Highlights

  • Constellium shows 1,656.15% one-year basic EPS growth, a P/E of 5.99 and PEG of -4.85.
  • Third quarter net income was $119 million, against $88 million a year earlier.
  • Third quarter revenue was $2,639 million, against $2,166 million, with Adjusted EBITDA at $276 million.
  • Constellium repurchased 2.8 million shares for $78 million in nine months; $257 million remains.

Constellium (NYSE:CSTM) shares were trading at USD 24.26 on October 28, 2026, down 1.22%, alongside one-year basic EPS growth of 1,656.15%, a trailing twelve-month P/E of 5.99 and an expected-basis PEG of -4.85, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the aluminum products maker announced a $300 million share repurchase program on March 12, redeemed $100 million of its 5.625% Senior Notes due June 2028 on July 28, and reported third quarter 2026 net income of $119 million on October 28.

Constellium SE is incorporated in France and lists its principal U.S. executive office at 300 East Lombard Street in Baltimore, Maryland. It describes itself as a global leader in specialty rolled and extruded aluminum products for aerospace, space, defense, packaging, automotive, commercial transportation and general industrial end-markets. At September 30, 2026, it operated 23 manufacturing facilities, 3 R&D centers and 3 administrative centers, and the group has approximately 11,500 employees. Its three operating segments are Aerospace & Transportation, Packaging & Automotive Rolled Products, and Automotive Structures & Industry.

Growth: Third Quarter Earnings, Revenue and Segment Adjusted EBITDA

Net income was $119 million in the third quarter against $88 million a year earlier, and $463 million for the nine months against $162 million. Basic earnings per share were $0.87 against $0.63, and diluted earnings per share were $0.84 against $0.62. Nine-month diluted earnings per share were $3.31 against $1.13.

Revenue rose 22% to $2,639 million from $2,166 million, which the company attributed to higher revenue per ton, including higher metal prices, partially offset by lower shipments. Shipments were 368 kt against 373 kt. Nine-month revenue rose 26% to $7,848 million. Cost of sales rose 23% to $2,272 million, which the company attributed primarily to higher metal prices.

Adjusted EBITDA, a non-GAAP measure, was $276 million against $235 million, and $1,074 million for the nine months against $566 million. Segment Adjusted EBITDA was $102 million for Aerospace & Transportation against $90 million, $162 million for Packaging & Automotive Rolled Products against $82 million, and $21 million for Automotive Structures & Industry against $33 million.

Valuation: P/E of 5.99, PEG of -4.85 and Cash Flow

The P/E ratio of 5.99 is measured on trailing twelve-month earnings, and the PEG ratio of -4.85 is on an expected basis. Net cash flows from operating activities were $420 million for the nine months against $271 million.

The company said its focus includes generating free cash flow and increasing shareholder value. On its third quarter 2026 earnings call, management said it expects to use the free cash flow generated this year primarily for debt reduction and the share repurchase program.

Capital Returns, Debt and Liquidity

Constellium repurchased 2.8 million ordinary shares for $78 million in the nine months, including 1,044,441 shares in the third quarter. The $300 million program, effective May 21, 2026, expires December 31, 2028, and approximately $257 million remained at September 30, 2026.

Total debt was $1,817 million at September 30, 2026, against $1,944 million at December 31, 2025. After the July redemption, $225 million of the 5.625% notes remained outstanding. Liquidity was $992 million, comprising $158 million of cash and cash equivalents and $541 million, $179 million and $114 million of availability under its Pan-U.S. ABL, factoring arrangements and French asset-based facility. On October 22, 2026, the Pan-U.S. ABL commitments increased from $550 million to $700 million and the maturity extended to October 22, 2031.

Disclosed Risks and Outlook

Automotive Structures & Industry Adjusted EBITDA fell 36% to $21 million, which the company attributed to lower volumes and a net customer compensation received in the third quarter of 2025. Volumes fell 3% for Packaging & Automotive Rolled Products and 4% for Automotive Structures & Industry. The company said combined Section 338 and Section 232 tariffs on extruded aluminum imported from Canada will raise overall tariff costs, and that conflict in the Middle East has led to higher fuel and energy prices. The filing reported no material legal developments since December 31, 2025.

On the call, management cited inflationary pressures in freight, lubricants and coatings, and Chinese competition in European automotive markets.

Management raised its full-year 2026 outlook on the call: Adjusted EBITDA excluding metal price lag of $1.03 billion to $1.06 billion, free cash flow in excess of $300 million, capital expenditures of approximately $330 million, unchanged, cash interest of approximately $125 million and cash taxes of approximately $105 million. The guidance assumes normal fourth quarter seasonality. Management expects the Neuf-Brisach recycling center to reach nominal capacity in the first half of 2027.