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.