CSG Pivots to Civil Tech as Short-Seller Storm Clouds Linger

Czech defence group CSG unveils SkyOptima software and radar tech to counter short-seller claims, as shares remain 50% below IPO price amid capacity disputes.

The Czech defence group CSG is trying to change the conversation. After weeks of bruising short-seller attacks that have wiped more than a third off its market value, management is rolling out its civilian technology credentials at a Lisbon air traffic control fair. The move is a clear attempt to remind investors the company is more than just a maker of large-calibre ammunition.

Shares closed at €16.10 on Tuesday, more than 50% below their January IPO price of €25. The stock has shed roughly 37% in the past month alone. A modest bounce to €16.20 on Wednesday — barely a few cents above an all-time low — suggests the selling pressure is only just easing.

At the Airspace World exhibition in Lisbon later this month, CSG will unveil SkyOptima, a software platform that consolidates legacy flight data programmes into a modern cloud architecture. The system is designed to manage traffic from local control towers up to major air traffic centres. Alongside it, subsidiary Eldis will showcase its latest radar generation. The message is unmistakable: CSG wants to prove it has a meaningful business beyond munitions.

That non-ammunition business is substantial. The group’s 14,000 employees generated €6.7 billion in revenue in 2025. For the current year, management is targeting sales of around €7.5 billion with an operating margin of roughly 24%.

But the short-seller allegations refuse to fade. On Tuesday, CSG published a detailed point-by-point rebuttal of a report from Hunterbrook Media, addressing each central accusation individually.

The most contentious issue concerns ammunition production capacity. Hunterbrook had argued that only one facility — the Dubnica plant — is suitable for the final assembly of 155mm shells, estimating annual output at between 100,000 and 280,000 units. CSG’s IPO prospectus had stated a total capacity of around 630,000 large-calibre shells per year, 80% of them in the 155mm format. The company rejects Hunterbrook’s analysis and points to concrete expansion plans: for 2026, it expects own production to rise by roughly 20%, including 70,000 additional units from a new production line in Slovakia. Medium-term, own production is targeted at 1.1 million shells across sites in Slovakia, Greece, Serbia, Spain and India.

Hunterbrook also targeted the Slovak munitions framework agreement. ZVS Holding had signed a seven-year deal with the Slovak defence ministry for deliveries of up to €58 billion, potentially financed through the EU’s SAFE programme. CSG confirmed in its rebuttal that the €58 billion figure is a potential framework value, not a binding order volume. That distinction matters. For the favourable 1% financing under SAFE, at least two EU member states must participate. Investigative reporting by Slovak outlet ICJK found that none of the countries named by the Slovak defence minister confirmed their involvement — one left the option open, others flatly denied it. The exemption for single-state participation expires at the end of May 2026.

A separate overhang was also addressed: a €275 million claim from the pre-sale of non-core divisions, including CSG Mobility and the healthcare segment. The company said the payment was settled in full during the first quarter of 2026, in line with timelines communicated at the IPO.

Order books remain full. Even in the event of a ceasefire in Ukraine, management expects continued demand as European NATO members replenish and modernise their own stockpiles.

The real test for the stock comes on May 20, when CSG releases its first-quarter results. That will be the first hard look at operational performance since the mandatory quiet period began in late April. Management is sticking to its full-year guidance: revenue between €7.4 billion and €7.6 billion, with adjusted operating margins of 24% to 25%. Whether a recently announced artillery order worth €250 million will show up in the numbers could be the deciding factor for sentiment.