Constellium(CSTM) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights 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 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 $35 million during the quarter[4] First Half 2025 Highlights For the first half of 2025, Constellium maintained stable shipments and achieved a 7% increase in revenue compared to H1 2024, while net income and Adjusted EBITDA saw declines. The company also repurchased shares and ended the period with a leverage of 3.6x H1 2025 Performance | Metric | H1 2025 | H1 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Shipments (k metric tons) | 756 | 758 | 0% | | Revenue ($ 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] CEO Commentary & Outlook 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] - Free Cash Flow was strong at $41 million in Q2 2025[5] - Leverage at 3.6x at June 30, 2025, expected to be the peak and trend down[5] Revised Guidance | Metric | Full Year 2025 (Revised) | Long-Term 2028 Target | | :-------------------- | :----------------------- | :-------------------- | | Adjusted EBITDA | $620 - $650 million | $900 million | | Free Cash Flow | > $120 million | $300 million | Group Financial Performance Constellium's Q2 and H1 2025 financial performance showed revenue growth driven by shipments and favorable pricing, but net income and Adjusted EBITDA declined due to various operational factors and metal price lag Overall Performance (Q2 & H1 2025) Constellium's Q2 2025 performance showed a 2% increase in shipments and a 9% rise in revenue, driven by the P&ARP segment, but net income and Adjusted EBITDA declined significantly due to unfavorable metal price lag and weaker results in A&T, AS&I, and H&C. For H1 2025, shipments were stable, revenue grew 7%, but net income and Adjusted EBITDA also decreased, primarily due to segment performance Group Summary Financials | Metric | Q2 2025 | Q2 2024 | Var. Q2 | YTD 2025 | YTD 2024 | Var. YTD | | :------------------------ | :------ | :------ | :------ | :------- | :------- | :------- | | Shipments (k metric tons) | 384 | 378 | 2% | 756 | 758 | 0% | | Revenue ($ 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] - H1 2025 revenue increase primarily due to favorable sales price and mix, including higher metal prices[9] Metal Price Lag Impact 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] - H1 2025 positive metal price lag reflects increasing regional premiums in North America, partially offset by decreasing premiums in Europe[18] Results by Segment 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) 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 ($)| 1,467 | 1,506 | (3)% | 1,468 | 1,511 | (3)% | - Q2 2025 Segment Adjusted EBITDA decrease primarily due to lower shipments, partially offset by favorable price and mix, lower operating costs, and favorable foreign exchange translation[10] - H1 2025 Segment Adjusted EBITDA decrease primarily due to lower shipments and unfavorable price and mix, partially offset by lower operating costs[11] Packaging & Automotive Rolled Products (P&ARP) The P&ARP segment demonstrated strong growth in Q2 and H1 2025, with increased shipments, revenue, and Segment Adjusted EBITDA. This performance was driven by higher shipments of packaging rolled products, improved Muscle Shoals performance, and favorable operating costs, despite some headwinds from unfavorable price/mix and metal costs P&ARP Segment Performance | Metric | Q2 2025 | Q2 2024 | Var. Q2 | YTD 2025 | YTD 2024 | Var. YTD | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | :------- | | Shipments (k metric tons) | 276 | 262 | 5% | 545 | 526 | 4% | | Revenue ($ 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 ($)| 268 | 252 | 6% | 248 | 217 | 14% | - Q2 2025 Segment Adjusted EBITDA increase primarily due to higher shipments and improved Muscle Shoals performance, lower operating costs, and favorable foreign exchange translation[13] - H1 2025 Segment Adjusted EBITDA increase primarily due to higher shipments and improved Muscle Shoals performance, favorable price and mix, and lower operating costs[14] Automotive Structures & Industry (AS&I) The AS&I segment experienced a significant decrease in Segment Adjusted EBITDA for both Q2 and H1 2025, mainly due to unfavorable price and mix, and the net impact from tariffs. Shipments saw a slight decrease in Q2 and a more pronounced decline in H1, while revenue increased due to favorable sales price/mix and foreign exchange AS&I Segment Performance | Metric | Q2 2025 | Q2 2024 | Var. Q2 | YTD 2025 | YTD 2024 | Var. YTD | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | :------- | | Shipments (k metric tons) | 55 | 56 | (1)% | 107 | 115 | (7)% | | Revenue ($ 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] - H1 2025 Segment Adjusted EBITDA decrease primarily due to lower shipments, unfavorable price and mix, and the unfavorable net impact from tariffs[16] Financial Position & Cash Flow 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 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] - H1 2025 net income decrease primarily related to higher depreciation and amortization, higher selling and administrative expenses, and income tax expense[20] Cash Flow Activities 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] - Repurchased 4.8 million shares for $50 million in H1 2025, compared to 1.9 million shares for $39 million in H1 2024[23] Liquidity and Net Debt 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 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 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] - Reconciliation of Adjusted EBITDA guidance to net income is not provided due to the inability to reasonably predict certain excluded items[26] Recent Corporate Developments 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] - 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] About Constellium 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] - Key markets include aerospace, packaging, and automotive[29] - Generated $7.3 billion of revenue in 2024[29] Non-GAAP Measures Explanation 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 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] - 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] - Useful to investors as it illustrates the underlying performance of continuing operations by excluding certain non-recurring and non-operating items[33] Free Cash Flow 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] - Useful measure of net cash flow generated or used by the business, considering operating activities and capital expenditure requirements[34] - Not a U.S. GAAP presentation and does not represent residual cash flows available for discretionary spending[34] Net Debt & Leverage 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] - Useful measure of indebtedness as it considers cash and cash equivalent balances against total external debt[35] - Leverage is defined as Net debt divided by last twelve months Segment Adjusted EBITDA, excluding the non-cash impact of metal price lag[35] Consolidated Financial Statements 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 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 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 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 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] Consolidated Statements of Cash Flows 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] - Repurchased $50 million of ordinary shares in H1 2025[41] Supplemental Segment Data 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 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 $(23) million, reflecting varied performance across segments Segment Adjusted EBITDA | (in millions of U.S. dollar) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | A&T | 78 | 90 | 153 | 177 | | P&ARP | 74 | 66 | 135 | 114 | | AS&I | 18 | 30 | 34 | 63 | | Holdings and Corporate | (12) | (6) | (23) | (14) | Shipments and Revenue by Product Line Total shipments for Q2 2025 increased to 384 k metric tons, and H1 2025 remained stable at 756 k metric tons. Packaging rolled products showed strong growth in both shipments and revenue, while automotive rolled products and aerospace rolled products experienced declines in shipments and revenue Shipments by Product Line (k metric tons) | Product Line | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------- | :------ | :------ | :------ | :------ | | Aerospace rolled products | 22 | 25 | 46 | 52 | | Transportation, industry, defense and other rolled products| 31 | 35 | 59 | 65 | | Packaging rolled products | 213 | 187 | 417 | 374 | | Automotive rolled products | 59 | 69 | 119 | 140 | | Automotive extruded products | 29 | 33 | 60 | 69 | | Total shipments | 384 | 378 | 756 | 758 | Revenue by Product Line ($ 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 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 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] Net Cash Flows from Operating Activities to Free Cash Flow 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 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 |