CSG's 60% Rout Persists as Index Inclusion and €17B Backlog Fail to Calm Investors
Published on 06/22/2026 at 16:12 | Redaktion boerse-global.de
For most companies, a promotion to a major index acts as a springboard for the share price. But Czechoslovak Group’s entry into the AMX mid-cap index of Euronext Amsterdam on June 22 has done little to stem the bleeding. The stock closed Monday at €13.90, just 25 cents above its 52-week low of €13.65, after shedding 2.6% on the day. That leaves the Czech defence group nursing a loss of more than 60% since its January IPO, when the market valued it at roughly €25 billion.
The index inclusion was supposed to drive institutional buying via mandatory ETF rebalancing. Indeed, the stock was trading around €14.28 on the day of the AMX listing, but the upward momentum fizzled quickly. At €13.90, the shares are now roughly 20% below their 50-day moving average of €17.40, having been nearly 19% below the average of €17.56 just days earlier. The relative strength index has slipped to 33.2, deeper into oversold territory after briefly touching 35.3. With annualised 30-day volatility hovering at 56%, the market remains visibly skittish.
The steep sell-off stands in stark contrast to the company’s operating performance. In the first quarter of 2026, revenue jumped 13.8% year on year to €1.544 billion, while operating EBIT rose 8.7% to €372 million, yielding a margin of 24.1%. The Defence Systems segment posted the strongest growth, with sales surging 26.5%. The order backlog swelled to €17 billion from €15 billion at the end of 2025, providing visible revenue well into the future. Management has reaffirmed its full-year guidance: sales between €7.4 billion and €7.6 billion, with an adjusted EBIT margin of 24% to 25%.
Should investors sell immediately? Or is it worth buying CSG?
Beyond the numbers, CSG has been active on the ground. At the Eurosatory defence exhibition in Paris earlier this month, it unveiled a new air-defence system dubbed “Trident.” Subsidiary AviaNera Technologies also struck a cooperation agreement with Ukrainian Armor LLC to develop propulsion systems for rockets and uncrewed platforms. Separately, the group secured a fuse contract valued in the high double-digit millions of euros. Production capacity for large-calibre ammunition is slated to reach 850,000 units by year-end.
The first real test of the annual forecast will come on August 7, when CSG publishes its half-year results. Investors will also be watching for any update on the dividend programme announced for 2027, which targets a payout ratio of 30% to 40% of net profit based on the current year’s earnings.
Yet for now, the disconnect between operational strength and market sentiment remains wide. Index inclusion has brought structural demand, but it has not been enough to turn the tide. Whether the stock can stabilise above its 52-week floor depends on how quickly the fundamentals can reassert themselves in a nervous trading environment.
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