Constellium (CSTM) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Speaker0 Good morning or good afternoon, all, and welcome to the Constellium First Quarter twenty twenty five Results Call. My name is Adam, and I'll be your operator today. I will now hand over to Jason Hirschweizer, Director of Investor Relations, begin. So Jason, please go ahead. Speaker1 Thank you, Adam. I would like to welcome everyone to our first quarter twenty twenty five earnings call. On the call today, we have our Chief Executive ...

Constellium (CSTM) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 271.43%. A quarter ago, it was expected that this aluminum company would post earnings of $0.02 per share when it actually produced a loss of $0.34, delivering a surprise of -1,800%.Over the last four quarters, the com ...

Exhibit 99.1 April 30, 2025 Constellium Reports First Quarter 2025 Results and Maintains Full Year 2025 Guidance Paris - Constellium SE (NYSE: CSTM) ("Constellium" or the "Company") today reported results for the first quarter ended March 31, 2025. Jason Hershiser Delphine Dahan-Kocher Phone: +1 443 988-0600 Phone: +1 443 420 7860 1 • Shipments of 372 thousand metric tons, down 2% compared to Q1 2024 • Revenue of $2.0 billion, up 5% compared to Q1 2024 • Net income of $38 million compared to net income of $ ...

First Quarter 2025 Earnings Call April 30, 2025 Forward-Looking Statements Certain statements contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This presentation may contain "forward-looking statements" with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they con ...

Core Viewpoint - Constellium SE reported solid financial results for Q1 2025 despite ongoing demand weakness in most end markets, with a focus on cost reduction and operational performance [2][3][4] Financial Performance - Q1 2025 shipments totaled 372 thousand metric tons, a decrease of 2% compared to Q1 2024 [4][43] - Revenue for Q1 2025 was $1.979 billion, representing a 5% increase from $1.880 billion in Q1 2024 [3][6] - Net income increased to $38 million in Q1 2025 from $22 million in Q1 2024 [3][14] - Adjusted EBITDA rose to $186 million in Q1 2025, up from $146 million in Q1 2024 [3][6] Segment Performance - Aerospace & Transportation (A&T) segment reported Adjusted EBITDA of $75 million, down 14% from $87 million in Q1 2024, with shipments decreasing by 11% [7] - Packaging & Automotive Rolled Products (P&ARP) segment saw Adjusted EBITDA increase by 25% to $60 million, with shipments up 2% [8] - Automotive Structures & Industry (AS&I) segment's Adjusted EBITDA fell 50% to $16 million, with shipments down 12% [9] Cash Flow and Capital Management - Cash from operations was $58 million, while Free Cash Flow was negative at $(3) million [15][16] - The company repurchased 1.4 million shares for $15 million during the quarter [5][17] - Leverage ratio stood at 3.3x as of March 31, 2025 [5] Outlook - The company maintains its guidance for 2025, expecting Adjusted EBITDA between $600 million and $630 million, and Free Cash Flow exceeding $120 million [2][20] - Long-term targets include Adjusted EBITDA of $900 million and Free Cash Flow of $300 million by 2028 [20]

Company Announcement - Constellium SE will host a conference call and webcast on April 30, 2025, at 10:00 AM (Eastern Time) to announce its first quarter 2025 results [1] - The press release regarding the results will be sent before market opening [1] Conference Call Details - The conference call will be led by CEO Jean-Marc Germain and CFO Jack Guo [1] - Details for accessing the conference call and webcast are available on the Constellium Investor Relations page [2] - A telephone participation option is provided with specific numbers for the United States, France, Germany, Switzerland, and the United Kingdom [2] - An archived recording of the conference call will be available for three weeks on the company’s website [2] Company Overview - Constellium is a global leader in developing innovative, value-added aluminum products for various markets, including aerospace, packaging, and automotive [3] - The company generated $7.3 billion in revenue in 2024 [3]

Core Viewpoint - Constellium SE is preparing for its Annual General Meeting of Shareholders scheduled for May 15, 2025, and has made relevant documents available for shareholders [1][2] Group 1: Company Overview - Constellium is a global leader in developing innovative, value-added aluminum products for various markets, including aerospace, packaging, and automotive [2] - The company generated $7.3 billion in revenue in 2024 [2] Group 2: Shareholder Information - The Proxy Statement and other documents for the Annual General Meeting are accessible on the company's website and can be obtained free of charge by contacting the Corporate Secretary [1]

Core Insights - Constellium SE released its 2024 Sustainability Report, emphasizing its commitment to a sustainable and circular economy, with progress on decarbonization, recycling, safety, and women's representation [1][4] Sustainability Achievements - The company achieved significant milestones in sustainability, including the inauguration of a €130 million recycling center in France, increasing global recycling capacity to over 750,000 metric tons annually, enhancing recycling of automotive and packaging products by 75%, and reducing carbon emissions by 400,000 metric tons CO₂eq [6] - Constellium closed its last coal-fired power station in Germany, expected to reduce direct greenhouse gas emissions by over 25% from 2021 to 2025 [6] - The company completed its first industrial-scale hydrogen casting, substituting natural gas with hydrogen for aluminum production, showcasing the potential of green hydrogen in decarbonizing industrial processes [6] Recognition and Certifications - Constellium received a Gold rating from Ecovadis and an AA rating from MSCI for its sustainability efforts, and its operations were certified by the Aluminium Stewardship Initiative (ASI) under Performance Standard v3.0, highlighting leadership in responsible sourcing and greenhouse gas reduction [2][6] Employee Initiatives - The launch of the WINS (Women Inspiring Networking and Success) Employee Resource Group in 2024 aims to promote inclusion and empowerment among all employees [6]

Financial Performance - Constellium reported a revenue of $7.3 billion for the year ended December 31, 2024, a decrease of 6% from $7.8 billion in 2023[227]. - Net income for 2024 was $60 million, down from $157 million in 2023, reflecting a decline in overall profitability[226]. - Total revenue for the year ended December 31, 2024, was $7,335 million, down from $7,826 million in 2023, indicating a continued downward trend in overall sales[260]. - For the year ended December 31, 2024, Segment Adjusted EBITDA decreased to $568 million, down 25% from $754 million in 2023[272]. - Adjusted EBITDA for the year ended December 31, 2024, was $623 million, compared to $662 million in 2023[321]. Shipment and Sales Volumes - Shipment volumes decreased by 4% to 1.4 million metric tons in 2024, down from 1.5 million metric tons in 2023[228]. - Sales volumes for the year ended December 31, 2023, decreased by 6% to 1,492 kt from 1,580 kt in 2022, with notable declines in A&T, P&ARP, and AS&I segments[244]. - For the year ended December 31, 2024, revenue in the A&T segment decreased by 3% to $1,816 million, with shipments down 4%[261]. - AS&I segment revenue decreased by 19% to $1,432 million in 2024, impacted by a 17% decline in shipments due to various operational challenges[265]. Cost and Expenses - Cost of sales decreased by 6% to $6.4 billion in 2024, primarily due to a 7% decrease in raw materials and consumables used[230]. - Research and development expenses decreased by 6% to $49 million in 2024, reflecting a reduction in non-labor costs[232]. - Restructuring costs in 2024 amounted to $11 million, related to cost improvement programs in the U.S. and Europe[236]. - Research and development expenses increased to $52 million in 2023, up from $46 million in 2022, reflecting a 13% increase in labor costs due to inflation[249]. Segment Performance - The aerospace segment represented 25% of total revenue and 50% of total Adjusted EBITDA for the year ended December 31, 2024[213]. - The P&ARP segment reported stable revenue of $4,196 million in 2024, compared to $4,214 million in 2023, with stable shipments and revenue per ton[263]. - A&T segment Adjusted EBITDA decreased 19% to $285 million in 2024 from $351 million in 2023, primarily due to unfavorable price and mix, lower shipments, and a $13 million flood impact[276]. - P&ARP segment Adjusted EBITDA decreased 21% to $242 million in 2024 from $305 million in 2023, mainly due to unfavorable metal costs and weather-related impacts[278]. - AS&I segment Adjusted EBITDA decreased 43% to $74 million in 2024 from $129 million in 2023, primarily due to unfavorable price and mix and a $20 million flood impact[280]. Cash Flow and Liquidity - Net cash flows from operating activities were $301 million in 2024, a decrease of $131 million from $432 million in 2023[295]. - Total liquidity at December 31, 2024, was $727 million, including $141 million in cash and cash equivalents[291]. - The company experienced a $65 million decrease in cash flows from operating activities before working capital in 2024[295]. - For the year ended December 31, 2024, net cash flows used in financing activities were $61 million, primarily due to share repurchases and refinancing activities[303]. Debt and Financing Activities - Constellium repurchased 4.6 million shares for $79 million during the year ended December 31, 2024[303]. - In August 2024, Constellium issued $350 million of 6.375% Senior Notes and €300 million of 5.375% Senior Notes, using proceeds to redeem portions of existing debt[303]. - For the year ended December 31, 2023, net cash flows used in financing activities were $177 million, reflecting a $50 million partial repayment of Senior Notes[304]. Market and Risk Exposure - The company is exposed to foreign exchange risks, particularly with the U.S. dollar/euro exchange rate, which significantly impacts income and equity[325][327]. - A 10% strengthening of the U.S. dollar against the euro would result in a total effect on income before tax of $(65) million[335]. - The company is exposed to market fluctuations in aluminum prices, which is its primary metal input, and also to variations in regional premiums and prices of zinc, natural gas, silver, and copper[342]. - A 10% increase in the market price of aluminum is estimated to result in a $34 million gain based on the aluminum derivatives held by the company as of December 31, 2024[349]. - The company aims to minimize exposure to aluminum price volatility by passing through aluminum price risk to customers and using derivatives where necessary[346]. Interest Rate and Energy Cost Risks - Interest rate risk arises from borrowings, with a 50 basis point increase or decrease in EURIBOR or SOFR interest rates estimated to impact income before income tax by approximately $2 million and $3 million for the years ended December 31, 2024, and 2023, respectively[350]. - The company purchases energy fixed price derivatives to lock in energy costs due to the risk of energy supply disruptions and rising energy costs from sustainability trends[348].

Core Insights - Constellium SE is participating in 'Project M-LightEn,' an initiative aimed at developing ultra-lightweight and sustainable vehicle chassis structures, with a goal to reduce carbon intensity by 50% and weight by 25% over the next three years [1][4] Group 1: Project Overview - The initiative is led by Gordon Murray Group and supported by Innovate UK and the Advanced Propulsion Centre, with partners including Constellium, Carbon ThreeSixty, and Brunel University London [1] - The first phase of Project M-LightEn focuses on exploring new materials and joining techniques, with innovations expected to be available for low-volume commercial applications by late 2027 [4] Group 2: Material Contributions - Constellium will supply ultra-high-strength aluminum solutions made from 80% recycled UK consumer scrap, enhancing the structural integrity of the unibody while reducing weight and carbon emissions [2] - Collaboration with Brunel University London will ensure that all components meet high standards for performance and sustainability [2] Group 3: Industry Impact - Project M-LightEn aims to enable decarbonization across the automotive industry by facilitating the market introduction of innovative materials and processes [3] - Constellium's involvement reaffirms its commitment to advancing lightweighting technologies, combining innovation with sustainability and circularity [4]