Core Insights - Constellium SE reported strong financial results for Q3 2025, with significant increases in revenue, net income, and Adjusted EBITDA compared to Q3 2024 [5][6][21] - The company appointed Ingrid Joerg as the new CEO, effective January 1, 2026, succeeding Jean-Marc Germain, who will retire at the end of 2025 [3][5] - The company raised its guidance for 2025, expecting Adjusted EBITDA to be in the range of $670 million to $690 million and Free Cash Flow to exceed $120 million [3][27] Financial Performance - Q3 2025 shipments reached 373 thousand metric tons, a 6% increase from Q3 2024, with revenue of $2.2 billion, up 20% year-over-year [5][6] - Net income for Q3 2025 was $88 million, compared to $8 million in Q3 2024, while Adjusted EBITDA increased to $235 million, an 85% rise from the previous year [5][6][21] - For the first nine months of 2025, shipments totaled 1.1 million metric tons, up 2% from the same period in 2024, with revenue of $6.2 billion, an 11% increase [7][6] Segment Performance - Aerospace & Transportation (A&T) segment Adjusted EBITDA for Q3 2025 was $90 million, a 67% increase from Q3 2024, driven by higher shipments and favorable pricing [10][11] - Packaging & Automotive Rolled Products (P&ARP) segment Adjusted EBITDA rose to $82 million in Q3 2025, a 14% increase, supported by improved performance at Muscle Shoals [12][14] - Automotive Structures & Industry (AS&I) segment Adjusted EBITDA increased significantly to $33 million in Q3 2025, up 371% from the previous year, despite lower shipments [15][16] Cash Flow and Liquidity - Free Cash Flow for the first nine months of 2025 was $68 million, a significant improvement from $(15) million in the same period of 2024 [23] - Cash flows from operating activities were $271 million for the first nine months of 2025, compared to $240 million in the prior year [24] - As of September 30, 2025, the company had liquidity of $831 million, consisting of $122 million in cash and cash equivalents [26] Outlook and Strategic Developments - The company expects demand trends to remain stable through the end of 2025, benefiting from improved market dynamics [3][27] - Constellium completed the divestment of its Nanjing Automotive Structures plant in August 2025, indicating a strategic shift in operations [29]

PARIS, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) today announced that effective January 1, 2026, Ingrid Joerg, currently Constellium’s Chief Operating Officer, will succeed Jean-Marc Germain as Chief Executive Officer and join the Board as a Director, following Mr. Germain’s decision to retire from those roles at the end of 2025. This transition comes as a multi-year leadership succession planning, and Mr. Germain is expected to serve as Special Advisor to the Company’s Board of Director ...

PARIS, Oct. 14, 2025 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) will host a conference call and webcast on Wednesday, October 29, 2025, at 10:00 AM (Eastern Time) to announce its third quarter 2025 results. The press release will be sent before market opening. The conference call will be hosted by Jean-Marc Germain, Chief Executive Officer, and Jack Guo, Executive Vice President and Chief Financial Officer. Details of the conference call, webcast and accompanying presentation will be available on the C ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - Identifying the right entry point for fast-moving stocks is challenging, and traditional momentum parameters may not always be reliable [1] Group 2: Bargain Stocks and Screening - Investing in bargain stocks with recent price momentum can be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Constellium (CSTM) Analysis - Constellium (CSTM) has shown a four-week price change of 3%, indicating growing investor interest [3] - CSTM gained 2.8% over the past 12 weeks, with a beta of 1.7, suggesting it moves 70% more than the market [4] - CSTM has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - CSTM is trading at a Price-to-Sales ratio of 0.27, meaning investors pay 27 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Investment Opportunities - Besides CSTM, there are other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]

Core Insights - Constellium SE has extended its long-term partnership with Embraer for the supply of high-performance aluminum solutions, including the advanced aluminum-lithium alloy, Airware [1][2] - This agreement supports Embraer's divisions in Commercial Aviation, Executive Jets, and Defense & Security, reflecting Constellium's commitment to the aerospace industry's demand for lightweight, high-performance materials [2] Company Overview - Constellium is a global leader in developing innovative aluminum products for various markets, including aerospace, packaging, and automotive, generating $7.3 billion in revenue in 2024 [3] - Embraer is a Brazilian aerospace company that manufactures aircraft for multiple segments, including Commercial and Executive aviation, and has delivered over 9,000 aircraft since its founding in 1969 [3]

Group 1: Company Participation and Initiatives - Constellium SE is participating in Cenex 2025, the UK's leading event for low carbon and connected vehicle technologies, on September 3-4 [1] - The company is showcasing innovative aluminum solutions developed through the CirConAl project, a £10 million initiative supported by the Advanced Propulsion Centre UK and the UK Government [2] Group 2: Product Innovations and Sustainability - Constellium's display includes aluminum solutions with less than two metric tons of embodied CO2 emissions per metric ton of aluminum, meeting high-performance standards for automakers [3] - The project focuses on developing low-carbon, cost-efficient aluminum extrusion alloys using post-consumer scrap, enhancing sustainable automotive manufacturing [5] - By transforming post-consumer aluminum scrap into high-performance components, Constellium contributes to a circular economy for aluminum and a cleaner future for mobility [6] Group 3: Company Overview - Constellium is a global leader in developing innovative, value-added aluminum products for various markets, including aerospace, packaging, and automotive, generating $7.3 billion in revenue in 2024 [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Constellium (CSTM) as a strong candidate for value investors due to its favorable metrics and Zacks Rank [2][4][6]. Group 1: Value Investing Strategy - Value investing is a popular strategy that focuses on identifying undervalued companies based on fundamental analysis and metrics [2]. - The Zacks Rank system and Style Scores are tools that help investors find stocks with specific traits, particularly in the "Value" category [3]. Group 2: Constellium (CSTM) Metrics - Constellium (CSTM) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - CSTM's current P/E ratio is 10.34, which is slightly below the industry average of 10.57, suggesting it may be undervalued [4]. - The Forward P/E ratio for CSTM has ranged from 5.43 to 14.43 over the past year, with a median of 8.35 [4]. - CSTM's P/S ratio is 0.26, compared to the industry's average P/S of 0.37, further indicating potential undervaluation [5]. - These metrics suggest that CSTM is likely undervalued and presents a strong investment opportunity based on its earnings outlook [6].

PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Constellium SE's unaudited interim condensed consolidated financial statements, including income statements, comprehensive income, balance sheets, changes in equity, and cash flows, along with detailed notes on business operations, accounting policies, segment information, and financial instruments for the periods ended June 30, 2025 and 2024 [Consolidated Income Statements](index=4&type=section&id=CONSOLIDATED%20INCOME%20STATEMENTS) This section provides a summary of the company's consolidated income statements for the three and six months ended June 30, 2025 and 2024 Consolidated Income Statement Highlights (in millions of U.S. dollar) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Revenue | 2,103 | 1,932 | 8.85% | 4,082 | 3,812 | 7.08% | | Income before tax | 56 | 104 | -46.15% | 118 | 134 | -11.94% | | Net income | 36 | 77 | -53.25% | 74 | 99 | -25.25% | | Basic EPS | 0.25 | 0.52 | -51.92% | 0.51 | 0.66 | -22.73% | | Diluted EPS | 0.25 | 0.51 | -50.98% | 0.51 | 0.65 | -21.54% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) This section details the consolidated statements of comprehensive income, including net income and other comprehensive income components Consolidated Statements of Comprehensive Income Highlights (in millions of U.S. dollar) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Net income | 36 | 77 | -53.25% | 74 | 99 | -25.25% | | Other comprehensive income / (loss) | 28 | (5) | -660.00% | 39 | (16) | -343.75% | | Total comprehensive income | 64 | 72 | -11.11% | 113 | 83 | 36.14% | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section presents the company's consolidated balance sheets, outlining assets, liabilities, and equity at June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (in millions of U.S. dollar) | Metric | At June 30, 2025 | At December 31, 2024 | Change (%) | | :-------------------------------- | :----------------- | :------------------- | :--------- | | Total current assets | 2,312 | 1,834 | 26.06% | | Total non-current assets | 3,056 | 2,900 | 5.38% | | Total assets | 5,368 | 4,734 | 13.39% | | Total current liabilities | 1,873 | 1,446 | 29.53% | | Total non-current liabilities | 2,696 | 2,561 | 5.27% | | Total liabilities | 4,569 | 4,007 | 14.03% | | Total equity | 799 | 727 | 9.90% | [Consolidated Statements of Changes in Equity](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20EQUITY) This section outlines the changes in the company's total equity, net income, other comprehensive income, and share repurchases over specified periods Consolidated Statements of Changes in Equity Highlights (in millions of U.S. dollar) | Metric | At June 30, 2025 | At March 31, 2025 | At January 1, 2025 | | :-------------------------------- | :----------------- | :---------------- | :----------------- | | Total equity | 799 | 765 | 727 | | Net income (Q2 2025) | 36 | 37 | - | | Other comprehensive income (Q2 2025) | 27 | 11 | - | | Repurchase of ordinary shares (Q2 2025) | (35) | (15) | - | | Metric | At June 30, 2024 | At March 31, 2024 | At January 1, 2024 | | :-------------------------------- | :----------------- | :---------------- | :----------------- | | Total equity | 796 | 751 | 742 | | Net income (Q2 2024) | 76 | 21 | - | | Other comprehensive loss (Q2 2024) | (5) | (11) | - | | Repurchase of ordinary shares (Q2 2024) | (32) | (7) | - | [Consolidated Statements of Cash Flows](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section summarizes the company's cash flows from operating, investing, and financing activities for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Cash Flows Highlights (in millions of U.S. dollar) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Net cash flows from operating activities | 114 | 138 | -17.40% | 172 | 175 | -1.71% | | Net cash flows used in investing activities | (72) | (61) | 18.03% | (131) | (111) | 18.02% | | Net cash flows used in financing activities | (36) | (41) | -12.20% | (62) | (51) | 21.57% | | Net increase / (decrease) in cash and cash equivalents | 6 | 36 | -83.33% | (21) | 13 | -261.54% | | Cash and cash equivalents - end of period | 133 | 228 | -41.67% | 133 | 228 | -41.67% | [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes supporting the unaudited interim condensed consolidated financial statements [NOTE 1 - Business and Summary of Accounting Policies](index=11&type=section&id=NOTE%201%20-%20BUSINESS%20AND%20SUMMARY%20OF%20ACCOUNTING%20POLICIES) This note describes Constellium SE's business operations, its status as a U.S. domestic filer, and the summary of significant accounting policies - Constellium SE is a global leader in the design and manufacture of innovative specialty rolled and extruded aluminum products for aerospace, packaging, automotive, commercial transportation, general industrial, and defense markets, operating **25 manufacturing facilities, 3 R&D centers, and 3 administrative centers** as of June 30, 2025[21](index=21&type=chunk) - The company no longer qualifies as a Foreign Private Issuer as of June 30, 2025, and will continue to file annual reports on Form 10-K and quarterly reports on Form 10-Q, and will begin filing other U.S. domestic forms starting January 1, 2026[7](index=7&type=chunk) - The financial statements are prepared in accordance with U.S. GAAP and SEC regulations for interim periods, relying on management's judgments, estimates, and assumptions, particularly for asset impairment, post-employment benefits, tax uncertainties, and loss contingencies[24](index=24&type=chunk)[25](index=25&type=chunk) - The Group is evaluating the impact of new FASB ASUs: ASU 2023-09 (Improvements to Income Tax Disclosures, effective for annual periods after Dec 15, 2024) and ASU 2024-03 (Expense Disaggregation Disclosures, effective for annual periods after Dec 15, 2026), with **no material impact** on financial position, results, or cash flows expected from these adoptions[26](index=26&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [NOTE 2 - Revenue](index=12&type=section&id=NOTE%202%20-%20REVENUE) This note details the company's revenue breakdown by product line and its revenue recognition policies Revenue by Product Line (in millions of U.S. dollar) | Product Line | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Aerospace rolled products | 267 | 262 | 1.91% | 534 | 548 | -2.55% | | Transportation, industry, defense and other rolled products | 200 | 212 | -5.66% | 368 | 396 | -7.12% | | Packaging rolled products | 912 | 729 | 25.10% | 1,780 | 1,400 | 27.14% | | Automotive rolled products | 295 | 320 | -7.79% | 586 | 631 | -7.13% | | Specialty and other thin-rolled products | 26 | 28 | -7.14% | 50 | 60 | -16.67% | | Automotive extruded products | 249 | 250 | -0.40% | 483 | 513 | -5.85% | | Other extruded products | 154 | 131 | 17.56% | 281 | 264 | 6.44% | | **Total revenue by product line** | **2,103** | **1,932** | **8.85%** | **4,082** | **3,812** | **7.08%** | - Revenue is primarily recognized at a point in time, with **less than 1%** from products with no alternative use where the company has a right to payment[31](index=31&type=chunk) [NOTE 3 - Segment Information](index=13&type=section&id=NOTE%203%20-%20SEGMENT%20INFORMATION) This note provides financial information for Constellium's three reportable segments: A&T, P&ARP, and AS&I - Constellium operates through three reportable segments: Aerospace & Transportation (A&T), Packaging & Automotive Rolled Products (P&ARP), and Automotive Structures & Industry (AS&I), plus Holdings & Corporate (H&C)[32](index=32&type=chunk) Segment Adjusted EBITDA (in millions of U.S. dollar) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | A&T | 78 | 90 | -13.33% | 153 | 177 | -13.56% | | P&ARP | 74 | 66 | 12.12% | 135 | 114 | 18.42% | | AS&I | 18 | 30 | -40.00% | 34 | 63 | -46.03% | | H&C | (12) | (6) | 100.00% | (23) | (14) | 64.29% | | **Total Segment Adjusted EBITDA** | **159** | **180** | **-11.70%** | **299** | **340** | **-12.06%** | Segment Capital Expenditures (in millions of U.S. dollar) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | A&T | (16) | (21) | -23.81% | (29) | (40) | -27.50% | | P&ARP | (41) | (45) | -8.89% | (75) | (74) | 1.35% | | AS&I | (15) | (16) | -6.25% | (29) | (34) | -14.71% | | H&C | (1) | (2) | -50.00% | (1) | (3) | -66.67% | | **Total capital expenditures** | **(73)** | **(84)** | **-13.10%** | **(134)** | **(151)** | **-11.26%** | Segment Assets (in millions of U.S. dollar) | Segment | At June 30, 2025 | At December 31, 2024 | Change (%) | | :-------------------- | :----------------- | :------------------- | :--------- | | A&T | 1,379 | 1,172 | 17.66% | | P&ARP | 2,343 | 2,118 | 10.62% | | AS&I | 774 | 651 | 18.90% | | H&C | 381 | 313 | 21.73% | | **Segment assets** | **4,877** | **4,254** | **14.64%** | | Total assets | 5,368 | 4,734 | 13.39% | [NOTE 4 - Other Gains and Losses - Net](index=16&type=section&id=NOTE%204%20-%20OTHER%20GAINS%20AND%20LOSSES%20-%20NET) This note details the components of other gains and losses, including derivatives, asset impairment, and specific event impacts Other Gains and Losses - Net (in millions of U.S. dollar) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------------------------------------------------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Realized (losses) / gains on derivatives | (25) | 24 | -204.17% | (19) | 13 | -246.15% | | Unrealized gains on derivatives at fair value through profit and loss - net | 33 | 4 | 725.00% | 21 | — | N/A | | Impairment of assets | — | (5) | -100.00% | — | (8) | -100.00% | | Result from the flood in Valais | (2) | (6) | -66.67% | 2 | (6) | -133.33% | | **Total other gains and losses - net** | **4** | **13** | **-69.23%** | **(1)** | **(5)** | **-80.00%** | - The **$2 million loss** from the Valais flood in Q2 2025 was due to clean-up costs, while the **$2 million gain** for the six months ended June 30, 2025, includes **$9 million in insurance proceeds** partially offset by **$7 million in clean-up costs**[35](index=35&type=chunk)[130](index=130&type=chunk) [NOTE 5 - Finance Costs - Net](index=17&type=section&id=NOTE%205%20-%20FINANCE%20COSTS%20-%20NET) This note outlines the company's finance costs, including interest expense and gains/losses on debt derivatives and exchange rates Finance Costs - Net (in millions of U.S. dollar) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Interest expense on borrowings | (25) | (22) | 13.64% | (50) | (47) | 6.38% | | Realized and unrealized losses on debt derivatives at fair value | (17) | — | N/A | (26) | (1) | 2500.00% | | Realized and unrealized exchange gains on financing activities - net | 18 | — | N/A | 28 | 1 | 2700.00% | | **Finance costs - net** | **(29)** | **(25)** | **16.00%** | **(56)** | **(52)** | **7.69%** | - The increase in finance costs was primarily due to **higher borrowings** on the Pan-U.S. ABL and **increased costs of Senior Notes** following the August 2024 refinancing[131](index=131&type=chunk)[132](index=132&type=chunk) [NOTE 6 - Income Tax](index=17&type=section&id=NOTE%206%20-%20INCOME%20TAX) This note presents the company's effective tax rate and discusses factors influencing its changes Effective Tax Rate | Period | Effective Tax Rate 2025 | Effective Tax Rate 2024 | | :-------------------------------- | :---------------------- | :---------------------- | | Three months ended June 30, | 35.7% | 26.0% | | Six months ended June 30, | 37.6% | 26.0% | - The increase in the effective tax rate for 2025 is primarily due to a **temporary surtax enacted in France** in February 2025, raising the statutory tax rate to **29.28% from 25.82% in 2024**, and the geographical mix of pre-tax results[45](index=45&type=chunk)[135](index=135&type=chunk) [NOTE 7 - Earnings Per Share](index=18&type=section&id=NOTE%207%20-%20EARNINGS%20PER%20SHARE) This note provides details on basic and diluted earnings per share calculations, including weighted-average shares outstanding Earnings Per Share (in U.S. dollars) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to equity holders of Constellium | 36 | 76 | 73 | 97 | | Basic EPS | 0.25 | 0.52 | 0.51 | 0.66 | | Diluted EPS | 0.25 | 0.51 | 0.51 | 0.65 | | Basic - weighted-average ordinary shares outstanding | 140,820,828 | 146,271,938 | 141,665,123 | 146,534,099 | | Diluted - weighted-average ordinary shares | 142,244,399 | 149,232,873 | 143,173,924 | 149,721,951 | [NOTE 8 - Trade Receivables and Other](index=19&type=section&id=NOTE%208%20-%20TRADE%20RECEIVABLES%20AND%20OTHER) This note details the composition of current and non-current trade and other receivables, including factoring program impacts Trade Receivables and Other (in millions of U.S. dollar) | Item | At June 30, 2025 (Current) | At December 31, 2024 (Current) | Change (%) | | :-------------------------------- | :--------------------------- | :----------------------------- | :--------- | | Trade receivables - net | 679 | 381 | 78.22% | | Total other receivables | 126 | 105 | 20.00% | | **Total trade receivables and other** | **805** | **486** | **65.64%** | | Item | At June 30, 2025 (Non-current) | At December 31, 2024 (Non-current) | Change (%) | | :-------------------------------- | :----------------------------- | :--------------------------------- | :--------- | | Total other receivables | 40 | 36 | 11.11% | | **Total trade receivables and other** | **40** | **36** | **11.11%** | - The Group incurred **$11 million** and **$10 million** in expenses related to factoring programs for the six months ended June 30, 2025 and 2024, respectively, recorded in Other gains and losses - net[51](index=51&type=chunk) [NOTE 9 - Inventories](index=19&type=section&id=NOTE%209%20-%20INVENTORIES) This note provides a breakdown of the company's inventory by category, including finished goods, work in progress, and raw materials Inventories (in millions of U.S. dollar) | Item | At June 30, 2025 | At December 31, 2024 | Change (%) | | :---------------- | :----------------- | :------------------- | :--------- | | Finished goods | 273 | 250 | 9.20% | | Work in progress | 639 | 571 | 11.91% | | Raw materials | 308 | 260 | 18.46% | | Stores and supplies | 108 | 100 | 8.00% | | **Total inventories** | **1,328** | **1,181** | **12.45%** | [NOTE 10 - Trade Payables and Other](index=20&type=section&id=NOTE%2010%20-%20TRADE%20PAYABLES%20AND%20OTHER) This note details the composition of current and non-current trade payables and other liabilities Trade Payables and Other (in millions of U.S. dollar) | Item | At June 30, 2025 (Current) | At December 31, 2024 (Current) | Change (%) | | :-------------------------------- | :--------------------------- | :----------------------------- | :--------- | | Trade payables | 1,294 | 959 | 34.93% | | Employees' entitlements | 245 | 204 | 20.10% | | Contract liabilities and other liabilities to customers | 73 | 65 | 12.31% | | Operating lease liabilities | 21 | 17 | 23.53% | | Other payables | 84 | 64 | 31.25% | | **Total current trade payables and other** | **1,717** | **1,309** | **31.17%** | | Item | At June 30, 2025 (Non-current) | At December 31, 2024 (Non-current) | Change (%) | | :-------------------------------- | :----------------------------- | :--------------------------------- | :--------- | | Contract liabilities and other liabilities to customers | 31 | 33 | -6.06% | | Operating lease liabilities | 103 | 95 | 8.42% | | Other payables | 35 | 28 | 25.00% | | **Total non-current trade payables and other** | **169** | **156** | **8.33%** | [NOTE 11 - Debt](index=21&type=section&id=NOTE%2011%20-%20DEBT) This note outlines the company's total debt, including secured ABL, senior unsecured notes, and compliance with debt covenants Total Debt (in millions of U.S. dollar) | Item | At June 30, 2025 (Carrying Value) | At December 31, 2024 (Carrying Value) | Change (%) | | :-------------------------------- | :-------------------------------- | :------------------------------------ | :--------- | | Secured Pan-U.S. ABL | 71 | 56 | 26.79% | | Senior Unsecured Notes (various maturities) | 1,528 | 1,489 | 2.62% | | Finance lease liabilities | 31 | 30 | 3.33% | | Other loans | 43 | 30 | 43.33% | | **Total debt** | **2,026** | **1,918** | **5.63%** | | Of which non-current | 1,972 | 1,879 | 4.95% | | Of which current | 54 | 39 | 38.46% | - The **€100 million French Inventory Facility** was extended until December 2027 and was undrawn at June 30, 2025[58](index=58&type=chunk) - The Group was in compliance with all applicable financial debt covenants at June 30, 2025, and December 31, 2024[59](index=59&type=chunk) [NOTE 12 - Financial Instruments](index=22&type=section&id=NOTE%2012%20-%20FINANCIAL%20INSTRUMENTS) This note describes the company's use of derivative financial instruments for hedging foreign exchange and commodity price risks Fair Value of Derivatives Instruments (in millions of U.S. dollar) | Item | At June 30, 2025 (Total) | At December 31, 2024 (Total) | Change (%) | | :-------------------------------- | :----------------------- | :--------------------------- | :--------- | | Fair value of derivatives instruments - assets | 67 | 26 | 157.69% | | Fair value of derivatives instruments - liabilities | 35 | 54 | -35.20% | - The Group uses foreign exchange forwards and swaps to hedge committed and highly probable forecasted foreign currency operational transactions, with a substantial portion designated for hedge accounting (total nominal amount of **$345 million** at June 30, 2025)[66](index=66&type=chunk)[67](index=67&type=chunk) - The Group's policy is to minimize exposure to aluminum price volatility by passing through the risk to customers and using derivatives where necessary, also purchasing copper, aluminum premium, silver, zinc, and natural gas derivatives to offset commodity exposure[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [NOTE 13 - Pension and Other Post-Employment Benefit Obligations](index=26&type=section&id=NOTE%2013%20-%20PENSION%20AND%20OTHER%20POST-EMPLOYMENT%20BENEFIT%20OBLIGATIONS) This note details the company's expected contributions to defined benefit pension plans and other post-retirement benefit plans - For the year ended December 31, 2025, the company expects to contribute approximately **$30 million** to defined benefit pension plans and **$14 million** to other post-retirement and long-term benefit plans[82](index=82&type=chunk) [NOTE 14 - Provisions](index=26&type=section&id=NOTE%2014%20-%20PROVISIONS) This note outlines the company's current and non-current provisions for close-down, environmental remediation, restructuring, and legal claims Provisions (in millions of U.S. dollar) | Item | At June 30, 2025 (Current) | At December 31, 2024 (Current) | Change (%) | | :-------------------------------- | :--------------------------- | :----------------------------- | :--------- | | Close down and environmental remediation costs | 17 | 13 | 30.77% | | Restructuring costs | 1 | 3 | -66.67% | | Legal claims and other costs | 10 | 9 | 11.11% | | **Total current provisions** | **28** | **25** | **12.00%** | | Item | At June 30, 2025 (Non-current) | At December 31, 2024 (Non-current) | Change (%) | | :-------------------------------- | :----------------------------- | :--------------------------------- | :--------- | | Close down and environmental remediation costs | 82 | 79 | 3.80% | | Restructuring costs | — | 1 | -100.00% | | Legal claims and other costs | 12 | 11 | 9.09% | | **Total non-current provisions** | **94** | **91** | **3.30%** | - Environmental remediation and close-down provisions are based on estimated future costs and are expected to be settled over the next **40 years**[84](index=84&type=chunk) [NOTE 15 - Share Capital](index=27&type=section&id=NOTE%2015%20-%20SHARE%20CAPITAL) This note provides information on Constellium SE's share capital, including the number of issued, treasury, and outstanding ordinary shares - As of June 30, 2025, Constellium SE's share capital amounted to **€2,936,397.68**, divided into **146,819,884 ordinary shares** with a nominal value of **€0.02** each[86](index=86&type=chunk) Ordinary Shares and Treasury Shares | Metric | At June 30, 2025 | At December 31, 2024 | | :-------------------------------- | :----------------- | :------------------- | | Number of shares issued | 146,819,884 | 146,819,884 | | Treasury shares | 7,280,861 | 3,296,576 | | Outstanding shares | 139,539,023 | 143,523,308 | [NOTE 16 - Accumulated Other Comprehensive Income](index=27&type=section&id=NOTE%2016%20-%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME) This note details the components of accumulated other comprehensive income or loss, including post-employment benefits, cash flow hedges, and currency translation adjustments Accumulated Other Comprehensive Income / (Loss) (in millions of U.S. dollar) | Component | At June 30, 2025 | At March 31, 2025 | At January 1, 2025 | | :-------------------------------- | :----------------- | :---------------- | :----------------- | | Post employment benefit plans | 81 | 82 | 84 | | Cash flow hedges | 13 | (5) | (14) | | Currency translation adjustments | (68) | (78) | (84) | | **Accumulated other comprehensive income / (loss)** | **26** | **(1)** | **(14)** | | Component | At June 30, 2024 | At March 31, 2024 | At January 1, 2024 | | :-------------------------------- | :----------------- | :---------------- | :----------------- | | Post employment benefit plans | 73 | 77 | 80 | | Cash flow hedges | (8) | (7) | (5) | | Currency translation adjustments | (81) | (81) | (75) | | **Accumulated other comprehensive income / (loss)** | **(16)** | **(11)** | **—** | [NOTE 17 - Share-Based Compensation](index=28&type=section&id=NOTE%2017%20-%20SHARE-BASED%20COMPENSATION) This note describes the company's share-based compensation plans, including grants of PSUs and RSUs, and associated expenses - During the six months ended June 30, 2025, the Company granted **1,154,859 Performance-Based Restricted Stock Units (PSUs)** and **1,026,520 Restricted Stock Units (RSUs)** to employees and the CEO[90](index=90&type=chunk)[93](index=93&type=chunk) - Total share-based compensation expense was **$13 million** for both the six months ended June 30, 2025 and 2024[94](index=94&type=chunk) - Unrecognized compensation expense at June 30, 2025, was **$21 million for RSUs** and **$34 million for PSUs**, to be recognized over a weighted average vesting period of **2.2 years**[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Constellium's financial condition and operational results for the three and six months ended June 30, 2025 and 2024, discussing key factors influencing performance, segment-specific results, liquidity, and capital resources [Overview](index=30&type=section&id=Overview) This section provides a high-level overview of Constellium's business, market position, and strategic focus - Constellium is a global leader in highly engineered aluminum products for aerospace, packaging, automotive, commercial transportation, general industrial, and defense markets, operating **25 production facilities, 3 R&D centers, and 3 administrative centers**[99](index=99&type=chunk) - The company delivered solid Q2 results despite continued demand weakness outside of packaging, repurchasing **3.4 million shares for $35 million**, with management focused on operational performance, cost reduction, capital discipline, Free Cash Flow generation, and increasing shareholder value amidst tariff and trade uncertainties[100](index=100&type=chunk) [Key Factors Influencing Constellium's Financial Condition and Results from Operations](index=31&type=section&id=Key%20Factors%20Influencing%20Constellium%27s%20Financial%20Condition%20and%20Results%20from%20Operations) This section discusses the primary economic, geopolitical, and market factors impacting Constellium's financial performance - Economic conditions, geopolitical instability (tariffs, trade wars, armed conflicts), product price and margin (LME price, regional premiums, conversion margin), aluminum prices, volumes, personnel costs, energy costs, and currency fluctuations are **key factors influencing Constellium's financial performance**[102](index=102&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - Aerospace demand has stabilized with long-term favorable trends, packaging demand is resilient with attractive long-term growth, and automotive aluminum demand is increasing due to lightweighting trends despite general economic cycles[108](index=108&type=chunk) Average Aluminum Prices (U.S. dollars per ton) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Average LME transaction price | 2,448 | 2,520 | -2.86% | 2,539 | 2,358 | 7.68% | | Average Midwest premium | 990 | 439 | 125.51% | 849 | 424 | 100.24% | | Average all-in aluminum price U.S. | 3,438 | 2,959 | 16.19% | 3,388 | 2,782 | 21.78% | | Average Rotterdam premium | 195 | 321 | -39.25% | 244 | 283 | -13.78% | | Average all-in aluminum price Europe | 2,643 | 2,841 | -6.97% | 2,783 | 2,641 | 5.38% | [Results of Operations for the three and six months ended June 30, 2025 and 2024](index=33&type=section&id=Results%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section analyzes the consolidated income statement, revenue, cost of sales, and operating expenses for the reported periods Consolidated Income Statement Summary (in millions of U.S. dollar) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | Revenue | 2,103 | 1,932 | 8.85% | 4,082 | 3,812 | 7.08% | | Cost of sales (excluding D&A) | (1,840) | (1,652) | 11.38% | (3,556) | (3,287) | 8.18% | | Selling and administrative expenses | (88) | (75) | 17.33% | (166) | (155) | 7.10% | | Research and development expenses | (12) | (13) | -7.69% | (25) | (28) | -10.71% | | Other gains and losses - net | 4 | 13 | -69.23% | (1) | (5) | -80.00% | | Finance costs - net | (29) | (25) | 16.00% | (56) | (52) | 7.69% | | Income before tax | 56 | 104 | -46.15% | 118 | 134 | -11.94% | | Net income | 36 | 77 | -53.25% | 74 | 99 | -25.25% | | Shipment volumes (in kt) | 384 | 378 | 1.59% | 756 | 758 | -0.26% | - Revenue increased by **9%** for the three months and **7%** for the six months ended June 30, 2025, driven by higher shipments and revenue per ton, despite a slight decrease in overall sales volumes for the six-month period[117](index=117&type=chunk)[118](index=118&type=chunk) - Cost of sales increased by **11%** and **8%** for the three and six months, respectively, primarily due to an **18% and 14% increase in raw materials and consumables** driven by higher metal prices and sales volumes[120](index=120&type=chunk)[121](index=121&type=chunk) - Selling and administrative expenses rose by **17%** and **7%** for the three and six months, mainly due to increased labor costs and corporate transformation projects, partially offset by lower headcounts[122](index=122&type=chunk)[123](index=123&type=chunk) - Research and development expenses decreased by **8%** and **11%** for the three and six months, respectively, primarily due to lower non-labor costs[124](index=124&type=chunk) [Segment Results](index=36&type=section&id=Segment%20Results) This section provides a detailed analysis of revenue, shipments, and Adjusted EBITDA for each of Constellium's operating segments Segment Revenue (in millions of U.S. dollar) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | A&T | 492 | 487 | 1.03% | 960 | 966 | -0.62% | | P&ARP | 1,235 | 1,079 | 14.46% | 2,422 | 2,097 | 15.50% | | AS&I | 421 | 384 | 9.64% | 802 | 779 | 2.95% | | **Total revenue** | **2,103** | **1,932** | **8.85%** | **4,082** | **3,812** | **7.08%** | Segment Shipments (in kt) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :----------------------------- | :----------------------------- | :--------- | | A&T | 53 | 60 | -11.50% | 104 | 117 | -11.11% | | P&ARP | 276 | 262 | 5.34% | 545 | 526 | 3.61% | | AS&I | 55 | 56 | -1.79% | 107 | 115 | -6.96% | | **Total shipments** | **384** | **378** | **1.59%** | **756** | **758** | **-0.26%** | - A&T Segment Adjusted EBITDA decreased by **13% (Q2)** and **14% (YTD)** due to lower volumes, partially offset by favorable price/mix and lower operating costs[150](index=150&type=chunk)[151](index=151&type=chunk) - P&ARP Segment Adjusted EBITDA increased by **12% (Q2)** and **18% (YTD)**, driven by higher volumes, improved Muscle Shoals performance, and lower operating costs, despite unfavorable price/mix and metal costs in Q2[152](index=152&type=chunk)[153](index=153&type=chunk) - AS&I Segment Adjusted EBITDA decreased significantly by **40% (Q2)** and **46% (YTD)** due to unfavorable price/mix and tariffs, partially offset by lower operating costs[154](index=154&type=chunk)[155](index=155&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's sources of liquidity, cash management strategies, and capital resource adequacy - Constellium's primary cash sources are operating activities and external funding, with the company believing current liquidity, cash on hand, new debt, and credit facilities are **sufficient for short-term and long-term needs**[157](index=157&type=chunk)[158](index=158&type=chunk) - The company hedges highly probable foreign currency operating cash flows and uses derivative financial instruments to manage metal price fluctuations and balance debt currency risk[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) Total Liquidity (in millions of U.S. dollar) at June 30, 2025 | Component | Amount | | :-------------------------------- | :----- | | Cash and cash equivalents | 133 | | Availability under Pan-U.S. ABL facility | 465 | | Availability under factoring arrangements | 126 | | Availability under French inventory facility | 117 | | **Total liquidity** | **841** | - Factored receivables under non-recourse arrangements increased to **$410 million** at June 30, 2025, from **$376 million** at December 31, 2024[163](index=163&type=chunk) [Cash Flows](index=41&type=section&id=Cash%20Flows) This section analyzes the net cash flows from operating, investing, and financing activities, highlighting key drivers of changes Net Cash Flows Summary (in millions of U.S. dollar) | Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Operating activities | 172 | 175 | -1.71% | | Investing activities | (131) | (111) | 18.02% | | Financing activities | (62) | (51) | 21.57% | | Net (decrease) / increase in cash and cash equivalents | (21) | 13 | -261.54% | - Net cash flows from operating activities decreased slightly by **$3 million**, primarily due to a **$31 million decrease in cash flows before working capital** and a **$28 million reduction from working capital usage**[165](index=165&type=chunk) - Working capital changes for the six months ended June 30, 2025, included increases in inventory (**$65 million**), trade receivables (**$261 million**), and trade payables (**$241 million**), all driven by higher activity levels and metal prices[166](index=166&type=chunk) - Net cash flows used in investing activities increased to **$131 million (2025)** from **$111 million (2024)**, with capital expenditures of **$134 million in 2025**[168](index=168&type=chunk) - Net cash flows used in financing activities increased to **$62 million (2025)** from **$51 million (2024)**, reflecting **$50 million in share repurchases (4.8 million shares)** in 2025, compared to **$39 million (1.9 million shares)** in 2024[170](index=170&type=chunk)[171](index=171&type=chunk) [Contractual Obligations](index=41&type=section&id=Contractual%20obligations) This section confirms no material changes to the company's contractual cash obligations since the last annual report - There have been **no material changes** in short-term and long-term contractual cash obligations since December 31, 2024, other than in the ordinary course of business[172](index=172&type=chunk) [Principal Accounting Policies, Critical Accounting Estimates and Key Judgments](index=42&type=section&id=Principal%20Accounting%20Policies%2C%20Critical%20Accounting%20Estimates%20and%20Key%20Judgments) This section addresses the significant accounting policies, critical estimates, and judgments made in preparing the financial statements - The preparation of financial statements requires management to make judgments, estimates, and assumptions, which are continuously reviewed in light of global geopolitical and macroeconomic conditions, with **no material changes** in critical accounting estimates occurring since December 31, 2024[174](index=174&type=chunk) [Recently Issued Accounting Standards](index=42&type=section&id=Recently%20Issued%20Accounting%20Standards) This section refers to Note 1 for details on recently issued accounting pronouncements and their expected impact - Refer to Note 1 for a full description of recent accounting pronouncements, including adoption dates and expected effects[175](index=175&type=chunk) [Non-GAAP Measures](index=42&type=section&id=Non-GAAP%20measures) This section defines and reconciles non-GAAP financial measures, specifically Adjusted EBITDA, to their most comparable GAAP equivalents - Adjusted EBITDA is a non-GAAP measure used by management and investors to assess underlying performance by excluding non-recurring and non-operating items, and is **not a substitute for GAAP measures** like operating profit or net income[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in millions of U.S. dollar) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------------------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income | 36 | 77 | 74 | 99 | | Income tax expense | 20 | 27 | 44 | 35 | | Finance costs - net | 29 | 25 | 56 | 52 | | Depreciation and amortization | 82 | 76 | 160 | 151 | | Impairment of assets | — | 5 | — | 8 | | Restructuring costs | 1 | 3 | 2 | 3 | | Unrealized gains on derivatives | (33) | (4) | (21) | — | | Share based compensation costs | 7 | 7 | 13 | 13 | | **Adjusted EBITDA** | **146** | **225** | **332** | **371** | | of which Metal price lag | (13) | 45 | 33 | 31 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section highlights the company's exposure to various market risks, including foreign currency exchange, interest rate, and commodity price risk, referring to the annual report for further details - Constellium is exposed to market risks such as foreign currency exchange, interest rate, and commodity price risk[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the second quarter of 2025 - The Company's CEO and CFO have evaluated and concluded that disclosure controls and procedures are **effective** as of June 30, 2025[183](index=183&type=chunk) - There have been **no material changes** in internal control over financial reporting during the second quarter of 2025[184](index=184&type=chunk) PART II [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there have been no material developments in legal proceedings since December 31, 2024, referring to the annual report for detailed information - **No material developments** in legal proceedings have occurred since December 31, 2024[187](index=187&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section confirms that there have been no material changes to the risk factors previously disclosed in the company's annual report - There have been **no material changes** to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[188](index=188&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program, including the remaining authorization and shares repurchased during the quarter and year-to-date - The Board of Directors authorized a three-year share repurchase program of up to **$300 million**, expiring on December 31, 2026[189](index=189&type=chunk) - As of June 30, 2025, approximately **$171 million** remained under the share repurchase program[190](index=190&type=chunk) Share Repurchases During Q2 2025 | Period | Total number of shares purchased | Average price paid per share (in U.S. dollars) | | :----------------------- | :----------------------------- | :--------------------------------------------- | | April 1 - April 30, 2025 | 2,198,995 | 8.91 | | May 1 - May 31, 2025 | 37,699 | 10.63 | | June 1 - June 30, 2025 | 1,142,282 | 13.13 | | **Total (Q2 2025)** | **3,378,976** | **-** | - Since inception up to June 30, 2025, approximately **9.4 million shares** have been repurchased for **$129 million**, with **3.4 million shares repurchased for $35 million** in Q2 2025[190](index=190&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reported period - There were **no defaults** upon senior securities[193](index=193&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine Safety Disclosures are **not applicable**[194](index=194&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) This section reports no adoption or termination of Rule 10b5-1 trading arrangements by directors or officers during the second quarter of 2025 - No directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[195](index=195&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including Articles of Association, employment addendum, certifications, and XBRL documents - Exhibits include Articles of Association, an employment addendum for Jack Guo, CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and Inline XBRL documents[196](index=196&type=chunk) SIGNATURES This section contains the official signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report - The report is signed by Jean-Marc Germain, Chief Executive Officer and Director, and Jack Guo, Executive Vice President & Chief Financial Officer, on **July 31, 2025**[201](index=201&type=chunk)

Financial Data and Key Metrics Changes - Shipments increased by 2% to 384,000 tonnes compared to 2024, driven by higher shipments in the PARP segment [6] - Revenue rose by 9% to $2.1 billion due to higher shipments and favorable price and mix, including increased metal prices [6] - Net income decreased to $36 million from $77 million in the same quarter last year, while adjusted EBITDA was $146 million, down from $180 million [7] - Free cash flow was strong at $41 million, with $35 million returned to shareholders through share repurchases [7][29] - Leverage at the end of the quarter was 3.6 times, expected to trend down as the year progresses [7][30] Business Line Data and Key Metrics Changes - A and T segment adjusted EBITDA decreased by 13% to $78 million, with aerospace shipments down 12% due to excess inventory issues [18][19] - PARP segment adjusted EBITDA increased by 12% to $74 million, with packaging shipments up 14% while automotive shipments decreased by 14% [21][22] - AS and I segment adjusted EBITDA fell by 40% to $18 million, with automotive shipments down 12% but industry shipments up 14% [23][24] Market Data and Key Metrics Changes - Demand weakness was noted across most end markets except packaging, with automotive production in Europe and North America remaining below pre-COVID levels [8][38] - Aerospace market backlogs are robust, but supply chain challenges have slowed deliveries [34] - Packaging demand remains healthy, with expectations for low to mid-single-digit growth in both North America and Europe [36] Company Strategy and Development Direction - The company is focused on cost control, free cash flow generation, and capital discipline amid ongoing demand weakness [8][42] - The Vision 25 program is being accelerated to improve operational efficiency and reduce costs [27] - The company is optimizing capacity by shifting resources from automotive to packaging markets [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising guidance for 2025, citing strong performance in packaging and effective cost reduction efforts [42] - The outlook for automotive remains cautious due to ongoing demand weakness and tariff impacts [38] - Long-term fundamentals in aerospace and packaging are viewed positively, despite current challenges [34][36] Other Important Information - The company will transition to a U.S. domestic filer starting in 2026, impacting its reporting requirements [31][32] - The tariff situation is fluid, with both positive and negative impacts anticipated, but overall expected to be net positive [10][17] Q&A Session Summary Question: What gave the confidence to raise guidance this quarter? - Management highlighted strong performance in packaging, effective cost reduction, and favorable scrap spreads as key factors [48][49] Question: What is the expected cadence between Q3 and Q4? - Q3 is expected to perform better than Q2 due to benefits from tariff mitigations, while Q4 will likely see seasonal weakness [53] Question: Can you provide details on packaging improvements at Muscle Shoals? - Improvements were attributed to operational stabilization and increased capacity utilization due to automotive weakness [58][60] Question: Is there engagement with Chinese OEMs for localization in Europe? - No current engagement with Chinese OEMs, but the company will be a legitimate supplier if assembly plants are established [62] Question: What is the outlook for aerospace demand? - Demand has stabilized, but there is a shift in delivery timelines due to supply chain adjustments [70][72] Question: What is the impact of the big beautiful bill? - Currently, no significant impact on financial results is anticipated [92] Question: Are there expectations for price increases in packaging? - The environment is supportive for pricing, with positive trends in negotiations for 2026 [100]

Q2 2025 Performance - Shipments reached 384 thousand tons, a 2% year-over-year increase[11] - Revenue totaled $2.1 billion, up 9% year-over-year[11] - Net income was $36 million[11] - Adjusted EBITDA was $146 million, including a negative non-cash metal price lag impact of $13 million[11] - Free Cash Flow amounted to $41 million[11] - The company repurchased 3.4 million shares for $35 million[11] Segment Performance - Aerospace & Transportation: Adjusted EBITDA was $78 million, a 13% decrease year-over-year, with shipments down 11% to 53 thousand tons[14] - Packaging & Automotive Rolled Products: Adjusted EBITDA was $74 million, a 12% increase year-over-year, with shipments up 5% to 276 thousand tons[17] - Automotive Structures & Industry: Adjusted EBITDA was $18 million, a 40% decrease year-over-year, with shipments down 1% to 55 thousand tons[20] Financial Position and Outlook - Leverage ratio was 3.6x at the end of Q2 2025[11, 29] - The company expects to be at or below 3.0x leverage by the end of 2025[29] - The company targets 2025 Free Cash Flow to be greater than $120 million[27, 41] - The company targets 2025 Adjusted EBITDA between $620 million and $650 million[41]