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, 2026			At December 31, 2025
(in millions of U.S. dollars)	Non- current	Current	Total	Non- current	Current	Total
Derivatives that qualify for hedge accounting
Currency commercial derivatives	1	1	2	7	6	13
Derivatives that do not qualify for hedge accounting
Currency commercial derivatives	—	6	6	3	7	10
Energy derivatives	1	—	1	1	1	2
Metal derivatives	—	59	59	—	58	58
Fair value of derivative instruments - assets	2	66	68	11	72	83
Derivatives that qualify for hedge accounting
Currency commercial derivatives	1	1	2	—	—	—
Derivatives that do not qualify for hedge accounting
Currency commercial derivatives	1	12	13	1	4	5
Energy derivatives	2	4	6	1	2	3
Metal derivatives	—	57	57	1	12	13
Fair value of derivative instruments - liabilities	4	74	78	3	18	21

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, 2026				At December 31, 2025
(in millions of U.S. dollars)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Fair value of derivative instruments - assets	35	33	—	68	32	51	—	83
Fair value of derivative instruments - liabilities	39	39	—	78	5	16	—	21

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, 2026, nor the year ended December 31, 2025.

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-U.S. dollar functional currency subsidiaries

from functional currency to U.S. dollars, 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, 2026.


Sold currencies	Maturity Year	Less than 1 year	Over 1 year
USD	2026-2031	526	289
CHF	2026-2030	71	9
CZK	2026	—	—
Other currencies	2026-2027	9	—


Purchased currencies
USD	2026-2027	126	2
CHF	2026-2030	148	17
CZK	2026-2027	68	—
Other currencies	2026	6	—

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 $316 million and $302 million at June 30, 2026 and December 31, 2025

respectively, with maturities ranging from 2026 to 2031. 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. dollars)	2026	2025	2026	2025
Derivatives that do not qualify for hedge accounting
Included in Other gains and losses - net
Realized gains on foreign currency derivatives - net (A)	(1)	3	—	—
Unrealized (losses) / gains on foreign currency derivatives - net (B)	(2)	23	(14)	38
Derivatives that qualify for hedge accounting
Included in Other comprehensive income
Unrealized (losses) / gains on foreign currency derivatives - net	(2)	26	(9)	37
(Losses) / gains reclassified from cash flow hedge reserve to the Consolidated Income Statement	(1)	(1)	(2)	—
Included in Revenue (C)
Realized gains / (losses) on foreign currency derivatives - net (A)	1	(1)	3	(4)
Unrealized (losses) / gains on foreign currency derivatives - net	(1)	1	(1)	3

(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, 2026, the net hedged position related to long-term and short-term loans and deposits in U.S. dollars included

a forward sale of $112 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. dollars)	2026	2025	2026	2025
Derivatives that do not qualify for hedge accounting
Included in Finance costs - net
Realized gains / (losses) on foreign currency derivatives - net (A)	(2)	(16)	2	(25)
Unrealized losses on foreign currency derivatives - net	(2)	(1)	(1)	(1)
Total	(4)	(17)	1	(26)

(A)Net debt derivatives settled during the period are presented in Other financing activities in the Interim Consolidated Statements of Cash

Flows.

Total realized and unrealized gains or losses on debt derivatives are expected to partially offset the total realized and

unrealized gains or losses on financing activities, both included in Finance costs – net.

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 fluctuations in aluminum 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 substantially recovered when it is sold.

The Group also enters into derivatives for aluminum regional premium, copper, silver and zinc to offset the commodity

price exposure inherent to certain sales and purchase contracts.

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, 2026, the nominal amount of commodity derivatives is as follows:


(in millions of U.S. dollars)	Maturity Year	Less than 1 year	Over 1 year
Metal	2026-2028	401	5
Natural gas	2026-2029	28	29

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, 2026, 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)	2026	2025	2026	2025
Derivatives that do not qualify for hedge accounting
Included in Other gains and losses - net
Realized gains / (losses) on commodities derivatives - net (A)	67	(28)	104	(19)
Unrealized (losses) / gains on commodities derivatives - net	(100)	10	(46)	(17)

(A)Commodity derivatives settled during the period are presented in net cash flows from operating activities in the Interim Consolidated

Statements of Cash Flows.