Finance
Constellium SE (NYSE: CSTM) ("Constellium" or the "Company") today reported results for the second quarter ended June 30, 2024.
As a reminder of the press release issued on February 21, 2024 and following the SEC comment letter review process, Constellium will no longer report Value-Added Revenue (VAR), a Non-GAAP financial measure. In addition, the Company 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.
Second quarter 2024 highlights:
- Shipments of 378 thousand metric tons, down 5% compared to Q2 2023
- Revenue of €1.8 billion, down 8% compared to Q2 2023
- Net income of €71 million compared to net income of €32 million in Q2 2023
- Adjusted EBITDA of €214 million
- Includes non-cash metal price lag impact of €42 million
- Segment Adjusted EBITDA of €64 million at P&ARP, €83 million at A&T, €32 million at AS&I, and €(7) million at H&C
- Cash from Operations of €152 million and Free Cash Flow of €75 million
- Repurchased 1.56 million shares of the Company stock for $32.5 million
First half 2024 highlights:
- Shipments of 758 thousand metric tons, down 4% compared to H1 2023
- Revenue of €3.5 billion, down 10% compared to H1 2023
- Net income of €88 million compared to net income of €54 million in H1 2023
- Adjusted EBITDA of €351 million
- Includes non-cash metal price lag impact of €29 million
- Segment Adjusted EBITDA of €107 million at P&ARP, €163 million at A&T, €65 million at AS&I, and €(13) million at H&C
- Cash from Operations of €206 million and Free Cash Flow of €67 million
- Repurchased 1.89 million shares of the Company stock for $39.4 million
- Leverage of 2.5x at June 30, 2024
Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Our team delivered solid second quarter results despite a mixed end market demand environment and two large planned maintenance outages we took during the quarter. In late June, we experienced a severe flooding event at our facilities in Sierre and Chippis in the Valais region in Switzerland. While I am grateful that all of our employees are safe, this natural disaster will have some impact on our results in the near-term.”
“Looking at our end markets, aerospace demand remained strong and packaging demand continued to improve. Automotive demand remained stable in the quarter in North America though demand in Europe continued to weaken. We continued to experience weakness in most industrial and specialties markets with no signs of recovery in the near-term. Free Cash Flow was strong in the quarter at €75 million and we ended the quarter with leverage at 2.5x, within our target leverage range of 1.5x to 2.5x. Also in the quarter, we increased our shareholder returns and repurchased 1.56 million shares for $32.5 million," Mr. Germain continued.