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Constellium Reports Third Quarter 2022 Results

Finance

Constellium SE (NYSE: CSTM) today reported results for the third quarter ended September 30, 2022. 

Third quarter 2022 highlights: 

  • Shipments of 387 thousand metric tons, down 2% compared to Q3 2021 
  • Revenue of €2.0 billion, up 27% compared to Q3 2021 
  • Value-Added Revenue (VAR) of €673 million, up 21% compared to Q3 2021 
  • Net income of €131 million compared to net income of €99 million in Q3 2021 
  • Adjusted EBITDA of €160 million, up 12% compared to Q3 2021 
  • Cash from Operations of €154 million and Free Cash Flow of €74 million 

Nine months ended September 30, 2022 highlights: 

  • Shipments of 1.2 million metric tons, up 2% compared to YTD 2021 
  • Revenue of €6.3 billion, up 41% compared to YTD 2021 
  • VAR of €2.0 billion, up 21% compared to YTD 2021 
  • Net income of €278 million compared to net income of €255 million in YTD 2021 
  • Adjusted EBITDA of €525 million, up 21% compared to YTD 2021 
  • Cash from Operations of €323 million and Free Cash Flow of €160 million 
  • Net debt / LTM Adjusted EBITDA of 3.0x at September 30, 2022 

 

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered strong results in the third quarter. Adjusted EBITDA of €160 million is a third quarter record and includes record third quarter performances by both A&T and AS&I. Looking across our end markets, packaging demand continues to be resilient. Our shipments were down in the quarter due to operating challenges at our Muscle Shoals facility. Automotive shipments were up double digits in the quarter versus last year with new platform launches driving our growth, but we continue to be impacted by the semiconductor shortage and other supply chain challenges. In aerospace, demand is very strong with shipments up around 50% compared to last year for the second quarter in a row. While we are seeing signs of weakness across certain industrial markets, we like our end market positioning. Free Cash Flow in the third quarter was solid at €74 million.”

"Macroeconomic and geopolitical risks remain elevated and we expect significant inflationary pressures to continue, particularly for inputs like energy and in regions more directly affected by the ongoing war in Ukraine. The Constellium team has demonstrated its relentless focus on execution and cost control and I am confident in our ability to manage our business through these challenging times. We remain focused on executing our strategy, driving operational improvements, strengthening our margins, generating Free Cash Flow and increasing shareholder value,” Mr. Germain continued. Mr. Germain concluded, “We expect recent demand trends in our markets to continue through the remainder of 2022. Based on our current outlook, in 2022 we expect Adjusted EBITDA at the low end of our range of €670 million to €690 million and Free Cash Flow in excess of €170 million.”


Forward Looking Statement

Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations, including the length and magnitude of disruption resulting from the global COVID-19 pandemic; the Russian invasion of Ukraine; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; supply disruptions; excessive inflation; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

Investor Relations

Jason Hershiser

+1 (443) 988 0600investor-relations@constellium.com

Corporate Communications U.S.

Delphine Dahan-Kocher

+1 (443) 420 7860delphine.dahan-kocher@constellium.com

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