Earnings

Constellium's $1,074 Million Nine-Month Profit Measure Includes $222 Million Of Metal-Price Timing

The aluminum maker's metal price lag turned negative in the third quarter, even as it raised its 2026 outlook.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
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Constellium's $1,074 Million Nine-Month Profit Measure Includes $222 Million Of Metal-Price Timing

Constellium's nine-month Adjusted EBITDA of $1,074 million includes $222 million of non-cash metal price lag, and that timing effect turned negative in the third quarter, a 10-Q filed Wednesday shows. The aluminum products maker still raised its full-year guidance.

A tailwind that flipped

Constellium, which makes specialty rolled and extruded aluminum products for aerospace, packaging and automotive customers, defines metal price lag as the timing gap between when aluminum prices in its revenue are set and when purchase prices in its cost of sales are set. The company calls it a non-cash effect.

In the third quarter the lag was negative $4 million, against positive $39 million a year earlier, according to the earnings release. The company said the negative reading reflects primary aluminum prices falling during the period. For the nine months the lag was positive $222 million, against $59 million a year earlier, reflecting rising prices.

Stripping it out, Segment Adjusted EBITDA was $852 million for the nine months versus $507 million. Third-quarter Adjusted EBITDA was $276 million versus $235 million.

Results and a raised outlook

Third-quarter revenue rose 22% to $2,639 million and net income rose to $119 million from $88 million. For nine months, revenue rose 26% to $7,848 million and net income reached $463 million versus $162 million. Shipments fell 1% in both periods.

CEO Ingrid Joerg said the company now expects 2026 Adjusted EBITDA of $1.03 billion to $1.06 billion, excluding metal price lag, and free cash flow above $300 million. Leverage was 1.6x at September 30.

Buybacks totaled $30 million for 1 million shares in the quarter. Constellium also retired $100 million of its 5.625% Senior Notes due June 2028, leaving $225 million.

Cash absorbed by rising metal costs

Receivables climbed to $1,003 million from $723 million at year-end, and inventories to $1,905 million from $1,407 million. Operating cash flow for the nine months was $420 million, up from $271 million.

On October 22, the company amended its Pan-U.S. asset-based credit facility, raising commitments from $550 million to $700 million and extending maturity to October 22, 2031. Liquidity was $992 million at quarter end.

Automotive structures slips

Adjusted EBITDA in the Automotive Structures & Industry segment fell 36% to $21 million from $33 million, and per-ton profit fell 34% to $454 from $683. The company attributed the drop partly to lower shipments and to net customer compensation for an underperforming automotive program received in the third quarter of 2025.

The Packaging & Automotive Rolled Products segment went the other way, with Adjusted EBITDA up 98% to $162 million.

The guided $1.03 billion to $1.06 billion range for 2026 excludes metal price lag, so it does not depend on the timing gain that flattered the nine-month total.

Sources

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