Constellium

Constellium just posted its best quarter ever. In early 2026 revenue climbed about 24 percent to 2.5 billion dollars and profit jumped to 196 million dollars from just 38 million a year earlier. Margins improved across all three of its businesses at the same time, and management raised full-year guidance to around 920 million dollars in adjusted earnings.

The aerospace recovery is a huge tailwind, and Constellium just signed a supply agreement with Airbus that runs all the way through 2038, giving years of visibility on demand for its specialized alloys. Even after the stock more than doubled in a year, it still trades cheaply versus peers while buying back 300 million dollars of its own shares.

Constellium carries roughly 2 billion dollars in total debt. Leverage has been steadily improving and now sits inside management's target range, but a sharp economic downturn or a spike in interest rates could pressure the balance sheet. There are no major bond maturities until 2028, so this is a watch item rather than an immediate threat.

This is still a cyclical business tied to aluminum prices, and net margins are thin at under 5 percent. A good chunk of the recent margin strength comes from temporary tailwinds like tariff-driven scrap spreads that could fade in 2027. Any slowdown in auto or aerospace demand, or a drop in aluminum prices, could squeeze earnings quickly.