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 in free cash flow for 2025, significantly improving from 2024, and expects to exceed $200 million in 2026 [11][12] - Net debt increased to $1.8 billion, up approximately $50 million from the end of 2024, with leverage reduced to 2.5 times [14] Business Segment Performance Changes - The A&T segment's adjusted EBITDA was $83 million in Q4 2025, driven by a 41% increase in TID shipments, while full-year adjusted EBITDA reached $339 million [2][3] - The PARP 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, but full-year adjusted EBITDA decreased by 3% to $72 million [6][8] Market Data and Key Metrics Changes - Demand in the aerospace market remains strong, with commercial aircraft backlogs at record levels, while the automotive market in North America is stable but facing challenges in Europe [16][21] - Packaging demand is healthy in both North America and Europe, with expectations for low to mid-single-digit growth in the long term [18][19] - Industrial markets in North America and Europe have stabilized, but specialty markets in Europe remain weak [22] Company Strategy and Development Direction - The company announced the Vision 2028 program aimed at operational efficiencies and cost reductions to support long-term targets [11][47] - Investments in additional capacities, particularly in aerospace, are expected to strengthen the company's market position [17][59] - The company remains focused on maintaining a right-sized cost structure and managing inflationary pressures [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals driving commercial aerospace demand, including growing passenger traffic and demand for fuel-efficient aircraft [16][17] - The company anticipates continued benefits from favorable recycling economics in 2026, particularly in the first half [12][28] - Management acknowledged uncertainties in the automotive market, particularly in Europe, but remains positive about long-term trends [21][46] Other Important Information - The company repurchased 8.9 million shares for $115 million in 2025, with $106 million remaining in the share repurchase program [12][13] - Holdings and corporate expenses for 2025 were $44 million, up $11 million from the previous year, primarily due to higher labor costs [8] Q&A Session Summary Question: Benefits from scrap spreads in 2026 guidance - Management expects similar benefits from scrap spreads in 2026 as seen in Q4 2025, with a net impact of $40 million from favorable conditions [28][29] Question: Thoughts on aerospace recovery and Vision 2028 - Management sees packaging as a growth driver and expects stability in aerospace, with military and space sectors continuing to grow [44][45] Question: Impact of potential tariff relief - Management believes current tariffs are a net positive, with no expected impact from potential relief on derivative products [49] Question: Cadence of EBITDA and free cash flow - Management indicated that Q1 2026 is set up nicely for EBITDA, with expectations for stronger performance compared to Q4 2025 [55][56] Question: Demand destruction and material substitution - Management does not see evidence of material substitution in automotive and believes lightweighting trends will continue to support aluminum demand [69][70]

Financial Data and Key Metrics Changes - Shipments increased by 6% year-over-year to 373,000 tonnes in Q3 2025, driven by higher shipments across all operating segments [8] - Revenue rose by 20% to $2.2 billion compared to Q3 2024, attributed to higher shipments and increased revenue per tonne, including higher metal prices [8] - Net income surged to $88 million from $8 million in the same quarter last year, primarily due to higher gross profit [9] - Adjusted EBITDA reached a record $235 million, an 85% increase year-over-year, with a new record of $196 million when excluding the impact of metal price lag [9][10] - Free cash flow was strong at $30 million for the quarter, contributing to a year-to-date total of $68 million [20] Business Line Data and Key Metrics Changes - A&T segment adjusted EBITDA increased by 67% to $90 million, with TID shipments up 16% but aerospace shipments down 9% [13][14] - Packaging segment adjusted EBITDA rose by 14% to $82 million, with packaging shipments increasing by 11% [16] - AS&I segment adjusted EBITDA skyrocketed by 371% to $33 million, with shipments up 40% [17] Market Data and Key Metrics Changes - Aerospace market backlogs are at record levels, with major OEMs increasing build rates for aircraft [25] - Packaging demand remains healthy in North America and Europe, with long-term growth expected [26] - Automotive production in Europe is below pre-COVID levels, with demand particularly weak in luxury and electric vehicle segments [27] Company Strategy and Development Direction - The company is focused on high-value-added products, enhancing customer connectivity, and optimizing margins [24] - The leadership transition is aimed at continuing the company's strong foundation and long-term objectives [6][7] - The company is committed to maintaining a right-sized cost structure and executing its Vision 25 cost improvement program [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals driving aerospace demand, despite current supply chain challenges [25] - The company anticipates a modest benefit from recent aluminum supply chain interruptions in the automotive sector [31] - Management raised guidance for 2025, targeting adjusted EBITDA in the range of $670 million to $690 million and free cash flow exceeding $120 million [31] Other Important Information - The company completed a divestment of its Nanjing Automotive Structures plant during the quarter [10] - The current tariff environment is manageable, with indirect positive impacts from tariffs expected to continue [11][12] - The company has no bond maturities until 2028, with strong liquidity of $831 million as of the end of Q3 [23] Q&A Session Summary Question: Impact of scrap spread on future quarters - Management indicated that scrap spreads could have a full impact of $15 million to $20 million per quarter, with expectations for more benefits in Q4 and next year [35][36] Question: Aerospace margin outlook - Management noted that the aerospace segment has maintained strong margins due to a wide product portfolio and focus on value-added products [47][62] Question: Drivers for 2025 guidance - The guidance was raised due to strong Q3 performance, customer compensation benefits, and accounting adjustments contributing approximately $12 million [69][72] Question: Recovery trajectory in aerospace - Management expressed optimism for a faster recovery in the aerospace supply chain, with improvements expected in 2026 [78][81] Question: Broader European market outlook - The European market remains mixed, with strong performance in packaging but ongoing challenges in automotive and industrial sectors [85][89]