CSG Branches Beyond Defence with Pirelli Bet as US Artillery Offensive Lifts Shares 14%
Published on 07/04/2026 at 17:54 | Redaktion boerse-global.de
The Czechoslovak Group is charting a radical new course, one that takes it both deeper into the American defence market and, surprisingly, into the Italian tyre industry. CEO Michal Strnad is pursuing a 14% stake in Pirelli, currently held by Chinese state-owned Sinochem, according to reports. He is partnering with Czech billionaire Pavel Tyka? with ambitions for a combined holding of up to 20%.
Sinochem owns more than a third of Pirelli, but its influence is coming under increasing scrutiny from European regulators. That political pressure has opened the door for CSG, a move that would mark a clear break from the group's pure defence portfolio. The potential acquisition represents a dramatic strategic shift, adding a consumer-linked business to a company known for heavy weapons and military vehicles.
Investors have rewarded the boldness. CSG shares rallied 14.45% over the week to close at EUR 14.59 on Friday, pulling sharply away from the all-time low of EUR 12.20 hit in recent days. The bounce comes despite headwinds in the broader European defence sector: armoured-vehicle maker KNDS cancelled its planned IPO on 2 July, citing market volatility, and Rheinmetall has posted losses recently. CSG has shrugged off that downdraft.
Should investors sell immediately? Or is it worth buying CSG?
The recovery, however, still leaves the stock roughly 60% below the January record high of around EUR 36. The 50-day moving average, currently near EUR 16, is acting as a near-term cap, while the 100-day average at EUR 21.45 remains far above. The extreme swings underscore investor jitters, but the stock has at least exited oversold territory.
Behind the share-price jump is a concrete, well?timed expansion in the United States. On 1 July, CSG launched a new subsidiary, CSG Land Systems North America, based in Michigan. The unit will represent Nato suppliers Excalibur Army and Tatra in the US market, with a specific goal: selling the new Morana howitzer to the US Army. To lead the charge, the group has brought in seasoned American executives. Jason Alejandro Monahan will run the Michigan outpost, while former Northrop Grumman executive David Jacobs takes over as president of CSG Defense North America from a new Washington office. The company has also been poaching senior talent from Rheinmetall, BAE Systems and Raytheon for its Prague headquarters — a clear signal that CSG is transforming from a European niche supplier into a transatlantic player.
The next big test for management comes on 7 August, when CSG is due to publish its half-year results for 2026. Investors will be scrutinising whether the thick order book and the US push are translating into concrete profits. If the EUR 12 floor holds, the stock may be laying the groundwork for a more sustained recovery — but with a pending foray into tyres and a Pentagon sales campaign only just beginning, the road ahead remains anything but straight.
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