Core Insights - Alcoa Corporation (AA) and Constellium SE (CSTM) are key players in the aluminum sector, with high aluminum prices driven by global economic uncertainties and trade tensions, making them relevant for investors in the Zacks Metal Products - Distribution industry [1] Alcoa Corporation (AA) - Alcoa's Aluminum segment is experiencing solid momentum, with production increasing by 5% year over year in 2025 to 2,319 kilometric tons [4] - Third-party revenues from the Aluminum segment rose by 4%, supported by higher volumes and increased average realized prices [5] - Alcoa anticipates Aluminum segment production of 2.4-2.6 million tonnes and shipments of 2.6-2.8 million tonnes for 2026 [5] - The Alumina segment benefits from strong production and productivity improvements, with anticipated alumina production of 9.7-9.9 million tonnes and shipments of 11.8-12.0 million tonnes for 2026 [6] - Despite positives, Alcoa faces escalating costs, with a 5.2% year-over-year increase in cost of sales in Q4 2025, representing 82.7% of net sales [7] Constellium SE (CSTM) - Constellium's Packaging & Automotive Rolled Products segment is a strong driver, with shipments increasing by 11% year over year to 265,000 metric tons in Q4 2025 [8] - Revenues from this segment rose by 34% to $1.35 billion, supported by higher metal prices and strong demand [9] - The Aerospace & Transportation segment also showed strength, with shipments up 21% year over year to 53,000 metric tons and revenues increasing by 23% to $527 million [10] - Total revenues for Constellium increased by 28% to $2.2 billion compared to the prior-year quarter [11] - Constellium generated $178 million in free cash flow in 2025 and returned approximately $115 million to shareholders through share repurchases [13] Financial Estimates and Performance - The Zacks Consensus Estimate for Alcoa's 2026 sales implies an 8.3% year-over-year growth, with EPS expected to increase by 37.4% [14] - For Constellium, the 2026 sales and EPS estimates imply year-over-year growth of 15.6% and 6.8%, respectively [14] - Alcoa's shares gained 82.4% over the past year, while Constellium's stock soared by 113% [17] - Alcoa is trading at a forward P/E ratio of 11.84X, below its median of 13.50X, while Constellium's forward earnings multiple is at 11.77X compared to its median of 9.77X [18] Investment Outlook - Constellium's strength in packaging and aerospace, along with growth investments and shareholder-friendly policies, suggests strong growth ahead [19] - Alcoa's operational strengths are overshadowed by rising costs, making its valuation a concern for investors [19] - Constellium holds a Zacks Rank 1 (Strong Buy), while Alcoa has a Zacks Rank 3 (Hold), indicating that CSTM is currently a better investment choice [20]