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Last updated : 06/11/2026 - 09h22
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CSG Selected by the U.S. Army to Modernize Seven Ammunition Plants

Through its U.S. subsidiary MSM North America, CSG has secured a place among the companies selected by the U.S. Army to modernize seven ammunition production sites. The program ceiling, however, applies to all selected contract holders collectively, and each project will be awarded separately through competitive bidding.


CSG Selected by the U.S. Army to Modernize Seven Ammunition Plants

Seven U.S. Army Ammunition Plants Within the Scope

The framework contract is part of a U.S. Army program dedicated to the design, construction and commissioning of ammunition plants. These plants are owned by the state and operated by private companies (GOCO model). It takes the form of a multiple-award contract (MATOC), administered by the Army Contracting Command - Rock Island.

Orders may cover the construction of new facilities, the modernization of existing production lines, automation and the commissioning of production capacities. They may also cover the operation and maintenance of industrial infrastructure. The announcement links the program to the fourth pillar of the U.S. national defense strategy, “Supercharge the U.S. Defense Industrial Base.”

Seven sites are concerned: Holston (Tennessee, military explosives), Radford (Virginia, propellants and other energetic materials) and Lake City (Missouri, small-caliber ammunition). They are joined by Iowa (medium- and large-caliber loading and assembly), Scranton (Pennsylvania, metal artillery components), the Quad City Cartridge Case Facility (Illinois, large-caliber cartridge cases) and Milan (Tennessee).

A Ceiling Shared by All Contract Holders, With No Guaranteed Volume

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The ceiling of approximately $4.2 billion applies collectively to all selected contractors, and not solely to MSM North America. Projects will be awarded individually in subsequent competitions, depending on the evolving needs of the U.S. Army.

Selection therefore does not guarantee any specific volume of business. It allows the CSG subsidiary to compete for contracts over the next five years.

“Being selected among the contractors for this program is an important milestone in our long-term efforts to become a trusted partner of the U.S. Army,” said Jason Gaines, CEO of MSM North America. He added: “We are well positioned to compete for new projects.”

The Iowa Artillery Site, a $635 Million Reference

In August 2025, MSM North America won a contract worth up to $635 million to design, build and commission the Future Artillery Complex. This complex is located at the Iowa Army Ammunition Plant. The subsidiary is the prime contractor and systems integrator for the project.

Work began in 2026. The plant, whose commissioning is expected in 2029, must be able to load up to 36,000 155 mm artillery shells per month. According to MSM North America, the project is on schedule and on budget, and the same team will be largely mobilized under the new framework contract.

Founded in 2024 and based in St. Petersburg, Florida, MSM North America strengthens CSG's presence in the U.S. ammunition industry. For Jan Marinov, CEO of CSG's Defence Systems division, this selection “demonstrates our ability to deploy these capabilities in the demanding U.S. defense market.”

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Sector Aéronautique et Défense › Défense


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Context

Period
  • Period: S1 2026
Key reported figures
  • Revenue: 3 251 millions d'euros
  • Quarterly revenue: 3 251 millions d'euros
  • Revenue growth: 17,2 %
  • EBITDA: 863 millions d'euros
  • EBITDA margin: 26,5 %
  • Net income: 571 millions d'euros
  • Free cash flow: -742 millions d'euros
  • 2 914 millions d'euros
Guidance from the release
  • CSG continues to expect revenue in the range of €7.4 to €7.6bn, Operating EBIT margin of approximately 24–25%
Risks mentioned
  • Flux de trésorerie opérationnel avant impôt négatif de 411 M€ lié au pré-stockage de composants
  • Ratio dette nette/EBITDA à 1,6x, en hausse par rapport à l'objectif de fin d'année de 1,3x
  • Besoin en fonds de roulement net représentant 40,1 % du chiffre d'affaires LTM, en forte hausse
Opportunities identified
  • Carnet de commandes et pipeline total en hausse à 46 milliards d'euros contre 44 milliards en mars 2026
  • Lancement de CSG Land Systems North America pour développer la présence sur le plus grand marché de défense mondial
  • Création de la coentreprise Firecrest Aerospace pour la propulsion de drones et systèmes sans pilote
Outlook / guidance
  • Expected revenue: 7 500 millions d'euros
  • Management commentary: CSG continues to expect revenue in the range of €7.4 to €7.6bn, Operating EBIT margin of approximately 24–25%, capex intensity of approximately 8.5% of revenue, and net working capital below 20% of revenue.

The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.

Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.

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