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

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

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

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

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

Financial Data and Key Metrics Changes - Shipments in Q4 2024 were 328,000 tons, down 2% compared to Q4 2023, primarily due to lower shipments in A&T and AS&I [12] - Revenue for Q4 2024 was $1.7 billion, a decrease of 1% compared to Q4 2023, mainly due to lower shipments and unfavorable price and mix, partially offset by higher metal prices [12] - The net loss for Q4 2024 was $47 million, compared to a net income of $5 million in Q4 2023 [13] - Adjusted EBITDA for Q4 2024 was $125 million, which includes a negative impact of $15 million from the flood at Valais and a positive non-cash impact from metal price lag of $27 million [13][14] - For the full year 2024, shipments were 1.4 million tons, down 4% compared to 2023, and revenue was $7.3 billion, a decrease of 6% compared to 2023 [16][17] - Full year net income was $60 million, down from $157 million in 2023, and adjusted EBITDA was $623 million, down from a record $754 million in 2023 [17][18] Business Line Data and Key Metrics Changes - A&T segment adjusted EBITDA for Q4 2024 was $56 million, a decrease of 33% compared to Q4 2023, with volume and price/mix being significant headwinds [33] - P&K segment adjusted EBITDA for Q4 2024 was $56 million, down 34% year-over-year, with automotive shipments decreasing by 10% [36] - AS&I segment adjusted EBITDA for Q4 2024 was $4 million, an 83% decrease compared to Q4 2023, with automotive shipments down 12% [38][40] Market Data and Key Metrics Changes - The aerospace market remains stable, with robust backlogs, but supply chain challenges are causing delays in deliveries [52] - Demand in the packaging market remains healthy in North America and Europe, with expectations for low to mid-single-digit growth [54] - The automotive market is experiencing weakness, particularly in Europe, with production levels still below pre-COVID levels [56] Company Strategy and Development Direction - The company is focused on cost reduction efforts and has accelerated its Vision 2025 cost improvement program in response to market conditions [44][45] - New investments, such as the recycling and casting center in Neuf-Brisach, are expected to contribute positively to future performance [62] - The company aims to achieve adjusted EBITDA of $600 to $630 million in 2025 and $900 million by 2028, with a focus on operational improvements and market recovery [60][61] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 was a challenging year due to extreme weather and market-driven headwinds, but expressed confidence in the long-term fundamentals of the business [20][22] - The company is monitoring the impact of tariffs and believes they may present opportunities for domestic production [25][30] - Management remains optimistic about the recovery of the Valais facility and the overall market conditions in the coming years [61][65] Other Important Information - Free cash flow for 2024 was negative $100 million, but would have been positive $30 million excluding the impact of the Valais flood [19][47] - The company returned $79 million to shareholders through share repurchases in 2024 [23][49] - The company has a strong liquidity position with $727 million as of the end of 2024 [51] Q&A Session Summary Question: Can you provide more detail on the key tax and input for the 2025 EBITDA guidance? - Management highlighted that adverse market conditions, including tightening scrap spreads and weak automotive demand, will impact 2025 [71][72] Question: Can you walk us through the bridge from 2025 to 2028? - Management indicated that the path to 2028 is expected to be linear, with investments contributing more towards the end of the period [80][82] Question: Is it fair to assume that the weighting for 2025 guidance will be more in the second half? - Management agreed that the first quarter will be weaker due to seasonality and the impact of the Valais flood, with improvements expected in the second half [94][95] Question: What are the key assumptions for market growth and shipment growth across major markets? - Management expects stable aerospace volumes but a weaker mix, continued weakness in automotive, and improvement in packaging [112][114] Question: How will the company respond to sustained pressure on scrap prices? - Management noted that they can switch inputs and are prepared to adjust their sourcing strategies as needed [130][132]

Financial Performance - Q4 2024 - Shipments reached 328 thousand tons, a decrease of 2% year-over-year (YoY)[13] - Revenue totaled $1.7 billion, down 1% YoY[13] - The company reported a net loss of $(47) million[13] - Adjusted EBITDA was $125 million, including a negative $15 million impact from the Valais flood and a positive $27 million non-cash metal price lag impact[13] - Free Cash Flow was $(85) million, including a negative $39 million impact from the Valais flood[13] - Approximately 1.6 million shares were repurchased for $18.5 million[13] Financial Performance - Full Year 2024 - Shipments amounted to 1.4 million tons, a decrease of 4% YoY[15] - Revenue totaled $7.3 billion, down 6% YoY[15] - Net income was $60 million[15] - Adjusted EBITDA was $623 million, including a negative $33 million impact from the Valais flood and a positive $55 million non-cash metal price lag impact[15] - Free Cash Flow was $(100) million, including a negative $45 million impact from the Valais flood[15] - Approximately 4.6 million shares were repurchased for $79 million[15] - Adjusted ROIC was 5.5%, down 500 bps YoY[15] Future Outlook - The company is targeting an Adjusted EBITDA of $900 million in 2028[45] - The company expects Free Cash Flow to be greater than $120 million in 2025[31]

Company Performance - Constellium reported a quarterly loss of $0.34 per share, significantly below the Zacks Consensus Estimate of $0.02, marking an earnings surprise of -1,800% [1] - The company posted revenues of $1.72 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 4.02%, but down from $1.74 billion year-over-year [2] - Over the last four quarters, Constellium has surpassed consensus EPS estimates only once and has topped consensus revenue estimates twice [2] Stock Outlook - Constellium shares have declined approximately 11.7% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $1.9 billion, and for the current fiscal year, it is $1.36 on revenues of $7.7 billion [7] Industry Context - The Metal Products - Distribution industry, to which Constellium belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Constellium's stock performance [5]

Financial Performance - Shipments for Q4 2024 were 328 thousand metric tons, down 2% from Q4 2023, and full year shipments totaled 1.4 million metric tons, down 4% compared to 2023[10]. - Revenue for Q4 2024 was $1,721 million, a decrease of 1% from Q4 2023, while full year revenue was $7.3 billion, down 6% compared to 2023[10]. - The net loss for Q4 2024 was $47 million, compared to a net income of $5 million in Q4 2023, with full year net income at $60 million, down 62% from $157 million in 2023[10]. - Adjusted EBITDA for Q4 2024 was $125 million, down from $164 million in Q4 2023, and full year Adjusted EBITDA was $623 million, a decrease of 6% from 2023[10]. - Revenue for 2024 was $1.4 billion, a decrease of 19% compared to the previous year, mainly due to lower shipments and unfavorable price and mix, partially offset by higher metal prices[18]. - The net loss for Q4 2024 was $47 million, compared to a net income of $5 million in Q4 2023, attributed to lower gross profit and higher expenses[21]. - Net income for the year ended December 31, 2024, was $60 million, down from $157 million in 2023, representing a decrease of 61.1%[37]. - Total revenue for the year ended December 31, 2024, was $7,335 million, a decrease of 6.3% compared to $7,826 million in 2023[39]. - The adjusted EBITDA for the year ended December 31, 2024, was $623 million, down 5.9% from $662 million in 2023[41]. Segment Performance - Segment Adjusted EBITDA for Aerospace & Transportation (A&T) was $56 million in Q4 2024, down 33% year-over-year, while full year A&T Adjusted EBITDA was $285 million, down 19% from 2023[12]. - Segment Adjusted EBITDA for Packaging & Automotive Rolled Products (P&ARP) was $56 million in Q4 2024, a decrease of 34% compared to Q4 2023, with full year P&ARP Adjusted EBITDA at $242 million, down 21% from 2023[14]. - Segment Adjusted EBITDA for Automotive Structures & Industry (AS&I) was $4 million in Q4 2024, down 83% year-over-year, and full year AS&I Adjusted EBITDA was $74 million, a decrease of 43% from 2023[17]. - For the full year of 2024, Segment Adjusted EBITDA was $74 million, a decrease of 43% compared to 2023, primarily due to lower shipments and a $20 million impact from flooding at Valais[18]. - The adjusted EBITDA for the Aerospace and Transportation segment decreased from $351 million in 2023 to $285 million in 2024, a decline of 18.8%[38]. Cash Flow and Liquidity - Cash from Operations for Q4 2024 was $61 million, while Free Cash Flow was $(85) million, and for the full year, Cash from Operations was $301 million with Free Cash Flow at $(100) million[10]. - Free Cash Flow for 2024 was $(100) million, a decline from $67 million in 2023, primarily due to lower Segment Adjusted EBITDA and higher capital expenditures[23]. - Cash flows from operating activities were $301 million in 2024, down from $432 million in the prior year[24]. - Liquidity at December 31, 2024, was $727 million, consisting of $141 million in cash and cash equivalents and $586 million available under committed lending facilities[26]. - The company reported a net cash flow from operating activities of $301 million for the year ended December 31, 2024, compared to $432 million in 2023, a decrease of 30.3%[37]. - The company reported a net cash flow from operating activities of $61 million for the three months ended December 31, 2024, down from $173 million in the same period of 2023[43]. Debt and Equity - Net debt increased to $1,776 million at December 31, 2024, compared to $1,704 million at the end of 2023[27]. - The long-term debt remained relatively stable, decreasing slightly from $1,888 million in 2023 to $1,879 million in 2024[35]. - The company’s equity attributable to equity holders decreased from $718 million in 2023 to $706 million in 2024, a decline of 1.7%[35]. - Net debt as of December 31, 2024, was $1,776 million, an increase of 4.2% from $1,704 million in 2023[44]. Future Outlook - For 2025, the company expects Adjusted EBITDA in the range of $600 million to $630 million and Free Cash Flow in excess of $120 million[9]. - Long-term targets for 2028 include an expected Adjusted EBITDA of $900 million and Free Cash Flow of $300 million[9]. - The company expects Adjusted EBITDA for 2025 to be in the range of $600 million to $630 million and Free Cash Flow to exceed $120 million[29]. Other Financial Metrics - Total assets decreased from $4,933 million in 2023 to $4,734 million in 2024, a decline of approximately 4.0%[35]. - Cash and cash equivalents at the end of 2024 were $141 million, down from $223 million at the end of 2023, a decrease of 36.8%[37]. - The company incurred restructuring costs of $11 million in 2024 related to cost reduction programs in the United States and Europe[42]. - The financial impact of the Valais flood in 2024 was $33 million of Adjusted EBITDA and $45 million of Free Cash Flow[28]. - The metal price lag adjustment for the year ended December 31, 2024, negatively impacted earnings by $55 million, compared to a positive impact of $92 million in 2023[45]. - Total invested capital as of December 31, 2024, was $3,202 million, slightly up from $3,173 million in 2023[45]. - The Adjusted Return on Invested Capital (ROIC) for 2024 was 5.5%, a decrease from 10.5% in 2023[45]. - The company repurchased ordinary shares worth $79 million during the year ended December 31, 2024[37].

PARIS, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) ("Constellium" or the "Company") today reported results for the fourth quarter and full year ended December 31, 2024. On January 15, 2025, the Company announced that, while it remains a foreign private issuer under applicable rules, it intends to voluntarily file its SEC reports on U.S. domestic issuer forms. As a result, beginning in 2025, Constellium will voluntarily file annual reports on Form 10-K, quarterly reports on Form 10-Q, and c ...