Constellium's performance analysis indicates revenue dropped in Q1

Constellium, the Paris-based aluminium producer, navigated through the challenges of the first quarter of 2024, showcasing resilience amidst a backdrop of varied market demands and weather adversities. Despite a decline in shipments and revenue, the company's strategic investments and operational endeavours highlight its commitment to sustainable growth and market leadership.

In the first quarter of 2024, Constellium reported a 2 per cent decrease in shipments, amounting to 380,000 metric tons, alongside a 12 per cent revenue reduction to 1.7 billion euros (approximately $1.82 billion). Net income stood at 17 million euros ($18.2 million), compared to 22 million euros ($23.6 million) in the corresponding period of 2023. Adjusted EBITDA reached 137 million euros ($146.8 million), with notable contributions from its Aerospace & Transportation (A&T) segment.

Constellium's operational segments exhibited varied performances:

Aerospace & Transportation (A&T): Recorded record first-quarter adjusted EBITDA, propelled by robust aerospace demand and increased packaging shipments.

Packaging & Automotive Rolled Products (P&ARP): Faced challenges due to weather-related disruptions at the Muscle Shoals facility, resulting in a 21 per cent decline in EBITDA compared to the previous year. However, packaging shipments showed resilience, particularly in canstock, with expectations of growth in 2024.

Automotive Structures & Industry (AS&I): Contributed 33 million euros ($35.4 million) to adjusted EBITDA, reflecting healthy automotive demand in North America amidst softer European markets.

Holdings and Corporate Segment: Incurred a loss of 6 million euros ($6.4 million).

Despite operational challenges, Constellium remains committed to enhancing its capabilities and market positioning:

- Construction of a recycling and casting center at the Neuf-Brisach facility, slated to commence operations in the fourth quarter of 2024.

- Strategic investments in aerospace assets, including the deployment of low to zero carbon technology at the Ravenswood facility, supported by a $75 million investment from the U.S. Department of Energy.

- Addition of a third cast house at the Issoire facility dedicated to Airware products, aimed at meeting the growing demand in aerospace and other industries.

Constellium acknowledges the prevailing macroeconomic and geopolitical uncertainties but remains optimistic about its prospects. The company maintains its guidance for adjusted EBITDA and free cash flow for 2024, signalling confidence in its capability to extend value to shareholders. Looking ahead, Constellium aims to surpass the 800 million euros ($857.5 million) adjusted EBITDA target in 2025, emphasising its focus on strategy execution and shareholder value enhancement.