10-Q · July 29, 2026
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…
Earnings analysis · 10-Q
CSTM earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Constellium delivered a strong third quarter, with revenue up 22% year over year to $2.639 billion, EPS of $0.84, and free cash flow of $128 million. A&T and especially P&ARP drove earnings growth, offsetting weaker…
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Constellium delivered a strong third quarter, with revenue up 22% year over year to $2.639 billion, EPS of $0.84, and free cash flow of $128 million. A&T and especially P&ARP drove earnings growth, offsetting weaker AS&I profitability and a 1% decline in total shipments. Cash generation improved substantially, but elevated inventory and receivables, tariff uncertainty, and continued weakness in AS&I remain important risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
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
- $0.84
What stood out
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Revenue up 22% despite lower volumes
Revenue increased 22% year over year to $2.639 billion, although it declined from $2.75 billion in the prior quarter. Sales volume decreased 1% year over year to 368 kt, indicating that metal pricing and revenue per ton drove most of the growth.
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Profitability remained above prior year
Gross margin was approximately 13.9%, down from 17.5% in Q2 2026 but only 0.6 percentage points below 14.5% in Q3 2025. Operating margin was approximately 7.1%, versus 10.2% in Q2 and 6.1% in the prior-year quarter.
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EPS beat estimates and prior year
Diluted EPS was $0.84, compared with $1.04 in Q2 2026 and $0.62 in Q3 2025. The result exceeded the $0.75 consensus estimate by $0.09.
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A&T benefited from improving demand
A&T revenue rose 38% to $664 million and shipments increased 18%, while Adjusted EBITDA grew 13% to $102 million. Management attributed the performance to improved aerospace, transportation, industry and defense conditions.
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P&ARP delivered major EBITDA growth
P&ARP Adjusted EBITDA nearly doubled, rising 98% to $162 million, and EBITDA per metric ton increased 104% to $608. Favorable metal costs and price/mix more than offset a 3% shipment decline.
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Cash generation improved materially
Nine-month operating cash flow increased $149 million year over year to $420 million. Capital expenditures were $197 million, implying approximately $223 million of nine-month free cash flow, while reported third-quarter free cash flow was $128 million.
What to watch
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Volumes remain under pressure
Total shipments fell 1% year over year to 368 kt, with P&ARP shipments down 3% or 9 kt and AS&I shipments down 4% or 2 kt. Lower volumes can pressure the company’s fixed-cost absorption.
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AS&I profitability deteriorated
AS&I revenue declined 2% to $402 million and Adjusted EBITDA fell 36% to $21 million. EBITDA per ton dropped 34% to $454, reflecting lower automotive and other extrusion volumes and unfavorable price/mix.
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Working capital remains cash-flow risk
Working capital absorbed cash as inventory increased $527 million and trade receivables increased $267 million during the first nine months, partly offset by a $310 million increase in trade payables. Higher aluminum prices and activity levels magnify the liquidity requirement.
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Tariff exposure increased
Management cited continued uncertainty around tariffs and stated that Section 338 tariffs apply to certain Canadian aluminum imports, including extrusions, in addition to Section 232 tariffs. The combined tariffs are expected to drive up overall tariff costs.
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Liquidity depends on facilities and refinancing
Liquidity totaled $992 million at September 30, including only $158 million of cash and cash equivalents. The company also redeemed $100 million of its $325 million 5.625% Senior Notes due June 2028 during the first nine months.
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No formal risk-factor changes
The filing states that there were no material changes to the risk factors disclosed in the December 31, 2025 Form 10-K. However, aluminum prices increased 35% in the U.S. year over year in the quarter, creating continued exposure to metal-price and derivative volatility.
Management's outlook
The 10-Q does not provide explicit quantitative revenue or EPS guidance. Management stated it was optimistic about prospects for the remainder of 2026 and beyond; the quantitative 2026 Adjusted EBITDA and free-cash-flow outlook was provided in the October 28, 2026 earnings release rather than the 10-Q.
Earlier filings 3
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.…
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.