Constellium Reports Fourth Quarter and Full Year 2024 Results; Establishes New Long-Term Targets

PARIS, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Constellium SE $(CSTM)$ ("Constellium" or the "Company") today reported results for the fourth quarter and full year ended December 31, 2024.

On January 15, 2025, the Company announced that, while it remains a foreign private issuer under applicable rules, it intends to voluntarily file its SEC reports on U.S. domestic issuer forms. As a result, beginning in 2025, Constellium will voluntarily file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. In addition, Constellium expects to voluntarily file the proxy statement for its 2025 annual general meeting with the SEC and provide certain disclosures in accordance with the requirements of Schedule 14A under the Exchange Act (utilizing Form 8-K). The Company also announced that it will provide its financial statements in U.S. dollars and in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), starting with its fourth quarter and full year 2024 results reported today. After further evaluation since the announcement on January 15, 2025, the Company has determined that it will capture factoring fees in other gains and losses - net, rather than in selling and administrative expenses as originally expected. The other adjustments from IFRS to U.S. GAAP remain generally consistent with our prior press release.

As a reminder of the press release issued on February 21, 2024 and following the SEC comment letter review process, Constellium has revised its definition of consolidated Adjusted EBITDA, a non-GAAP financial measure, to no longer exclude the non-cash impact of metal price lag from its consolidated Adjusted EBITDA. Constellium will continue to exclude the non-cash impact of metal price lag from its Segment Adjusted EBITDA, which it uses for evaluating the performance of its operating segments. Following the revision of its definition, consolidated Adjusted EBITDA, less the non-cash impact of metal price lag, is equal to consolidated Adjusted EBITDA prior to the revision of its definition. Constellium will continue to provide its investors and other stakeholders with the necessary information to explain the non-cash impact of metal price lag on its reported results.

Fourth quarter 2024 highlights:

   -- Shipments of 328 thousand metric tons, down 2% compared to Q4 2023 
 
   -- Revenue of $1,721 million, down 1% compared to Q4 2023 
 
   -- Net loss of $47 million compared to net income of $5 million in Q4 2023 
 
   -- Adjusted EBITDA of $125 million> Includes negative $15 million impact at 
      Valais as a result of the flood> Includes positive non-cash metal price 
      lag impact of $27 million 
 
   -- Segment Adjusted EBITDA of $56 million at A&T, $56 million at P&ARP, $4 
      million at AS&I, and $(18) million at H&C> A&T and AS&I results include 
      impact at Valais as a result of the flood 
 
   -- Cash from Operations of $61 million and Free Cash Flow of $(85) million> 
      Includes negative $39 million impact at Valais as a result of the flood> 
      Excludes $21 million of cash received for collection of deferred purchase 
      price receivables, as a result of IFRS to U.S. GAAP conversion 
 
   -- Repurchased 1.6 million shares of the Company stock for $18.5 million 

Full year 2024 highlights:

   -- Shipments of 1.4 million metric tons, down 4% compared to 2023 
 
   -- Revenue of $7.3 billion, down 6% compared to 2023 
 
   -- Net income of $60 million compared to net income of $157 million in 2023 
 
   -- Adjusted EBITDA of $623 million> Includes negative $33 million impact at 
      Valais as a result of the flood> Includes positive non-cash metal price 
      lag impact of $55 million 
 
   -- Segment Adjusted EBITDA of $285 million at A&T, $242 million at P&ARP, 
      $74 million at AS&I, and $(33) million at H&C> A&T and AS&I results 
      include impact at Valais as a result of the flood 
 
   -- Cash from Operations of $301 million and Free Cash Flow of $(100) 
      million> Includes negative $45 million impact at Valais as a result of 
      the flood> Excludes $85 million of cash received for collection of 
      deferred purchase price receivables, as a result of IFRS to U.S. GAAP 
      conversion 
 
   -- Repurchased 4.6 million shares of the Company stock for $79 million 
 
   -- Adjusted Return on Invested Capital (Adjusted ROIC) of 5.5% 
 
   -- Leverage of 3.1x at December 31, 2024> Excluding the impact at Valais as 
      a result of the flood, leverage of 2.9x at December 31, 2024 

Jean-Marc Germain, Constellium's Chief Executive Officer said, "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. I want to thank each of our 12,000 employees for their commitment, resilience and relentless focus on serving our customers during these difficult times. On the positive front, I am pleased that we started up our new recycling and casting center in Neuf-Brisach in September, slightly ahead of schedule and below budget, and we returned $79 million to shareholders through the repurchase of 4.6 million shares of Company stock during the year. I am also excited about our recent announcement to shift our reporting to U.S. dollars under U.S. GAAP, and to begin filing our SEC reports on U.S. domestic issuer forms."

Mr. Germain continued, "Looking ahead to 2025, we expect global economic conditions to remain challenging to start the year. Focusing on our end markets, aerospace demand has stabilized though commercial aerospace OEMs continue to deal with supply chain challenges. Packaging demand remains healthy in both North America and Europe. Automotive and industrial markets remain challenging in both North America and Europe. The exact impact from the recently announced tariffs and any future tariff actions in the U.S. is too early to tell, but we do expect aluminum rolled products produced domestically in the U.S. will become more competitive against foreign imports."

Mr. Germain concluded, "Based on our current outlook, we expect Adjusted EBITDA to be in the range of $600 million to $630 million, excluding the non-cash impact of metal price lag, and Free Cash Flow in excess of $120 million in 2025. I am also pleased to announce new long-term targets today. For 2028, we expect to achieve Adjusted EBITDA of $900 million, excluding the non-cash impact of metal price lag, and Free Cash Flow of $300 million. While the tariff and international trade situation remains fluid, our current outlook does not include any potential impacts. Our focus remains on executing our strategy, driving operational performance, generating Free Cash Flow and increasing shareholder value."

Group Summary

 
                             Q4 2024  Q4 2023  Var.  YTD 2024  YTD 2023  Var. 
                             -------  -------  ----  --------  --------  ----- 
Shipments (k metric tons)        328      336  (2)%     1,438     1,492   (4)% 
---------------------------  -------  -------  ----  --------  --------  ----- 
Revenue ($ millions)           1,721    1,732  (1)%     7,335     7,826   (6)% 
---------------------------  -------  -------  ----  --------  --------  ----- 
Net income ($ millions)         (47)        5  n.m.        60       157  (62)% 
---------------------------  -------  -------  ----  --------  --------  ----- 
Adjusted EBITDA ($ 
 millions)                       125      164  n.m.       623       662   n.m. 
---------------------------  -------  -------  ----  --------  --------  ----- 
Metal price lag (non-cash) 
 ($ millions)                     27     (14)  n.m.        55      (92)   n.m. 
---------------------------  -------  -------  ----  --------  --------  ----- 
 

(The difference between the sum of reported segment revenue and total group revenue includes revenue from certain non-core activities and inter-segment eliminations. The difference between the sum of reported Segment Adjusted EBITDA and the Group Adjusted EBITDA is related to Holdings and Corporate and the non-cash impact of metal price lag.)

For the fourth quarter of 2024, shipments of 328 thousand metric tons decreased 2% compared to the fourth quarter of 2023 mostly due to lower shipments in the A&T and AS&I segments. Revenue of $1.7 billion decreased 1% compared to the fourth quarter of the prior year primarily due to lower shipments and unfavorable price and mix, partially offset by higher metal prices. The net loss of $47 million decreased $52 million compared to net income of $5 million in the fourth quarter of 2023. Adjusted EBITDA of $125 million decreased $39 million compared to Adjusted EBITDA of $164 million in the fourth quarter of last year due to weaker results in each of our segments and a $15 million impact at Valais as a result of the flood, partially offset by a favorable change in the non-cash metal price lag impact.

For the full year of 2024, shipments of 1.4 million metric tons decreased 4% compared to the full year of 2023 mostly due to lower shipments in the A&T and AS&I segments. Revenue of $7.3 billion decreased 6% compared to the full year of 2023 primarily due to lower shipments and unfavorable price and mix, partially offset by higher metal prices. Net income of $60 million decreased $97 million compared to net income of $157 million in the full year of 2023. Adjusted EBITDA of $623 million decreased $39 million compared to the full year of 2023 due to weaker results in each of our segments and a $33 million impact at Valais as a result of the flood, partially offset by a favorable change in the non-cash metal price lag impact.

Results by Segment

Aerospace & Transportation (A&T)

 
                            Q4 2024  Q4 2023  Var.   YTD 2024  YTD 2023  Var. 
                            -------  -------  -----  --------  --------  ----- 
Shipments (k metric tons)        44       48   (7)%       209       219   (4)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Revenue ($ millions)            430      439   (2)%     1,816     1,868   (3)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Segment Adjusted EBITDA ($ 
 millions)                       56       83  (33)%       285       351  (19)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Segment Adjusted EBITDA 
 per metric ton ($)           1,271    1,747  (27)%     1,362     1,606  (15)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
 

For the fourth quarter of 2024, Segment Adjusted EBITDA of $56 million decreased 33% compared to the fourth quarter of 2023 primarily due to lower shipments, unfavorable price and mix and a $5 million impact at Valais as a result of the flood. Shipments of 44 thousand metric tons decreased 7% compared to the fourth quarter of the prior year due to lower shipments of transportation, industry and defense $(TID.SI)$ rolled products. Revenue of $430 million decreased 2% compared to the fourth quarter of 2023 primarily due to lower shipments and unfavorable price and mix, partially offset by higher metal prices.

For the full year of 2024, Segment Adjusted EBITDA of $285 million decreased 19% compared to the full year of 2023 primarily due to lower shipments, unfavorable price and mix and a $13 million impact at Valais as a result of the flood, partially offset by lower costs. Shipments of 209 thousand metric tons decreased 4% compared to the full year of 2023 due to lower shipments of TID rolled products, partially offset by higher shipments of aerospace rolled products. Revenue of $1.8 billion decreased 3% compared to the full year of 2023 primarily due to lower shipments partially offset by higher metal prices.

Packaging & Automotive Rolled Products (P&ARP)

 
                            Q4 2024  Q4 2023  Var.   YTD 2024  YTD 2023  Var. 
                            -------  -------  -----  --------  --------  ----- 
Shipments (k metric tons)       239      238     0%     1,027     1,030     0% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Revenue ($ millions)          1,009      930     8%     4,196     4,214     0% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Segment Adjusted EBITDA ($ 
 millions)                       56       85  (34)%       242       305  (21)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Segment Adjusted EBITDA 
 per metric ton ($)             234      357  (34)%       236       296  (20)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
 

For the fourth quarter of 2024, Segment Adjusted EBITDA of $56 million decreased 34% compared to the fourth quarter of 2023 primarily due to unfavorable metal costs given tighter scrap spreads in North America and unfavorable price and mix, partially offset by lower operating costs. The fourth quarter of 2023 also included energy-related grants which did not repeat to the same degree in the fourth quarter of 2024. Shipments of 239 thousand metric tons were stable compared to the fourth quarter of the prior year mostly due to higher shipments of packaging rolled products offset by lower shipments of automotive rolled products. Revenue of $1.0 billion increased 8% compared to the full year of 2023 primarily due to higher metal prices partially offset by unfavorable price and mix.

For the full year of 2024, Segment Adjusted EBITDA of $242 million decreased 21% compared to the full year of 2023 primarily due to unfavorable metal costs given tighter scrap spreads in North America, weather-related impacts in the first quarter of 2024 at our Muscle Shoals facility and unfavorable price and mix, partially offset by lower operating costs. Shipments of 1.0 million metric tons were stable compared to the full year of 2023 due to higher shipments of packaging rolled products offset by lower shipments of automotive and specialty rolled products. Revenue of $4.2 billion was stable compared to the full year of 2023 primarily due to higher metal prices offset by unfavorable price and mix.

Automotive Structures & Industry (AS&I)

 
                            Q4 2024  Q4 2023  Var.   YTD 2024  YTD 2023  Var. 
                            -------  -------  -----  --------  --------  ----- 
Shipments (k metric tons)        44       50  (13)%       201       243  (17)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Revenue ($ millions)            329      358   (8)%     1,432     1,762  (19)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Segment Adjusted EBITDA ($ 
 millions)                        4       23  (83)%        74       129  (43)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
Segment Adjusted EBITDA 
 per metric ton ($)              91      458  (80)%       367       531  (31)% 
--------------------------  -------  -------  -----  --------  --------  ----- 
 

For the fourth quarter of 2024, Segment Adjusted EBITDA of $4 million decreased 83% compared to the fourth quarter of 2023 primarily due to lower shipments and a $10 million impact at Valais as a result of the flood. Shipments of 44 thousand metric tons decreased 13% compared to the fourth quarter of the prior year due to lower shipments of automotive and other extruded products. Revenue of $329 million decreased 8% compared to the fourth quarter of 2023 primarily due to lower shipments and unfavorable price and mix, partially offset by higher metal prices.

For the full year of 2024, Segment Adjusted EBITDA of $74 million decreased 43% compared to the full year of 2023 primarily due to lower shipments, unfavorable price and mix and a $20 million impact at Valais as a result of the flood, partially offset by lower costs. Shipments of 201 thousand metric tons decreased 17% compared to the full year of 2023 due to lower shipments of automotive and other extruded products, including the sale of Constellium Extrusions Deutschland GmbH ("CED") in September 2023. Revenue of $1.4 billion decreased 19% compared to the full year of 2023 primarily due to lower shipments and unfavorable price and mix, partially offset by higher metal prices.

The following table reconciles the total of our segments' measures of profitability to the group's Income from Operations:

 
                      Three months ended 
                         December 31,         Year ended December 31, 
                   -------------------------  ------------------------ 
(in millions of 
U.S. dollar)           2024         2023         2024         2023 
----------------   ------------  -----------  -----------  ----------- 
A&T                    56            83           285          351 
P&ARP                  56            85           242          305 
AS&I                    4            23            74          129 
Holdings and 
 Corporate            (18)          (13)          (33)         (31) 
-----------------  ------   ---  ------       -------      ------- 
Segment Adjusted 
 EBITDA                98           178           568          754 
-----------------  ------  ----  ------  ---  -------      ------- 
Metal price lag        27           (14)           55          (92) 
-----------------  ------  ----  ------       -------      ------- 
Adjusted EBITDA       125           164           623          662 
-----------------  ------  ----  ------  ---  -------      ------- 
Other adjustments    (115)          (91)         (377)        (319) 
Finance costs - 
 net                  (28)          (26)         (111)        (111) 
(Loss) / income 
 before tax           (18)           47           135          232 
Income tax 
 expense              (29)          (42)          (75)         (75) 
Net (loss) / 
 income               (47)            5            60          157 
 

Reconciling items excluded from our Segment Adjusted EBITDA include the following:

Metal price lag

Metal price lag represents the financial impact of the timing difference between when aluminum prices included within Constellium's Revenue are established and when aluminum purchase prices included in Cost of sales are established. The metal price lag will generally increase our earnings in times of rising primary aluminum prices and decrease our earnings in times of declining primary aluminum prices. The calculation of metal price lag adjustment is based on a standardized methodology applied at each of Constellium's manufacturing sites. Metal price lag is calculated as the average value of product purchased in the period, approximated at the market price, less the value of product in inventory at the weighted average of metal purchased over time, multiplied by the quantity sold in the period.

For both the fourth quarter and the full year of 2024, metal price lag is positive which reflects London Metal Exchange $(LME.UK)$ prices for aluminum increasing during the period. For both the fourth quarter and the full year of 2023, metal price lag is negative which reflects LME prices for aluminum decreasing during the period.

Other adjustments are detailed in the Reconciliation of net income to Adjusted EBITDA Table on page 16.

Net Income

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