CSG (CSG) Q1 2025 Presentation earnings summary

Revenue and growth

• Q1 2025 revenues surged 92% YoY to €1.37bn, driven by strong defence demand and the integration of The Kinetic Group.

• LTM pro-forma revenues reached €5.5bn, up 6% from FY24, reflecting robust order execution.

• Defence accounted for 68% of revenues, with Ammo+ contributing 26%, and NATO markets making up 65% of Q1 revenues.

• Backlog increased to €13bn (+18% YoY), with a €9bn pipeline (+13% YoY), supporting future visibility.

Profitability and margins

• Q1 2025 operating EBITDA more than doubled YoY to €377.7m, with margin expanding to 27.6% from 25.4%.

• LTM pro-forma operating EBITDA rose to €1.5bn (+8% vs FY24), confirming operational scalability.

• Defence contributed 78% of EBITDA, with Ammo+ at 18%.

• Adjusted EBITDA excludes a €47.3m non-cash PPA impact for better comparability.

Financial position and cash flow

• Net debt stood at €2.3bn and net leverage at 1.6x, comfortably below internal targets.

• Pre-tax operating cash flow was negative, mainly due to a strategic inventory build-up to support backlog execution.

• Net working capital reached €1.28bn (23% of LTM revenues), reflecting seasonal and strategic inventory increases.

• Cash and cash equivalents at period end were €690m, down from €1.25bn at year start.