On February 20, 2025, Constellium SE (CSTM, Financial) released its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a net loss of $47 million for Q4 2024, compared to a net income of $5 million in Q4 2023. For the full year, net income was $60 million, down from $157 million in 2023. Constellium also announced its transition to reporting under U.S. GAAP and set new long-term financial targets, including an Adjusted EBITDA of $900 million by 2028.
Positive Highlights
- Successful start-up of a new recycling and casting center in Neuf-Brisach, ahead of schedule and under budget.
- Repurchased 4.6 million shares, returning $79 million to shareholders.
- Transition to U.S. GAAP reporting, enhancing transparency and comparability.
Negative Highlights
- Net loss of $47 million in Q4 2024, compared to a net income of $5 million in Q4 2023.
- Revenue decreased by 6% year-over-year to $7.3 billion.
- Significant impact from severe flooding in Valais, affecting Adjusted EBITDA and Free Cash Flow.
Financial Analyst Perspective
From a financial analyst's viewpoint, Constellium's 2024 results reflect the challenges posed by external factors such as severe weather events and market headwinds. The company's decision to transition to U.S. GAAP is a strategic move that could improve investor confidence by aligning its reporting with U.S. standards. The new long-term targets indicate a focus on growth and operational efficiency, although achieving these will require navigating ongoing market uncertainties.
Market Research Analyst Perspective
As a market research analyst, the shift to U.S. GAAP and the setting of ambitious financial targets suggest Constellium is positioning itself for greater competitiveness in the global market. The company's investment in recycling and casting capabilities aligns with industry trends towards sustainability. However, the impact of tariffs and geopolitical tensions remains a concern for future performance.
Frequently Asked Questions (FAQ)
Q: What was Constellium's net income for 2024?
A: Constellium reported a net income of $60 million for the full year 2024.
Q: How did the Valais flood impact Constellium's financials?
A: The flood resulted in a $33 million impact on Adjusted EBITDA and a $45 million impact on Free Cash Flow for the full year 2024.
Q: What are Constellium's long-term financial targets?
A: By 2028, Constellium aims to achieve an Adjusted EBITDA of $900 million and Free Cash Flow of $300 million.
Read the original press release here.
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