CSG Touts Croatian Framework and Ukrainian Engine Deal, But Investors Demand Hard Orders
Published on 06/19/2026 at 20:06 | Redaktion boerse-global.de
The defence group CSG used this year’s Eurosatory exhibition in Paris to unveil two strategic moves — one deepening its grip on European munitions procurement through Croatia’s entry into the ZVS holding framework, the other a technology partnership with Ukrainian Armor for rocket and drone propulsion. Yet shareholders, nursing a 60% slide from January’s 52-week high of €36.05, have shown little appetite for promises unbacked by purchase orders.
Croatia’s defence minister Ivan Anuši? agreed with his Slovak counterpart Robert Kali?ák that Zagreb would join the existing framework contract between the Slovak defence ministry and ZVS holding, in which CSG owns 50%. The seven-year accord has a theoretical maximum value of €58 billion — but that ceiling reflects production capacity, not committed revenue. Croatia has not disclosed any order value, delivery schedule, or mix of calibres, which range from 155 mm artillery shells to 120 mm tank ammunition and 30 mm and 35 mm cannon rounds. A letter of intent on bilateral defence cooperation was signed back on 8 June, making the framework accession the next step in a process that still lacks a firm purchase.
On the same exhibition floor, CSG’s AviaNera Technologies subsidiary signed a strategic partnership with Ukrainian Armor LLC. The agreement covers engine solutions for Ukrainian missile and drone platforms, with plans to deliver engines across several power classes and eventually localise production inside Ukraine. Again, no contract value, unit numbers or binding timeline were attached. The move builds on CSG’s Q1 2026 report, which highlighted its turbojet engine programme as a growth vector for the UAV and missile markets.
Should investors sell immediately? Or is it worth buying CSG?
The company’s financials offer some counterweight to the market’s scepticism. In the first quarter, the Defence Systems segment generated revenue of €1.251 billion, up 26.5% year-on-year, with an operating EBIT of €356 million. Group revenue reached €1.544 billion and operating EBIT €372 million. The order book stands at €17 billion, with a further €27 billion under negotiation. CSG has confirmed its full-year guidance.
None of that has arrested the stock’s decline. The shares were recently changing hands at around €14.28 to €14.46, reflecting a gain of barely 0.2% to 1.5% on the respective trading sessions. Over the past 30 days the stock has lost nearly 25% of its value. The relative strength index sits at 35.3, technically close to oversold territory, while annualised 30-day volatility stands at almost 56%. The 50-day moving average of €17.56 and the 100-day average of €23.25 both lie well above the current price, and at less than 6% above the 52-week low of €13.65, the downside risk remains palpable.
What investors need, analysts say, are concrete order volumes — from Croatia or any other partner — that can be translated into reported revenue and cash flow. Until the framework’s €58 billion capacity starts to convert into real purchase orders for ZVS and by extension CSG, or until AviaNera’s engine shipments show up in the backlog, the strategic headlines will continue to ring hollow against the stark chart.
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