Constellium Shares Gain After Strong Q2, Raised FY21 Outlook - Constellium (NYSE:CSTM)

Constellium SE CSTM reported second-quarter revenue growth of 47% year-over-year to €1.52 billion, reflecting higher shipments and higher metal prices. The Q2 revenue of $1.83 billion beat the consensus of $1.67 billion.
Shipments increased 31% to 406 thousand metric tons.
Sales by segments: Packaging & Automotive Rolled Products €907 million (+61% Y/Y), Aerospace & Transportation €287 million (+15% Y/Y), and Automotive Structures & Industry €345 million (+55% Y/Y).
EPS of $0.88 topped the consensus of $0.21.
The gross margin expanded by around 590 bps to 13.1%.
Constellium generated cash from operating activities year-to-date of €148 million, compared to €152 million a year ago. Free cash flow of €81 million.
Net debt / LTM Adjusted EBITDA of 3.7x at June 30, 2021.
Adjusted EBITDA increased 110% Y/Y to €170 million, and margin expanded by 335 bps to 11.2%.
As of June 30, 2021, liquidity was €887 million, comprised of €290 million cash and cash equivalents and €597 million available under committed lending facilities and factoring arrangements. Net debt was €1.98 billion.
FY21 Outlook: The company expects Adjusted EBITDA of €545 million - €560 million, versus the prior view of €510 million - €530 million.
It expects free cash flow in excess of €125 million, versus previously expected €100 million.
Price Action: CSTM shares traded higher by 5.94% at $19.07 on the last check Wednesday.