10-Q · April 29, 2026
Constellium reported strong first quarter results for 2026, with total revenue reaching $2.461 billion, a 24% increase year-over-year, alongside a notable rise in net income to $196 million from $38 million in Q1 2025.…
Earnings analysis · 10-Q
CSTM earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Constellium delivered a strong Q2, with revenue up 31% year over year to $2.748 billion, diluted EPS up to $1.04 from $0.25, and gross margin expanding 5.0 percentage points to 17.5%. All three operating segments grew…
Read full summary
Constellium delivered a strong Q2, with revenue up 31% year over year to $2.748 billion, diluted EPS up to $1.04 from $0.25, and gross margin expanding 5.0 percentage points to 17.5%. All three operating segments grew revenue and Adjusted EBITDA, led by P&ARP's 123% EBITDA increase and A&T's 21% shipment growth. The principal offset is that consolidated volume fell 1% and elevated aluminum prices drove major first-half inventory and receivables increases; management remains optimistic but gives no quantitative outlook in the 10-Q.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.04
What stood out
-
Revenue and EPS accelerated sharply
Q2 revenue increased 31% year over year to $2.748 billion from $2.103 billion, and diluted EPS rose to $1.04 from $0.25. Revenue also increased from $2.460 billion in Q1 2026.
-
Substantial margin expansion
Gross margin expanded to 17.5% from 12.5% a year earlier, as revenue rose $645 million while cost of sales excluding D&A rose $428 million. Operating margin improved to 8.8% from approximately 3.9%.
-
P&ARP earnings more than doubled
P&ARP was the largest earnings contributor: Q2 Adjusted EBITDA increased 123% to $165 million from $74 million, driven by favorable metal costs at Muscle Shoals and Neuf Brisach plus favorable price and mix.
-
Aerospace and transport momentum
A&T revenue rose 38% to $680 million and shipments rose 21%, or 11 kt. Segment Adjusted EBITDA grew 61% to $135 million and EBITDA per ton increased 32% to $2,083.
-
Cash generation improved despite investment
Free cash flow was $90 million in Q2. For the first six months, operating cash flow increased $62 million year over year to $234 million, while capex was $139 million, or 2.7% of six-month revenue.
-
Liquidity remains ample; buybacks continued
Total liquidity was $1.058 billion at June 30, including $163 million of cash and equivalents and $895 million of facility and factoring availability. The company repurchased 623 thousand shares for $20 million during Q2.
What to watch
-
Reported growth was price-led, not volume-led
Consolidated shipments declined 1% to 381 kt despite the 31% increase in revenue. P&ARP shipments fell 4%, or 10 kt, as lower packaging rolled-product shipments partly offset stronger automotive volumes.
-
Metal prices increased working-capital use
Working-capital demands increased with metal prices and activity: in the first half, inventory increased $495 million and trade receivables increased $418 million, partly offset by a $480 million increase in trade payables.
-
Tariff, energy, and aluminum-price volatility
Management cites ongoing tariff and trade uncertainty and Middle East conflict risks that may cause higher fuel and energy prices. Average U.S. all-in aluminum prices rose 77% year over year to $6,089 per ton in Q2, increasing commodity-volatility exposure.
-
AS&I faces price/mix and volume pressure
AS&I revenue increased only 9% to $458 million, and its profitability improvement was primarily driven by lower operating costs while price and mix were unfavorable. Six-month AS&I shipments declined 2%, or 2 kt.
-
No formal risk-factor update; factoring reliance
The filing states there were no material changes to risk factors from the December 31, 2025 10-K. However, the company had $418 million of non-recourse factored receivables at June 30, 2026 and relies on factoring as part of its $1.058 billion liquidity base.
Management's outlook
The 10-Q contains no quantitative revenue, EPS, EBITDA, or free-cash-flow outlook. Management said it is optimistic for the remainder of 2026, while noting continued macroeconomic, geopolitical, tariff, and trade uncertainty.
Earlier filings 2
10-K · February 25, 2026
Constellium positions itself as a high value-add specialty aluminum producer focused on aerospace, packaging and automotive, emphasizing R&D, recycling and customer partnerships. 2025 showed a step-up in volumes and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.