CSG expands defence orders with €300M ammunition contract

Czech defence group CSG has secured a nearly €300 million ($353.97 million) contract to supply artillery ammunition to a European customer, underscoring the sharp rise in global military demand.

The latest agreement comes months after the company disclosed a separate deal in February to deliver large-calibre ammunition worth hundreds of millions of euros to a Western European country.

Strong deal pipeline highlights global demand

CSG said its recent contracts reflect its ability to respond to increasing demand from armed forces globally.

The company pointed to a steady flow of orders across multiple regions as defence spending continues to rise.

Earlier this month, the group also announced contracts worth $2.5 billion to supply air defence systems in Southeast Asia.

These agreements further underline the company’s expanding presence in international defence markets.

New counter-drone technology unveiled

In a separate statement, CSG said its Fiocchi unit had introduced new counter-drone ammunition designed for standard-issue firearms.

The company said the technology provides militaries with a last-line defence capability against the growing threat posed by drones.

The development comes as armed forces increasingly seek cost-effective solutions to counter unmanned aerial systems.

Growth strategy backed by market expansion

CSG has been actively expanding its operations following a record stock offering in January.

The company completed what it described as the largest defence sector listing on record, aiming to capitalise on rising global military expenditure after Russia's 2022 invasion of Ukraine.

The proceeds from the offering are being used to scale production capacity and strengthen its position in the defence industry.

Profit growth and revenue outlook

For 2025, CSG reported a 28% rise in annual profit, supported by strong demand in its defence systems division.

Looking ahead, the company expects revenue to increase to between €7.4 billion and €7.6 billion, compared with €6.7 billion reported in 2025.

Middle East conflict and Hormuz risks cloud outlook

The surge in defence demand comes as global policymakers warn of broader economic risks linked to the Middle East conflict.

Finance ministers from more than 10 countries said the ongoing crisis would continue to weigh on global growth, inflation, and financial markets.

The Strait of Hormuz remains a critical route for global energy shipments.

Germany has already flagged economic strain.

Finance Minister Lars Klingbeil said, "But what we can already see now is that this war is also harming us in Germany in terms of ‌economic ⁠growth."

The ministers also stressed fiscal discipline.

The strategic waterway remains a critical chokepoint for global energy supplies, and any disruption has the potential to trigger wider military and economic consequences.

As a result, governments are increasingly prioritising defence preparedness, further supporting demand for ammunition and military systems.