The war in Ukraine has dramatically reshaped Europe's economic map, propelling the defense sector to the forefront. What was considered a risky investment just a few years ago has transformed into one of the continent’s most lucrative industries. The European defense industry is experiencing the most significant boom since the Cold War.
A central figure in this wave is 33-year-old Czech Michal Strnat. His company, Czechoslova Group (CSG), has launched Europe's largest-ever defense IPO—listing on the Amsterdam Stock Exchange with a valuation of up to €30 billion.
CSG was founded by Michal's father, Jaroslav Strnat, in the 1990s. After the collapse of the Warsaw Pact, Eastern Europe was left with large stocks of Soviet military equipment. Jaroslav began buying, refurbishing, and reselling this surplus equipment. The business began as Scaliber Army in 1995 and gradually evolved into CSG, which now incorporates around 100 companies in 10 countries, exporting products to more than 70 nations.
Michal Strnat took over as CEO at 21 and became full owner at 26. In 2022, over 40% of CSG’s revenues came from supplies to the Ukrainian army – primarily armored vehicles, munitions, and rocket systems actively used on the front lines.
CSG’s financial performance for the first nine months of 2025 was impressive: revenue reached €4.5 billion (up 82% year-on-year) with an operating profit of €1.2 billion and a high profitability margin of 26%. Three-quarters of sales go to Europe, with Ukraine accounting for 26% of revenues and the US for another 18%.
The IPO aims to raise funds for further production expansion and acquisitions, with the goal for CSG to become the second-largest defense manufacturer in Europe. The company has already attracted €900 million from strategic investors, with proceeds set to drive manufacturing growth.
One landmark deal was the $2.2 billion acquisition of US-based Kinetic Group, turning CSG into the world’s largest manufacturer of small-caliber ammunition.
This defense sector boom is echoed elsewhere, both by established players like Rheinmetall and by new startups focusing on drones and artificial intelligence. Military spending hit record levels in 2024-25 ($2.7 trillion globally), as did venture investments in the sector ($5.2 billion).
Investor attitudes have shifted; pension funds are now investing in defense, seeing it as a core part of Europe's security infrastructure. While some criticize profits gained from war, industry leaders argue modern defense is essential for survival and sovereignty, with expansion and investment vital for security.
The CSG IPO is a marker of how far Europe’s defense industry has transformed since the outbreak of war in Ukraine. Governments and private businesses alike are ramping up defense capacity, technological innovation, and strategic independence across the region.
