Constellium(US:CSTM)2025-10-29 18:07Revenue and Sales Performance - Revenue for Q3 2025 increased by 20% to $2,166 million compared to $1,802 million in Q3 2024, driven by higher shipments and revenue per ton [121]. - Sales volumes for Q3 2025 rose by 6% to 373 kt from 352 kt in Q3 2024, with a 4% increase in A&T, 5% in P&ARP, and 14% in AS&I [121]. - For the three months ended September 30, 2025, total revenue increased 20% to $2,166 million from $1,802 million for the same period in 2024 [139]. - For the nine months ended September 30, 2025, revenue increased by 11% to $6,248 million from $5,614 million in the same period of 2024 [122]. - For the three months ended September 30, 2025, revenue in the AS&I segment increased 27% to $409 million from $323 million for the same period in 2024 [144]. Cost and Expenses - Cost of sales for Q3 2025 increased by 16% to $1,852 million from $1,597 million in Q3 2024, primarily due to a 21% rise in raw materials and consumables [125]. - Selling and administrative expenses for Q3 2025 rose by 29% to $85 million from $66 million in Q3 2024, driven by increased labor costs [127]. - Research and development expenses for Q3 2025 increased by 9% to $12 million from $11 million in Q3 2024, primarily due to foreign exchange translation impacts [129]. - For the nine months ended September 30, 2025, research and development expenses decreased 5% to $37 million from $39 million for the same period in 2024 [130]. Profitability and Income - Net income for Q3 2025 was $88 million, up from $8 million in Q3 2024, reflecting improved operational performance [120]. - For the nine months ended September 30, 2025, Adjusted EBITDA was $566 million, compared to $498 million for the same period in 2024 [182]. - For the three months ended September 30, 2025, Adjusted EBITDA in the A&T segment increased 67% to $90 million from $54 million for the same period in 2024 [150]. - For the nine months ended September 30, 2025, Adjusted EBITDA in the P&ARP segment increased 17% to $217 million from $186 million for the same period in 2024 [153]. - For the nine months ended September 30, 2025, Adjusted EBITDA in the AS&I segment decreased by 4% to $67 million from $70 million for the same period in 2024 [156]. Taxation - For the nine months ended September 30, 2025, income tax expense was $82 million compared to $46 million for the same period in 2024 [137]. - The effective tax rate for the three months ended September 30, 2025 was 30.2%, down from 57.9% for the same period in 2024 [137]. Share Repurchase and Capital Management - The company repurchased 1.7 million shares for $25 million during the third quarter [104]. - During the nine months ended September 30, 2025, the company repurchased 6.5 million shares for $75 million [172]. - Total liquidity at September 30, 2025, was $831 million, comprised of $122 million in cash and cash equivalents and $471 million of availability under the Pan-U.S. ABL facility [164]. Cash Flow and Capital Expenditures - Net cash flows from operating activities for the nine months ended September 30, 2025, were $271 million, a $31 million increase from $240 million in the same period in 2024 [167]. - Capital expenditures for the nine months ended September 30, 2025, were $203 million, compared to $255 million for the same period in 2024 [170]. Other Financial Impacts - The company experienced a $10 million negative impact from flooding in Valais, Switzerland, during the nine months ended September 30, 2024 [156]. - For the nine months ended September 30, 2025, the company reported $9 million in insurance proceeds and $8 million in clean-up costs due to flooding in Valais, Switzerland [184]. - For the nine months ended September 30, 2024, the company incurred $6 million in inventory impairment and $4 million in costs related to non-recurring corporate transformation projects [184]. - The company recognized a $2 million gain from acquiring non-controlling interests in Railtech Alu-Singen during the nine months ended September 30, 2024 [184]. - Metal price lag represents a non-cash financial impact due to timing differences between aluminum prices in revenue and purchase prices in cost of sales [184]. - The calculation of metal price lag is based on a standardized methodology applied at each manufacturing site, reflecting the average value of products purchased and inventory [184]. Demand Outlook - The company expects demand trends to remain stable through the remainder of 2025, benefiting from improved scrap spreads in North America [104]. Working Capital Changes - Changes in working capital for the nine months ended September 30, 2025, included an increase in inventory of $109 million and an increase in trade receivables of $280 million [168].