Czech arms maker Czechoslovak Group (CSG) announced in mid-October that it has acquired a stake in Canadian space technology manufacturer MDA Space, according to DW. The company pointed to the close link between the space and defense industries when it announced the deal.
CSG listed on the Amsterdam Stock Exchange earlier this year. Its market capitalization reached €14.6 billion ($16.4 billion), making it the most valuable company in Central and Eastern Europe, the report says.
DW reports that the Czech defense sector's exports rose from €600 million in 2021 to €4.7 billion in 2025. European states procured roughly €11 billion of military support for Ukraine from Czech firms by the end of 2025, and about €4 billion of those orders came through the Czech Ammunition Initiative.
Krzysztof Debiec of the Centre for Eastern Studies (OSW) told DW that the industry's early success stemmed largely from its specialization in ammunition, including Soviet calibers, and from its repair of Soviet-era equipment. Jan Jires, a former deputy defense minister and senior advisor at the International Institute for Strategic Studies, told DW that the industry has outgrown the country's financial means. "Unlike German, French or British companies, Czech manufacturers cannot rely on domestic demand to make them globally relevant," he said.
According to the report, the populist ruling coalition has halted contributions to the Czech Ammunition Initiative and is slow to raise defense spending toward NATO targets. The industry relies on exports for about 90% of its revenue, and bullets and shells account for around 60% of CSG's sales.
CSG's share price has performed erratically since its listing, DW reports.