Constellium SE delivered a mixed financial performance for the second quarter and first half of 2025, as solid revenue growth was overshadowed by steep declines in profitability, margins, and cash flow.
Image Source: constellium.com
Constellium’s Q2 2025 revenue rose 10.5 per cent year-over-year to USD 2.1 billion, supported by favourable pricing, currency effects, and modest volume gains. Shipments increased 1.6 per cent to 384 thousand metric tons, driven mainly by strong performance in the Packaging & Automotive Rolled Products (P&ARP) segment.
However, profitability deteriorated sharply. Net income fell 53.2 per cent to USD 36 million, and adjusted EBITDA dropped 37.3 per cent to USD 146 million, largely due to a significant swing in metal price lag, which shifted from a USD 45 million gain in Q2 2024 to a USD 13 million loss this quarter.
Cash from operations declined, and free cash flow also dropped significantly, reflecting lower earnings and operational challenges. Despite the earnings pressure, in Q2 2025, the company repurchased 3.4 million shares for USD 35 million, marking a 118 per cent increase in volume and a 7.7 per cent rise in value compared to 1.56 million shares for USD 32.5 million in Q2 2024.
You can refer to the Q1 2025 results: Constellium delivers strong Q1 performance with 16% revenue growth despite lower shipments and operational headwinds
First half 2025 summary
For the first six months of 2025, Constellium’s revenue rose 8 per cent to USD 4.1 billion, though shipments slipped 0.26 per cent to 756 thousand metric tons. Net income fell 25.3 per cent to USD 74 million, and adjusted EBITDA declined 13.1 per cent to USD 332 million compared to H1 2024.
The decline in profitability was again attributed to the negative metal price lag, weaker segment performance in A&T and AS&I, and higher operating costs.
Cash from operations dropped 23.2 per cent, while free cash flow was nearly halved, reflecting weaker earnings and continued capital investments.
Shareholder returns remained a priority, with share repurchases surging 154 per cent in volume to 4.8 million shares for USD 50 million, up from 1.89 million shares in the same period last year.
Constellium’s Chief Executive Officer Jean-Marc Germain concluded, “While the tariff and international trade situation remains fluid, given our solid performance in the first half and based on our current outlook, we are raising our guidance for 2025 and now expect Adjusted EBITDA to be in the range of USD 620 million to USD 650 million, excluding the non-cash impact of metal price lag, and Free Cash Flow in excess of USD 120 million”.
He added, “Our guidance assumes that the overall macroeconomic and end market environment will remain relatively stable. We also remain confident in our ability to deliver on our long-term target of Adjusted EBITDA of USD 900 million, excluding the non-cash impact of metal price lag, and Free Cash Flow of USD 300 million, in 2028”.
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