Constellium (NYSE:CSTM) executives said the company delivered results in 2025 that exceeded internal expectations despite an “uncertain macroeconomic and end market environment,” citing cost control, operational execution, and improved free cash flow. CEO Ingrid Joerg thanked the company’s 11,500 employees for their focus on safety and customers and said management believes the business is well-positioned heading into 2026.
Segment performance highlighted volume gains, metal benefits, and cost actions
Chief Financial Officer Jack (last name not provided in the transcript) outlined fourth-quarter and full-year performance across the company’s three reporting segments.
Packaging & Automotive Rolled Products (P&ARP): Adjusted EBITDA in the quarter was $136 million, up 143% year-over-year and described as a new quarterly record. Volume added $19 million as packaging shipments increased 15% with healthy demand in North America and Europe. In North America, management cited continued operational improvements at the Muscle Shoals facility. Automotive shipments were “relatively stable” overall, with benefits in both regions from current supply shortages in North America of aluminum automotive body sheet. Price and mix added $15 million, while costs added $40 million, primarily from favorable metal costs tied to improved scrap spreads and a higher metal pricing environment in North America, along with increased scrap consumption enabled by Muscle Shoals improvements; these positives were partially offset by higher operating costs. FX and other added $6 million. For the full year, P&ARP adjusted EBITDA was $353 million, up 46% versus 2024, though management noted the fourth quarter benefited more from favorable metal costs than the full year.
Automotive Structures & Industry (AS&I): Adjusted EBITDA in the quarter was $5 million, up $1 million year-over-year. Volume was a $4 million tailwind due to higher industry extruded product shipments, partly offset by lower automotive shipments. Industry shipments increased 33%, aided by the Valais recovery. Management said industrial markets in Europe “appear to have bottomed,” but remain depressed. Automotive shipments fell 10% amid weakness in both North America and Europe; the company said its automotive structures business was negatively affected by supply shortages of aluminum automotive body sheet that reduced production on certain customer platforms. Price and mix was a $6 million headwind; costs were a $1 million tailwind due to lower operating costs, partly offset by tariffs. FX and other added $2 million. For the full year, AS&I adjusted EBITDA was $72 million, down 3% versus 2024, with management also noting net customer compensation in the third quarter tied to underperformance on an automotive program.
Corporate and holdings expense totaled $44 million in 2025, up $11 million, driven by higher labor costs and corporate transformation projects. The company expects those expenses to run about $50 million in 2026.
Cost environment: scrap spreads, tariffs, and a new “Vision 2028” program
Management reiterated that Constellium operates a pass-through model and is “not materially exposed” to changes in the primary aluminum price. However, the company discussed shifting dynamics in U.S. aluminum pricing and scrap markets following tariff announcements in 2025, including sharply higher U.S. market aluminum prices (LME plus Midwest Premium) and improved spot scrap spreads for used beverage cans (UBCs) after tight conditions in late 2024 and into 2025.
Because some scrap purchases were previously negotiated, management said the company did not benefit much from the improved scrap environment until the fourth quarter, when the impact was “augmented” by strong performance at Muscle Shoals. Looking to 2026, the company said it expects to benefit from these trends, “especially in the first half.”
On tariffs, management said it has made progress on pass-throughs and other mitigating actions, expects direct exposure to remain manageable, and believes current tariff and trade policies are “net positive” for the company.
The company also announced a new group-wide excellence initiative called Vision 2028, aimed at operational efficiencies and cost reduction as part of its roadmap to 2028 targets. In Q&A, Joerg said the program will focus on pillars including asset reliability (citing Muscle Shoals as a key profitability driver when running well), footprint and portfolio optimization through cross-qualification, throughput maximization, debottlenecking activities (with limited investment embedded in plans), and continued recycling and metal cost improvements.
Free cash flow, capital allocation, and balance sheet update
Constellium reported $178 million of free cash flow in 2025, which management said was well ahead of a “very challenged” 2024. The improvement was attributed to higher segment adjusted EBITDA and lower capital expenditures, partly offset by higher cash interest.
For 2026, the company expects free cash flow of more than $200 million and outlined key assumptions:
- Capital expenditures of approximately $115 million, including about $100 million of “return-seeking” spending tied primarily to Aerospace and recycling/casting projects at Issoire, Muscle Shoals, and Ravenswood.
- Cash interest of approximately $125 million.
- Cash taxes of approximately $70 million.
- Working capital and other items expected to be a use of cash for the full year.
Management said the company continued share repurchases, buying back 2.4 million shares for $40 million in the quarter. Total 2025 repurchases were 8.9 million shares for $115 million, and the company said about $106 million remains under the existing authorization, which it intends to complete using free cash flow generated in 2026.
On the balance sheet, the company ended the fourth quarter with net debt of $1.8 billion, up about $50 million versus the end of 2024, with management attributing the increase primarily to currency translation effects from a weaker U.S. dollar. Leverage improved to 2.5x at year-end 2025, described as the upper end of the company’s target range. Management said it expects leverage to trend lower in 2026 and to maintain a long-term target range of 0.5x to 2.5x. Liquidity increased about $140 million from the end of 2024 to $866 million at the end of 2025, and the company noted it has no bond maturities until 2028 and no outstanding borrowings under its Pan-U.S. ABL facility at year-end.
End-market outlook: aerospace backlog strength, steady packaging, mixed automotive
Joerg said the company’s portfolio is focused on end markets supported by secular growth trends, emphasizing aerospace, packaging, and automotive as more than 80% of last-12-month revenue.
In aerospace, management highlighted record commercial aircraft backlogs and OEM efforts to increase build rates, while noting supply chain challenges have continued to constrain deliveries and that aluminum destocking in the supply chain appears to be easing. The company said demand for high-value-add products remains strong, with strengthening demand in space and military aviation. Joerg said a third Airware casthouse at Issoire is expected to start up by the end of the year, with most benefits expected starting in 2027. Given multi-year visibility, the company raised its A&T adjusted EBITDA-per-ton target to $1,300 from $1,100 previously provided.
Packaging demand was described as healthy in North America and Europe, with management pointing to consumer preference for aluminum beverage cans, can-maker capacity growth plans, and recycling advantages at Muscle Shoals and Neuf-Brisach. The company reiterated expectations for low- to mid-single-digit long-term growth in packaging markets in both regions.
Automotive trends were described as mixed. In North America, demand was said to be relatively stable, though the tariff environment is creating uncertainty. Management discussed an industry supply disruption following a fire at a competitor’s U.S. facility, saying Constellium benefited on the rolled products side in the fourth quarter as it helped customers during the outage, but was negatively affected in automotive structures as some OEMs reduced production on impacted platforms. The company said the overall impact in 2025 was net positive and expects that to continue into the first half of 2026. In Europe, management said demand remains weak—particularly in premium vehicles—amid increased Chinese competition, reduced battery EV ambitions, and the impact of Section 232 auto tariffs on exports to the U.S.
For other specialty and industrial markets, management said conditions became more stable in the second half of 2025 and that Europe has likely bottomed after a three-year downturn, but Europe is expected to remain weak in the near term. The company also cited opportunities in North American TID markets due to tariffs making imports less competitive, as well as potential opportunities in land-based defense and semiconductors.
2026 guidance and 2028 targets reiterated
Constellium guided to 2026 adjusted EBITDA (excluding the non-cash impact of metal price lag) of $780 million to $820 million and free cash flow above $200 million, assuming recent demand trends continue at least into early 2026 and the macro environment remains relatively stable. Management reiterated 2028 targets of $900 million in adjusted EBITDA (excluding metal price lag) and $300 million of free cash flow.
During Q&A, executives emphasized that recycling economics are complex and can taper through the year as contracting and market dynamics evolve. The CFO said the company’s scrap consumption needs are fully contracted for the first quarter and that benefits in early 2026 should be similar to those seen in the fourth quarter of 2025, while incremental benefits are expected to “gradually taper off” later in the year.
Joerg also commented that the tariff situation remains fluid, but said the company does not currently see an impact from potential tariff relief on derivative products and continues to view tariffs as net positive due to expected stronger North American demand. On CBAM, she said the company believes the current design remains negative for the European industry, though she added Constellium is not directly impacted due to a mostly local-for-local production approach.
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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