Constellium(CSTM) - 2024 Q3 - Quarterly Report

Financial Performance - Shipments of 352 thousand metric tons in Q3 2024, down 5% compared to Q3 2023[7] - Revenue of €1.6 billion in Q3 2024, down 5% compared to Q3 2023[7] - Net income of €3 million in Q3 2024, a decrease of €61 million compared to net income of €64 million in Q3 2023[7] - Adjusted EBITDA of €110 million in Q3 2024, down €31 million from €141 million in Q3 2023[12] - For Q3 2024, net income was €3 million, a decrease from €64 million in Q3 2023, primarily due to lower gross profit and a prior year gain from the sale of the CED business[26] - For the first nine months of 2024, net income was €91 million, down from €118 million in the same period of 2023, attributed to lower gross profit and prior year gains[27] - Total comprehensive income for Q3 2024 was €97 million, down from €146 million in Q3 2023[46] - Adjusted EBITDA for Q3 2024 was €110 million, compared to €141 million in Q3 2023, reflecting a decrease of 22%[51] - Revenue for Q3 2024 was €1,639 million, down from €1,720 million in Q3 2023, representing a decline of 4.7%[50] Cash Flow and Liquidity - Free Cash Flow was negative €10 million in Q3 2024, including a €6 million impact from the flood at Valais[9] - Free Cash Flow for the first nine months of 2024 was €57 million, compared to €112 million in the prior year, mainly due to lower Segment Adjusted EBITDA and higher capital expenditures[28] - Cash flows from operating activities were €292 million for the first nine months of 2024, down from €321 million in the same period of 2023[29] - Cash flows used in investing activities increased to €232 million in the first nine months of 2024 from €161 million in the prior year, which included €47 million from the sale of CED in 2023[30] - As of September 30, 2024, liquidity was €778 million, consisting of €152 million in cash and cash equivalents and €626 million available under committed lending facilities[32] Debt and Financial Position - Net debt increased to €1,677 million at September 30, 2024, compared to €1,664 million at December 31, 2023[33] - Net debt as of September 30, 2024, was €1,677 million, an increase from €1,664 million at the end of 2023[54] Future Outlook - For 2024, Adjusted EBITDA is expected to be in the range of €580 million to €600 million, excluding an estimated one-time impact of €30 million to €40 million from the flood[10] - The company expects Adjusted EBITDA for 2024 to be in the range of €580 million to €600 million, excluding the estimated one-time impact from the flood[37] Share Repurchase and Restructuring - Repurchased 1.2 million shares for $21 million in Q3 2024[7] - The company repurchased ordinary shares worth €56 million during the nine months ended September 30, 2024[46] - The company reported a restructuring cost of €4 million for Q3 2024 related to cost improvement programs[51] Non-GAAP Measures - The company reports non-GAAP measures including Adjusted EBITDA, Free Cash Flow, and Net Debt to enhance investors' understanding of its financial performance[55] - Adjusted EBITDA is defined as income from continuing operations before certain expenses, providing a clearer view of profitability by excluding non-cash charges and items not impacting day-to-day operations[56][57] - Free Cash Flow is calculated as net cash flow from operating activities minus capital expenditures, reflecting the cash generated or consumed by the business[61] - Net Debt is defined as total borrowings adjusted for cash and cash equivalents, providing insight into the company's indebtedness[62] - Leverage is calculated as Net Debt divided by the last twelve months Segment Adjusted EBITDA, excluding non-cash impacts[62] - Adjusted EBITDA is a key performance measure used by management for evaluating operating performance and preparing internal forecasts[59] - The company emphasizes that non-GAAP measures should not be considered alternatives to IFRS measures, as they have inherent limitations[60] - Free Cash Flow does not account for principal repayments related to debt or capital lease obligations, limiting its representation of available cash[61] - The company believes that these non-GAAP measures are important for assessing the execution of strategic initiatives[55] - Adjusted EBITDA is frequently used by analysts and investors for comparison with other companies in the industry[58] Impact of Flooding - The financial impact of flooding at Valais in Q3 2024 was €17 million of Adjusted EBITDA and €6 million of Free Cash Flow, with an expected full-year impact of €30 million to €40 million of Adjusted EBITDA[36]