Financial Data and Key Metrics Changes - Constellium achieved adjusted EBITDA of $83 million in Q4 2025, a 43% increase compared to Q4 2024, with full-year adjusted EBITDA of $339 million, up 16% from 2024 [2][3] - The company generated $178 million of free cash flow in 2025, significantly improved from 2024, and expects to exceed $200 million in 2026 [10][11] - Net debt at the end of Q4 2025 was $1.8 billion, up approximately $50 million from the end of 2024, with leverage reduced to 2.5x [12][13] Business Line Data and Key Metrics Changes - The A&T segment reported adjusted EBITDA of $83 million in Q4 2025, driven by a 41% increase in TID shipments, while full-year adjusted EBITDA was $339 million [2][3] - The P&ARP segment achieved a record adjusted EBITDA of $136 million in Q4 2025, a 143% increase year-over-year, with full-year adjusted EBITDA of $353 million, up 46% from 2024 [4][5] - The AS&I segment reported adjusted EBITDA of $5 million in Q4 2025, a slight increase from the previous year, with full-year adjusted EBITDA of $72 million, down 3% from 2024 [6][7] Market Data and Key Metrics Changes - Demand in the aerospace market remains strong, with commercial aircraft backlogs at record levels, while the automotive market shows mixed signals between North America and Europe [15][18] - Packaging demand is healthy in both North America and Europe, with expectations for low to mid-single-digit growth in the long term [17][18] - Industrial market conditions in North America and Europe stabilized in the second half of 2025, although specialty markets in Europe remain weak [21][22] Company Strategy and Development Direction - The company announced the Vision 2028 program aimed at operational efficiencies and cost reductions, focusing on asset reliability and throughput maximization [10][59] - Investments in additional capacities and capabilities, particularly in aerospace, are expected to strengthen the company's market position [16][60] - The company remains focused on strong cost control, free cash flow generation, and maintaining a right-sized cost structure [10][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals driving commercial aerospace demand, with expectations for continued growth in military and space aircraft [15][16] - The company anticipates favorable trends in scrap spreads and overall cost management, despite ongoing inflationary pressures [9][10] - The outlook for 2026 includes targeted adjusted EBITDA in the range of $780 million to $820 million, assuming stable demand trends [24] Other Important Information - The company repurchased 8.9 million shares for $115 million in 2025, with approximately $106 million remaining on the share repurchase program [11][12] - The current cost environment includes rising aluminum prices and improved scrap spreads, which are expected to benefit the company moving into 2026 [8][9] Q&A Session Summary Question: Can you let us know how much of a benefit for scrap spreads is embedded in the 2026 guide? - Management indicated that they expect similar benefits from scrap spreads in 2026 as seen in Q4 2025, with a net impact of $40 million from favorable conditions [27][32] Question: What are your latest thoughts on the Aerospace recovery? - Management noted steady demand in aerospace, with expectations for continued growth in military and space sectors, and highlighted the upcoming new Airware casthouse [41][44] Question: Is there any risk if there's relief on derivative products that could impact your business? - Management believes that current tariffs are a net positive, with no expected impact from potential tariff relief on derivative products [48][49] Question: Can you elaborate on the cadence expected for EBITDA and free cash flow? - Management expects Q1 2026 to be stronger than Q4 2025, driven by favorable recycling economics and benefits from automotive supply disruptions [55][56] Question: What are the assumptions on the Midwest Premium and scrap spread baked into your guidance? - Management indicated that they have more locked-in volumes in the first quarter, with expectations for stronger performance in the first half of 2026 compared to the second half [62][66]