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1. Company Snapshot

1.a. Company Description

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of specialty rolled and extruded aluminum products for the packaging, aerospace, and automotive end-markets.The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry.The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market.


It also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets.The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications.The Automotive Structures & Industry segment offers extruded products and technologically advanced structures for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets.


This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services.The company sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul.Constellium SE was incorporated in 2010 and is headquartered in Paris, France.

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1.b. Last Insights on CSTM

Breaking News: Constellium SE recently reported strong growth in its Automotive Structures and Industry segment, driven by rising aluminum prices and robust demand. However, the company faces risks from weaker automotive shipments. Analysts at CSTM expect sustained momentum, with potential for more upside. A recent report flags CSTM as a promising pick, with some analysts recommending a buy. The company has shown resilience, but investors await updates on production and shipment volumes. CSTM's performance is closely tied to the automotive sector's recovery.

1.c. Company Highlights

2. Constellium's Strong 2025 Results and Outlook

Constellium reported a strong financial performance in 2025, with revenue increasing 15% to $8.4 billion and adjusted EBITDA rising 36% to $846 million. The company's net income also improved significantly, reaching $275 million compared to $60 million in 2024. Earnings per share (EPS) came in at $0.8, beating analyst estimates of $0.36. The company's fourth-quarter performance was also robust, with revenue growing 28% to $2.2 billion and adjusted EBITDA increasing 124% to $280 million.

Publication Date: Feb -20

📋 Highlights
  • Q4 2025 Revenue Growth:: $2.2 billion, up 28% YoY, driven by 11% increase in shipments to 365,000 tons.
  • Net Income Turnaround:: $113 million profit in Q4 2025 vs. $47 million loss in Q4 2024, reflecting operational improvements.
  • Full-Year Adjusted EBITDA:: $846 million in 2025, a 36% YoY increase, with Q4 record at $280 million (+124% YoY).
  • PARP Segment EBITDA Surge:: $136 million in Q4 2025, up 143% YoY, setting a new quarterly record.
  • Free Cash Flow Growth:: $178 million in 2025, with guidance for >$200 million in 2026, supported by strong liquidity ($1.8 billion net debt, 2.5x leverage).

Segment Performance

The company's segment performance was mixed, with the Packaging and Recycling Products (PARP) segment reporting a record quarterly adjusted EBITDA of $136 million, up 143% from the fourth quarter of 2024. The Aerospace and Transportation (A&T) segment also saw a significant increase in adjusted EBITDA, rising 43% to $83 million. The Automotive Structures and Industries (AS&I) segment reported a modest increase in adjusted EBITDA, reaching $5 million.

Cash Flow and Balance Sheet

Constellium generated $178 million in free cash flow in 2025, ahead of expectations, and expects to exceed $200 million in free cash flow in 2026. The company's balance sheet remains strong, with a net debt of $1.8 billion and a leverage ratio of 2.5x at the end of 2025. Management expects leverage to trend lower in 2026 and maintain a target leverage range of 1.5 to 2.5x over time.

Outlook and Valuation

Constellium's outlook for 2026 is positive, with expected adjusted EBITDA in the range of $780-820 million and free cash flow in excess of $200 million. Analysts estimate revenue growth of 0.8% next year. The company's shares trade at a P/E ratio of 15.52, EV/EBITDA of 7.47, and P/S ratio of 0.49, indicating a reasonable valuation. The return on equity (ROE) is 29.22%, and the return on invested capital (ROIC) is 8.89%, suggesting a strong ability to generate returns.

Market Trends and Risks

Constellium faces mixed market trends in 2026, with stable automotive demand in the US and weak demand in Europe. Aerospace demand is steady, and the company expects military jets and space to continue growing. The company is focused on cost control, operating efficiencies, and its Vision 2028 program to support its 2028 targets. Risks include the potential impact of tariffs, carbon border adjustment mechanisms, and substitution risks in automotive and transportation markets.

3. NewsRoom

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CSTM Gains From Strength in Automotive Structures Unit: More Upside to Come?

Mar -31

Source: zacks.com

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Percheron flags ASCO nod for HMBD-002 cancer therapy data

Mar -31

Source: proactiveinvestors.com

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Dow Jones leads markets higher as Trump says Iran talks 'serious'

Mar -30

Source: proactiveinvestors.com

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Alcoa leads aluminium rally after Iranian strikes hit gulf smelters

Mar -30

Source: proactiveinvestors.com

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CSTM's Aerospace & Transportation Strength Seems Firm: More Upside Ahead?

Mar -26

Source: zacks.com

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Constellium vs. Ryerson: Which Aluminum Stock Should You Bet On?

Mar -25

Source: zacks.com

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Constellium SE $CSTM Shares Bought by JPMorgan Chase & Co.

Mar -22

Source: defenseworld.net

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5 Stocks With Recent Price Strength Despite Geopolitical Conflicts

Mar -18

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.73%)

6. Segments

Packaging and Automotive Rolled Products

Expected Growth: 6.5%

Constellium SE's Packaging and Automotive Rolled Products segment growth of 6.5% is driven by increasing demand for sustainable and lightweight packaging solutions, growing adoption of electric vehicles, and rising need for advanced materials in automotive manufacturing. Additionally, the company's strategic investments in innovation and expansion into new markets also contribute to this growth.

Aerospace and Transportation

Expected Growth: 6.8%

Constellium SE's Aerospace and Transportation segment growth of 6.8% is driven by increasing demand for lightweight and high-strength aluminum alloys in aircraft production, growing adoption of electric vehicles, and rising investments in next-generation transportation infrastructure.

Automotive Structures and Industry

Expected Growth: 7.2%

Constellium SE's Automotive Structures and Industry segment growth of 7.2% is driven by increasing demand for lightweight and sustainable vehicle solutions, electrification of vehicles, and growing adoption of aluminum in electric vehicle batteries. Additionally, the company's innovative products and technologies, such as its Airware technology, are gaining traction with major OEMs, contributing to the segment's growth.

Holdings & Corporate

Expected Growth: 6.2%

Constellium SE's Holdings & Corporate segment growth of 6.2% is driven by increasing demand for aluminum products in the aerospace and automotive industries, coupled with the company's strategic acquisitions and expansion into new markets. Additionally, cost savings initiatives and operational efficiencies have contributed to the segment's growth.

7. Detailed Products

Aerospace Plates

High-strength, high-temperature resistant aluminum plates for aerospace applications

Automotive Body Sheets

High-formability, corrosion-resistant aluminum sheets for automotive body panels

Packaging Foil

Thin, flexible aluminum foil for food and pharmaceutical packaging

Railway Wheels

High-strength, corrosion-resistant aluminum wheels for railway applications

Specialty Tubes

High-strength, corrosion-resistant aluminum tubes for industrial and commercial applications

Defense Plates

High-strength, high-temperature resistant aluminum plates for defense applications

8. Constellium SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Constellium SE operates in the aluminum industry, where substitutes are limited. However, the company faces some threat from alternative materials such as steel, copper, and carbon fiber, which can be used in certain applications.

Bargaining Power Of Customers

Constellium SE's customers, including major aerospace and automotive companies, have significant bargaining power due to their large purchasing volumes and ability to negotiate prices.

Bargaining Power Of Suppliers

Constellium SE's suppliers of raw materials such as bauxite and alumina have limited bargaining power due to the company's large scale of operations and diversified supply chain.

Threat Of New Entrants

The threat of new entrants in the aluminum industry is low due to the high capital costs and technical expertise required to establish a new smelter or rolling mill.

Intensity Of Rivalry

The aluminum industry is moderately competitive, with several major players competing for market share. However, Constellium SE's diversified product portfolio and strong customer relationships help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 67.03%
Debt Cost 10.35%
Equity Weight 32.97%
Equity Cost 13.94%
WACC 11.53%
Leverage 203.32%

11. Quality Control: Constellium SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Grupa Kety

A-Score: 7.0/10

Value: 4.5

Growth: 6.1

Quality: 6.6

Yield: 9.4

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Norsk Hydro

A-Score: 6.2/10

Value: 6.5

Growth: 6.3

Quality: 5.6

Yield: 6.2

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

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ICL

A-Score: 5.7/10

Value: 6.5

Growth: 3.6

Quality: 4.5

Yield: 9.4

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Akzo Nobel

A-Score: 4.9/10

Value: 4.3

Growth: 4.8

Quality: 3.6

Yield: 5.6

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
IMCD

A-Score: 4.3/10

Value: 4.5

Growth: 6.7

Quality: 5.2

Yield: 3.8

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Constellium

A-Score: 3.3/10

Value: 6.7

Growth: 2.9

Quality: 2.4

Yield: 0.0

Momentum: 6.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.32$

Current Price

27.32$

Potential

-0.00%

Expected Cash-Flows