Constellium SE (CSTM): history, ownership, mission, how it works & makes money

A Brief History of Constellium SE

Constellium SE, a global leader in aluminum products, has undergone significant developments through 2024, navigating challenges in various market segments and environmental impacts.

Financial Performance Overview

For the third quarter of 2024, Constellium reported:

In the first nine months of 2024, total shipments reached 1.1 million metric tons, a decrease of 4% compared to the same period in 2023. Revenue for this period was €5.2 billion, down 8% year-over-year.

Operational Challenges and Environmental Impact

In June 2024, severe flooding impacted Constellium's operations in the Valais region of Switzerland, leading to significant disruptions. The estimated financial impact from this disaster is projected to affect Adjusted EBITDA by €30 million to €40 million and Free Cash Flow by €60 million to €70 million for the full year.

Segment Performance

Performance varied across Constellium's segments:

Overall, the company's Adjusted EBITDA reflects a challenging market environment, with significant declines attributed to lower shipments and unfavorable pricing.

Liquidity and Debt Management

As of September 30, 2024, Constellium's liquidity stood at €778 million, comprised of €152 million in cash and cash equivalents and €626 million available under committed lending facilities. The net debt was €1,677 million, compared to €1,664 million at the end of 2023.

The company repurchased 3.1 million shares for approximately $60.4 million during the year.

Market Outlook

Looking ahead, Constellium anticipates Adjusted EBITDA for 2024 to be in the range of €580 million to €600 million, excluding the impact from the flooding and non-cash metal price lag.

A Who Owns Constellium SE (CSTM)

Shareholder Structure

As of 2024, Constellium SE (CSTM) has a diverse ownership structure comprised of institutional investors, mutual funds, and individual shareholders. The largest shareholders include:

Stock Performance

As of October 2024, Constellium's stock has experienced fluctuations in its market price. Notably:

• The stock price was approximately €8.00 at the beginning of 2024.
• By September 2024, the stock price had decreased to around €6.50.
• The market capitalization as of September 30, 2024, was approximately €1.18 billion.

Recent Share Transactions

In 2024, Constellium repurchased shares amounting to:

• 1.2 million shares for $21 million in the third quarter.
• 3.1 million shares for $60.4 million in the first nine months of 2024.

Financial Overview

For the nine months ended September 30, 2024, Constellium reported:

Operational Challenges and Impact

In 2024, Constellium faced operational challenges due to flooding at its facilities in Valais, impacting:

• Adjusted EBITDA negatively affected by €30 million to €40 million.
• Free Cash Flow negatively impacted by €60 million to €70 million.

Outlook for 2024

Looking ahead, Constellium projects an Adjusted EBITDA range of:

• €580 million to €600 million for the full year 2024.

Constellium SE (CSTM) Mission Statement

The mission statement of Constellium SE emphasizes its commitment to sustainability and innovation in the aluminum industry, aiming to deliver high-quality products while ensuring environmental stewardship. The company focuses on creating value for its customers, employees, and stakeholders through operational excellence and continuous improvement.

Financial Performance Overview

As of Q3 2024, Constellium reported the following financial metrics:

Segment Performance

The performance of Constellium's segments for Q3 2024 is as follows:

Operational Challenges and Developments

In June 2024, severe flooding impacted operations at the Valais facility, leading to a significant operational suspension. The estimated financial impact from this incident is projected to be between €30 million to €40 million of Adjusted EBITDA for the full year 2024, alongside a €60 million to €70 million impact on Free Cash Flow.

As of mid-October 2024, operations have partially resumed, with full operations expected to restart by the end of November 2024.

Liquidity and Debt Position

As of September 30, 2024, Constellium's liquidity position was as follows:

The company’s leverage ratio stood at 2.8x at the end of Q3 2024.

Outlook for 2024

For the full year 2024, Constellium expects Adjusted EBITDA to be in the range of €580 million to €600 million, excluding the one-time impacts from the flood and the non-cash impact of metal price lag.

How Constellium SE (CSTM) Works

Business Overview

Constellium SE operates in the aluminum industry, specializing in the production of high-value-added aluminum products. The company serves various sectors, including packaging, automotive, aerospace, and industry, with a focus on sustainability and innovation.

Financial Performance

As of the third quarter of 2024, Constellium reported significant financial metrics:

Segment Performance

Constellium operates through several segments, including Packaging & Automotive Rolled Products (P&ARP), Aerospace & Transportation (A&T), and Automotive Structures & Industry (AS&I). The following table presents segment-specific performance metrics:

Operational Challenges

In 2024, Constellium faced operational challenges, particularly due to severe flooding at its facilities in the Valais region, impacting production and financial results:

• €17 million negative impact on Adjusted EBITDA due to flooding.
• €6 million impact on Free Cash Flow from the same event.
• Partial resumption of operations expected by the end of November 2024.

Cash Flow and Liquidity

Constellium's cash flow dynamics for the first nine months of 2024 are as follows:

Debt and Leverage

As of September 30, 2024, Constellium reported the following regarding its debt and leverage:

• Net Debt: €1,677 million
• Leverage Ratio: 2.8x
• Liquidity: €778 million, including €626 million available under committed facilities.

Future Outlook

Looking forward, Constellium anticipates Adjusted EBITDA for 2024 to be in the range of €580 million to €600 million, excluding the estimated impact of flooding. The company remains cautious regarding market recovery and demand across its sectors.

How Constellium SE (CSTM) Makes Money

Revenue Streams

Constellium SE generates revenue through multiple segments, primarily focusing on the production of aluminum products for various industries, including packaging, automotive, aerospace, and transportation.

Packaging & Automotive Rolled Products (P&ARP)

For the third quarter of 2024, P&ARP reported:

Aerospace & Transportation (A&T)

For the third quarter of 2024, A&T reported:

Automotive Structures & Industry (AS&I)

For the third quarter of 2024, AS&I reported:

Overall Financial Performance

For the third quarter of 2024, Constellium reported:

For the first nine months of 2024, Constellium reported:

Impact of External Factors

The company's performance has been affected by external factors such as flooding at its Valais facilities, which has had a significant impact on its operations and financial results, particularly in Q3 2024, with a noted negative impact of €17 million on Adjusted EBITDA due to this event.

Looking ahead, Constellium expects Adjusted EBITDA for 2024 to be in the range of €580 million to €600 million, excluding the estimated one-time impact from the flooding.

Article updated on 8 Nov 2024

Resources:

• Constellium SE (CSTM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Constellium SE (CSTM)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Constellium SE (CSTM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.