Constellium 2025 Q2 Earnings Revenue Up 8.9% Despite Net Income Decline

Constellium (CSTM) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Constellium's second-quarter results showed mixed performance, with revenue increasing 8.9% year-over-year to $2.10 billion, surpassing expectations. However, net income fell sharply to $36 million, a 53% decline from the previous year. Despite ongoing demand challenges, management raised full-year guidance, forecasting an Adjusted EBITDA of $620-650 million, which represents confidence in operational resilience and cost management efforts.

Revenue
The total revenue for Constellium in 2025 Q2 reached $2.10 billion, marking an 8.9% increase from the previous year. The Aerospace rolled products segment generated $267 million, while Transportation, industry, defense, and other rolled products contributed $200 million. Packaging rolled products saw impressive growth, amassing $912 million in revenue. Automotive rolled products added $295 million, and Specialty and other thin-rolled products contributed $26 million. The AS&I segment reported $403 million, with Automotive extruded products at $249 million, and Other extruded products totaling $154 million.

Earnings/Net Income
Constellium's earnings per share (EPS) fell significantly by 51.9% to $0.25 in 2025 Q2 from $0.52 in 2024 Q2. Net income also declined, reaching $36 million, down 53.2% from $77 million in the previous year. The lower EPS highlights challenges in maintaining profitability amid fluctuating market conditions.

Price Action
The stock price of Constellium has dropped 7.30% during the latest trading day, has edged down 0.72% during the most recent full trading week, and has climbed 3.08% month-to-date.

Post-Earnings Price Action Review
The strategy of acquiring Constellium shares when earnings surpass expectations and holding for 30 days yielded moderate returns, yet fell short of the benchmark. This approach achieved a 36.62% return, whereas the benchmark return stood at 72.92%, resulting in a negative excess return of 36.30%. Although the Sharpe ratio reflected a reasonable risk-adjusted return at 0.14, the strategy lacked effective volatility management, as indicated by a maximum drawdown of 0%. These results suggest that while there is potential for gains, the strategy requires enhancements in managing market fluctuations to improve overall performance.

CEO Commentary
Jean-Marc Germain, Constellium’s Chief Executive Officer, expressed pride in the team's performance despite ongoing demand weakness in most end markets outside of packaging. He highlighted strong Free Cash Flow of $41 million for the quarter, along with a disciplined approach to cost reduction and capital management amid uncertainty. Germain noted that the company's share repurchase program reflects its commitment to enhancing shareholder value. He emphasized the expectation that leverage has peaked at 3.6x and will trend downwards as the year progresses, linking operational discipline to the company's solid performance.

Guidance
Constellium now anticipates Adjusted EBITDA for 2025 in the range of $620 million to $650 million, excluding the non-cash impact of metal price lag, and expects Free Cash Flow to exceed $120 million. This guidance assumes a stable macroeconomic environment. The company remains confident in achieving long-term targets of $900 million Adjusted EBITDA and $300 million Free Cash Flow by 2028.

Additional News
In recent developments, Constellium SE has been actively engaging in share repurchase activities. During the second quarter of 2025, the company repurchased 3.4 million shares, amounting to $35 million, as part of its ongoing commitment to enhancing shareholder value. Furthermore, Constellium announced that it will continue filing annual reports on Form 10-K and quarterly reports on Form 10-Q with the Securities and Exchange Commission starting January 1, 2026. This move follows its decision to voluntarily file these reports in 2025, reflecting its transition to a U.S. domestic reporting entity. These strategic actions underscore the company's dedication to maintaining transparency and strengthening investor relations.