Constellium’s 2024 Earnings Slide Amid Supply Chain Disruptions and Weaker Demand

Constellium’s

Extreme Weather and Market Headwinds Pressure Aluminium Shipments and Margins

Divisional Profits Drop Sharply as Floods and Scrap Spreads Bite

Constellium, the France-based aluminium producer, reported a 12.6% drop in full-year EBITDA to $623 million in 2024, driven by a series of operational setbacks and softening market demand. Revenue fell 6% to $7.3 billion, as natural disasters and tightening scrap spreads cut into output and profitability.

Weather Events and Logistics Challenges Disrupt Output

Flooding in Switzerland during the second quarter and extreme winter conditions in Muscle Shoals, Alabama, created major obstacles for Constellium’s supply chain. As a result, total aluminium shipments declined 4% to 1.4 million tonnes last year, with a further 2% drop in the fourth quarter. Q4 EBITDA plummeted 26.9% to $125 million, while quarterly revenue slipped 1% to $1.72 billion.

All Major Divisions Report Profit Declines

The aerospace and transportation division saw EBITDA fall 19% to $285 million in 2024, with Q4 profits down 33%. Shipments decreased 4% year-on-year, with a sharper 7% fall in Q4. The packaging and automotive rolled products division faced a 21% annual EBITDA drop to $242 million, with shipments holding steady but Q4 profits off by 34%. The automotive structures and industry division was hit hardest, as EBITDA tumbled 43% to $74 million for the year and plunged 83% in Q4.

CEO Jean-Marc Germain highlighted the challenging environment, citing not only the weather events but also weak demand and tighter North American scrap spreads. Despite these difficulties, Constellium expects 2025 adjusted EBITDA to range from $600-630 million, reflecting cautious optimism for improved conditions.