On February 20, 2025, Constellium SE (CSTM, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. Constellium SE, a leader in the design and manufacture of rolled and extruded aluminium products, serves diverse markets including packaging, aerospace, automotive, and defense. The company operates through three segments: Packaging and Automotive Rolled Products, Aerospace and Transportation, and Automotive Structures and Industry.
Performance Overview
Constellium SE reported a revenue of $1,721 million for Q4 2024, a 1% decrease compared to Q4 2023. The company faced a net loss of $47 million, a significant decline from the net income of $5 million in the same quarter of the previous year. The adjusted EBITDA for the quarter was $125 million, down from $164 million in Q4 2023. These results fell short of analyst estimates, which projected earnings per share of $0.04 and revenue of $1,675.89 million for the quarter.
Challenges and Impacts
The company's performance was notably impacted by several challenges, including severe flooding at its Valais facilities in Switzerland, which resulted in a $15 million negative impact on adjusted EBITDA for the quarter. Additionally, market-driven headwinds such as demand weakness across most end markets and tightening scrap spreads in North America further pressured the company's financial results.
Financial Achievements and Industry Context
Despite the challenges, Constellium SE achieved several milestones, including the start-up of a new recycling and casting center in Neuf-Brisach ahead of schedule and below budget. The company also returned $79 million to shareholders through stock repurchases. These achievements are crucial in the metals and mining industry, where operational efficiency and shareholder returns are key performance indicators.
Segment Performance
In the Aerospace & Transportation segment, Q4 2024 adjusted EBITDA was $56 million, a 33% decrease from Q4 2023, primarily due to lower shipments and unfavorable price and mix. The Packaging & Automotive Rolled Products segment also saw a 34% decline in adjusted EBITDA to $56 million, affected by unfavorable metal costs and price mix. The Automotive Structures & Industry segment reported a sharp 83% decline in adjusted EBITDA to $4 million, impacted by lower shipments and the Valais flood.
Income Statement and Cash Flow Highlights
For the full year 2024, Constellium SE reported a revenue of $7.3 billion, a 6% decrease from 2023. The net income for the year was $60 million, down from $157 million in the previous year. Free cash flow was negative at $(100) million, compared to $67 million in 2023, primarily due to lower segment adjusted EBITDA and higher capital expenditures.
CEO Commentary
Jean-Marc Germain, Constellium’s Chief Executive Officer, stated, “2024 was a very challenging year for Constellium on many fronts, from the extreme cold weather and snow impacting operations at Muscle Shoals in January, to the severe flooding event at our facilities in the Valais region in Switzerland during the summer, to market-driven headwinds unfolding throughout the year including demand weakness across most of our end markets and tightening scrap spreads in North America.”
Analysis and Outlook
Constellium SE's performance in 2024 reflects the significant challenges faced by the company, including natural disasters and market headwinds. The company's strategic initiatives, such as the new recycling and casting center, position it for potential recovery and growth. Looking ahead, Constellium SE expects adjusted EBITDA for 2025 to be in the range of $600 million to $630 million, excluding the non-cash impact of metal price lag, with free cash flow exceeding $120 million.
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Explore the complete 8-K earnings release (here) from Constellium SE for further details.
