Constellium raises 2025 guidance

“Our guidance assumes an improvement in the second half this year compared to the first half, including our strong performance in the third quarter,” Jean-Marc Germain, CEO and executive director, said during the company’s earnings call.

Constellium is banking on the timing of tariff mitigations and customer compensations as well as more favorable scrap purchasing; favorable foreign exchange translation; and the ramp-up of its Valais facility in Switzerland, which experienced major flooding in 2024.

The guidance also factors in the supply chain disruption following the fire at competitor Novelis’ mill in Oswego, NY, which strained already tight capacity for automotive and sheet.

“The entire industry is mobilizing to ensure we limit the impact on our customers,” said Ingrid Joerg, executive vice president and COO. “We currently expect a modest benefit from this, more so in 2026 than this year.”

Asked how to quantify the impact of the fire, Germain said, “It’s enough that we talk about it, but not enough that we would put a number just yet.”

“It will depend on a number of factors,” Germain continued. “Following this fire, the whole industry rallied to support our common customers. But it was very hard to deliver in quantities in the — just in the wake of the fire because products need to come from the US, which is quite tapped out in terms of capacity. So, a lot of it needs to come from overseas. That takes time; you need qualification time even if it’s accelerated.

“So, we think we’re going to see some benefit in ’26, more in ’26 than we’re seeing in ’25.”

Recycled metals

Another factor in raising guidance is scrap spreads. In 2024, there was a dramatic tightening of spot scrap spreads in North America, which have widened in 2025.

“Given that a portion of our scrap purchases were negotiated previously, we did not benefit much from this dynamic during the period. However, we expect to benefit more in the fourth quarter this year,” said Jack Guo, senior vice president and chief financial officer. In addition, the Oswego fire has caused scrap spreads to further widen.

Financials

In Q1’25, revenue rose 20% to $2.2 billion year over year, due to higher shipments and higher revenue per ton, including higher metal prices.

Net income rose to $88 million in Q3, up from $8 million a year ago. The main driver of the increase was higher gross profit in the quarter versus last year.

For the first nine months of the year, revenue climbed 11% to $6.2 billion compared to the same period last year. Net income reached $162 million, up from $107 million a year ago.

Tariffs

Constellium said one indirect impact from tariffs has been widening scrap spreads in the US as the import taxes put higher demand for domestically produced aluminum products.

“Put it all together, we continue to believe that the current trade policies should be a net positive for us,” Germain said.

Constellium tends to be “local for local” in the regions where it operates, he noted, and gross tariff exposure is mostly concentrated at our metal supply from Canada to our operations in the US.

“We have made significant progress on pass-throughs and other actions to mitigate a large portion of our gross tariff exposure,” Germain said.