Constellium SE

Good day and welcome to the Constellium second quarter 2026 results conference call. At this time, all participants are in a listen-only mode. After the speaker 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 has been raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Director of Investor Relations, Jason Hershiser.

Thank you, Andrew. I would like to welcome everyone to our second quarter 2026 earnings call. On the call today, we have our Chief Executive Officer, Ingrid Joerg, 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 risk 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. except as 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.

Thank you, 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 the second quarter performance, including record adjusted EBITDA. During the quarter, we benefited from strong operational focus, cost control, and improved market dynamics. As a result, we achieved stronger financial performance across all of our operating segments compared to last year and compared to last quarter. Given our record performance in the quarter and in the first half and our improved outlook for the second half, we are raising our outlook for the full year. As we said previously, we 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 number five and discuss the highlights from our second quarter performance. I would like to start with safety, our number one priority. We delivered strong safety performance in the second quarter with a recordable case rate of 1.5 per million hours worked. This brings our year-to-date recordable case rate to 1.3 per million hours worked versus 1.9 in 2025. Despite the strong achievement, our safety journey is never complete and we remain focused on this critical priority every day. Now turning to our financial results, which were ahead of our own expectations despite macroeconomic and geopolitical uncertainties. During the quarter, we benefited from current market dynamics, including an improved aerospace and TID environment, supply shortages of automotive road products in North America, and strong recycling performance in both North America and Europe. Shipments were 381,000 tons in the second quarter as higher shipments in A&T were offset by lower shipments in PAP. Revenue of $2.7 billion increased 31% compared to the second quarter of 2025 due to higher revenue per ton, including higher metal prices. Remember, while our revenues are affected by changes in metal prices, We operate a pass-through business model which reduces our exposure to metal price risk. Our net income was $148 million in the quarter, compared to net income of $36 million in the second quarter last year. The main driver of the increase was higher gross profit in the quarter versus last year. Compared to the second quarter last year, adjusted EBITDA increased over 200% to $439 million in the second quarter this year. So this includes a positive non-cash impact for metal price lag of $129 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 $310 million in the quarter. This represents an all-time record for the company and is up 88% versus the $165 million in the second 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 both A&T and PARP. Our free cash flow was $90 million in the quarter, and during the quarter, we've returned $20 million to shareholders through the repurchase of 623,000 shares. We ended the quarter with leverage at 1.8 times. Earlier this week, we completed the $100 million partial redemption of the senior notes due in June 2028. 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 need. As such, we believe the impact of 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. In other cost categories, we are seeing 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 the 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 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.