CSG Takes Control of Defence Wiring and Artillery Fuses in One Strategic Sweep

CSG completes Polish wiring acquisition and fuse JV with Reunert in Slovakia, advancing vertical integration in munitions supply chain. Q1 revenue €1.544bn, up 13.8%.

The Czechoslovak Group has sealed two separate but complementary moves to deepen its hold over key defence components, completing a Polish wiring specialist acquisition and finalising a joint venture for electronic artillery fuses in Slovakia. The twin announcements, announced within days of each other, underscore the Prague-based company’s push to own more of its supply chain from raw components to finished munitions.

The Polish deal saw CSG take full ownership of DOMAR MS, a Warsaw-based manufacturer of cables, wiring harnesses, electrical boxes and connectors for military vehicles, radar systems, communications gear and aerospace applications. The transaction, processed through ?eská spo?itelna on 26 May, marks CSG’s first acquisition in Poland. The company announced the deal in March, promising to expand its industrial footprint there long-term. DOMAR MS employs around 220 staff; CSG aims to boost that to roughly 300 by end 2026 through new investment in plant and capacity. Poland will remain the supplier’s primary market, but integration into the wider CSG structure is expected to open up international opportunities.

Hard on the heels of that closure came the official launch of Fuchs Electronics Europe, a joint venture with South Africa’s Reunert. CSG will hold 49% of the new entity, Reunert 51%. Their aim is to produce electronic fuses for large-calibre artillery ammunition at CSG’s existing site at ZVS Dubnica nad Váhom in Slovakia. Fuchs Electronics, a Reunert subsidiary with more than six decades of fuse-making experience, provides the core technology; CSG contributes production infrastructure, regulatory expertise and selected component manufacturing. The venture is capital-efficient, operates under a binding initial order covering the first three years, and is expected to become self-sustaining and generate attractive margins within that period. CSG now ranks as one of the few EU-based producers of such fuses, which control detonation timing and modes – impact, delay, time, airburst – for artillery shells.

Both moves slot into CSG’s broader vertical?integration strategy. The DOMAR MS acquisition increases in-house capacity for critical sub?assemblies, while the fuse venture fills a remaining gap in its munitions chain. The company has also recently started a new propellant plant in Slovakia in a joint venture with France’s EURENCO, producing MACS artillery propellant charges to internalise input costs and reduce supply?chain risk.

The operational push sits on a solid financial base. In the first quarter of 2026, CSG reported revenue of €1.544bn, up 13.8% year-on-year. Operating EBIT rose 8.7% to €372m, with a margin of 24.1% – right in the middle of the full-year target corridor of 24%?25%. The core Defence Systems segment delivered sales growth of 26.5% and a segment margin of 28.5%. Management confirmed the 2026 revenue guidance of €7.4bn?7.6bn. The order book stands at €17bn, with a further €27bn under negotiation.

Investors have taken note. CSG shares have rallied roughly 14% in the past week as the market digested the solid quarterly numbers and the supply-chain moves. The stock currently trades at €17.82, still 47% below its 52-week high of €33.81 set on 23 January. The 30-day annualised volatility remains high at 77%, and the shares sit almost 17% below their 50?day moving average. Credit ratings have improved: Moody’s lifted CSG’s secured senior notes from Ba1 to Baa3, while Fitch affirmed BBB- with a stable outlook.

A looming catalyst is the EU’s SAFE programme, which offers member states cheap, long-dated loans for defence projects including ammunition procurement. The country-specific exemption expires at the end of this month. Romania has already opted out; Croatia is still deliberating. Should a second nation opt in before the deadline, CSG’s order book could receive a substantial boost. The next hard financial milestone arrives on 7 August with half-year results. Analysts are broadly optimistic: the 12-month average price target sits at €32.45, with ten “buy” recommendations and not a single “sell”. For now, the market is betting that CSG’s twin moves in Poland and Slovakia will carry the vertical?integration story from ambition toward measurable execution.