What's Next for Constellium? Constellium (CSTM) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10.71%. A quarter ago, it was expected that this aluminum company would post earnings of $0.07 per share when it actually produced earnings of $0.26, delivering a surprise of +271.43%. Ov ...

[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]

Group 1: 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 [5] - The company generated $7.3 billion in revenue in 2024 [5] Group 2: Innovations and Products - At the 55th Paris Air Show, Constellium will showcase its high-performance aluminum products, including Airware, an aluminum-lithium solution designed for aircraft and spacecraft applications [2] - Airware provides superior strength-to-weight ratios, reduced material density, and excellent fatigue and corrosion resistance, making it suitable for more efficient, lower-emission aircraft [2] Group 3: Sustainability Initiatives - Constellium will unveil the first aluminum ingot fully manufactured at lab scale from end-of-life aircraft, utilizing a recycling and remelting process that meets new aircraft production standards [3] - This initiative is a collaboration between Constellium and TARMAC Aerosave, supported by Airbus, representing a significant advancement toward a circular economy in aerospace [3] Group 4: Future Projects - The exhibit will also highlight the company's progress on the Wing of the Future project, aimed at developing next-generation wing technologies for lighter, more fuel-efficient aircraft [4] - The role of aluminum in sustainable aviation will be explored, with additional resources available for further insights [4]

Group 1: Core Achievement - Constellium SE and TARMAC Aerosave have successfully recycled and remelted aluminum from end-of-life aircraft into new, high-performance material for aerospace applications [1][2] - This initiative demonstrates the potential of aluminum to support circular economy goals in aerospace without compromising material performance [2][4] Group 2: Process and Collaboration - The successful remelting process was achieved through collaborative research and development, particularly supported by Airbus and ValoER [2] - The next step involves scaling up the recycling process for industrial application and extending it to various aluminum alloys used in aircraft [2] Group 3: Sustainability Impact - Aluminum recycling requires only 5% of the energy needed for primary production and results in 95% fewer CO₂ emissions, enhancing sustainability in the aerospace industry [4] - The full-circular model of aluminum recycling provides a compelling path for future innovation and sustainability efforts in aviation [4] Group 4: Company Profiles - Constellium generated $7.3 billion in revenue in 2024 and is a leader in developing innovative aluminum products for various markets, including aerospace [5] - TARMAC Aerosave specializes in aircraft maintenance and eco-responsible dismantling, operating Europe's largest aircraft storage facilities [5]

Core Insights - Constellium SE has initiated a collaborative project with Nikon Advanced Manufacturing, America Makes, and industry leaders to enhance the use of its Aheadd CP1 aluminum alloy for additive manufacturing in defense and aerospace sectors [1][2] Funding and Collaboration - The project is funded with $2.1 million from the Office of the Under Secretary of Defense's Manufacturing Technology Office through America Makes [2] - Nikon AM leads the project, collaborating with ASTM International, 3Degrees, and major defense contractors such as Lockheed Martin, Northrop Grumman, and Honeywell Aerospace Technologies [2] Project Objectives and Technology - The project aims to leverage the Aheadd CP1 aluminum alloy, which is designed for high performance in additive manufacturing, particularly for applications requiring strength and thermal conductivity [3] - The initiative will utilize Nikon SLM Solutions' large-format, multi-laser NXG XII 600 series laser powder bed fusion systems to support the U.S. Defense Industrial Base [3] Data Generation and Sharing - Key material property data will be generated through testing on Nikon's L-PBF systems, with results to be shared via the Workbench for Additive Materials (WAM) database for qualification by defense and aerospace manufacturers [4] 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 [5]