Constellium SE (CSTM) | Investment Case

1. Company Snapshot

1.a. Company Description

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of specialty rolled and extruded aluminum products for the packaging, aerospace, and automotive end-markets.The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry.The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market.

It also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets.The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications.The Automotive Structures & Industry segment offers extruded products and technologically advanced structures for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets.

This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services.The company sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul.Constellium SE was incorporated in 2010 and is headquartered in Paris, France.

Show Full description

1.b. Last Insights on CSTM

Breaking News: Constellium SE recently announced the inauguration of new finishing lines at its Singen plant in Germany, marking the completion of a €30 million investment made in partnership with Lotte Infracell. This investment aims to supply high-quality aluminum foilstock for battery applications in Europe. The company's strategic move is expected to strengthen its position in the growing market for battery materials. Analysts at UBS maintain a buy recommendation on the stock, citing the company's solid growth prospects. Similarly, analysts at Goldman Sachs have a buy rating.

1.c. Company Highlights

Last Price	17.77
Change Percentage	-2.26%
Open	18.1
Previous Close	18.18
Market Cap ( Millions)	2450
Volume	1028912
Year High	18.34
Year Low	7.33
M A 50	15.86
M A 200	13.33

FCF Yield	-4.41%
Dividend Yield	0.00%
ROE	16.73%
Debt / Equity	233.14%
Net Debt / EBIDTA	284.69%
Price To Book	2.9
Price Earnings Ratio	19.85
Price To FCF	-22.66
Price To sales	0.3
EV / EBITDA	6.54

2. Constellium's Strong Q3 2025 Results Drive Guidance Raise

Constellium reported a robust Q3 2025, with revenue increasing 20% to $2.2 billion, driven by a 6% rise in shipments to 373,000 tons. The company's net income was $88 million, and adjusted EBITDA surged 85% to $235 million, or $196 million excluding the impact of metal price lag. Earnings per share (EPS) came in at $0.62, significantly beating estimates of $0.315. The strong financial performance was accompanied by a healthy free cash flow of $30 million, with $25 million returned to shareholders through share repurchases.

Publication Date: Nov -03

                                    📋 Highlights
                                    Leadership Transition:
                                                Jean-Marc Germain retiring as CEO by December 31, succeeded by Ingrid Joerg.
Q3 2025 Performance:
                                                Shipments rose 6% to 373,000 tons; revenue surged 20% to $2.2 billion.
Profitability Surge:
                                                Adjusted EBITDA jumped 85% to $235 million ($196 million excluding metal price lag), net income at $88 million.
Free Cash Flow & Shareholder Returns:
                                                $30 million free cash flow in Q3; $25 million returned via share repurchases.
2025 Guidance Raised:
                                                Targets adjusted EBITDA of $670–690 million and free cash flow exceeding $120 million, citing tariff mitigations and scrap spreads.

                                

Segment-wise Performance

The company's segments performed well, with A&T adjusted EBITDA increasing 67% to $90 million, driven by higher TID shipments and improved pricing. The Parts segment adjusted EBITDA rose 14% to $82 million, while AS&I segment adjusted EBITDA jumped 371% to $33 million. The strong segmental performance was a key contributor to the company's overall financial health.

Outlook and Guidance

Constellium raised its guidance for 2025, targeting adjusted EBITDA of $670-690 million and free cash flow in excess of $120 million. The company expects a net positive impact from the current tariff environment and sees opportunities for growth in its end markets, driven by increasing demand for sustainable aluminum beverage cans and fuel-efficient aircraft. The long-term outlook for packaging remains favorable, with expected growth in North America and Europe.

Valuation and Metrics

With a P/E Ratio of 17.84 and EV/EBITDA of 9.51, the market is pricing in a certain level of growth for Constellium. The company's ROE of 16.73% and ROIC of 0.24% indicate a decent return on equity, although the Net Debt / EBITDA ratio of 4.43x suggests that leverage remains a concern. Analysts estimate revenue growth at 5.8% for next year, which may be achievable given the company's strong momentum and new CEO Ingrid Joerg's leadership.

Challenges and Opportunities

While Constellium faces challenges, including weak conditions in Europe and automotive headwinds, the company is well-positioned to capitalize on opportunities in the aerospace and packaging segments. The expected tailwind from scrap spreads and benefits from a competitor's plant fire are additional positives. With a new CEO at the helm, Constellium is building momentum towards its objectives, including a target of $900 million in EBITDA by 2028.

3. NewsRoom

Constellium Inaugurates New Finishing Lines at Singen, Marking Completion of Major Investment

Dec -03

Source: globenewswire.com

Creative Planning Sells 74,967 Shares of Constellium SE $CSTM

Nov -27

Source: defenseworld.net

Envestnet Asset Management Inc. Sells 8,473 Shares of Constellium SE $CSTM

Nov -24

Source: defenseworld.net

Why I Think Constellium Deserves A Re-Rating

Nov -20

Source: seekingalpha.com

Bailard Inc. Makes New Investment in Constellium SE $CSTM

Nov -15

Source: defenseworld.net

Y Intercept Hong Kong Ltd Acquires New Position in Constellium SE $CSTM

Nov -03

Source: defenseworld.net

Constellium SE (CSTM) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

Constellium (CSTM) Tops Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.73%)

6. Segments

Packaging and Automotive Rolled Products

Expected Growth: 6.5%

Constellium SE's Packaging and Automotive Rolled Products segment growth of 6.5% is driven by increasing demand for sustainable and lightweight packaging solutions, growing adoption of electric vehicles, and rising need for advanced materials in automotive manufacturing. Additionally, the company's strategic investments in innovation and expansion into new markets also contribute to this growth.

Aerospace and Transportation

Expected Growth: 6.8%

Constellium SE's Aerospace and Transportation segment growth of 6.8% is driven by increasing demand for lightweight and high-strength aluminum alloys in aircraft production, growing adoption of electric vehicles, and rising investments in next-generation transportation infrastructure.

Automotive Structures and Industry

Expected Growth: 7.2%

Constellium SE's Automotive Structures and Industry segment growth of 7.2% is driven by increasing demand for lightweight and sustainable vehicle solutions, electrification of vehicles, and growing adoption of aluminum in electric vehicle batteries. Additionally, the company's innovative products and technologies, such as its Airware technology, are gaining traction with major OEMs, contributing to the segment's growth.

Holdings & Corporate

Expected Growth: 6.2%

Constellium SE's Holdings & Corporate segment growth of 6.2% is driven by increasing demand for aluminum products in the aerospace and automotive industries, coupled with the company's strategic acquisitions and expansion into new markets. Additionally, cost savings initiatives and operational efficiencies have contributed to the segment's growth.

7. Detailed Products

Aerospace Plates

High-strength, high-temperature resistant aluminum plates for aerospace applications

Automotive Body Sheets

High-formability, corrosion-resistant aluminum sheets for automotive body panels

Packaging Foil

Thin, flexible aluminum foil for food and pharmaceutical packaging

Railway Wheels

High-strength, corrosion-resistant aluminum wheels for railway applications

Specialty Tubes

High-strength, corrosion-resistant aluminum tubes for industrial and commercial applications

Defense Plates

High-strength, high-temperature resistant aluminum plates for defense applications

8. Constellium SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Constellium SE operates in the aluminum industry, where substitutes are limited. However, the company faces some threat from alternative materials such as steel, copper, and carbon fiber, which can be used in certain applications.

Bargaining Power Of Customers

Constellium SE's customers, including major aerospace and automotive companies, have significant bargaining power due to their large purchasing volumes and ability to negotiate prices.

Bargaining Power Of Suppliers

Constellium SE's suppliers of raw materials such as bauxite and alumina have limited bargaining power due to the company's large scale of operations and diversified supply chain.

Threat Of New Entrants

The threat of new entrants in the aluminum industry is low due to the high capital costs and technical expertise required to establish a new smelter or rolling mill.

Intensity Of Rivalry

The aluminum industry is moderately competitive, with several major players competing for market share. However, Constellium SE's diversified product portfolio and strong customer relationships help to mitigate the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	67.03%
Debt Cost	10.35%
Equity Weight	32.97%
Equity Cost	13.94%
WACC	11.53%
Leverage	203.32%

11. Quality Control: Constellium SE passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Grupa Kety

A-Score: 6.5/10

Value: 4.1

Growth: 6.0

Quality: 6.2

Yield: 9.4

Momentum: 6.5

Volatility: 7.0

1-Year Total Return ->

Norsk Hydro

A-Score: 6.2/10

Value: 6.8

Growth: 6.3

Quality: 5.4

Yield: 7.5

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

ICL

A-Score: 5.8/10

Value: 5.2

Growth: 3.7

Quality: 4.2

Yield: 8.8

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Akzo Nobel

A-Score: 5.1/10

Value: 4.6

Growth: 4.8

Quality: 3.8

Yield: 5.6

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

IMCD

A-Score: 4.2/10

Value: 4.2

Growth: 6.6

Quality: 5.0

Yield: 3.1

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

Constellium

A-Score: 3.0/10

Value: 6.7

Growth: 2.9

Quality: 2.1

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

41.63%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.53%

Constellium SE - FR0013467479

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CSTM

1.c. Company Highlights

Lower Yield

Average Quality

Stable Momentum

Earnings Miss

Revenues Miss

Earnings Beats

Medium Volatility

Revenues Beats

Lower Quality

More Volatile

Weak Momentum

2. Constellium's Strong Q3 2025 Results Drive Guidance Raise

Segment-wise Performance

Outlook and Guidance

Valuation and Metrics

Challenges and Opportunities

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.73%)

6. Segments

Packaging and Automotive Rolled Products

Expected Growth: 6.5%

Aerospace and Transportation

Expected Growth: 6.8%

Automotive Structures and Industry

Expected Growth: 7.2%

Holdings & Corporate

Expected Growth: 6.2%

7. Detailed Products

Aerospace Plates

Automotive Body Sheets

Packaging Foil

Railway Wheels

Specialty Tubes

Defense Plates

8. Constellium SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Constellium SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.77$

Current Price

17.77$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA