CSG (CSG) H1 2026 earnings summary

Executive summary

• Revenue grew 17.2% year-over-year to €3.251 billion in H1 2026, driven by Defence Systems and Land Systems expansion, with Land Systems now 46% of the order backlog and strong diversification across geographies.

• Operating EBIT rose 12.7% to €784 million, maintaining a 24.1% margin; Defence Systems margin was 28.8%.

• Net profit from continuing operations increased 84.8% to €572 million.

• Order backlog grew 15% year-to-date to €17 billion, with total backlog and pipeline under negotiation reaching €46 billion, providing strong multi-year revenue visibility.

• Leadership team strengthened with senior hires from major defense companies to support scaling and execution.

Financial highlights

• H1 2026 revenue: €3.251–3.3 billion; Operating EBIT: €784 million; EBIT margin: 24.1%.

• Net leverage at 1.6x, cash conversion at 85.8–86%, and CapEx intensity at 3.8%.

• Net working capital at 40% of revenue (€2.9 billion), expected to fall below 20% by year-end as inventory is released.

• Free cash flow was negative due to €1.15–1.2 billion working capital build and higher tax payments.

• Operating EBITDA was €863 million, up 11.5% year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at €7.4–7.6 billion, with operating EBIT margin of 24–25%.

• CapEx intensity expected at 8.5% for the year; net leverage target below 1.3x.

• Mid-term guidance: organic CAGR in mid-teens, margin 26–28%, CapEx intensity 4–5%.

• Over 90% of H2 Defence Systems revenue needed for FY guidance is already under contract.

• Net working capital expected below 20% of revenue by year-end.