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]

Core Viewpoint - Constellium (CSTM) reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.28 per share, and showing a decline from $0.52 per share a year ago, indicating a -10.71% earnings surprise [1] Financial Performance - The company posted revenues of $2.1 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.40%, and showing an increase from $1.93 billion year-over-year [2] - Over the last four quarters, Constellium has surpassed consensus revenue estimates three times [2] Stock Performance - Constellium shares have increased approximately 35.6% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $2.05 billion, and for the current fiscal year, it is $1.07 on revenues of $8.04 billion [7] - The estimate revisions trend for Constellium was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (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 bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [8]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Constellium reported solid Q2 and H1 2025 results with increased revenue and shipments, despite a decline in net income and Adjusted EBITDA, while raising full-year guidance and repurchasing shares [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Constellium reported solid results for Q2 2025, with shipments up 2% and revenue up 9% year-over-year, despite a significant decrease in net income and Adjusted EBITDA, partly due to a negative non-cash metal price lag impact Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Shipments (k metric tons) | 384 | 378 | 2% | | Revenue ($ millions) | 2,100 | 1,932 | 9% | | Net income ($ millions) | 36 | 77 | (53)% | | Adjusted EBITDA ($ millions)| 146 | 225 | (35)% | | Metal price lag ($ millions)| (13) | N/A | N/A | | Cash from Operations ($ millions)| 114 | N/A | N/A | | Free Cash Flow ($ millions) | 41 | N/A | N/A | - Repurchased **3.4 million shares** for **$35 million** during the quarter[4](index=4&type=chunk) [First Half 2025 Highlights](index=1&type=section&id=First%20Half%202025%20Highlights) For the first half of 2025, Constellium maintained stable shipments and achieved a 7% increase in revenue compared to H1 2024, while net income and Adjusted EBITDA saw declines. The company also repurchased shares and ended the period with a leverage of 3.6x H1 2025 Performance | Metric | H1 2025 | H1 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Shipments (k metric tons) | 756 | 758 | 0% | | Revenue ($ millions) | 4,100 | 3,812 | 7% | | Net income ($ millions) | 74 | 99 | (25)% | | Adjusted EBITDA ($ millions)| 332 | 371 | (11)% | | Metal price lag ($ millions)| 33 | N/A | N/A | | Cash from Operations ($ millions)| 172 | N/A | N/A | | Free Cash Flow ($ millions) | 38 | N/A | N/A | | Leverage | 3.6x | N/A | N/A | - Repurchased **4.8 million shares** for **$50 million** during the first half of 2025[6](index=6&type=chunk) [CEO Commentary & Outlook](index=2&type=section&id=CEO%20Commentary%20%26%20Outlook) CEO Jean-Marc Germain highlighted solid Q2 results despite weak demand, attributing performance to cost reduction and capital discipline. He noted strong Free Cash Flow and share repurchases, expecting leverage to decrease. The company raised its full-year 2025 guidance for Adjusted EBITDA to $620-$650 million and Free Cash Flow to over $120 million, while reaffirming long-term 2028 targets - Solid Q2 results achieved despite continued demand weakness across most end markets outside of packaging[5](index=5&type=chunk) - Free Cash Flow was strong at **$41 million** in Q2 2025[5](index=5&type=chunk) - Leverage at **3.6x** at June 30, 2025, expected to be the peak and trend down[5](index=5&type=chunk) Revised Guidance | Metric | Full Year 2025 (Revised) | Long-Term 2028 Target | | :-------------------- | :----------------------- | :-------------------- | | Adjusted EBITDA | $620 - $650 million | $900 million | | Free Cash Flow | > $120 million | $300 million | [Group Financial Performance](index=3&type=section&id=Group%20Financial%20Performance) Constellium's Q2 and H1 2025 financial performance showed revenue growth driven by shipments and favorable pricing, but net income and Adjusted EBITDA declined due to various operational factors and metal price lag [Overall Performance (Q2 & H1 2025)](index=3&type=section&id=Overall%20Performance%20(Q2%20%26%20H1%202025)) Constellium's Q2 2025 performance showed a 2% increase in shipments and a 9% rise in revenue, driven by the P&ARP segment, but net income and Adjusted EBITDA declined significantly due to unfavorable metal price lag and weaker results in A&T, AS&I, and H&C. For H1 2025, shipments were stable, revenue grew 7%, but net income and Adjusted EBITDA also decreased, primarily due to segment performance Group Summary Financials | Metric | Q2 2025 | Q2 2024 | Var. Q2 | YTD 2025 | YTD 2024 | Var. YTD | | :------------------------ | :------ | :------ | :------ | :------- | :------- | :------- | | Shipments (k metric tons) | 384 | 378 | 2% | 756 | 758 | 0% | | Revenue ($ millions) | 2,103 | 1,932 | 9% | 4,082 | 3,812 | 7% | | Net income ($ millions) | 36 | 77 | (53)% | 74 | 99 | (25)% | | Adjusted EBITDA ($ millions)| 146 | 225 | n.m. | 332 | 371 | n.m. | - Q2 2025 revenue increase primarily due to higher shipments, favorable sales price and mix (including higher metal prices), and favorable foreign exchange translation[8](index=8&type=chunk) - H1 2025 revenue increase primarily due to favorable sales price and mix, including higher metal prices[9](index=9&type=chunk) [Metal Price Lag Impact](index=3&type=section&id=Metal%20Price%20Lag%20Impact) The non-cash metal price lag had a negative impact of $13 million in Q2 2025, primarily due to decreasing regional premiums in Europe, partially offset by increasing premiums in North America. For H1 2025, the impact was positive $33 million, driven by North American premiums Metal Price Lag Impact | Period | Metal Price Lag ($ millions) | | :----- | :--------------------------- | | Q2 2025| (13) | | H1 2025| 33 | - Q2 2025 negative metal price lag reflects decreasing regional premiums in Europe, partially offset by increasing premiums in North America[18](index=18&type=chunk) - H1 2025 positive metal price lag reflects increasing regional premiums in North America, partially offset by decreasing premiums in Europe[18](index=18&type=chunk) [Results by Segment](index=4&type=section&id=Results%20by%20Segment) Segmental performance in Q2 and H1 2025 varied, with P&ARP showing strong growth, while A&T and AS&I experienced declines in Adjusted EBITDA due to lower shipments and unfavorable price/mix [Aerospace & Transportation (A&T)](index=4&type=section&id=Aerospace%20%26%20Transportation%20(A%26T)) The A&T segment experienced a decline in both shipments and Segment Adjusted EBITDA for Q2 and H1 2025, primarily due to lower shipments of aerospace and transportation, industry and defense (TID) rolled products. Revenue remained relatively stable, supported by favorable price/mix and foreign exchange A&T Segment Performance | Metric | Q2 2025 | Q2 2024 | Var. Q2 | YTD 2025 | YTD 2024 | Var. YTD | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | :------- | | Shipments (k metric tons) | 53 | 60 | (11)% | 104 | 117 | (11)% | | Revenue ($ millions) | 492 | 487 | 1% | 960 | 966 | (1)% | | Segment Adjusted EBITDA ($ millions)| 78 | 90 | (13)% | 153 | 177 | (14)% | | Segment Adjusted EBITDA per metric ton ($)| 1,467 | 1,506 | (3)% | 1,468 | 1,511 | (3)% | - Q2 2025 Segment Adjusted EBITDA decrease primarily due to lower shipments, partially offset by favorable price and mix, lower operating costs, and favorable foreign exchange translation[10](index=10&type=chunk) - H1 2025 Segment Adjusted EBITDA decrease primarily due to lower shipments and unfavorable price and mix, partially offset by lower operating costs[11](index=11&type=chunk) [Packaging & Automotive Rolled Products (P&ARP)](index=4&type=section&id=Packaging%20%26%20Automotive%20Rolled%20Products%20(P%26ARP)) The P&ARP segment demonstrated strong growth in Q2 and H1 2025, with increased shipments, revenue, and Segment Adjusted EBITDA. This performance was driven by higher shipments of packaging rolled products, improved Muscle Shoals performance, and favorable operating costs, despite some headwinds from unfavorable price/mix and metal costs P&ARP Segment Performance | Metric | Q2 2025 | Q2 2024 | Var. Q2 | YTD 2025 | YTD 2024 | Var. YTD | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | :------- | | Shipments (k metric tons) | 276 | 262 | 5% | 545 | 526 | 4% | | Revenue ($ millions) | 1,235 | 1,079 | 14% | 2,422 | 2,097 | 15% | | Segment Adjusted EBITDA ($ millions)| 74 | 66 | 12% | 135 | 114 | 18% | | Segment Adjusted EBITDA per metric ton ($)| 268 | 252 | 6% | 248 | 217 | 14% | - Q2 2025 Segment Adjusted EBITDA increase primarily due to higher shipments and improved Muscle Shoals performance, lower operating costs, and favorable foreign exchange translation[13](index=13&type=chunk) - H1 2025 Segment Adjusted EBITDA increase primarily due to higher shipments and improved Muscle Shoals performance, favorable price and mix, and lower operating costs[14](index=14&type=chunk) [Automotive Structures & Industry (AS&I)](index=5&type=section&id=Automotive%20Structures%20%26%20Industry%20(AS%26I)) The AS&I segment experienced a significant decrease in Segment Adjusted EBITDA for both Q2 and H1 2025, mainly due to unfavorable price and mix, and the net impact from tariffs. Shipments saw a slight decrease in Q2 and a more pronounced decline in H1, while revenue increased due to favorable sales price/mix and foreign exchange AS&I Segment Performance | Metric | Q2 2025 | Q2 2024 | Var. Q2 | YTD 2025 | YTD 2024 | Var. YTD | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | :------- | | Shipments (k metric tons) | 55 | 56 | (1)% | 107 | 115 | (7)% | | Revenue ($ millions) | 421 | 384 | 10% | 802 | 779 | 3% | | Segment Adjusted EBITDA ($ millions)| 18 | 30 | (40)% | 34 | 63 | (46)% | | Segment Adjusted EBITDA per metric ton ($)| 329 | 540 | (39)% | 317 | 549 | (42)% | - Q2 2025 Segment Adjusted EBITDA decrease primarily due to unfavorable price and mix and the unfavorable net impact from tariffs, partially offset by lower operating costs and favorable foreign exchange translation[15](index=15&type=chunk) - H1 2025 Segment Adjusted EBITDA decrease primarily due to lower shipments, unfavorable price and mix, and the unfavorable net impact from tariffs[16](index=16&type=chunk) [Financial Position & Cash Flow](index=6&type=section&id=Financial%20Position%20%26%20Cash%20Flow) Constellium's financial position in H1 2025 saw a decrease in net income, an increase in Free Cash Flow, and a rise in net debt, while maintaining substantial liquidity [Net Income Analysis](index=6&type=section&id=Net%20Income%20Analysis) Net income for Q2 2025 decreased by $41 million to $36 million, primarily due to lower gross profit, higher selling and administrative expenses, and unfavorable changes in other gains and losses. For H1 2025, net income decreased by $25 million to $74 million, mainly driven by higher depreciation and amortization, increased selling and administrative expenses, and higher income tax expense Net Income Summary | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | H1 2025 ($ millions) | H1 2024 ($ millions) | | :----- | :------------------- | :------------------- | :------------------- | :------------------- | | Net income | 36 | 77 | 74 | 99 | - Q2 2025 net income decrease primarily related to lower gross profit, higher selling and administrative expenses, and unfavorable changes in other gains and losses[19](index=19&type=chunk) - H1 2025 net income decrease primarily related to higher depreciation and amortization, higher selling and administrative expenses, and income tax expense[20](index=20&type=chunk) [Cash Flow Activities](index=7&type=section&id=Cash%20Flow%20Activities) Free Cash Flow increased to $38 million in H1 2025 from $24 million in H1 2024, driven by favorable working capital changes, lower capital expenditures, and reduced cash taxes. Cash flows from operating activities remained stable, while cash flows used in investing and financing activities increased, with significant share repurchases in H1 2025 Cash Flow Summary (H1) | Metric | H1 2025 ($ millions) | H1 2024 ($ millions) | Change ($ millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------ | | Free Cash Flow | 38 | 24 | 14 | | Cash from Operating Activities | 172 | 175 | (3) | | Cash used in Investing Activities | (131) | (111) | (20) | | Cash used in Financing Activities | (62) | (51) | (11) | - Increase in Free Cash Flow primarily due to favorable change in working capital, lower capital expenditures, and lower cash taxes, partially offset by lower Segment Adjusted EBITDA and higher cash interest[21](index=21&type=chunk) - Repurchased **4.8 million shares** for **$50 million** in H1 2025, compared to 1.9 million shares for $39 million in H1 2024[23](index=23&type=chunk) [Liquidity and Net Debt](index=8&type=section&id=Liquidity%20and%20Net%20Debt) As of June 30, 2025, Constellium reported $841 million in liquidity, comprising cash and available lending facilities. Net debt increased to $1,895 million from $1,776 million at the end of 2024 Liquidity and Net Debt | Metric | At June 30, 2025 ($ millions) | At December 31, 2024 ($ millions) | | :-------------------------- | :---------------------------- | :------------------------------ | | Liquidity | 841 | N/A | | Cash and cash equivalents | 133 | 141 | | Available lending facilities| 708 | N/A | | Net debt | 1,895 | 1,776 | [Company Outlook & Recent Developments](index=8&type=section&id=Company%20Outlook%20%26%20Recent%20Developments) Constellium raised its full-year 2025 guidance for Adjusted EBITDA and Free Cash Flow, reaffirmed long-term targets, and transitioned from a Foreign Private Issuer to a U.S. domestic filer [Full Year 2025 & Long-Term Guidance](index=8&type=section&id=Full%20Year%202025%20%26%20Long-Term%20Guidance) Constellium raised its 2025 Adjusted EBITDA guidance to $620-$650 million and Free Cash Flow to over $120 million, excluding metal price lag. The company also reaffirmed its 2028 targets of $900 million Adjusted EBITDA and $300 million Free Cash Flow Company Guidance | Metric | 2025 Outlook ($ millions) | 2028 Target ($ millions) | | :-------------------- | :------------------------ | :----------------------- | | Adjusted EBITDA | 620 - 650 | 900 | | Free Cash Flow | > 120 | 300 | - Adjusted EBITDA guidance excludes the non-cash impact of metal price lag[25](index=25&type=chunk) - Reconciliation of Adjusted EBITDA guidance to net income is not provided due to the inability to reasonably predict certain excluded items[26](index=26&type=chunk) [Recent Corporate Developments](index=8&type=section&id=Recent%20Corporate%20Developments) As of June 30, 2025, Constellium no longer qualifies as a Foreign Private Issuer. The company will continue to file annual reports on Form 10-K and quarterly reports on Form 10-Q, and beginning January 1, 2026, will also file all other required U.S. domestic forms with the SEC - Constellium no longer qualifies as a Foreign Private Issuer as of June 30, 2025[27](index=27&type=chunk) - Will continue filing 10-K and 10-Q reports, and beginning January 1, 2026, will file all other required U.S. domestic forms with the SEC[27](index=27&type=chunk) [About Constellium](index=9&type=section&id=About%20Constellium) Constellium SE is a global leader in innovative, value-added aluminum products for diverse markets including aerospace, packaging, and automotive. The company generated $7.3 billion in revenue in 2024 - Constellium is a global sector leader developing innovative, value-added aluminum products[29](index=29&type=chunk) - Key markets include aerospace, packaging, and automotive[29](index=29&type=chunk) - Generated **$7.3 billion** of revenue in 2024[29](index=29&type=chunk) [Non-GAAP Measures Explanation](index=10&type=section&id=Non-GAAP%20Measures%20Explanation) This section defines and explains key non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, Net Debt, and Leverage, highlighting their calculation and utility for investors [Adjusted EBITDA](index=10&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a non-GAAP measure defined as income/(loss) from continuing operations before income taxes, joint ventures, net finance costs, other expenses, and depreciation/amortization, further adjusted for specific non-recurring and non-operating items. It is used to illustrate underlying performance and is not an alternative to U.S. GAAP profit or loss - Adjusted EBITDA is a non-GAAP measure, not a measure of financial condition, liquidity, or profitability[31](index=31&type=chunk) - Defined as income/(loss) from continuing operations before income taxes, results from joint ventures, net finance costs, other expenses, and depreciation and amortization, adjusted for various non-recurring and non-operating items[32](index=32&type=chunk) - Useful to investors as it illustrates the underlying performance of continuing operations by excluding certain non-recurring and non-operating items[33](index=33&type=chunk) [Free Cash Flow](index=11&type=section&id=Free%20Cash%20Flow) Free Cash Flow is a non-GAAP measure calculated as net cash flow from operating activities minus capital expenditures (net of property, plant, and equipment inflows). It helps assess the net cash generated or used by the business, considering operating activities and capital needs, but does not represent residual cash for discretionary spending - Defined as net cash flow from operating activities, less capital expenditures, net of property, plant and equipment inflows[34](index=34&type=chunk) - Useful measure of net cash flow generated or used by the business, considering operating activities and capital expenditure requirements[34](index=34&type=chunk) - Not a U.S. GAAP presentation and does not represent residual cash flows available for discretionary spending[34](index=34&type=chunk) [Net Debt & Leverage](index=11&type=section&id=Net%20Debt%20%26%20Leverage) Net debt is a non-GAAP measure representing total debt adjusted for cross-currency basis swaps, less cash and cash equivalents. It provides a comprehensive view of indebtedness. Leverage is defined as Net debt divided by the last twelve months Segment Adjusted EBITDA, excluding the non-cash impact of metal price lag - Net debt is defined as debt plus or minus the fair value of cross currency basis swaps net of margin calls less cash and cash equivalents and cash pledged for the issuance of guarantees[35](index=35&type=chunk) - Useful measure of indebtedness as it considers cash and cash equivalent balances against total external debt[35](index=35&type=chunk) - Leverage is defined as Net debt divided by last twelve months Segment Adjusted EBITDA, excluding the non-cash impact of metal price lag[35](index=35&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Q2 and H1 2025 show revenue growth but declining net income, alongside increases in total assets, liabilities, and equity, and detailed cash flow movements [Consolidated Income Statements](index=12&type=section&id=Consolidated%20Income%20Statements) The consolidated income statements show a 9% revenue increase for Q2 2025 and 7% for H1 2025, but net income decreased by 53% and 25% respectively, primarily due to higher cost of sales, increased selling and administrative expenses, and higher finance costs Consolidated Income Statement Highlights | (in millions of U.S. dollar) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | Revenue | 2,103 | 1,932 | 4,082 | 3,812 | | Cost of sales (excluding D&A)| (1,840) | (1,652) | (3,556) | (3,287) | | Depreciation and amortization| (82) | (76) | (160) | (151) | | Selling and administrative expenses| (88) | (75) | (166) | (155) | | Finance costs - net | (29) | (25) | (56) | (52) | | Income before tax | 56 | 104 | 118 | 134 | | Income tax expense | (20) | (27) | (44) | (35) | | Net income | 36 | 77 | 74 | 99 | | Basic EPS | 0.25 | 0.52 | 0.51 | 0.66 | | Diluted EPS | 0.25 | 0.51 | 0.51 | 0.65 | [Consolidated Statements of Comprehensive Income](index=13&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income show total comprehensive income of $64 million for Q2 2025 and $113 million for H1 2025. This includes net income and other comprehensive income/loss components, notably a positive net change in cash flow hedges and currency translation adjustments in 2025, contrasting with negative changes in 2024 Consolidated Comprehensive Income Highlights | (in millions of U.S. dollar) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | Net income | 36 | 77 | 74 | 99 | | Net change in cash flow hedges| 25 | (2) | 37 | (4) | | Currency translation adjustments| 11 | — | 15 | (6) | | Other comprehensive income / (loss)| 28 | (5) | 39 | (16) | | Total comprehensive income | 64 | 72 | 113 | 83 | [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets as of June 30, 2025, show an increase in total assets to $5,368 million from $4,734 million at December 31, 2024, primarily driven by higher trade receivables and inventories. Total liabilities also increased to $4,569 million, mainly due to higher trade payables and long-term debt, while total equity grew to $799 million Consolidated Balance Sheet Highlights | (in millions of U.S. dollar) | At June 30, 2025 | At December 31, 2024 | | :--------------------------- | :--------------- | :------------------- | | Cash and cash equivalents | 133 | 141 | | Trade receivables and other, net| 805 | 486 | | Inventories | 1,328 | 1,181 | | Total current assets | 2,312 | 1,834 | | Property, plant and equipment, net| 2,564 | 2,408 | | Total assets | 5,368 | 4,734 | | Trade payables and other | 1,717 | 1,309 | | Long-term debt | 1,972 | 1,879 | | Total liabilities | 4,569 | 4,007 | | Total equity | 799 | 727 | [Consolidated Statements of Changes in Equity](index=15&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) The consolidated statements of changes in equity show an increase in total equity from $727 million at January 1, 2025, to $799 million at June 30, 2025. This was primarily driven by net income and positive other comprehensive income, partially offset by share repurchases totaling $50 million during the first half of 2025 Changes in Equity (H1 2025) | (in millions of U.S. dollar) | At January 1, 2025 | Net Income | Other Comprehensive Income | Repurchase of ordinary shares | At June 30, 2025 | | :--------------------------- | :----------------- | :--------- | :------------------------- | :---------------------------- | :--------------- | | Total equity | 727 | 73 | 38 | (50) | 799 | - Repurchased **$50 million** of ordinary shares during the first half of 2025[39](index=39&type=chunk) [Consolidated Statements of Cash Flows](index=17&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows indicate net cash flows from operating activities of $172 million for H1 2025, slightly down from H1 2024. Cash flows used in investing activities increased to $131 million, and cash flows used in financing activities increased to $62 million, largely due to higher share repurchases and other financing activities Consolidated Cash Flow Highlights | (in millions of U.S. dollar) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | Net cash flows from operating activities| 114 | 138 | 172 | 175 | | Net cash flows used in investing activities| (72) | (61) | (131) | (111) | | Net cash flows used in financing activities| (36) | (41) | (62) | (51) | | Net increase / (decrease) in cash and cash equivalents| 6 | 36 | (21) | 13 | | Cash and cash equivalents - end of period| 133 | 228 | 133 | 228 | - Purchases of property, plant and equipment were **$146 million** in H1 2025[41](index=41&type=chunk) - Repurchased **$50 million** of ordinary shares in H1 2025[41](index=41&type=chunk) [Supplemental Segment Data](index=18&type=section&id=Supplemental%20Segment%20Data) This section provides detailed segment-level data for Q2 and H1 2025, including Adjusted EBITDA, shipments, and revenue by product line, highlighting varied performance across business units [Segment Adjusted EBITDA](index=18&type=section&id=Segment%20Adjusted%20EBITDA) The Segment Adjusted EBITDA for Q2 2025 shows A&T at $78 million, P&ARP at $74 million, and AS&I at $18 million, with Holdings and Corporate at $(12) million. For H1 2025, A&T was $153 million, P&ARP $135 million, AS&I $34 million, and Holdings and Corporate at $(23) million, reflecting varied performance across segments Segment Adjusted EBITDA | (in millions of U.S. dollar) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | A&T | 78 | 90 | 153 | 177 | | P&ARP | 74 | 66 | 135 | 114 | | AS&I | 18 | 30 | 34 | 63 | | Holdings and Corporate | (12) | (6) | (23) | (14) | [Shipments and Revenue by Product Line](index=18&type=section&id=Shipments%20and%20Revenue%20by%20Product%20Line) Total shipments for Q2 2025 increased to 384 k metric tons, and H1 2025 remained stable at 756 k metric tons. Packaging rolled products showed strong growth in both shipments and revenue, while automotive rolled products and aerospace rolled products experienced declines in shipments and revenue Shipments by Product Line (k metric tons) | Product Line | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------- | :------ | :------ | :------ | :------ | | Aerospace rolled products | 22 | 25 | 46 | 52 | | Transportation, industry, defense and other rolled products| 31 | 35 | 59 | 65 | | Packaging rolled products | 213 | 187 | 417 | 374 | | Automotive rolled products | 59 | 69 | 119 | 140 | | Automotive extruded products | 29 | 33 | 60 | 69 | | Total shipments | 384 | 378 | 756 | 758 | Revenue by Product Line ($ millions) | Product Line | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------- | :------ | :------ | :------ | :------ | | Aerospace rolled products | 267 | 262 | 534 | 548 | | Transportation, industry, defense and other rolled products| 226 | 225 | 427 | 418 | | Packaging rolled products | 912 | 729 | 1,780 | 1,400 | | Automotive rolled products | 295 | 319 | 586 | 631 | | Automotive extruded products | 249 | 251 | 483 | 514 | | Total Revenue by product line | 2,103 | 1,932 | 4,082 | 3,812 | [Non-GAAP Reconciliations](index=19&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and Net Debt, to their most directly comparable U.S. GAAP measures for transparency [Net Income to Adjusted EBITDA](index=19&type=section&id=Net%20Income%20to%20Adjusted%20EBITDA) The reconciliation shows Adjusted EBITDA of $146 million for Q2 2025 and $332 million for H1 2025, derived from net income by adding back income tax, finance costs, depreciation, amortization, and other non-GAAP adjustments, including the impact of metal price lag Reconciliation of Net Income to Adjusted EBITDA | (in millions of U.S. dollar) | Q2 2025 | Q2 2024 | H1 2025 | H1 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 | | Metal price lag | (13) | 45 | 33 | 31 | | Adjusted EBITDA | 146 | 225 | 332 | 371 | - Metal price lag represents the financial impact of timing differences between aluminum price establishment in revenue and purchase prices in cost of sales, a non-cash impact[46](index=46&type=chunk) [Net Cash Flows from Operating Activities to Free Cash Flow](index=20&type=section&id=Net%20Cash%20Flows%20from%20Operating%20Activities%20to%20Free%20Cash%20Flow) Free Cash Flow was $41 million for Q2 2025 and $38 million for H1 2025, calculated by subtracting purchases of property, plant and equipment and adding property, plant and equipment inflows from net cash flows from operating activities Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow | (in millions of U.S. dollar) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | Net cash flows from operating activities| 114 | 138 | 172 | 175 | | Purchases of property, plant and equipment| (77) | (84) | (146) | (158) | | Property, plant and equipment inflows| 4 | — | 12 | 7 | | Free Cash Flow | 41 | 54 | 38 | 24 | [Borrowings to Net Debt](index=20&type=section&id=Borrowings%20to%20Net%20Debt) Net debt stood at $1,895 million at June 30, 2025, an increase from $1,776 million at December 31, 2024. This is calculated by adjusting total debt for the fair value of cross-currency basis swaps and subtracting cash and cash equivalents Reconciliation of Borrowings to Net Debt | (in millions of U.S. dollar) | At June 30, 2025 | At December 31, 2024 | | :--------------------------- | :--------------- | :------------------- | | Debt | 2,026 | 1,918 | | Fair value of cross currency basis swaps, net of margin calls| 2 | (1) | | Cash and cash equivalents | (133) | (141) | | Net debt | 1,895 | 1,776 |

Group Summary - Constellium reported second quarter 2025 revenue of $2.1 billion, a 9% increase compared to Q2 2024, driven by higher shipments and favorable sales prices [6][9] - Shipments for Q2 2025 were 384 thousand metric tons, up 2% from Q2 2024, while year-to-date shipments remained stable at 756 thousand metric tons [6][10] - Net income for Q2 2025 was $36 million, down 53% from $77 million in Q2 2024, primarily due to lower gross profit and higher expenses [8][27] Financial Performance - Adjusted EBITDA for Q2 2025 was $146 million, a decrease of 35% from $225 million in Q2 2024, impacted by unfavorable metal price lag and weaker results in several segments [7][9] - Free Cash Flow for Q2 2025 was strong at $41 million, with cash from operations amounting to $114 million [5][29] - The company repurchased 3.4 million shares for $35 million during the quarter, ending with a leverage ratio of 3.6x [5][31] Segment Performance - Aerospace & Transportation (A&T) segment saw shipments decrease by 11% in Q2 2025, with Adjusted EBITDA of $78 million, down 13% from the previous year [11][13] - Packaging & Automotive Rolled Products (P&ARP) segment reported a 5% increase in shipments and a 12% rise in Adjusted EBITDA to $74 million, driven by higher packaging shipments [15][17] - Automotive Structures & Industry (AS&I) segment experienced a 40% decline in Adjusted EBITDA to $18 million, despite a 10% increase in revenue [19][21] Outlook and Guidance - The company raised its 2025 guidance for Adjusted EBITDA to a range of $620 million to $650 million, excluding non-cash metal price lag impacts, and expects Free Cash Flow to exceed $120 million [5][33] - Long-term targets include achieving Adjusted EBITDA of $900 million and Free Cash Flow of $300 million by 2028 [5][33] Liquidity and Debt - As of June 30, 2025, Constellium had liquidity of $841 million, with net debt increasing to $1.895 billion from $1.776 billion at the end of 2024 [32][32] - The company continues to focus on cost reduction and operational performance to enhance shareholder value [5][33]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Constellium (CSTM) despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Constellium is expected to report quarterly earnings of $0.28 per share, reflecting a year-over-year decrease of 46.2%, while revenues are projected to be $2.09 billion, an increase of 8.4% from the previous year [3]. - The consensus EPS estimate has been revised 2.34% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Constellium is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.23%, indicating bearish sentiment among analysts [12]. - The stock currently holds a Zacks Rank of 4, complicating predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Constellium exceeded expectations with earnings of $0.26 per share against an anticipated $0.07, achieving a surprise of +271.43% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - Constellium does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, suggesting investors should consider additional factors before making investment decisions [17].

Core Insights - Constellium SE has successfully completed the FlexCAR project, an innovative collaboration with ARENA2036 focused on future mobility and production technologies [1][2] - The FlexCAR platform aims to allow easy configuration and updates of major vehicle systems, enhancing adaptability and sustainability in vehicle design [2][3] - The project involved partnerships with major industry players including Mercedes-Benz, Siemens, Bosch, and the German Aerospace Center [2] Group 1 - Constellium developed a modular sill concept using high-strength aluminum alloys with significant recycled content, designed to support various powertrains and improve crash performance [3] - The FlexCAR initiative emphasizes the benefits of modular design and aluminum's sustainability, aiming for longer vehicle lifespans and reduced environmental impact [4] - Previous collaboration with ARENA2036 on the Digital Fingerprint project resulted in a smart aluminum housing for a power control unit, enhancing predictive maintenance and data-driven manufacturing [4] Group 2 - Constellium is a full-service supplier of aluminum solutions for the global automotive market, focusing on producing lighter, safer, and more fuel-efficient vehicles [5] - The company generated $7.3 billion in revenue in 2024, indicating its strong market position and growth potential [7] - ARENA2036 serves as a flexible research platform for mobility and production, with Constellium being a contributing member since 2018 [6]

Company Overview - Constellium SE (NYSE: CSTM) is a global leader in developing innovative, value-added aluminum products for various markets, including aerospace, packaging, and automotive [3]. Upcoming Events - Constellium will host a conference call and webcast on July 29, 2025, at 10:00 AM (Eastern Time) to announce its second quarter 2025 results [1]. - The press release regarding the results will be sent before market opening on the same day [1]. Access Information - Details for the conference call, webcast, and accompanying presentation will be available on the Constellium Investor Relations page [2]. - The conference call can be accessed via telephone using specific numbers for the United States, France, Germany, Switzerland, and the United Kingdom, with an access code provided [2]. - An archived recording of the conference call will be available on the company's website for three weeks following the event [2]. Financial Performance - Constellium generated $7.3 billion in revenue in 2024 [3].

Core Points - Constellium SE has received three awards at the 2025 Airbus Supply Chain & Quality Improvement Program, recognizing its excellence in quality and delivery performance [1] - The Issoire plant was awarded the "Accredited Supplier" award for the second consecutive year, highlighting its sustained excellence and reliability [2] - The Issoire facility also received a special recognition for sustainability due to significant reductions in water withdrawal over the past decade [3] - The Montreuil-Juigné site was recognized as the "Best Improver," reflecting its positive performance trajectory in quality and supply chain contributions [4] - Philippe Hoffmann, President of Constellium's Aerospace and Transportation business unit, emphasized the company's commitment to operational performance, circularity, and sustainability [5] - Constellium generated $7.3 billion in revenue in 2024, positioning itself as a leader in innovative aluminum products across various markets [6]