Constellium reports record Adjusted EBITDA of €170 million in Q2; Revenue up by 47% to €1.5 billion due to higher shipments & metal prices

Constellium published results for the second quarter ended June 30, 2021. In Q2, shipments stood at 406 thousand tons, an increase of 31% year-on-year due to higher shipments in each of our segments. Revenue increased 47% to €1.5 billion due to higher shipments and higher metal prices. Net income was €108 million compared to a net loss of €32 million. Adjusted EBITDA came in at €170 million, an increase of 110% year due to stronger results in each of our segments.

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered record Adjusted EBITDA and solid Free Cash Flow generation in the second quarter. Each of our segments contributed to this success with record Adjusted EBITDA in P&ARP and AS&I. P&ARP delivered strong all-around performance amid very strong can sheet demand. A&T benefited from a robust TID market and maintained its focus on cost control. In AS&I, strong industry demand and solid cost control more than offset the impact from the semiconductor shortage on automotive demand. I am exceptionally proud of our second quarter performance, with Adjusted EBITDA exceeding 2019 levels and leverage falling nearly a full turn from the recent peak to 3.7x."

"I look to the second half of the year with confidence. Demand from our major end markets, with the exception of aerospace, is at or above pre-pandemic levels. We expect these favorable conditions to continue at least through the remainder of 2021. Based on our current outlook, we are raising our guidance and now expect Adjusted EBITDA of €545 million to €560 million and Free Cash Flow in excess of €125 million in 2021.”

In Packaging and Automotive Rolled Products (P&ARP) segment,  Adjusted EBITDA increased 63% due to higher shipments, improved price and mix, and favorable metal costs, partially offset by higher costs and unfavorable foreign exchange translation. Shipments increased 29% to 284 thousand tons. Revenue was €907 million.

In Aerospace and Transportation (A&T) segment, Adjusted EBITDA increased 34%. Shipments hiked to 53 thousand tons. Revenue was €287 million on higher metal prices and higher shipments, partially offset by weaker price and mix.

In Automotive Structures and Industry (AS&I) segment, Adjusted EBITDA increased by €42 million due to higher shipments, improved price and mix, and solid cost control. Shipments were 69 thousand tons. Revenue increased 55% to €345 million due to higher shipments and higher metal prices.