Constellium defies market uncertainty with record quarterly EBITDA, raises 2026 outlook

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Constellium has delivered its strongest quarterly operating performance despite economic and geopolitical uncertainty, prompting the aluminium products manufacturer to raise its full-year 2026 guidance and bring its 2028 financial targets within reach two years ahead of schedule.

The record quarter was driven by stronger performance across all operating segments, supported by improving aerospace and transportation markets, supply shortages in North America's automotive rolled products sector, robust recycling operations in Europe and North America, and disciplined cost control.

Record operating performance across businesses

Second-quarter shipments totalled 381 thousand metric tonnes, down 1 per cent compared with the same period last year. However, revenue climbed 31 per cent year on year to USD 2.7 billion, while net income increased to USD 148 million from USD 36 million in the second quarter of 2025.

Adjusted EBITDA reached USD 439 million, including a positive USD 129 million non-cash metal price lag impact.

The company also posted a new quarterly record for Segment Adjusted EBITDA, with USD 135 million generated by its Aerospace & Transportation (A&T) business, USD 165 million by Packaging & Automotive Rolled Products (P&ARP) and USD 26 million by Automotive Structures & Industry (AS&I), partially offset by corporate costs of USD 16 million.

Constellium generated USD 161 million in cash from operations and USD 90 million in free cash flow during the quarter. It also repurchased 623 thousand ordinary shares for USD 20 million and, in July, completed a USD 100 million partial redemption of its 5.625 per cent Senior Notes due June 2028.

For the first half of 2026, shipments totalled 751 thousand metric tonnes, down 1 per cent year on year, while revenue increased 28 per cent to USD 5.2 billion.

First-half net income rose to USD 344 million, compared with USD 74 million a year earlier. Adjusted EBITDA reached USD 798 million, including a positive USD 226 million non-cash metal price lag impact.

The company also achieved a record first-half Segment Adjusted EBITDA, with USD 238 million at A&T, USD 317 million at P&ARP and USD 49 million at AS&I, partially offset by corporate costs of USD 32 million.

Operating cash flow for the first six months reached USD 234 million, while Free Cash Flow totalled USD 95 million. During the period, Constellium repurchased 1.8 million ordinary shares for USD 48 million, ending June with a leverage ratio of 1.8x.

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CEO: Record performance despite volatile markets

Chief Executive Officer Ingrid Joerg said the company had continued to deliver strong operating results despite ongoing uncertainty.

"Constellium delivered a new record quarterly Adjusted EBITDA in the second quarter despite uncertainties on the macroeconomic and geopolitical fronts."

She said stronger financial performance was recorded across all operating segments, with A&T and P&ARP both delivering record quarterly Segment Adjusted EBITDA.

"We achieved stronger financial performance across all of our operating segments again this quarter, including record quarterly Segment Adjusted EBITDA at our A&T and P&ARP segments. During the quarter, we benefited from strong operational focus, cost control and improved market dynamics, including an improved aerospace and transportation, industry and defense (TID) environment, supply shortages of automotive rolled products in North America, and strong recycling performance in both North America and Europe."

Joerg added that the company generated USD 90 million in Free Cash Flow during the quarter, returned USD 20 million to shareholders through share repurchases, maintained leverage within its target range of 1.5x to 2.5x, and completed the partial redemption of its June 2028 senior notes in July.

2028 targets now within sight

Reflecting its stronger performance, Constellium has increased its full-year guidance and now expects Adjusted EBITDA of between USD 980 million and USD 1.020 billion, excluding the non-cash impact of metal price lag, together with Free Cash Flow exceeding USD 300 million.

"Even though the current landscape remains volatile, we have a strong track record of navigating and executing in any environment. Based on our current outlook, we are raising our guidance for 2026 and now expect Adjusted EBITDA in the range of USD 980 million to USD 1.020 billion, excluding the non-cash impact of metal price lag, and Free Cash Flow in excess of USD 300 million."

She added that the revised outlook means the company now expects to achieve its 2028 targets two years ahead of schedule.

"With this revised guidance, we now expect to achieve our 2028 targets two years ahead of schedule. Looking ahead, we like our end market position and we are optimistic about our prospects which include harvesting the benefits from our previously announced return-seeking investments and capturing future market opportunities. Our focus remains on executing our strategy, driving operational performance, controlling cost, maintaining commercial and capital discipline, generating Free Cash Flow and increasing shareholder value."

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