Constellium SE reported a 19% increase in cost of sales to $2.04 billion in Q1 2026, primarily due to rising raw material prices, including aluminum. Operating expenses surged as well, with selling, general, and administrative costs climbing 24% to $97 million. Despite these pressures, Constellium achieved a gross margin of 17.1%, up 380 basis points year over year, and a net margin of 8.0%, significantly improved from 1.9% in Q1 2025.
Revenues increased 24% year over year, fueled by strong demand in the aerospace, transportation, and defense sectors, even amid a slight decline in shipment volumes. Constellium is concentrating on operational efficiency and cost management to bolster margins despite ongoing inflationary challenges and high labor costs.
In comparison, Ryerson Holding Corp. experienced a 37.2% rise in cost of sales in the same quarter, while Alcoa Corporation saw a 11.9% increase. As of now, Constellium’s stock has risen 22.2% over the past six months, outperforming the industry average decline of 22.3%.
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