JPMorgan upgrades Constellium to Overweight, raises price target to $35
Key Facts
JPMorgan upgraded Constellium from Neutral to Overweight and raised its price target to $35 from $34, according to an Investing.com report on the bank’s move on October 29, 2026. The decision followed the company’s third-quarter results, which showed adjusted segment earnings of $280 million, 12% above consensus expectations. The upgrade thus came against a backdrop of operating results that exceeded analysts’ estimates, alongside higher company guidance for the year. Constellium reported its results on October 28 for the quarter and nine months ended September 30, 2026. The company scheduled its results call for 10:00 a.m. Eastern Time on the day of the announcement, after issuing the release before the market opened.
Quarterly revenue was $2.6 billion, up 22% from the same period in 2025, while net income rose to $119 million from $88 million. Shipments, by contrast, reached 368,000 metric tons, down 1% year over year. The company attributed the decline in shipments to lower volumes in its packaging and automotive rolled products, automotive structures and industry segments, partly offset by higher shipments in aerospace and transportation. Group revenue per ton increased, including the effect of higher metal prices, while lower shipments had the opposite effect, according to a correction to the information in the company’s release. The figures highlight the divergence between revenue and shipment volumes, with revenue growing year over year despite lower volumes shipped.
The chief executive said the company benefited from “strong operational focus, cost control and improving market dynamics,” including better conditions in aerospace and transportation, industry and defense. JPMorgan’s report said demand remained resilient outside the automotive and European specialty products markets. The report also said that destocking in commercial aerospace had been completed. It noted that reshoring and tariffs supported aerospace and transportation, industry and defense activity in North America. In interpreting the group’s results, these market factors add to the cost controls cited by management in presenting performance.
For the first nine months of 2026, Constellium reported revenue of $7.8 billion, up 26% from the same period a year earlier. Net income was $463 million, compared with $162 million in the first nine months of 2025. In the third quarter alone, the company generated free cash flow of $128 million. It also returned $30 million to shareholders by repurchasing 1 million ordinary shares during the quarter. Leverage was 1.6 times on September 30, near the lower end of the company’s target range of 1.5 to 2.5 times.
Constellium raised its 2026 guidance to adjusted EBITDA of $1.03 billion to $1.06 billion, excluding the non-cash impact of the lag in metal prices. The company expects free cash flow to exceed $300 million for the year. The new guidance follows free cash flow of $128 million in the third quarter, while the company said leverage remained near the lower end of its target range. According to JPMorgan’s report, the stock closed at $24.43 on October 28. Markets will monitor whether the company meets its annual targets and whether the demand conditions described by management and the report persist.