Constellium (NYSE:CSTM) Announces Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Constellium beat quarterly expectations: EPS came in at $0.84 versus the $0.73 consensus, while revenue rose 21.8% year over year to $2.64 billion.
• Management raised its outlook: Record third-quarter adjusted EBITDA of $280 million led the company to increase its 2026 EBITDA target to $1.03–$1.06 billion and forecast more than $300 million in free cash flow.
• Near-term risks remain: Maintenance outages, tariff costs, higher corporate expenses, weak European automotive demand and persistent inflation are expected to pressure fourth-quarter results; shares fell 1.4% to $24.08.

Constellium (NYSE:CSTM - Get Free Report) posted its quarterly earnings results on Wednesday. The industrial products company reported $0.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.11, FiscalAI reports. The business had revenue of $2.64 billion for the quarter, compared to analyst estimates of $2.50 billion. Constellium had a return on equity of 51.66% and a net margin of 5.69%. Constellium's revenue for the quarter was up 21.8% compared to the same quarter last year. During the same period last year, the company earned $0.62 EPS.

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

• Record results and higher guidance: Third-quarter adjusted EBITDA excluding metal-price lag reached a record $280 million, up 43% year over year, while free cash flow was $128 million. Constellium raised its 2026 adjusted EBITDA target to $1.03–$1.06 billion and expects full-year free cash flow above $300 million.
• Strong aerospace, TID and North American automotive demand drove performance, with aerospace shipments up 10%, TID shipments up 24%, and automotive shipments up 9% year over year. Management expects aerospace, defense, semiconductor infrastructure and packaging demand to support further growth in 2027.
• Growth investments are advancing: The Neuf-Brisach recycling center is expected to reach full capacity in the first half of 2027, the new Airware cast house in Issoire is expected to begin commercial shipments early next year, and the Muscle Shoals casting center is targeted for a mid-2027 startup.
• Balance-sheet flexibility improved: Net debt declined to $1.7 billion and leverage to 1.6 times, while liquidity rose to $992 million. The company also expanded and extended its Pan-U.S. asset-based lending facility and continued share repurchases, buying back $30 million of stock during the quarter.
• Fourth-quarter earnings are expected to face several temporary headwinds, including scheduled maintenance and recycling outages, fading benefits from the Oswego automotive outage, incremental Section 338 tariff costs and higher corporate spending. European automotive and other specialty markets also remain weak, while inflation in labor, freight, lubricants and coatings persists.

Constellium Stock Down 1.4%

Constellium stock traded down $0.35 during trading hours on Thursday, hitting $24.08. The stock had a trading volume of 1,033,056 shares, compared to its average volume of 1,947,551. The stock's 50-day moving average price is $25.67 and its 200-day moving average price is $27.82. The stock has a market capitalization of $3.26 billion, a P/E ratio of 6.23 and a beta of 1.57. Constellium has a 12-month low of $14.62 and a 12-month high of $36.99. The company has a quick ratio of 0.61, a current ratio of 1.43 and a debt-to-equity ratio of 1.50.

Key Constellium News

Here are the key news stories impacting Constellium this week:

• Positive Sentiment: Strong Q3 results and higher guidance: Constellium reported adjusted earnings of $0.84 per share, above the $0.73–$0.74 consensus, while revenue increased 21.8% year over year to $2.64 billion. The company also raised its full-year 2026 guidance, providing a positive catalyst for the shares. Constellium Reports Strong Third Quarter 2026 Results; Raises Full Year 2026 Guidance
• Positive Sentiment: JPMorgan upgrade: JPMorgan raised its rating on CSTM from “neutral” to “overweight” and assigned a $35 price target, signaling confidence in the company’s earnings outlook and potential valuation recovery. JPMorgan Chase & Co. recommendations
• Positive Sentiment: Analysts see substantial upside: The consensus price target implies approximately 35% potential appreciation. Zacks also noted that upward earnings-estimate revisions could support near-term momentum, although price targets alone are not a reliable predictor of returns. Wall Street Analysts Think Constellium Could Surge
• Neutral Sentiment: Wells Fargo remains bullish but reduced its target: The firm maintained an “overweight” rating while cutting its price target from $38 to $33, suggesting continued confidence but more cautious assumptions about future performance. Wells Fargo recommendations
• Negative Sentiment: Shipment and growth concerns: Reports highlighted declining shipments and an outlook indicating slower growth. These concerns may be offsetting the earnings beat and guidance increase, helping explain the stock’s weaker performance despite attractive analyst targets. Constellium shares fall as shipments decline

Analyst Upgrades and Downgrades

Several brokerages have recently commented on CSTM. UBS Group lowered their price objective on shares of Constellium from $34.00 to $32.00 and set a "buy" rating for the company in a research note on Thursday, October 8th. Zacks Research downgraded Constellium from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 6th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Constellium in a research report on Monday, September 28th. Deutsche Bank Aktiengesellschaft cut their price objective on Constellium from $39.00 to $36.00 and set a "buy" rating on the stock in a research report on Thursday, October 8th. Finally, Barclays initiated coverage on Constellium in a report on Wednesday, October 14th. They set an "equal weight" rating and a $28.00 target price for the company. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Constellium currently has a consensus rating of "Moderate Buy" and an average price target of $33.00.

Insiders Place Their Bets

In other news, Director Jean-Christophe Deslarzes purchased 1,490 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were purchased at an average cost of $27.24 per share, for a total transaction of $40,587.60. Following the purchase, the director directly owned 43,515 shares in the company, valued at approximately $1,185,348.60. This represents a 3.55% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 1.20% of the stock is currently owned by company insiders.

About Constellium

Constellium SE NYSE: CSTM is a global manufacturer of aluminum products and components. The company develops and produces rolled, extruded and formed aluminum solutions for customers in the aerospace, automotive, packaging, transportation and industrial sectors.

Its products include aerospace plates and sheets, automotive body and structural components, aluminum beverage-can sheet, foil stock, extrusions and other engineered components. Constellium's offerings are used in aircraft structures, vehicles, beverage and food packaging, rail transportation and various industrial applications.

Constellium was established in 2011 following the acquisition and combination of aluminum products businesses formerly associated with Alcan.

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