We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CSTM Q2 Earnings on Deck: How to Approach the Stock Now?
Read MoreHide Full Article
Key Takeaways
Constellium is expected to report Q2 revenues of $2.85 billion and EPS of $0.91 before market open on July 29.
CSTM may benefit from higher metal prices and stronger demand across key rolled products segments.
Constellium faces pressure from higher input costs, political risks and a stronger U.S. dollar.
Constellium SE (CSTM - Free Report) is scheduled to release second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for CSTM’s second-quarter revenues is pegged at $2.85 billion, indicating growth of 35.4% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at 91 cents per share, which increased 7.1% in the past 60 days. The figure indicates growth of 264% from the year-ago quarter's figure.
CSTM’s Earnings Surprise History
Image Source: Zacks Investment Research
The company delivered better-than-expected results in three of the trailing four quarters while missing the mark in one, the earnings surprise being 77% on average. In the last reported quarter, its earnings of $1.42 per share beat the consensus estimate of 62 cents by 129%.
Our proven model does not conclusively predict an earnings beat for CSTM this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: CSTM has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at 91 cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company’s Packaging & Automotive Rolled Products segment is expected to have benefited from higher metal prices. Strong demand for packaging rolled products, reflected in increased order volumes, is also likely to have aided the segment’s revenues. For the second quarter, the Zacks Consensus Estimate for the Packaging & Automotive Rolled Products segment’s total sales is pegged at $1.61 billion, indicating a 9.1% increase sequentially.
Higher shipments of aerospace and transportation, industry and defense (TID) rolled products are expected to have supported the Aerospace & Transportation segment’s performance in the to-be-reported quarter. The consensus mark for the segment’s revenues is pegged at $655 million, indicating a 7.6% rise sequentially.
Higher metal prices are likely to have aided Constellium’s Automotive Structures & Industry segment’s revenues in the second quarter. The consensus mark for the Automotive Structures & Industry segment’s revenues is pegged at $419 million, indicating a 1% rise sequentially.
However, the escalating cost of sales due to higher input costs poses a threat to CSTM’s bottom line. Also, given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Constellium's overseas business in the to-be-reported quarter.
Price Performance
CSTM’s shares have surged 25.9% in the past six months against the Zacks Metal Products - Distribution industry’s 16.9% decline. The company’s shares have also fared better than the S&P 500’s increase of 5.2%. Its peers, Alcoa Corporation (AA - Free Report) and Ryerson Holding Corp. (RYZ - Free Report) , have declined 26.3% and gained 11.8%, respectively, in the same period.
Six-Month Price Performance
Image Source: Zacks Investment Research
CSTM’s Valuation Remains a Headwind
CSTM is currently trading at a forward 12-month P/E of 9.56X, a premium compared with the industry’s 8.13X. In comparison with Constellium’s valuation, its peers, Alcoa is trading lower and Ryerson Holding is trading higher. AA and RYZ are trading at 7.22X and 18.13X, respectively.
Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research
Investment Thesis
Constellium is expected to have benefited from healthy demand for packaging rolled products and increased TID rolled product shipments in the second quarter. Also, rising aluminum prices, driven by geopolitical tensions between Israel and Iran, have been supporting domestic producers like CSTM. Disruptions in the Strait of Hormuz, a key Middle Eastern shipping route, have tightened regional supply. As a result, global aluminum prices have increased, benefiting major industry players such as Constellium.
Should You Buy CSTM Now?
Strong demand in the packaging and aerospace markets and a favorable metal pricing environment position CSTM favorably for strong second-quarter results. However, the near-term challenges, such as rising operating costs & expenses, are limiting the company’s near-term prospects.
The expensive valuation warrants a cautious approach for existing investors. Potential investors should consider waiting for CSTM's earnings report and clearer signs of recovery before investing in the stock.
View the Zacks #1 Rank List
Image: Bigstock
CSTM Q2 Earnings on Deck: How to Approach the Stock Now?
Key Takeaways
Constellium SE (CSTM - Free Report) is scheduled to release second-quarter 2026 results on July 29, before market open.
The Zacks Consensus Estimate for CSTM’s second-quarter revenues is pegged at $2.85 billion, indicating growth of 35.4% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at 91 cents per share, which increased 7.1% in the past 60 days. The figure indicates growth of 264% from the year-ago quarter's figure.
CSTM’s Earnings Surprise History
Image Source: Zacks Investment Research
The company delivered better-than-expected results in three of the trailing four quarters while missing the mark in one, the earnings surprise being 77% on average. In the last reported quarter, its earnings of $1.42 per share beat the consensus estimate of 62 cents by 129%.
Constellium SE Price and EPS Surprise
Constellium SE price-eps-surprise | Constellium SE Quote
Earnings Whispers For CSTM
Our proven model does not conclusively predict an earnings beat for CSTM this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: CSTM has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at 91 cents per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Constellium presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Driving CSTM’s Performance
The company’s Packaging & Automotive Rolled Products segment is expected to have benefited from higher metal prices. Strong demand for packaging rolled products, reflected in increased order volumes, is also likely to have aided the segment’s revenues. For the second quarter, the Zacks Consensus Estimate for the Packaging & Automotive Rolled Products segment’s total sales is pegged at $1.61 billion, indicating a 9.1% increase sequentially.
Higher shipments of aerospace and transportation, industry and defense (TID) rolled products are expected to have supported the Aerospace & Transportation segment’s performance in the to-be-reported quarter. The consensus mark for the segment’s revenues is pegged at $655 million, indicating a 7.6% rise sequentially.
Higher metal prices are likely to have aided Constellium’s Automotive Structures & Industry segment’s revenues in the second quarter. The consensus mark for the Automotive Structures & Industry segment’s revenues is pegged at $419 million, indicating a 1% rise sequentially.
However, the escalating cost of sales due to higher input costs poses a threat to CSTM’s bottom line. Also, given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Constellium's overseas business in the to-be-reported quarter.
Price Performance
CSTM’s shares have surged 25.9% in the past six months against the Zacks Metal Products - Distribution industry’s 16.9% decline. The company’s shares have also fared better than the S&P 500’s increase of 5.2%. Its peers, Alcoa Corporation (AA - Free Report) and Ryerson Holding Corp. (RYZ - Free Report) , have declined 26.3% and gained 11.8%, respectively, in the same period.
Six-Month Price Performance
Image Source: Zacks Investment Research
CSTM’s Valuation Remains a Headwind
CSTM is currently trading at a forward 12-month P/E of 9.56X, a premium compared with the industry’s 8.13X. In comparison with Constellium’s valuation, its peers, Alcoa is trading lower and Ryerson Holding is trading higher. AA and RYZ are trading at 7.22X and 18.13X, respectively.
Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research
Investment Thesis
Constellium is expected to have benefited from healthy demand for packaging rolled products and increased TID rolled product shipments in the second quarter. Also, rising aluminum prices, driven by geopolitical tensions between Israel and Iran, have been supporting domestic producers like CSTM. Disruptions in the Strait of Hormuz, a key Middle Eastern shipping route, have tightened regional supply. As a result, global aluminum prices have increased, benefiting major industry players such as Constellium.
Should You Buy CSTM Now?
Strong demand in the packaging and aerospace markets and a favorable metal pricing environment position CSTM favorably for strong second-quarter results. However, the near-term challenges, such as rising operating costs & expenses, are limiting the company’s near-term prospects.
The expensive valuation warrants a cautious approach for existing investors. Potential investors should consider waiting for CSTM's earnings report and clearer signs of recovery before investing in the stock.