CSG (CSG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 13.8% year-over-year to €1,544 million, driven by strong Defence Systems and major contract wins across NATO Europe, North America, and Southeast Asia.

• Operating EBIT reached €372 million, with a 24.1% margin, maintaining top-tier performance and in line with guidance.

• Order backlog increased 15.1% to €17bn, with a pipeline under negotiation of €27bn, providing strong multi-year revenue visibility.

• Strategic expansion included acquisitions, new joint ventures, and deepened partnerships in Hungary, Austria, Greece, Slovakia, Poland, Azerbaijan, and Turkey.

• End market diversification reduced Ukraine exposure to about 20% of revenue, with significant contract wins in Europe and Southeast Asia.

Financial highlights

• Net profit from continuing operations nearly doubled to €299 million, up 94.6% year-over-year.

• Net leverage at period end was 1.3x, with strong cash conversion at 92% and CapEx intensity at 2% for Q1.

• Net working capital as a percentage of revenue was 31.7%, expected to fall below 20% by year-end as deliveries progress.

• Book-to-bill ratio for Q1 was over 1.5x at the group level.

• EUR 275 million from a non-core carve-out was fully settled in cash in Q1, reflected in free cash flow.

Outlook and guidance

• FY 2026 guidance reaffirmed: revenue €7.4–7.6bn, EBIT margin 24–25%, capex intensity ~8.5%, net working capital below 20% of revenue.

• Revenue growth to be led by Land Systems and M/L Ammo, with Ammo+ expected to recover as US commercial demand improves.

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

• Net leverage expected to be below 1.3x, potentially closer to 1x excluding M&A.

• CapEx to be covered by free cash flow, with major spend in H2 2026.