Constellium (CSTM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 5% year-over-year to $2.0 billion, with net income up to $38 million from $22 million in Q1 2024 and Adjusted EBITDA of $186 million, including a $46 million positive metal price lag and a $10 million negative impact from the Valais flood.

• Shipments declined 2% to 372,000 tons, mainly due to lower volumes in A&T and AS&I segments, reflecting continued demand weakness in most end markets except packaging.

• Free Cash Flow was negative $3 million, impacted by a $27 million outflow at Valais; excluding this and including deferred receivables, Free Cash Flow was $26 million.

• 1.4 million shares repurchased for $15 million, with $206 million remaining in the buyback program; leverage at 3.3x at quarter-end.

• Continued focus on cost control, free cash flow generation, and capital discipline amid challenging demand and macro uncertainty.

Financial highlights

• Revenue: $1,979 million in Q1 2025 vs. $1,880 million in Q1 2024 (+5%), driven by higher metal prices.

• Net income: $38 million vs. $22 million year-over-year, with EPS at $0.26, up from $0.14.

• Adjusted EBITDA: $186 million, including a $46 million positive metal price lag; excluding this, adjusted EBITDA was $140 million, down from $160 million last year.

• Free Cash Flow: $(3) million, impacted by $27 million in flood-related costs at Valais.

• Cash from operations: $58 million, up from $37 million in Q1 2024; liquidity at $800 million, including $118 million in cash.

Outlook and guidance

• 2025 Adjusted EBITDA expected at $600–$630 million, excluding metal price lag; Free Cash Flow projected above $120 million.

• 2028 targets: Adjusted EBITDA of $900 million and Free Cash Flow of $300 million.

• Guidance assumes a stable macro environment and incorporates estimated direct tariff impacts and mitigation measures.

• Leverage target range remains 1.5x–2.5x.

• Capex for 2025 planned at $330 million.