CSG (CSG) Q3 2026 earnings summary

Executive summary

• 9M 2026 revenue rose 6.1% YoY to €4.761bn; Operating EBIT was €1,102m at a 23.1% margin, led by Defence Systems growth.

• Q3 revenue fell 11.7% to €1.510bn as deliveries shifted to Q4 and 2027; lower-priced standard-range inventory sales also pressured margins.

• Backlog reached €18bn, up 24% from Dec-25, with a further €29bn pipeline under negotiation; total opportunity was €47bn.

Financial highlights

• 9M revenue was €4,761m vs €4,485m; adjusted Operating EBIT was €1,102m, up 0.4% YoY, with a 23.1% margin.

• Q3 revenue was €1,510m and Operating EBIT €317m; margin was 21.0% vs 23.5% in Q3 2025.

• 9M net profit from continuing operations rose 40.9% YoY to €721m.

• Operating EBITDA was €1,221m; CapEx was €255m, or 5.3% of revenue, and cash conversion was 79% vs 90%.

• Free cash flow improved to -€777m from -€1,195m as working-capital outflow narrowed to €1,167m from €1,893m.

Outlook and guidance

• FY2026 revenue guidance remains €7.4–€7.6bn; adjusted Operating EBIT margin is now expected at ~21%, down from 24%–25%.

• FY2026 net working capital is expected below 35% of revenue, revised from below 20%, as deliveries and cash release shift partly into 2027.

• FY2026 CapEx intensity guidance remains ~8.5%; year-end reported net leverage is expected below 2.0x and adjusted leverage below 1.5x.

• Medium-term outlook remains mid-teens organic revenue CAGR, 26%–28% adjusted Operating EBIT margin and 4%–5% CapEx intensity.

• Standard-range inventory sell-through continues in Q4, with most remaining stock expected to sell in 2027; production capacity is targeted at ~1.1m rounds by end-2027.