CSG’s Caesar Howitzer Hiccup Overshadows Karpat Tank Debut as Shares Languish

Czechoslovak Group unveils CFL-120 Karpat tank amid short-seller attack, howitzer delivery dispute, and stock near 52-week low despite strong revenue growth.

The Czechoslovak Group arrived at this month’s IDEB 2026 defence fair in Bratislava with a shiny new product, a short?seller attack still smarting and a domestic delivery dispute that refuses to go away. The company’s shares, meanwhile, are trading barely above their 52?week low, leaving investors to weigh operational momentum against a growing list of headwinds.

Tank Roll?Out Meets Howitzer Standstill

CSG and Turkish partner FNSS Savunma Sistemleri unveiled the CFL?120 Karpat, a 34?tonne tracked platform armed with a 120mm cannon and capable of 70 km/h. The vehicle, which uses a Leonardo turret, is aimed squarely at the Slovak army’s planned purchase of up to 108 new tanks. Serial production is earmarked for CSG’s Slovak plants, with local suppliers to be gradually integrated.

But the fanfare was muted by a snag closer to home. Excalibur Army, CSG’s Czech subsidiary, is struggling to deliver 62 Caesar howitzers to the Czech Defence Ministry in a contract worth roughly 10.3 billion crowns. The first four units were due for troop testing in April, but a dispute between the ministry and main contractor KNDS has blocked acceptance. The ministry insists on specific defect corrections before it signs off. While component work continues at CSG’s factories, the delay chips away at the group’s domestic credibility.

Short?Seller Hangover and a NATO Blacklist

The stock’s woes deepened earlier this month when Hunterbrook Media published a scathing report accusing CSG of being more of a repackager of old ammunition than a genuine manufacturer. The shares shed over 13% in a single day. CSG hit back, pointing out that Hunterbrook Capital holds a disclosed short position and calling the claims distorted. The company has since reaffirmed its plan to boost in?house production by roughly 20% this year, including an extra 70,000 rounds of capacity in Slovakia.

Compounding the pressure, the NATO Support and Procurement Agency placed CSG’s Spanish subsidiary, Fábrica de Municiones de Granada, on a blacklist. Critics say the IPO prospectus did not flag this risk prominently enough. CSG rejects the criticism.

Strong Numbers, Weak Price

Despite the market’s scepticism, the underlying business is firing on most cylinders. Revenue surged almost 72% to €6.7 billion in 2025, driven by organic growth and acquisitions. The order backlog stands at €42 billion. For 2026, management forecasts revenue of €7.4?7.6 billion and an operating EBIT margin of 24?25%. Moody’s recently upgraded CSG to investment grade, shoring up its credit profile.

Analysts remain bullish – all nine covering the stock recommend a buy. JPMorgan has a €40 price target, and the consensus stands at €35.40. Yet the share price closed last week at €16.42, up 0.88% on the day but down 22.70% over the past month. That is a world away from the IPO price of €25 in January, when the company raised €3.8 billion on Euronext Amsterdam.

The EU Funding Wildcard

The group is also racing against a deadline on an EU financing scheme. The Slovak munitions framework agreement under the SAFE programme has a maximum volume of €58 billion, with loans available at a 1% interest rate. The catch: at least two EU member states must participate, and the exemption expires at the end of May. So far no second country has committed.

What the Hard Data Will Show

The first real test of investor confidence since the listing arrives on 20 May, when CSG publishes its inaugural quarterly report. The focus will be on production volumes, order conversion, cash flow and one?off IPO costs. For the company to restore faith, it must show it can deliver on its ambitious margin targets while navigating the howitzer standoff, the short?seller narrative and the NATO blacklist – all before the EU financing window closes.