Michal Strnad, the Czech billionaire behind defense contractor Czechoslovak Group (CSG), is taking an unusual step for a war-equity titan — he is channelling his personal fortune into media, real estate and waste management. The move comes as the company he founded faces its first quarterly earnings test since going public, with a NATO procurement ban and a looming EU funding deadline heaping pressure on the stock.
Strnad netted roughly €2.55 billion from CSG’s January listing on Euronext Amsterdam — the largest pure-play defense IPO on record, with total proceeds of €3.8 billion including the greenshoe. Now he plans to lever that cash into a €10 billion investment vehicle focused exclusively on civilian industries in Europe and the US. The structure is designed to avoid conflicts with his role at CSG, he has said.
The timing is delicate. CSG shares have been hammered since a short-seller attack by Hunterbrook Media in early May, which claimed the company was little more than a reprocessor of old munitions. The stock lost over 13% in a single session and now trades at around €15.75, barely above the all-time low set on 4 May. That is roughly 51% below the January peak of €33.81, and the 30-day decline exceeds 23%.
Compounding the market jitters are two regulatory clouds. First, the NATO Support and Procurement Agency (NSPA) barred CSG’s Spanish ammunition subsidiary, Fábrica de Municiones de Granada (FMG), from new tenders on 31 July 2025, a suspension made indefinite in March. CSG did not mention the ban in its 728-page IPO prospectus, raising questions under EU capital-markets rules that require disclosure of material risks. CSG insists an internal legal audit found no irregularities and that FMG is cooperating fully, with no material financial impact since the unit can still supply NATO member states directly.
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Second, a €58 billion Slovak ammunition framework agreement qualifies for EU SAFE financing at a rock-bottom 1% interest rate — but only until the end of May 2026, and only if at least two other EU members sign on. Diplomatically, the outlook is cold: Romania denies talks at ministerial level, Croatia is studying the option without committing, and Poland and Greece remain non-committal. CSG calls the agreement a framework without binding orders and says it is not dependent on any single funding mechanism, adding that confidential talks with potential partners are under way.
Despite the headwinds, analysts remain unanimously bullish. All nine covering the stock rate it a buy, with JPMorgan targeting €40 and the consensus at €35.40. Moody’s upgraded CSG’s secured notes to Baa3, citing improved governance post-IPO, while Fitch affirmed a BBB- with stable outlook. Operationally, the numbers are strong: 2025 revenue jumped 72% to €6.7 billion, the order book stands at €15 billion, and management guided for €7.4–7.6 billion in sales this year with an adjusted EBIT margin of 24–25%.
Strnad’s civilian diversification plans come alongside continued expansion in CSG’s core business. On 13 May the group made an offer to acquire a stake in the Franco-German tank maker KNDS, and it has secured $2.5 billion in air-defence contracts in Asia. The company also plans investment in joint artillery-munitions production in Ukraine.
All eyes now turn to 20 May, when CSG publishes its first quarterly report as a listed entity. The market will scrutinise how transparently management addresses the FMG situation and whether the robust order book is already translating into profit-and-loss figures. For Strnad, the earnings will test whether his civilian ambitions can coexist with the regulatory and reputational challenges still haunting his defense flagship.
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