Constellium SE Q1 FY2026 earnings call

• Safety: Strong safety performance in the first quarter with a recordable case rate of 1.16 per million hours worked versus 1.91 in 2025, and focus on reducing the annual recordable case rate to 1.5 per million hours worked. - Financial results: Shipments were 370,000 tons in the first quarter, revenue of $2.5 billion increased 24% compared to the first quarter of 2025, net income was $196 million, adjusted EBITDA increased 93% to $359 million in the first quarter this year (excluding metal price lag impact, adjusted EBITDA was $262 million), free cash flow was $5 million, and $28 million was returned to shareholders through share repurchase. - End market outlook: Aerospace backlogs at record levels, packaging demand healthy, automotive has different trends in North America and Europe. - Cost environment: Operate a pass-through business model, metal costs had volatility, inflationary pressures in multiple categories but net impact expected manageable, and progress on tariffs to mitigate exposure.

A&T segment: Adjusted EBITDA of $102 million, increased 24% compared to the first quarter of 2025, and represents a new first quarter record. Volume was a tailwind of $32 million due to higher shipments in both aerospace and TID. Price and mix was a headwind of $2 million, costs were a headwind of $16 million, and effects and other was a tailwind of $6 million. PARP segment: Adjusted EBITDA of $151 million increased 152% compared to the first quarter of 2025, and is a new quarterly record. Volume was a headwind of $6 million, price and mix was a tailwind of $26 million, costs were a tailwind of $65 million, and FX and other was a tailwind of $6 million. ASMI segment: Adjusted EBITDA of $24 million increased 50% compared to the first quarter of 2025. Volume was a $4 million headwind, price and mix was a $2 million headwind, costs were a tailwind of $11 million, and effects and other was a tailwind of $3 million. Holdings and corporate expense was $15 million in the quarter, up $4 million from last year.

• 2026: Target adjusted EBITDA (excluding the non-cash impact of metal price lag) in the range of $900 million to $940 million, and free cash flow in excess of $275 million. Guidance assumes favorable market conditions continue. - Future: Laser-focused on executing the roadmap to deliver adjusted EBITDA (excluding the non-cash impact of metal price lag) of $900 million and free cash flow of $300 million by 2028, with key drivers including executing on return-seeking CAPEX projects, strong cost control, etc.

• Metal supply: Source some metal from the Middle East, which is a small percentage of overall needs, and the conflict in the Middle East could have an impact. - Energy: Most energy costs locked in for 2026, with a small portion open and modest impact from higher energy costs. - Cost categories: Inflationary pressures in freight, lubricants, and coatings, though net impact expected manageable. - End market impact: Longer-term impact of the Middle East conflict on end markets is uncertain. - Automotive: Weakness in the European automotive, particularly the premium vehicle segment, and impact of Section 232 auto tariffs in Europe.

Q: Questions about the cadence of 2026, bridging to 2027 and 2028, and aerospace volume vs margin.

A: First half is typically stronger, Q2 is usually the strongest quarter, 2027 is a transition year, and 2028 has specific targets.

Q: Questions on scrap spreads for the rest of 2026 and buyback acceleration.

A: Second quarter scrap is locked in, over 50% of second half scrap is locked in, and a balanced approach on share buyback.

Q: Questions on Section 232 derivative tariffs impact and automotive benefit cadence.

A: Minor impact on AS&I, benefit in PAP likely to continue, impact on AS&I is minor.

Q: Questions on European market auto implications and scrap expansion.

A: BYD in Europe has little impact, focus on premium vehicles, and actively using scrap in operations