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CSG N.V., - CSG Q1 2026 Trading Statement: Strong Start to the Year in Q1. FY 2026 Guidance Reaffirmed
CSG N.V., - CSG Q1 2026 Trading Statement: Strong Start to the Year in Q1. FY 2026 Guidance
About this update from Csg N.v.
[{"type":"text","content":" CSG Group Q1 2026 Trading Statement Strong Start to the Year in Q1. FY 2026 Guidance Reaffirmed This trading statement provides a review of key financial and operational developments for the three months ended 31 March 2026. Financial highlights Revenue of €1,544 million, up 13.8% year on year, driven by strong momentum across the Group's core Defence Systems businesses. Defence Systems up 26.5% Order backlog up 15.1% to €17bn (31 Dec 2025: €15bn), led by gains in Land Systems; pipeline under negotiation of €27bn Operating EBIT up 8.7% to €372 million with margin of 24.1%, in line with guidance corridor. Defence Systems margin of 28.5% Pre-tax Operating Cashflow increased by €476m year-on-year despite significant planned investment in working capital in the period to secure production ramp up. Expected to normalise to guidance over the course of the year. Net Debt of €2,228 million; Net Debt to LTM Operating EBITDA of 1.3x FY 2026 and medium-term guidance reaffirmed Strategic and operational highlights Q1 2026 saw significant progress across all segments, marked by major contract wins, strategic expansion, deepening vertical integration, and scaling production capacity. M/L Ammunition vertical integration and own production ramp-up In M/L ammunition, CSG advanced its two core strategic priorities: deepening vertical integration across its distributed manufacturing network and scaling own production capacity, with large-calibre (artillery and tank) own production capacity reaching more than 800,000 rounds by the end of Q1. Own production revenue as a proportion of total revenue continues to grow, reflecting the ongoing shift away from recommissioning activity. Two large-calibre ammunition supply contracts totalling approximately €550 million secured post-period end with European NATO customers. New MACS artillery propellant charge facility established in Slovakia (ZVS Holding / EURENCO JV), a material step toward in-house propellant production and a significant input cost reduction opportunity on the path to full vertical integration. Vertical integration and in-house production capacity increased through the acquisition of a 49% stake in Hirtenberger Defence Systems (Austria). This has expanded CSG's mortar systems and ammunition portfolio and extended its European manufacturing network. 25-year Greek JV established, with 155mm...