CSG Powers Up With Turkish Tanks and Polish Engines as Defence Orders Swell

Czechoslovak Group unveils new battle tank with Turkish partner, launches engine production in Poland; Q1 revenue up 13.8%, backlog hits €17B, but stock down 47% from January high.

The Czechoslovak Group is pushing deeper into heavy military hardware on two fronts. In a matter of weeks, the Prague-based conglomerate has unveiled a new main battle tank with a Turkish partner and announced engine production in Poland, all while its latest quarterly figures show revenue climbing and orders swelling to €17 billion. Yet the stock remains under heavy pressure, sitting nearly 47% below its January high of €33.81.

Shares last changed hands at €17.81, a drop of roughly 8% since the beginning of May. The equity’s annualised volatility stands at 77%, reflecting the tension between a strong order book and a market still weighing the group’s rapid expansion into new product lines.

The most visible move came in early May when CSG and Turkish armoured vehicle specialist FNSS presented the CFL-120 KARPAT, a modular, tracked platform aimed at Central and Eastern European armies looking to replace ageing fleets. The collaboration marks CSG’s first step beyond its traditional ammunition and electronics base into the heavy-panzer segment. FNSS contributes its experience in tracked and wheeled vehicles, while CSG brings industrial capacity and access to NATO-aligned procurement programmes. No contract values have been disclosed, but the vehicle is designed to compete in upcoming tenders across the region.

Three weeks later, on May 26, CSG took another step to broaden its industrial footprint. It signed a partnership with Polish manufacturer WSK „PZL-KALISZ" to produce engines for heavy off-road vehicles in Poland. The venture deepens the group’s presence in the country and bolsters its automotive and defence credentials, adding in-house powertrain capability to complement its vehicle platforms.

These moves come on the back of a strong first quarter. Revenue rose 13.8% to €1.54 billion, propelled by the ammunition division and progress in land-vehicle programmes. The order backlog jumped 15.1% to €17 billion. For the full year 2026, management expects sales between €7.4 billion and €7.6 billion, with an operating EBIT margin of 24% to 25%.

The partner offensive is not limited to tanks and engines. In April, CSG demonstrated new anti-drone ammunition with the Italian army. The FNSS alliance had already been flagged earlier in the year, but the Karpat reveal gave it tangible form. The Polish engine deal adds yet another spoke to a wheel that already includes defence, aerospace, munitions, automotive and rail technology.

CSG is betting that modular platforms and joint ventures will allow it to scale production rapidly without overextending its balance sheet. Whether the new hardware translates into near-term orders depends on procurement timelines in the target markets. With European defence budgets rising and a war raging on the continent’s eastern flank, the timing appears designed to catch the wave.