CSG Unveils CFL-120 Karpat and Reaffirms €7.6bn Revenue Target as Share Price Languishes

Czechoslovak Group launches new armored vehicle with NATO-standard 120mm cannon, while defending against activist short-seller allegations that wiped out over half its market cap.

At the IDEB arms fair in Bratislava on 12 May, CSG and Turkish partner FNSS Savunma Sistemleri unveiled the CFL-120 Karpat, a new combat vehicle that marks a strategic push beyond its traditional munitions business. The armoured platform, fitted with a 120mm cannon that fires NATO-standard ammunition, is designed for European and export customers seeking a combination of firepower, protection and rapid deployability. Munition storage sits outside the crew compartment to reduce the risk of a catastrophic hit, and the turret can be specified with either manual or automatic loading.

The move into complex land systems is part of a broader strategy to offer integrated defence solutions rather than just components. For the Czechoslovak Group, the Karpat represents access to a market where networked platforms and cost control are increasingly decisive. Yet the vehicle’s debut comes against a backdrop of intense investor scrutiny that has hammered the company’s stock price.

Activist short-seller Hunterbrook Media published a report in early May questioning CSG’s production capacity, business model and governance. The attack triggered a sharp sell-off: the shares closed at €15.98 on Wednesday, nearly 53% below January’s record high and down more than a quarter in the past 30 days alone. CSG has rejected the allegations as inaccurate and is considering legal action. It also addressed a specific claim about a put option tied to minority shareholder Petr Kratochvíl, stating that external legal advisers consider the option was not validly exercised before the IPO and that no disclosure obligation exists. A €275m receivable from related parties was fully paid in cash during the first quarter of 2026, the company said.

Where the short-seller narrative has focused on capacity constraints, CSG is pointing to concrete production numbers. Its own output stood at around 630,000 rounds in 2025, and management has guided for a roughly 20% increase this year. A new manufacturing line in Slovakia will add 70,000 large-calibre rounds annually, supporting a medium-term target of 1.1m shells. The company runs a vertically integrated network spanning Spain, Serbia, Greece and India, which it claims reduces dependence on external partners and reconditioned stocks.

The financial backdrop remains strong on paper. CSG has reaffirmed its full-year 2026 revenue guidance of €7.4bn to €7.6bn, implying double-digit percentage growth. An order backlog of €14bn at the end of September—up 69% year-on-year—had contracted to more than €11bn by the start of this year, still a robust cushion. More than 90% of sales come from NATO states, providing long-term visibility through framework agreements. One such deal, a Slovak ammunition contract, has a potential volume of €58bn over seven years, though CSG stresses this is not yet a confirmed order.

The company’s international expansion was supercharged by the $2.225bn acquisition of Vista Outdoor’s The Kinetic Group, which brought brands like Federal Ammunition, CCI and Speer under CSG’s roof. European defence peers trade at an average forward price-to-earnings multiple of 25; CSG is at 15, reflecting the discount the market is applying to the short-seller uncertainty.

All eyes now turn to the first-quarter results due on 20 May. Investors will scrutinise production throughput, cash generation and the conversion of framework agreements into firm orders. If the numbers hit the internal milestones CSG has set, that could provide the validation the stock sorely needs. But with the share price deep in bear-market territory and a new combat vehicle competing for attention with unresolved allegations, the defence contractor has more than one battle to fight.