Constellium SE

Good day, and thank you for standing by. Welcome to the Constellium first quarter 2026 results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Jason Herzleiser, Director of Investor Relations. Please go ahead.

Thank you, Shannon. I would like to welcome everyone to our first quarter 2026 earnings call. On the call today, we have our Chief Executive Officer, Ingrid York, and our Chief Financial Officer, Jack Guo. After the presentation, we will have a Q&A session. A copy of the slide presentation for today's call is available on our website at Constellium.com, and today's call is being recorded. Before we begin, I'd like to encourage everyone to visit the company's website and take a look at our recent filings. Today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the company's anticipated financial and operating performance, future events, and expectations, and may involve known and unknown risks and uncertainties. For a summary of specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to the factors presented under the heading Risk Factors in our annual report on Form 10-K. All information in this presentation is as of the date of the presentation. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events, or otherwise. Acceptance required by law. In addition, today's presentation includes information regarding certain non-GAAP financial measures. Please see the reconciliations of non-GAAP financial measures attached in today's slide presentation, which supplement our GAAP disclosures. And with that, I would now like to hand the call over to Ingrid.

Thanks, Jason. Good morning, good afternoon, everyone, and thank you for your interest in Constellium. Before we start, I wanted to say we are very pleased with our first quarter performance including record adjusted EBITDA. We are also raising our outlook for the full year and expect 2026 to be a record year for the company, both in terms of adjusted EBITDA and free cash flow. Okay, let's begin on slide five and discuss the highlights from our first quarter performance. I would like to start with safety, our number one priority. We delivered strong safety performance in the first quarter with a recordable case rate of 1.16 per million hours worked versus 1.91 in 2025. Despite this strong achievement, our safety journey is never complete. We remain focused on this critical priority every day, including achieving our safety target to reduce our annual recordable case rate to 1.5 per million hours worked. Turning to our financial results, shipments were 370,000 tons in the first quarter, as higher shipments in A&T were offset by lower shipments in PAP and AS&I. Revenue of $2.5 billion increased 24% compared to the first quarter of 2025 due to the higher revenue per ton, including higher metal prices. Remember, while our revenues are affected by changes in metal prices, we operate the pass-through business model, which minimizes our exposure to metal price risk. Our net income was $196 million in the quarter, compared to net income of $38 million in the first quarter last year. The main drivers of the increase were higher gross profit and favorable changes in other gains and losses in the quarter versus last year. Compared to the first quarter last year, adjusted EBITDA increased 93% to $359 million in the first quarter this year, though this includes a positive non-cash impact from metal price lag of $97 million. If we exclude the impact of metal price lag, which, as you know, is the way we view the real economic performance of our business, we achieved an adjusted EBITDA of $262 million in the quarter. This represents an all-time record for the company and is up 78% versus the $147 million in the first quarter last year. Adjusted EBITDA was up in each of our operating segments in the quarter versus last year, including a new quarterly record for PARP and a new first quarter record for A&T. Our free cash flow was $5 million in the quarter, and during the quarter, we returned $28 million to shareholders through the repurchase of 1.2 million shares. In March, we announced that our board approved a new $300 million share repurchase program that expires in December 2028 and that will replace our existing program following our annual shareholders meeting this May. We delivered strong results this quarter, which were ahead of our own expectations despite macroeconomic and geopolitical uncertainties. During the quarter, we benefited from current market dynamics including supply shortages of automotive raw products in North America, improved aerospace and TID environments, and highly favorable scrap and metal dynamics in North America. Before turning the call over to Jack, I wanted to make a few comments regarding the expected impact from the conflict in the Middle East. In terms of metal supply, we do source some metal from the Middle East today, both slabs and billets. but they represent a small percentage of our overall needs. As such, we believe the impact on metal supply for us is limited at this stage, and we should be able to resource through a combination of internal and external metal flows. On energy, most of our energy costs are locked in for 2026. For the small portion which we chose to leave open, the impact of higher energy costs should be modest. In other cost categories, we are beginning to see some inflationary pressures in freight, lubricants, and coatings, but we expect the net impact from this to be manageable. We currently do not expect any impact on our supply chain from lack of freight capacity. In terms of other indirect impacts from the Middle East conflict, we have not seen much end market disruption at this stage, so we will continue to monitor it closely. To wrap up on this topic, the overall impact from the conflict in the Middle East appears digestible at this point. The longer-term impacts remain uncertain and difficult to predict, but we are confident in our ability to manage our business in any environment. With that, I will now hand the call over to Jack for further details on our financial performance.