Constellium NV's Q2 Earnings Call: Revenue Up, Net Income Down Amid Challenges

Constellium NV reported a 9% revenue increase to $2.1 billion in Q2, driven by higher shipments and favorable prices. The Packaging & Automotive Rolled Products segment saw a 12% increase in adjusted EBITDA, while the Aerospace & Transportation segment declined 13%. Net income decreased to $36 million, and the company faced challenges in the automotive and aerospace segments due to declining shipments and impacts from tariffs. Despite these challenges, Constellium raised its guidance and expressed optimism for the second half of the year.

Title: Constellium NV Reports Q2 2025 Results with Revenue Increase and Optimistic Outlook

Constellium NV (NYSE: CSTM) reported its second quarter (Q2) 2025 financial results, showcasing a 9% increase in revenue to $2.1 billion, driven by higher shipments and favorable metal prices. The company also repurchased 3.4 million shares of its stock for $35 million during the quarter. However, the Packaging & Automotive Rolled Products (P&ARP) segment saw a 12% increase in adjusted EBITDA, while the Aerospace & Transportation (A&T) segment declined by 13%.

Key highlights from the Q2 2025 report include:
- Shipments: Total shipments of 384 thousand metric tons, up 2% compared to Q2 2024.
- Revenue: Revenue of $2.1 billion, up 9% compared to Q2 2024.
- Net Income: Net income of $36 million, down $41 million from Q2 2024.
- Adjusted EBITDA: Adjusted EBITDA of $146 million, down $79 million from Q2 2024.
- Free Cash Flow: Free Cash Flow of $41 million.

Jean-Marc Germain, Constellium's Chief Executive Officer, stated, "Constellium delivered solid results in the second quarter despite continued demand weakness across most of our end markets outside of packaging. We repurchased 3.4 million shares for $35 million during the quarter, and we ended the quarter with leverage at 3.6x. We expect this to be the peak for leverage and to trend down as we move through the rest of the year."

Despite challenges in the automotive and aerospace segments due to declining shipments and impacts from tariffs, Constellium raised its guidance for 2025. The company now expects Adjusted EBITDA to be in the range of $620 million to $650 million, excluding the non-cash impact of metal price lag, and Free Cash Flow in excess of $120 million.

Constellium remains confident in its ability to deliver on its long-term target of Adjusted EBITDA of $900 million, excluding the non-cash impact of metal price lag, and Free Cash Flow of $300 million, in 2028. The company will continue to closely monitor the situation and update its guidance as necessary.

References
[1] https://www.marketscreener.com/news/constellium-pr-q2-2025-ce7c5fd9dc80f124