Constellium's 2024 Earnings Decline Sharply Amid Operational Setbacks and Market Weakness

Constellium Al

Flooding, Cold Weather, and Weak Demand Pressure Aluminium Producer's Margins

Constellium, the France-based aluminium producer, reported a significant drop in 2024 earnings, citing weather-related disruptions and weakening demand across key markets.

The company posted an adjusted EBITDA of $623 million, down 12.6% year-on-year, on revenue of $7.3 billion, which declined 6% from 2023.

Severe flooding in Switzerland and extreme cold in the U.S. disrupted operations throughout the year. Fourth-quarter EBITDA dropped 26.9% to $125 million, while Q4 revenue declined 1% to $1.72 billion. Annual shipment volumes fell 4% to 1.4 million tonnes, with Q4 volumes slipping 2% to 328,000 tonnes.

All Divisions Record Lower EBITDA and Mixed Shipment Results

The aerospace and transportation division reported a 19% EBITDA decline in 2024 to $285 million, with Q4 EBITDA dropping 33% to $56 million. Annual shipments fell 4% to 209,000 tonnes, and fourth-quarter shipments declined 7% to 44,000 tonnes.

In the packaging and automotive rolled products division, EBITDA dropped 21% year-on-year to $242 million, with Q4 EBITDA plunging 34% to $56 million. However, shipments held steady at 1.03 million tonnes for the year and 239,000 tonnes in Q4.

The automotive structures and industry division experienced the steepest drop, with EBITDA down 43% to $74 million for the year. Q4 EBITDA fell 83% to just $4 million, while annual shipments declined 17% to 201,000 tonnes.

CEO Outlines 2025 Outlook Despite 2024 Challenges

Constellium CEO Jean-Marc Germain acknowledged 2024 as a “very challenging year” due to weather impacts, tightening scrap spreads, and broad market weakness.

The company faced disruption from snowstorms at Muscle Shoals and flooding in the Valais region of Switzerland.

Despite headwinds, Germain expressed optimism for 2025, guiding adjusted EBITDA between $600–630 million, assuming market stabilization.