CSG: Revenue up 17.2% in H1, but cash flow at −411 M€
CSG published its first-half 2026 results on August 7, 2026, with revenue of 3,251 M€, up 17.2% year-on-year.
Behind this growth driven by defense activities, the group posted a negative operating cash flow before taxes of 411 M€, a consequence of anticipated stockpiling of components, the resolution of which is expected in the second half.
Revenue of 3,251 M€, operating EBIT of 784 M€
Half-year revenue came in at 3,251 M€, compared to 2,775 M€ a year earlier, representing a 17.2% increase. Operating EBIT advanced 12.7% to 784 M€, with a margin of 24.1%, compared to 25.1% in the first half of 2025 (696 M€ for 2,775 M€ revenue on a PPA-adjusted basis).
Net profit from continuing operations reached 572 M€, compared to 309 M€ a year earlier, up 84.8%. For the second quarter alone, revenue stood at 1,707 M€ (+20.3%) and operating EBIT at 413 M€ (+16.5%).
The Defence Systems division, which represents 80.6% of revenue, recorded revenues of 2,620 M€ (+27.0%) and an operating EBIT margin of 28.8%. The Ammo+ division achieved 631 M€ in revenue, down 11.5%, with a margin of 8.1%.
Negative cash flow linked to advance component stockpiling
Operating cash flow before taxes came in at -411 M€, compared to -494 M€ in the first half of 2025. The group attributes this situation to an increase in working capital requirements, linked to advance stockpiling of components, primarily in the M/L munitions segment, through inventory purchases and supplier advances.
Net working capital requirement came to 2,895 M€, or 40.1% of revenue from the past twelve months, compared to 28.4% a year earlier. CSG indicates it expects this working capital requirement to be resolved in the second half of 2026, with the majority of deliveries and collections concentrated in the fourth quarter.
Net debt reaches 2,914 M€, for a net debt to operating EBITDA ratio over the past twelve months of 1.6x. Total order book stands at 17 bn€, stable compared to the first quarter, while the portfolio of projects under negotiation advances to 29 bn€ (27 bn€ in March 2026), for a total opportunity of 46 bn€.
2026 targets confirmed: 7.4 to 7.6 bn€ in revenue
CSG reaffirmed all of its targets for fiscal year 2026. The group continues to target revenue between 7.4 and 7.6 bn€, an operating EBIT margin of approximately 24 to 25%, an investment intensity of approximately 8.5% of revenue and net working capital requirement below 20% of revenue.
The net debt to EBITDA ratio is expected to be below 1.3x by year-end. On the operational side, in-house production of large-caliber munitions is expected to reach approximately 850,000 shells by the end of 2026, compared to 550,000 in 2025, with a trajectory toward 1.1 million shells by the end of 2027.
The group notes that in 2026, long-range munitions should represent approximately 60% of total large-caliber munitions revenue. Half-year revenue of 3,251 M€ places the group in line with the reaffirmed annual range of 7.4 to 7.6 bn€.
