10 Best Aluminum Stocks To Buy According to Billionaires

8. Constellium SE (NYSE:CSTM)

Number of Billionaires: 9

Number of Hedge Fund Holders: 35

Constellium SE (NYSE:CSTM) is involved in designing, manufacturing, and selling rolled and extruded aluminum products for various industries, including aerospace, automotive, packaging, and defense. The company operates across three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry.

The company emanated financial challenges for the fourth quarter and full year ended December 31, 2024. Its revenue saw a 1% decrease in Q4, year-on-year, to $1.7 billion, whereas full-year revenue decreased 6% to $7.3 billion, driven by lower shipments and pricing pressures, partially offset by higher metal prices. Constellium SE (NYSE:CSTM) reported an adjusted EBITDA of $125 million for Q4. However, if we exclude metal price lag and flood-related disruptions at its Valais facility, the actual figure stood at $113 million, down from $178 million for Q4 2023.

Likewise, full-year EBITDA saw a decline from $754 million to $601 million, whereas net income decreased to $60 million from $157 million in the previous year, demonstrating market headwinds and increased costs. The company’s stock emanated strength, increasing 18.79% year-to-date.

Constellium SE (NYSE:CSTM) mitigated negative financials through the implementation of cost-cutting initiatives and optimization of working capital. The company reported a free cash flow of negative $100 million for the year, majorly driven by flood-related costs. However, adjusted figures showed a positive $30 million. The company was able to repurchase 4.6 million shares, valued at $79 million, in 2024, remaining committed to efficient capital allocation. Regardless of challenges, the company launched its Neuf-Brisach recycling and casting center before schedule, solidifying its commitment to sustainability.

Moreover, Constellium announced its participation in ‘Project M-LightEn,’ a UK-based initiative led by the Gordon Murray group. The project aims to develop ultra-lightweight, sustainable vehicle chassis structures. The company will supply high-strength aluminum materials, 80% made up of recycled consumer scrap, in order to increase vehicle efficiency and reduce carbon emissions. The first phase has been initiated, with commercial applications expected by 2027.

Such developments, its commitment to sustainability initiatives, and its focus on high-value aluminum solutions position Constellium SE (NYSE:CSTM) as a formidable choice among the best aluminum stocks to buy.