Shares of European Weapons Maker CSG Leap on Sales Boosted by Arms Demand

By Joshua Kirby

Shares in arms maker CSG jumped after the Prague-based group said continued strong demand lifted its revenue and earnings at the start of the year.

The supplier of ammunition and military vehicles made operating profit of 372 million ($431.80 million) between January and March, it said in an update Wednesday. The operating margin stood at 24.1%.

Group revenue meanwhile rose 14% on year to more than 1.5 billion euros, driven by defense systems. The land-systems division, which makes armored vehicles, boosted the group's order backlog to some 17 billion euros as of the end of the quarter, up 15% from three months earlier.

Amsterdam-listed shares surged 11% to 19.10 euros in Wednesday's early trading.

"The structural drivers of demand for CSG's solutions are durable and deepening," Chief Executive Michal Strnad said.

The group backed its guidance for the year, which sees revenue between 7.4 billion and 7.6 billion euros and an operating margin of around 24%-25%. Capital expenditure should come in around 8.5% of revenue, according to the company's estimates.

"Revenue growth will be driven principally by the group's land systems and [medium- and large-calibre] ammo units," CSG said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

May 20, 2026 07:04 ET (11:04 GMT)