10 Best Aluminum and Aluminum Mining Stocks to Buy Now

4. Constellium SE (NYSE:CSTM)     

Number of Hedge Fund Holders: 34

Constellium SE (NYSE:CSTM) is a global leader, covering the entire value chain from raw material production to advanced fabrication and recycling. The company specializes in aluminum processing and operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. It serves key markets such as aerospace, automotive, packaging, and industrial applications

In Q2 2024, Constellium SE (NYSE:CSTM) reported net sales of $2.0 billion, an 8% decrease from $2.2 billion in Q2 2023, due to a 5% drop in shipments. Despite this decline, net income improved significantly to $79 million from $35 million a year ago. However, segment EBITDA decreased due to lower shipments and a major maintenance outage at the Muscle Shoals facility. Additionally, the sale of the German extrusion business and reduced demand in Europe affected performance.

However, Constellium SE (NYSE:CSTM) showed a strong financial position, reporting a free cash flow of $83 million for the quarter. Leverage at the end of the second quarter remained at 2.5 times, within the target leverage range.

Looking ahead, Constellium SE (NYSE:CSTM) is investing $65 million in a new casting center at Muscle Shoals to boost internal capacity, supporting defense and aerospace markets. The company has also partnered with Lotte Infracell to expand the production of aluminum foil stock for electric vehicle batteries.

On July 15, Constellium SE (NYSE:CSTM) announced the successful completion of its first industrial-scale hydrogen casting. This marks a significant step towards decarbonizing industrial activities and paves the way for greener technologies.

Constellium reported an EPS of $0.52, exceeding analysts’ expectations of $0.43. This, along with the factors discussed above, has compelled analysts to be optimistic about the stock. As of Q2 2024, 34 hedge funds, holding a combined investment of $430 million, are bullish on the stock, as per Insider Monkey’s database.