Constellium NYSE: CSTM reported what CEO Ingrid Joerg called a “very pleased” start to fiscal 2026, highlighting record first-quarter adjusted EBITDA and a higher full-year outlook on the company’s earnings call. Management said results benefited from automotive supply shortages in North America, improved aerospace and transportation/industrial demand, and favorable scrap and metal dynamics, while noting that macroeconomic and geopolitical uncertainty remains elevated.
First-quarter results and key drivers
Joerg said first-quarter shipments totaled 370,000 tons, with higher shipments in the Aerospace & Transportation (A&T) segment offset by lower shipments in Packaging & Automotive Rolled Products (P&ARP) and Automotive Structures & Industry (AS&I). Revenue was $2.5 billion, up 24% from the prior-year quarter, which she attributed to higher revenue per ton including higher metal prices. She emphasized Constellium’s “pass-through business model,” which “minimizes our exposure to metal price risk.”
Net income was $196 million, up from $38 million a year earlier, driven primarily by higher gross profit and favorable changes in other gains and losses, Joerg said. Adjusted EBITDA rose 93% to $359 million, including a $97 million positive non-cash impact from metal price lag. Excluding that lag, the company posted adjusted EBITDA of $262 million, which Joerg said was “an all-time record for the company” and up 78% year over year.
Constellium generated free cash flow of EUR 5 million in the quarter and repurchased 1.2 million shares for EUR 28 million. In March, the company announced its board approved a new EUR 300 million share repurchase program expiring in December 2028, set to replace the existing program after the annual shareholder meeting in May.
Segment performance: A&T, P&ARP, and AS&I
CFO Jack Guo detailed the quarter’s operating segment results, noting adjusted EBITDA gains across each segment.
- A&T: Adjusted EBITDA of $102 million rose 24% year over year and marked a “new first quarter record,” Guo said. Volume was a tailwind due to higher shipments in both aerospace and transportation/industrial demand (TID), with aerospace shipments up 13% and TID shipments up 18%. Guo noted TID also benefited from automotive coil shipments from Ravenswood tied to the North American supply disruption in automotive raw products.
- P&ARP: Adjusted EBITDA of $151 million increased 152% year over year and set a “new quarterly record,” Guo said. Automotive shipments increased 12% as the company benefited from “current supply shortages” of aluminum automotive body sheet in North America, while packaging shipments fell 6% despite what Guo described as healthy underlying packaging demand in North America and Europe. Guo cited improved pricing and favorable mix as well as favorable metal costs, productivity improvements in recycling and casting, improving scrap spreads, and higher metal pricing in North America.
- AS&I: Adjusted EBITDA of $24 million rose 50% year over year. Guo said volumes were pressured by lower shipments in automotive and industry extruded products. Automotive shipments declined 3%, “mainly due to weakness in Europe,” and the Automotive Structures business was also negatively affected by the North American body sheet shortages and their impact on production of certain platforms. Industry shipments fell 5% year over year, though Guo said industrial markets in Europe have stabilized “at these low levels.”
Guo also said holdings and corporate expense was $15 million, up $4 million from the prior year due to higher labor costs and unfavorable foreign exchange translation, and reiterated expectations for holdings and corporate expense to run at approximately $50 million in 2026.
Cost environment: scrap, metal prices, tariffs, and inflation
Management spent considerable time discussing cost and market dynamics. Guo said aluminum pricing in the U.S. has risen “sharply to historical levels” following U.S. tariff announcements in 2025, and that the Middle East conflict has added upward pressure on global aluminum prices. He also said spot scrap spreads for aluminum—particularly used beverage cans (UBCs)—have improved to “historically wide levels.”
Looking ahead, Guo said most scrap needs for the second quarter are locked in at favorable levels. For the second half, he said more than 50% of scrap needs are locked in, while the remainder remains open in a “highly dynamic” market. In response to an analyst question about guidance assumptions, Guo said the company used a “middle of the road approach” for the second half: above prior expectations but not as strong as the first half and not as conservative as conditions seen in the second half of 2024 through much of 2025.
On broader inflation, Guo said pressures continue across labor, energy, maintenance, and supplies “albeit at more normal levels,” while Joerg and Guo both pointed to elevated pressures in freight, lubricants, and coatings linked to the Middle East conflict. Joerg added that most energy costs are locked in for 2026, and for the portion left open, the impact of higher energy costs “should be modest.” She also said Constellium had not seen supply chain impacts from a lack of freight capacity.
Regarding tariffs, Guo said the company has made progress on pass-throughs and other mitigation efforts and that direct tariff exposure remains manageable and consistent with prior expectations. He said indirect positives are “continuing to ramp up,” including higher demand for U.S.-produced aluminum products, a more favorable pricing environment versus imports, and improved U.S. recycling profits, adding: “we continue to believe that the current tariff and trade policies should be a net positive for us.”
Asked specifically about changes in Section 232 derivative tariffs, Joerg said the latest changes “do not really impact us,” citing only a “very, very minor impact” in AS&I, and said it reinforced the view that tariffs will “stick,” supporting continued indirect benefits.
Cash flow, balance sheet, and capital returns
Guo said first-quarter free cash flow was $5 million, with higher adjusted EBITDA partly offset by an unfavorable change in working capital and higher capital expenditures. For the full year, Constellium raised its free cash flow expectation to “in excess of $275 million.” The company also increased its 2026 capex forecast to approximately $330 million from $315 million previously, while keeping its estimate for return-seeking capex at about $100 million related primarily to aerospace and recycling/casting projects at Issoire, Muscle Shoals, and Ravenswood.
Guo said the company expects cash interest of approximately $125 million and cash taxes of approximately $80 million, the latter “up slightly” due to increased expected profitability. Working capital is expected to be a larger use of cash than previously guided, mainly due to higher metal prices. Guo said free cash flow will be used for share repurchases and gross debt reduction.
On leverage and liquidity, Guo said net debt was $1.8 billion at quarter-end, stable versus the end of 2025, and leverage improved to 2.2x, within the company’s target range. Liquidity was $904 million, up $38 million from the end of 2025, and Guo noted the company has no bond maturities until 2028.
Outlook: higher 2026 guidance and path to 2028 targets
Joerg said Constellium raised its 2026 outlook and now expects adjusted EBITDA excluding metal price lag of $900 million to $940 million, alongside free cash flow above $275 million. She said the guidance assumes favorable market conditions persist through the rest of 2026, including the North American automotive raw product shortage, improved aerospace and TID environments, and favorable scrap and metal dynamics in North America, as well as stable macroeconomic conditions.
Discussing seasonality and cadence, Joerg said the first half is “much stronger,” driven by volumes, with the second quarter “quite strong” particularly in packaging. She said the second half typically has higher costs due to annual outages for major maintenance work in summer and around Christmas. Guo added that Q2 is “seasonally the strongest quarter” and said the company has good visibility into the quarter, while noting the macro and geopolitical backdrop remains volatile.
In response to questions about 2027 and 2028, Joerg characterized 2027 as a “transition year” tied to ramp-ups and startups across several investments, including the recycling center in Issoire, DC casting at Muscle Shoals, and the Airware cast house investment in Issoire expected to start up by the end of 2026. She said 2027 could be a turning point for aerospace as destocking may come to an end, while packaging is expected to remain strong and North American TID is expected to be strong based on what the company can see today. However, she said uncertainty remains around longer-term impacts of the Middle East conflict and that the company does not expect improvement in automotive, particularly in Europe.
Joerg also reiterated the company’s longer-term targets, saying Constellium remains focused on a roadmap to deliver adjusted EBITDA excluding metal price lag of EUR 900 million and free cash flow of EUR 300 million by 2028, driven by return-seeking capex, cost control and productivity initiatives including Vision 2028, and price discipline, alongside growth in aerospace, TID, and packaging. She emphasized those 2028 targets do not assume the favorable scrap spread environment seen currently or the 2026 benefits from North American automotive raw product shortages.
About Constellium NYSE: CSTM
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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