Benzinga | Jul 28, 2021 12:31PM EDT

Constellium Shares Gain After Strong Q2, Raised FY21 Outlook

* Constellium SE (NYSE:CSTM) reported second-quarter revenue growth of 47% year-over-year to (euro)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 (euro)907 million (+61% Y/Y), Aerospace & Transportation (euro)287 million (+15% Y/Y), and Automotive Structures & Industry (euro)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 (euro)148 million, compared to (euro)152 million a year ago. Free cash flow of (euro)81 million.

* Net debt / LTM Adjusted EBITDA of 3.7x at June 30, 2021.

* Adjusted EBITDA increased 110% Y/Y to (euro)170 million, and margin expanded by 335 bps to 11.2%.

* As of June 30, 2021, liquidity was (euro)887 million, comprised of (euro)290 million cash and cash equivalents and (euro)597 million available under committed lending facilities and factoring arrangements. Net debt was (euro)1.98 billion.

* FY21 Outlook: The company expects Adjusted EBITDA of (euro)545 million - (euro)560 million, versus the prior view of (euro)510 million - (euro)530 million.

* It expects free cash flow in excess of (euro)125 million, versus previously expected (euro)100 million.

* Price Action: CSTM shares traded higher by 5.94% at $19.07 on the last check Wednesday.