France's Constellium Q3 revenue rises 22% on higher metal prices

Overview

• France-based aluminum products maker's Q3 revenue rose 22% yr/yr despite 1% shipment decline

• Q3 adjusted EBITDA increased 17% to a quarterly record, driven by stronger segment results

• Company generated $128 mln free cash flow and returned $30 mln to shareholders via buybacks

Outlook

• Constellium raises 2026 Adjusted EBITDA guidance to $1.03 bln-$1.06 bln, excluding metal price lag

• Company expects 2026 Free Cash Flow in excess of $300 mln

• Constellium says macroeconomic and geopolitical environment remains volatile

Result Drivers

• HIGHER METAL PRICES - Co said revenue growth was driven by higher revenue per ton, including higher metal prices, partially offset by lower shipments

• SEGMENT PERFORMANCE - Stronger results in A&T and P&ARP segments contributed to higher adjusted EBITDA, partially offset by weaker AS&I segment and unfavorable metal price lag and FX

• SUPPLY SHORTAGES - Automotive rolled products benefited from supply shortages in North America, supporting segment results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)