Constellium (CSTM) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly Adjusted EBITDA of $359 million, with strong performance across all segments and improved financial results despite macroeconomic and geopolitical uncertainties.

• Revenue rose 24% year-over-year to $2.5 billion, while net income surged to $196 million from $38 million in Q1 2025, driven by higher gross profit and favorable gains.

• Returned $28 million to shareholders via repurchase of 1.2 million shares in Q1 2026 and announced a new EUR 300 million ($300 million) buyback program through 2028.

• Benefited from supply shortages in North America, improved aerospace and TID markets, and favorable scrap/metal dynamics.

• Maintains optimism for 2026, focusing on operational execution, cost control, free cash flow generation, and shareholder value.

Financial highlights

• Revenue increased 24% year-over-year to $2.5 billion, driven by higher revenue per ton and metal prices, with shipments totaling 370 thousand tons, down 1% year-over-year.

• Adjusted EBITDA rose 93% to $359 million, including a $97 million non-cash metal price lag; excluding this, Adjusted EBITDA was $262 million, up 78%.

• Net income was $196 million for the quarter, with basic EPS at $1.47, up from $0.26.

• Free Cash Flow was $5 million, up from negative $3 million in Q1 2025; cash from operations was $73 million.

• Net debt stable at $1,829 million; leverage reduced to 2.2x, within target range; liquidity at $904 million.

Outlook and guidance

• Raised 2026 guidance: targeting Adjusted EBITDA (excluding metal price lag) of $900–$940 million and free cash flow above $275 million; capex expected at $330 million.

• 2028 targets include Adjusted EBITDA of $900 million and free cash flow of $300 million.

• Guidance assumes continued favorable market conditions and stable macroeconomic environment.

• 2027 seen as a transition year with ramp-up of key recycling and casting projects.

• Closely monitoring ongoing geopolitical tensions, tariffs, and energy price volatility, with contingency plans in place.