Constellium sees 'digestible' impact from Iran war so far

“As such, we believe the impact of metal supply for us is limited at this stage, and we should be able to resource through a combination of internal and external metal flows.”

The company has locked in energy costs for 2026.

“In other cost categories, we are seeing some inflationary pressures in freight, lubricants and coatings, but we expect the net impact from this to be manageable,” Joerg continued. “We currently do not expect any impact on our supply chain from the lack of freight capacity.”

“The overall impact from the conflict in the Middle East appears digestible at this point. The longer-term impacts remain uncertain and difficult to predict, but we are confident in our ability to manage our business in any environment.”

Financials

Constellium raised its 2026 guidance, now expects adjusted EBITDA in the range of $980 million to $1 billion.

The company noted several investments during its second quarter earnings call that are in progress.

The upgrades to the recycling center in Neuf-Brisach in France are expected to reach full capacity in 2027. The casting complex in Muscle Shoals, Ala., which produces sheet for packaging and automotive, is going to come online in 2027. And two new casting complexes in Ravenswood, WV, a rolling and finishing plant for aerospace and defence, are expected to come online in 2028.

The company reported net income of $148 million in the second quarter, up from $36 million in the same period last year.

For the first six months of the year, the company reported net income of $344 million, up from $74 million in the comparable period of 2025.

Shipments were 381 thousand metric tons during the quarter, a decrease of 1% compared to the second quarter of 2025, due to lower shipments in the packaging and automotive segments. The drop was partially offset by higher shipments in aerospace and transportation.

Automotive

The North American automotive market is still recovering from the fires at Novelis’ Oswego facility in New York, which last year took production offline for automotive sheet. The hot mill was restarted in June.

“The entire industry mobilized to ensure we limit the impacts on our customers,” Joerg said. “In the second quarter this year, both [packaging and automotive] and [aerospace and transportation] businesses continue to help our customers during this outage.”

“On the automotive structure side, we are negatively impacted by the outage as some OEMs were forced to reduce production on certain platforms impacted by the disruption on the rolled product side,” Joerg added. “The overall impact in 2026 is a net positive on our results, which we expect to continue throughout the year, but starts to taper off in the third quarter.”