash conversion remained strong at 87%; CapEx intensity was 3.3% of revenue.

• Free cash flow for FY 2025 was €606m.

• Defence Systems contributed nearly 80% of revenue; Ammo+ segment contributed 21%.

Outlook and guidance

• FY 2026 revenue expected at €7.4–7.6bn, with adjusted operating EBIT margin of 24–25%.

• CapEx intensity to rise to 8.5% in 2026, then normalize to 4–5% after 2027.

• Net working capital targeted below 20% of revenue in 2026; net leverage targeted below 1.5x.

• Mid-term guidance: mid-teens organic CAGR for group, 40–50% CAGR for Land Systems, 20% CAGR for medium/large caliber ammunition.

• Group margin expected to rise to 26–28% by 2027, driven by vertical integration.