Constellium (NYSE:CSTM) Posts Quarterly Earnings Results, Beats Estimates By $0.85 EPS

Key Points

• Constellium beat estimates with Q1 EPS of $1.42 versus $0.57 and revenue of $2.46B, reported Q1 Adjusted EBITDA of $359M (or $262M excluding a $97M metal price lag) and raised 2026 Adjusted EBITDA (ex‑lag) guidance to €900–€940M.
• Management boosted capital allocation and returns—Q1 buybacks totaled €28M, the board approved a €300M repurchase program, CapEx was increased to €330M, and FCF is now guided to be >€275M for 2026.
• Performance was driven materially by favorable North American scrap and metal dynamics and a positive metal price lag, but management warned these factors are volatile, with some 2H scrap uncontracted and potential inflationary pressure from Middle East conflicts.

Constellium (NYSE:CSTM - Get Free Report) released its earnings results on Wednesday. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.85, FiscalAI reports. Constellium had a net margin of 3.23% and a return on equity of 32.14%. The firm had revenue of $2.46 billion during the quarter, compared to analyst estimates of $2.41 billion. During the same period last year, the business earned $0.26 earnings per share. The business's revenue was up 24.4% on a year-over-year basis.

Here are the key takeaways from Constellium's conference call:

• Record quarterly Adjusted EBITDA: Q1 Adjusted EBITDA was $359M (includes a $97M non‑cash metal price lag); excluding that lag the company delivered a record $262M and raised 2026 Adjusted EBITDA guidance (ex‑lag) to $900M–$940M.
• Stronger free cash flow and shareholder returns: Q1 free cash flow was €5M but management now guides FCF >€275M for 2026, increased CapEx to €330M, and continues buybacks (€28M repurchased in Q1) under a new €300M repurchase program.
• Results benefited materially from favorable North American scrap and metal dynamics and a positive metal price lag; management warns these metal/scrap conditions are volatile, a portion of 2H scrap remains uncontracted, and Middle East conflict could add inflationary cost pressure.
• Positive end‑market positioning and capacity investments: management sees durable demand in aerospace, packaging and TID, is investing in recycling/casting and aerospace capacity (Issoire, Muscle Shoals, Ravenswood), and reiterates 2028 targets (Adj. EBITDA ex‑lag €900M, FCF €300M).
• Healthy balance sheet and liquidity: net debt $1.8B, leverage 2.2x (within 1.5–2.5x target), liquidity ~$904M and no bond maturities until 2028, with management expecting leverage to trend lower in 2026.

Constellium Stock Performance

Shares of NYSE:CSTM traded up $1.19 during midday trading on Wednesday, reaching $32.27. 4,572,752 shares of the company's stock traded hands, compared to its average volume of 2,200,191. The company has a market cap of $4.39 billion, a price-to-earnings ratio of 16.72 and a beta of 1.43. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.51 and a current ratio of 1.29. Constellium has a one year low of $9.63 and a one year high of $33.69. The stock has a 50 day moving average of $26.79 and a 200 day moving average of $21.70.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on CSTM shares. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $29.00 target price on shares of Constellium in a research note on Thursday, April 9th. BMO Capital Markets set a $32.00 target price on Constellium and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Wells Fargo & Company increased their target price on Constellium from $29.00 to $35.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 15th. JPMorgan Chase & Co. increased their target price on Constellium from $29.00 to $30.00 and gave the stock an "overweight" rating in a research note on Thursday, April 16th. Finally, Zacks Research cut Constellium from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Constellium currently has an average rating of "Moderate Buy" and an average price target of $31.50.

Insider Activity

In other news, CFO Jack Q. Guo sold 41,717 shares of the company's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $25.87, for a total transaction of $1,079,218.79. Following the transaction, the chief financial officer directly owned 190,879 shares of the company's stock, valued at $4,938,039.73. This represents a 17.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Marcus Becker sold 15,570 shares of the company's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $25.58, for a total value of $398,280.60. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 214,543 shares of company stock valued at $5,565,129. Corporate insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. EP Wealth Advisors LLC bought a new position in Constellium in the fourth quarter valued at about $321,000. Brooklyn Investment Group lifted its holdings in Constellium by 10.6% in the fourth quarter. Brooklyn Investment Group now owns 16,543 shares of the industrial products company's stock valued at $313,000 after acquiring an additional 1,590 shares during the period. nVerses Capital LLC bought a new position in Constellium in the fourth quarter valued at about $288,000. Oxford Asset Management LLP bought a new position in Constellium in the fourth quarter valued at about $268,000. Finally, Two Sigma Securities LLC bought a new position in Constellium in the second quarter valued at about $266,000. Institutional investors own 92.59% of the company's stock.

Constellium declared that its Board of Directors has initiated a share repurchase plan on Thursday, March 12th that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the industrial products company to purchase up to 8.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

About Constellium

Constellium SE is a global leader in the design and manufacture of high-performance aluminum products and solutions. The company serves key markets including aerospace, automotive, and packaging, offering advanced rolled and extruded aluminum sheet, plate and structural components. Its product portfolio encompasses precision-engineered parts for commercial and military aircraft, automotive body structures and closures, beverage and specialty packaging, as well as industrial and structural applications.

Established in 2011 through the consolidation of Rio Tinto Alcan's rolled-products and engineered-products businesses, Constellium has built a reputation for innovation in lightweighting and sustainability.

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