Czech arms factories are achieving record results, with the Czechoslovak Group holding tripling its net profit last year to more than 13 billion crowns. Other companies in the sector are also performing strongly and expect even greater growth this year.
“We are more than 90% focused on exports, but despite this, orders for the Czech army remain relatively stable. These are mainly ‘Tatra’ trucks and other ground equipment,” said Zdenek Junak, CFO of Czechoslovak Group.
European orders last year, excluding Ukraine, made up less than 44% of the holding’s revenue, with a similar share coming from Ukraine. The company anticipates further growth this year.
“We plan to increase production,” Junak added.
Czechoslovak Group, the largest arms holding in the Czech Republic, consists of over 100 companies and employs more than 14,000 people across its nearly 40 factories, primarily located in Europe and the U.S. Last year, the company acquired the American manufacturer Kinetic Group for more than 50 billion crowns, making it one of the world’s largest producers of small-caliber ammunition.
Other Czech arms companies are also thriving. Colt CZ Group SE saw its revenue double last year, reaching over 22 billion crowns with nearly 2 billion crowns in profit. The company sold 634,000 firearms, with nearly 4.5 billion crowns earned in the Czech Republic, partly from the Ministry of Defense’s purchases.
“The preliminary results for 2024 are in line with our expectations, especially regarding organic growth in the firearms segment,” said Jan Dragota, chairman of Colt CZ Group SE.
STV Group, another major player in the arms industry, is forecasting significantly better results. The company plans to produce up to 300,000 artillery shells annually. “As a Czech company, we always focus first on our army as the main consumer, but we see that without exports, we obviously cannot succeed,” said Ivo Strejcek, project development director of STV Group, in early March.
