Q3 2025 Performance Highlights - Shipments reached 373 thousand tons, a 6% year-over-year increase[10] - Revenue totaled $2.2 billion, up 20% year-over-year[10] - Net income was $88 million[10] - Adjusted EBITDA was $235 million, including a positive non-cash metal price lag impact of $39 million[10] - Free Cash Flow was $30 million[10] - The company repurchased 1.7 million shares for $25 million[10] Segment Performance - Aerospace & Transportation: Adjusted EBITDA was $90 million, a 67% increase, with shipments of 50 thousand tons, up 4%[13] - Packaging & Automotive Rolled Products: Adjusted EBITDA was $82 million, a 14% increase, with shipments of 275 thousand tons, up 5%[19] - Automotive Structures & Industry: Adjusted EBITDA was $33 million, a 371% increase, with shipments of 48 thousand tons, up 14%[21] Financial Position and Outlook - Leverage ratio was 3.1x at the end of the quarter[10] - The company expects to be below 3.0x leverage by the end of 2025[30] - The company targets 2025 Adjusted EBITDA between $670 million and $690 million and Free Cash Flow greater than $120 million[45]

Core Insights - Constellium (CSTM) reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and significantly up from $0.02 per share a year ago, representing an earnings surprise of +67.57% [1] - The company achieved revenues of $2.17 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.87% and up from $1.8 billion year-over-year [2] - Constellium's stock has increased by approximately 64.7% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $1.95 billion, and for the current fiscal year, it is $1.16 on revenues of $8.14 billion [7] - The estimate revisions trend for Constellium was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Metal Products - Distribution industry, to which Constellium belongs, is currently in the top 12% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Shipments of 373 thousand metric tons in Q3 2025 increased by 6% compared to Q3 2024[6] - Revenue for Q3 2025 reached $2.2 billion, up 20% from Q3 2024[6] - Net income for Q3 2025 was $88 million, a significant increase from $8 million in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $235 million, an 85% increase compared to $127 million in Q3 2024[6] - For the first nine months of 2025, shipments totaled 1.1 million metric tons, up 2% from the same period in 2024[10] - Revenue for the first nine months of 2025 was $6.2 billion, an 11% increase compared to the first nine months of 2024[10] - For Q3 2025, net income was $88 million, a significant increase from $8 million in Q3 2024, driven by higher gross profit and favorable changes in other gains and losses[24] - For the first nine months of 2025, net income reached $162 million, compared to $107 million in the same period of 2024, attributed to higher gross profit and favorable changes in other gains and losses[25] - Total revenue for the nine months ended September 30, 2025, reached $6.248 billion, up from $5.614 billion in the same period of 2024, reflecting an increase of 11.3%[52] Cash Flow and Liquidity - Free Cash Flow for Q3 2025 was $30 million, with year-to-date Free Cash Flow exceeding $120 million[7] - Free Cash Flow for the first nine months of 2025 was $68 million, a turnaround from $(15) million in the prior year, primarily due to higher Segment Adjusted EBITDA and lower capital expenditures[26] - Cash flows from operating activities were $271 million for the first nine months of 2025, up from $240 million in the same period of 2024[27] - Liquidity as of September 30, 2025, was $831 million, consisting of $122 million in cash and cash equivalents and $709 million available under committed lending facilities[29] - The company expects Adjusted EBITDA for 2025 to be in the range of $670 million to $690 million, with Free Cash Flow projected to exceed $120 million[30] Segment Performance - Segment Adjusted EBITDA for Aerospace & Transportation (A&T) was $90 million in Q3 2025, a 67% increase from Q3 2024[11] - Segment Adjusted EBITDA for Packaging & Automotive Rolled Products (P&ARP) was $82 million in Q3 2025, a 14% increase from Q3 2024[13] Shareholder Actions - The company repurchased 6.5 million shares for $75 million in the first nine months of 2025, compared to 3.1 million shares for $60 million in the same period of 2024[28] Debt and Assets - Net debt increased to $1.891 billion as of September 30, 2025, compared to $1.776 billion at the end of 2024[29] - Total assets increased to $5.375 billion as of September 30, 2025, up from $4.734 billion at the end of 2024, a growth of 13.6%[49] - The company reported a total current liability of $1.842 billion as of September 30, 2025, compared to $1.446 billion at the end of 2024, an increase of 27.4%[49] - Long-term debt increased to $1.974 billion as of September 30, 2025, compared to $1.879 billion at the end of 2024, a rise of 5.1%[49] - The company’s retained earnings increased to $307 million as of September 30, 2025, up from $203 million at the end of 2024, reflecting a growth of 51.7%[49] Strategic Actions - Constellium completed the divestment of its Nanjing Automotive Structures plant in August 2025, enhancing its strategic focus[32]

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]

Core Viewpoint - Constellium SE announced the appointment of Ingrid Joerg as the new CEO effective January 1, 2026, succeeding Jean-Marc Germain, who will retire at the end of 2025 [1][2]. Leadership Transition - Ingrid Joerg has over 25 years of experience in the aluminum industry, including 10 years at Constellium, and has been instrumental in developing the company's strategy and long-term objectives [2][3]. - Jean-Marc Germain has led Constellium for nearly a decade, strengthening the executive team and enhancing the company's market and financial position [3]. Company Performance - Under Germain's leadership, Constellium built resilience and strengths to navigate challenges and seize opportunities, delivering significant value to shareholders [3]. - Constellium generated $7.3 billion in revenue in 2024, indicating a strong market presence [4]. Future Outlook - Ingrid Joerg expressed commitment to continuing the growth strategy and strengthening partnerships with customers while delivering innovative and sustainable solutions [3].

Core Points - Constellium SE will announce its third quarter 2025 results on October 29, 2025, at 10:00 AM Eastern Time [1] - The conference call will be hosted by CEO Jean-Marc Germain and CFO Jack Guo [1] - The company generated $7.3 billion in revenue in 2024, indicating its strong market position in aluminum products [3] Conference Call Details - The conference call and webcast details will be available on the Constellium Investor Relations page [2] - A live webcast can be accessed through a specific link, and an archived recording will be available for three weeks post-event [2]

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].