Constellium's tough year and the road ahead

Constellium’s latest earnings report confirmed what most in the aluminum market already saw coming, 2024 was a rough one. Weaker demand, tighter scrap spreads, and a major operational hit from flooding at their Valais facility all dragged on performance. The numbers tell the story: Q4 revenue came in at $1.72 billion, down 1% YoY, with a $47 million net loss and a 24% drop in adjusted EBITDA.

But here’s where it gets interesting. Days before the earnings call, Constellium announced a $0.15 per pound price hike on all U.S. flat-rolled products. The reasoning? Higher costs, tariffs, and “market dynamics”- which is industry talk for “we need to pass these costs along.” Whether customers accept it or push back will be a real test of pricing power, especially in a market that’s still trying to find its footing.

That said, Constellium isn’t just hiking prices and hoping for the best. Their Neuf-Brisach recycling center is fully operational ahead of schedule and under budget, a solid step as the industry leans harder into secondary aluminum. They also repurchased 4.6 million shares, a sign they believe in long-term stability. CEO Jean-Marc Germain acknowledged 2024 was a challenge but pointed to 2025 targets of $600M–$630M in adjusted EBITDA and free cash flow recovery past $120M.

On thing not mentioned on the call? The $75 million in government funding for Constellium’s Ravenswood, WV facility. The funding was frozen by Trump, but is currently under review, pending legal and administrative decisions.

For aluminum buyers, today’s earnings call reinforces that Constellium, and likely other producers, are passing the buck. With tariffs, supply constraints, and shifting trade flows, producers are pushing costs downstream.

As for Constellium’s outlook, they’re betting on a stronger year ahead. But with ambitious targets and persistent cost pressures, the real test will be whether the market can support their recovery.