The Young CEO Who Became the Richest Person Thanks to War

Geopolitical tensions in recent times have turned a defence entrepreneur into the richest person in his country. This wealth increase aligns with the growth of the global security industry. According to The Economist, one figure in the spotlight is Michal Strnad, the 33-year-old CEO from the Czech Republic behind Czechoslovak Group (CSG). He is currently listed as the richest person in the Czech Republic. Previously, Strnad was less known globally or in his own country as he preferred to focus on managing the family company founded by his father. The name Strnad began attracting public attention after he took his company public on the stock exchange in January with a valuation of €25 billion. Currently, CSG has grown rapidly, employing around 14,000 people and operating more than 30 production facilities in various countries. CSG’s performance has surged significantly in recent years. Last year, the company recorded revenue of €6.7 billion, a 12-fold increase from 2021, with about 80% coming from the defence sector. With these achievements, CSG now ranks among the top 10 largest arms producers in Europe. In fact, the company has become the second-largest ammunition producer on the continent after Germany’s Rheinmetall. CSG’s business boom is inseparable from the impact of the Ukraine war. The company plays a key role in the Czech Ammunition Initiative led by President Petr Pavel to supply bullets and ammunition to Ukraine with support from Western countries. CSG benefited from direct sales to Ukraine, which contributed 27% of total revenue last year. Additionally, demand has increased as European countries replenish their ammunition stocks. Aggressive expansion through acquisitions has further strengthened the company’s position. In 2022, CSG acquired a majority stake in Italy’s Fiocchi, then in 2024 took over the Kinetic Group in the United States, and recently announced the purchase of 49% of shares in Austria’s Hirtenberger Defence Systems. Strnad emphasised that this expansion will continue in the future. He stated that the current moment is one of consolidation in the defence industry, in line with the growing global need for military products. CSG’s ambitions are growing even larger with a target to become Europe’s largest arms producer. In December, the company signed a seven-year contract worth up to €58 billion to supply ammunition to EU countries under a joint defence strengthening programme. Although about 75% of CSG’s sales come from Europe, the company is also targeting growth in the American market. This global expansion is supported by lower labour costs in the Czech Republic and Slovakia, as well as vertical integration that strengthens the supply chain. Nevertheless, challenges continue to shadow the company’s growth. The emergence of new players like German drone manufacturers and the potential end of the Ukraine war could pressure future ammunition demand. Beyond business, Strnad is increasing his presence domestically. CSG is now the main sponsor of the Czech Olympic team, while Strnad has also acquired the Viktoria Plzen football club to expand his influence.