Photo courtesy of Constellium SE
Constellium SE, a Paris-based manufacturer of value-added aluminum products and aluminum recycler, has reported its financial results for the first quarter of 2025, which ended March 31, posting a 2 percent decrease in shipments, which totaled 372,000 metric tons, compared with the previous year’s first quarter. The company’s revenue, however, increased by 5 percent year over year to $2 billion.
Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, totaled $186 million, which includes a positive noncash metal price lag impact of $46 million and the negative $10 million impact at its facilities in Sierre and Chippis in the Valais region of Switzerland arising from a flood in 2024.
Metal price lag represents the financial impact of the timing difference between when aluminum prices included within Constellium's revenue are established and when aluminum purchase prices included in cost of sales are established, the company notes. Metal price lag generally increases the company’s earnings in times of rising primary aluminum prices and decreases them in times of declining primary aluminum prices.
For the first quarter of 2025, metal price lag is positive, reflecting London Metal Exchange, or LME, prices for aluminum increasing during the period. For the first quarter of 2024, metal price lag was negative.
“Constellium delivered solid results in the first quarter despite continued demand weakness across most of our end markets outside of packaging and some lingering impacts from the flood last year at our Valais operations,” Constellium CEO Jean-Marc Germain says. “I am proud of our team for their relentless focus on cost reduction efforts and commercial and capital discipline in this uncertain environment.”
The company’s free cash flow was negative $3 million in the quarter, which includes negative $27 million as the business continued to recover from the flood last year in Valais.
Germain says Constellium remains focused on executing its strategy, driving operational performance, generating free cash flow and increasing shareholder value.
The company attributes its overall lower shipments during the quarter to lower shipments in its Aerospace & Transportation (A&T) and Automotive Structures & Industry (AS&I) segments, which were offset in part by higher shipments in the Packaging & Automotive Rolled Products (P&ARP) segment. The company attributes the revenue increase during the quarter to higher metal prices, partially offset by lower shipments. Net income of $38 million increased $16 million compared with net income of $22 million in the first quarter of 2024.
Adjusted EBITDA of $186 million increased $40 million compared with adjusted EBITDA of $146 million in the first quarter of last year primarily arising from stronger results in its P&ARP segment and a favorable change in the noncash metal price lag impact, partially offset by weaker results in its A&T and AS&I segments, unfavorable foreign exchange translation and a $10 million impact at Valais as a result of the flood, according to the company.
Segment results
A&T
For the first quarter of 2025, segment adjusted EBITDA of $75 million decreased 14 percent compared to the first quarter of 2024 primarily in light of lower shipments, unfavorable price and mix and a $4 million impact at Valais as a result of the flood, partially offset by lower operating costs.
Shipments of 51,000 metric tons decreased 11 percent compared with the first quarter of 2024 as shipments were lower for aerospace and transportation, industry and defense rolled products. Revenue of $468 million decreased 2 percent compared with the first quarter of 2024.
P&ARP
For the first quarter of 2025, segment adjusted EBITDA of $60 million increased 25 percent compared with the first quarter of 2024 owing to higher shipments and improved performance at its Muscle Shoals, Alabama, plant, favorable price and mix and lower operating costs.
These positives were offset by unfavorable metal costs from tighter scrap spreads in North America. Shipments of 269,000 metric tons increased 2 percent compared to the first quarter of 2024 given higher shipments of packaging rolled products, partially offset by lower shipments of automotive and specialty rolled products. Revenue of $1.2 billion increased 17 percent compared with the first quarter of 2024 given higher metal prices.
AS&I
Segment adjusted EBITDA of $16 million decreased 50 percent year over year given lower shipments and a $6 million impact at Valais as a result of the flood. Shipments of 52,000 metric tons decreased 12 percent year over year arising from lower shipments of automotive and other extruded products. Revenue of $381 million decreased 4 percent year over year.
Outlook
“While the tariff and international trade situation remains highly unpredictable, at this stage we are maintaining our prior guidance for 2025 and expect adjusted EBITDA to be in the range of $600 million to $630 million, excluding the noncash impact of metal price lag, and free cash flow in excess of $120 million,” Germain says.
“Our guidance assumes that the overall macroeconomic and end market environment will remain relatively stable. We also remain confident in our ability to deliver on our long-term target of adjusted EBITDA of $900 million, excluding the noncash impact of metal price lag, and free cash flow of $300 million, in 2028. We will continue to closely monitor the situation and update our guidance as necessary.”
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