Constellium reports fourth quarter and full year 2023 results; announces $300 million share repurchase program

The global leader in developing, manufacturing, and recycling aluminium products and solutions, Constellium, on February 21, 2024, reported results for the fourth quarter and full year ended December 31, 2023.

Fourth quarter 2023 highlights:

• Shipments of 336 thousand tonnes, down 9 per cent compared to Q4 2022
• Revenue of €1.6 billion, down 13 per cent compared to Q4 2022
• Value-Added Revenue (VAR) of €681 million, down 2 per cent compared to Q4 2022
• Net income of €11 million compared to net income of €30 million in Q4 2022
• Adjusted EBITDA of €171 million, up 15 per cent compared to Q4 2022
• Cash from Operations of €185 million and Free Cash Flow of €58 million

Full-year 2023 highlights:

• Shipments of 1.5 million tonnes, down 6 per cent compared to 2022
• Revenue of €7.2 billion, down 11 per cent compared to 2022
• VAR of €2.9 billion, up 7 per cent compared to 2022
• Net income of €129 million compared to net income of €308 million in 2022
• Adjusted EBITDA of €713 million, up 6 per cent compared to 2022
• Cash from Operations of €506 million and Free Cash Flow of €170 million
• Adjusted Return on Invested Capital (Adjusted ROIC) of 11.3 per cent, up 30 bps compared to 2022
• Net debt / LTM Adjusted EBITDA of 2.3x on December 31, 2023

 Other highlights:

• On February 21, 2024, the Company announces a three-year share repurchase program of up to $300 million, expiring in December 2026

Jean-Marc Germain, the Chief Executive Officer of Constellium, said, "Constellium delivered strong results in 2023, and I want to thank each of our 12,000 employees for their commitment and relentless focus on safety and serving our customers. 2023 was another year full of challenges, including significant inflationary pressures and demand headwinds in several end markets. Despite these challenges, we achieved a record Adjusted EBITDA of €713 million, including record results in our A&T segment. We also generated strong Free Cash Flow of €170 million and reduced our leverage to 2.3x."

Germain continued, "Looking ahead to 2024, we expect aerospace demand to remain strong as the post-pandemic recovery continues. In packaging, canstock demand has stabilized in recent quarters, and we are expecting modest growth compared to last year. In automotive, despite some demand deceleration in the second half of 2023, we expect demand to remain healthy this year. We continue to experience weakness in most industrial markets to start the year. We are expecting inflationary pressures to continue in 2024, though at a lower rate than the last two years. We are confident in our ability to continue to offset a substantial portion of the impact with an improved top line and our relentless focus on cost control."

"While uncertainties persist on the macroeconomic and geopolitical fronts, we like our end market positioning and are optimistic about our prospects for this year and beyond. Some of our end markets have continued to experience softness to start the year, and the extreme cold weather and snow in January also impacted operations at Muscle Shoals, which we expect will lead to a weaker first quarter in 2024. Despite these challenges, based on our current outlook, we expect to achieve Adjusted EBITDA, which excludes the non-cash impact of metal price lag, of €740 million to €770 million and Free Cash Flow in excess of €130 million in 2024. We remain confident in our ability to deliver on our long-term target of Adjusted EBITDA, which excludes the non-cash impact of metal price lag, of over €800 million in 2025. As we are now within our target leverage range, I am also pleased to announce that our Board has authorized a three-year share repurchase program of up to $300 million, expiring in December 2026. Our focus remains on executing our strategy and increasing shareholder value", Germain concluded.