v3.25.2
FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
FINANCIAL INSTRUMENTS
NOTE 12 - FINANCIAL INSTRUMENTS
12.1 Fair values of financial instruments
All derivatives are presented at fair value in the Interim Consolidated Balance Sheets:
At June 30, 2025At December 31, 2024
(in millions of U.S. dollar)Non-currentCurrentTotalNon-currentCurrentTotal
Derivatives that qualify for hedge accounting
Currency commercial derivatives12 8 20 — — — 
Derivatives that do not qualify for hedge accounting
Currency commercial derivatives5 18 23 — 5 5 
Currency net debt derivatives— — — — 1 1 
Energy derivatives2 1 3 1 — 1 
Metal derivatives2 19 21 1 18 19 
Fair value of derivatives instruments - assets21 46 67 2 24 26 
Derivatives that qualify for hedge accounting
Currency commercial derivatives— — — 13 9 22 
Derivatives that do not qualify for hedge accounting
Currency commercial derivatives— 5 5 7 17 24 
Currency net debt derivatives— 2 2 — — — 
Energy derivatives— 2 2 — 2 2 
Metal derivatives3 23 26 1 5 6 
Fair value of derivatives instruments - liabilities3 32 35 21 33 54 
The fair values of trade receivables, other financial assets and liabilities approximate their carrying values, as a result of their liquidity or short maturity and the fair value of borrowings are disclosed in Note 11 - Debt.

12.2 Valuation hierarchy
The following table provides an analysis of financial instruments measured at fair value, grouped into levels based on the degree to which the fair value is observable:
•Level 1 is based on a quoted price (unadjusted) in active markets for identical financial instruments. Level 1 includes aluminum, copper and zinc futures that are traded on the LME.
•Level 2 is based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e., prices), or indirectly (i.e., derived from prices). Level 2 includes foreign exchange derivatives, natural gas derivatives, silver derivatives and aluminum premium derivatives. The present value of future cash flows based on the forward or on the spot exchange rates at the balance sheet date is used to value foreign exchange derivatives.
•Level 3 is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs). Trade receivables are classified as a Level 3 measurement under the fair value hierarchy.
At June 30, 2025At December 31, 2024
(in millions of U.S. dollar)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Fair value of derivatives instruments - assets760—671214—26
Fair value of derivatives instruments - liabilities1421—35549—54
There was no material transfer of asset and liability categories into or out of Level 1, Level 2 or Level 3 during the six months ended June 30, 2025, nor the year ended December 31, 2024.
12.3 Foreign exchange
Foreign exchange risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.
Net assets, earnings and cash flows are influenced by multiple currencies due to the geographic diversity of sales and the countries in which the Group operates.
Constellium has the following foreign exchange risk: i) transaction exposures, which include commercial transactions related to forecasted sales and purchases and on-balance sheet receivables/payables resulting from such transactions and financing transactions related to external and internal net debt, and ii) translation exposures, which relate to net investments in foreign entities that are converted in U.S. dollar amounts in the Consolidated Financial Statements.
Foreign exchange impacts related to the translation of net investments in non-USD functional currency subsidiaries from functional currency to U.S. dollar, and of the related revenue and expenses, are not hedged as the Group operates in these various countries on a permanent basis except as described below.
i. Commercial transaction exposures
The Group policy is to hedge committed and highly probable forecasted foreign currency operational transactions. The Group uses foreign exchange forwards and foreign exchange swaps for this purpose.
The following tables outline the nominal value (converted to millions of U.S. Dollars at the closing rate) of forward derivatives for Constellium’s most significant foreign exchange exposures at June 30, 2025.
Sold currenciesMaturity YearLess than 1 yearOver 1 year
USD2025-2029287455
CHF2025-2029447
CZK20254—
Other currencies2025-2027122
Purchased currenciesMaturity YearLess than 1 yearOver 1 year
USD2025-20268313
CHF2025-20289644
CZK2025-20265337
Other currencies20256—
The Group has agreed to supply a major customer with fabricated metal products from an entity with Euro functional currency, while invoicing in U.S. Dollars. The Group has entered into significant foreign exchange derivatives that matched related highly probable future conversion sales. The Group designates a substantial portion of these derivatives for hedge accounting, with a total nominal amount of $345 million and $410 million at June 30, 2025 and December 31, 2024 respectively, with maturities ranging from 2025 to 2029. Changes in the fair value of cash flow hedges are reported by the
Group as a component of Accumulated other comprehensive income, net of tax and reclassified into earnings when the forecasted transaction affects earnings.
The table below details the effect of foreign currency derivatives in the Interim Consolidated Income Statement, the Interim Consolidated Statement of Cash Flows and the Interim Consolidated Statement of Comprehensive Income:
Three months ended June 30,Six months ended June 30,
(in millions of U.S. dollar)2025202420252024
Derivatives that do not qualify for hedge accounting
Included in Other gains and losses - net
Realized gains / (losses) on foreign currency derivatives - net (A)3(2)—(4)
Unrealized gains / (losses) on foreign currency derivatives - net (B)23(2)38(12)
Derivatives that qualify for hedge accounting
Included in Other comprehensive income
Unrealized gains / (losses) on foreign currency derivatives - net 26(6)37(10)
(Losses) / gains reclassified from cash flow hedge reserve to the Consolidated Income Statement (1)4—6
Included in Revenue (C)
Realized losses on foreign currency derivatives - net (A)(1)(3)(4)(5)
Unrealized gains / (losses) on foreign currency derivatives - net 1(1)3(1)
(A)Commercial derivatives settled during the period are presented in net cash flows from operating activities in the Interim Consolidated Statement of Cash Flows.
(B)Gains or losses on the hedging instruments are expected to offset losses or gains on the underlying hedged forecasted sales that will be reflected in future years when these sales are recognized.
(C)Changes in fair value of derivatives that qualify for hedge accounting are included in revenue when the related customer invoices are issued.
ii. Financing transaction exposures
When the Group enters into intercompany loans and deposits, the financing is generally provided in the functional currency of the subsidiary. The foreign currency exposure of the Group’s external funding and liquid assets is systematically hedged either naturally through intercompany foreign currency loans and deposits or through foreign currency derivatives.
At June 30, 2025, the net hedged position related to long-term and short-term loans and deposits in U.S. dollar included a forward sale of $254 million versus the Euro using simple foreign exchange forward contracts.
Three months ended June 30,Six months ended June 30,
(in millions of U.S. dollar)2025202420252024
Derivatives that do not qualify for hedge accounting
Included in Finance costs - net
Realized (losses) / gains on foreign currency derivatives - net (A)(16)(1)(25)1
Unrealized (losses) / gains on foreign currency derivatives - net (1)1(1)(2)
Total (17)—(26)(1)
(A)Net debt derivatives settled during the period are presented in Other financing activities in the Interim Consolidated Statement of Cash Flows.
Total realized and unrealized gains or losses on foreign currency derivatives are expected to partially offset the net foreign exchange result related to financing activities, both included in Finance costs - net.
12.4 Commodities
The Group is subject to the effects of market fluctuations in the price of aluminum, which is the Group’s primary metal input and a significant component of its output. The Group is also exposed to variation in regional premiums and in the price of zinc, natural gas, silver and copper, and other alloying metals, to a lesser extent.
The Group policy is to minimize exposure to aluminum price volatility by passing through the aluminum price risk to customers and using derivatives where necessary. For most of its aluminum price exposure, sales and purchases of aluminum are converted to be on the same floating basis and then the same quantities are bought and sold at the same market price.
Temporary increases in inventory, to the extent material, are sold forward to the expected sales date to ensure the price paid for the metal will be redeemed when it is sold.
The Group also purchases copper, aluminum premium, silver and zinc derivatives to offset the commodity exposure where sales contracts have embedded fixed price agreements for these commodities.
In addition, the Group purchases natural gas fixed price derivatives to lock in energy costs where a fixed price purchase contract is not possible.
At June 30, 2025, the nominal amount of commodity derivatives is as follows:
(in millions of U.S. dollar)Maturity YearLess than 1 yearOver 1 year
Metal2025-2027297115
Natural gas2025-2028628
The value of the contracts will fluctuate due to changes in market prices but our hedging strategy helps protect the Group’s margin on future conversion and fabrication activities. At June 30, 2025, these contracts were directly entered into with external counterparties.
The Group does not apply hedge accounting on commodity derivatives and therefore mark-to-market movements are recognized in Other gains and losses - net.
Three months ended June 30,Six months ended June 30,
(in millions of U.S. dollar)2025202420252024
Derivatives that do not qualify for hedge accounting
Included in Other gains and losses - net
Realized (losses) / gains on commodities derivatives - net (A)(28)26(19)17
Unrealized gains / (losses) on commodities derivatives - net 106(17)12
(A)Commodity derivatives settled during the period are presented in net cash flows from operating activities in the Interim Consolidated Statement of Cash Flows.