Constellium reported higher earnings and cash generation in the third quarter, despite slightly lower shipments, and raised its full-year 2026 outlook. The aluminum products maker said stronger results in its aerospace and transportation and packaging and automotive rolled products businesses helped lift quarterly adjusted EBITDA to a third-quarter record.
The company also continued repurchases and ended September with leverage near the low end of its target range. Its updated forecast calls for full-year adjusted EBITDA of $1.03 billion to $1.06 billion, excluding the non-cash effect of metal price lag, and free cash flow above $300 million.
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Third-quarter results: Revenue rose 22% from a year earlier to $2.64 billion, while net income increased to $119 million from $88 million. Shipments slipped 1% to 368,000 metric tons. Revenue growth reflected higher revenue per ton, including higher metal prices, which more than offset the modest decline in volume.
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Adjusted EBITDA and cash flow: Adjusted EBITDA increased 17% to $276 million, a third-quarter record. The total included a $4 million negative non-cash impact from metal price lag. Cash from operations was $186 million and free cash flow was $128 million.
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What drove the quarter: Constellium cited stronger performance in its A&T and P&ARP segments and lower corporate costs, partly offset by weaker results in AS&I, foreign-exchange effects and the change in metal price lag. Management pointed to operational focus and cost control, improving aerospace and transportation, industry and defense markets, North American supply shortages of automotive rolled products, and strong recycling performance in North America and Europe.
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Segment detail: A&T generated $102 million of adjusted EBITDA, up 13% year over year, on shipments up 18% to 59,000 metric tons. Higher aerospace and TID shipments, along with favorable price and product mix, contributed to the increase; higher operating costs and unfavorable currency effects partly offset those gains. The company also reported $162 million of quarterly adjusted EBITDA for P&ARP and $21 million for AS&I.
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First nine months: Revenue rose 26% to $7.85 billion, while net income climbed to $463 million from $162 million. Adjusted EBITDA nearly doubled, increasing 90% to $1.07 billion, with stronger results across all three operating segments and a favorable metal-price-lag effect. That non-cash effect added $222 million in the period, compared with $59 million a year earlier. Shipments declined 1% to 1.12 million metric tons.
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Updated full-year outlook: Constellium now expects 2026 adjusted EBITDA of $1.03 billion to $1.06 billion, excluding metal price lag, and free cash flow of more than $300 million. The company said the outlook reflects its current expectations amid continuing macroeconomic and geopolitical uncertainty.
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Shareholder returns and debt: Constellium repurchased 1.0 million ordinary shares for $30 million during the quarter, bringing repurchases for the first nine months to $78 million. In July, it also completed a $100 million partial redemption of its 5.625% senior notes due June 2028.
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Leverage: Leverage stood at 1.6 times at September 30, near the bottom of the company’s stated target range of 1.5 to 2.5 times.
The results show revenue and profit growth alongside slightly lower shipment volumes, with higher metal prices and stronger performance in key segments contributing to the gains. The raised forecast and cash-flow target accompany continued share repurchases and a partial debt redemption, while leverage remains within the company’s target range.