Constellium (NYSE:CSTM) Posts Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Constellium (NYSE:CSTM) issued its earnings results on Wednesday. The industrial products company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.11, FiscalAI reports. Constellium had a return on equity of 51.66% and a net margin of 5.69%. The company had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.50 billion. During the same quarter last year, the company earned $0.62 EPS. The firm’s quarterly revenue was up 21.8% on a year-over-year basis.

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 Performance

Shares of NYSE CSTM traded down $0.35 during midday trading on Thursday, reaching $24.08. The company had a trading volume of 1,033,056 shares, compared to its average volume of 1,947,551. The stock has a market cap of $3.26 billion, a P/E ratio of 6.23 and a beta of 1.57. The company has a current ratio of 1.43, a quick ratio of 0.61 and a debt-to-equity ratio of 1.50. The business’s 50-day simple moving average is $25.67 and its 200 day simple moving average is $27.82. Constellium has a 1 year low of $14.62 and a 1 year high of $36.99.

Insider Buying and Selling

In related news, Director Jean-Christophe Deslarzes bought 1,490 shares of the stock in a transaction dated Monday, August 3rd. The shares were purchased at an average price of $27.24 per share, for a total transaction of $40,587.60. Following the completion of the purchase, the director directly owned 43,515 shares of the company’s stock, valued at $1,185,348.60. This represents a 3.55% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.20% of the company’s stock.

Constellium News Summary

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

Analysts Set New Price Targets

A number of brokerages have commented on CSTM. JPMorgan Chase & Co. raised shares of Constellium from a “neutral” rating to an “overweight” rating and set a $35.00 price objective for the company in a research note on Thursday. Wells Fargo & Company dropped their price objective on Constellium from $38.00 to $33.00 and set an “overweight” rating for the company in a report on Thursday. Deutsche Bank Aktiengesellschaft cut their price target on shares of Constellium from $39.00 to $36.00 and set a “buy” rating on the stock in a report on Thursday, October 8th. HSBC set a $35.00 target price on shares of Constellium in a research report on Thursday. Finally, Wall Street Zen lowered Constellium from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 17th. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $33.00.

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.