Key insights
- S&P Global Ratings revised Constellium's outlook to positive, citing strong demand in aerospace and packaging, and structural changes in the US aluminum market. The company raised its 2026 guidance for EBITDA and free operating cash flow, driven by its aerospace and transportation segment. This positive outlook suggests potential rating upgrades if Constellium meets its financial targets, indicating a strengthening position within its key markets.
Investing.com - S&P Global Ratings revised its outlook on Constellium SE to positive from stable and affirmed the company’s BB- long-term issuer credit rating. The ratings agency announced the action today, citing structural changes in the U.S. aluminum market and resilient demand in aerospace and packaging sectors.
The aluminum company raised its 2026 guidance following a stronger-than-expected start to the year. Constellium now expects segment adjusted EBITDA of $900 million to $940 million and free operating cash flow exceeding $275 million. S&P Global Ratings revised its over-the-cycle EBITDA estimate for Constellium to about $850 million and forecasts adjusted EBITDA of about $850 million in 2026 and exceeding $920 million in 2027.
The aerospace and transportation segment remains the main driver of earnings growth. Constellium benefits from relationships with major aerospace customers including Airbus and participates in highly engineered applications. The company reported underlying EBITDA of $262 million in the first quarter, equivalent to close to 50% of full-year 2024 underlying EBITDA of $569 million.
S&P Global Ratings forecasts adjusted leverage will decline to approximately 3.0x in 2026 and 2.5x in 2027. The ratings agency expects adjusted free operating cash flow generation of approximately $313 million in 2026, compared with $124 million in 2025. The company announced during first quarter earnings it will use some free cash flows to reduce gross debt.
The positive outlook reflects potential rating upside in the coming 12 months as Constellium continues to deliver on its guidance. S&P Global Ratings stated it could raise the rating over the next 12 to 18 months if Constellium meets 2026 EBITDA targets and reports EBITDA of about $1 billion, supporting deleveraging with EBITDA positioned close to 2.5x at current market conditions.
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