Constellium SE (NYSE: CSTM) reported record financial results for the fourth quarter of 2025, supported by robust demand in key segments and operational efficiencies. The global aluminum producer delivered a sharp year-over-year increase in profitability, finishing the fiscal year ahead of initial management projections despite a complex macroeconomic backdrop.
The company’s performance was highlighted by a significant expansion in its core earnings and free cash flow generation. Constellium also advanced its shareholder return program, repurchasing 8.9 million shares during the full year for a total of $115 million. Following these results, the company introduced “Vision 2028,” a new group-wide excellence program designed to optimize its portfolio and enhance structural cost reductions.
Quarterly and Annual Financial Performance
For the fourth quarter ended December 31, 2025, Constellium reported revenue of $2.2 billion, a 28% increase compared to the fourth quarter of 2024. Net income reached $113 million, a substantial turnaround from the $47 million net loss recorded in the prior-year period.
Adjusted EBITDA for the quarter rose to $280 million, up from $125 million in Q4 2024. This figure included a positive non-cash metal price lag impact of $67 million. On a segment-adjusted basis, which excludes the metal price lag, the company saw strength across its primary divisions:
Packaging & Automotive Rolled Products (P&ARP): Adjusted EBITDA reached $136 million, a 143% increase year-over-year, driven by higher packaging shipments in North America and Europe, and improved metal costs.
Aerospace & Transportation (A&T): Adjusted EBITDA grew 43% to $83 million, benefiting from stable aerospace demand and lower operating costs.
Automotive Structures & Industry (AS&I): Adjusted EBITDA rose 25% to $5 million, as higher industry shipments offset lower automotive volumes caused by North American supply shortages.
For the full year 2025, revenue climbed 15% to $8.4 billion. Adjusted EBITDA reached $846 million, compared to $623 million in 2024. Full-year net income stood at $275 million, up from $60 million in the previous year.
Key Financial Data and Year-over-Year Comparisons
| Metric (in millions, unless specified) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 |
| Shipments (kt) | 365 | 329 | 1,532 | 1,475 |
| Revenue | $2,185 | $1,713 | $8,379 | $7,249 |
| Net Income / (Loss) | $113 | ($47) | $275 | $60 |
| Adjusted EBITDA | $280 | $125 | $846 | $623 |
| Free Cash Flow | $110 | ($85) | $178 | ($100) |
| Adjusted ROIC | — | — | 9.0% | 5.7% |
Executive Commentary and Strategic Outlook
Chief Executive Officer, Ingrid Joerg, characterized the 2025 performance as a strong execution in an “uncertain macroeconomic and end market environment”. The CEO noted that the record fourth-quarter results benefited from market dynamics, including improved scrap spreads.
Management highlighted that the company is well-positioned for 2026, focusing on cost control and commercial discipline. Looking ahead, Constellium issued the following guidance for the fiscal year 2026:
Adjusted EBITDA: Between $780 million and $820 million.
Free Cash Flow: Expected to exceed $200 million.
Leverage: Targeting a range of 1.5x to 2.5x.
By 2028, the company aims to reach $900 million in Adjusted EBITDA and $300 million in Free Cash Flow through its newly announced excellence initiatives.
Market Context and Industry Drivers
Constellium’s results reflect broader trends in the aluminum sector, where high value-added products and recycling initiatives are driving demand. In the packaging sector, aluminum continues to gain market share against other substrates, while the aerospace market is supported by record backlogs from aircraft manufacturers.
However, the company noted some regional headwinds, including weak automotive demand in Europe and lower ambitions for battery electric vehicles (BEVs). Despite these pressures, Constellium’s diversified portfolio across aerospace, packaging, and automotive sectors provided a hedge against specific market downturns.
Chief Financial Officer, Jack Guo, noted the company’s strong liquidity position, ending the year with $1.8 billion in net debt and no bond maturities until 2028. The company’s leverage ratio finished the year at 2.5x, at the upper end of its target range, with expectations to trend lower in 2026.
Reasons to pass on CSTM
- Guidance below FY2025 performance: Fiscal 2026 Adjusted EBITDA guidance of $780–$820 million is below FY2025’s $846 million, implying potential earnings moderation.
- Non-cash benefit in Q4 results: Q4 Adjusted EBITDA included a $67 million positive non-cash metal price lag impact, which may not be recurring.
- Leverage at upper target range: Year-end leverage stood at 2.5x, the top end of management’s stated 1.5x–2.5x target range.
- High absolute debt levels: The company ended FY2025 with $1.8 billion in net debt.
- Cyclical end-market exposure: Performance remains tied to aerospace, automotive, and packaging demand, which are sensitive to macroeconomic conditions.
- Automotive headwinds in Europe: Weak European automotive demand and reduced ambitions for battery electric vehicles (BEVs) were cited as regional pressures.
- North American supply constraints: Automotive volumes were impacted by supply shortages in North America during the quarter.
- Macroeconomic uncertainty: Management acknowledged operating in an uncertain macroeconomic and end-market environment.
- Dependence on market dynamics: Q4 performance benefited from improved scrap spreads, which may fluctuate with commodity cycles.
- Execution risk in long-term targets: Achieving $900 million Adjusted EBITDA and $300 million Free Cash Flow by 2028 depends on successful implementation of the “Vision 2028” excellence program.