NOTE 12 - LEASES

Various buildings and equipment are leased from third parties under both finance and operating lease agreements.

Right-of-use assets have been included in the same line item of property, plant and equipment as that in which a

corresponding owned asset would be presented. The following table presents the classification of leasing assets and liabilities

within our Consolidated Balance Sheets:


		At December 31,
(in millions of U.S. dollars)	Consolidated Balance Sheets	2025	2024
Assets
Operating lease right-of-use assets	Property, plant and equipment	118	107
Finance lease assets (A)	Property, plant and equipment	28	33
Total lease assets		146	140

Liabilities
Current:
Operating lease liabilities	Trade payables and other	21	17
Finance lease liabilities	Short-term debt	7	5
Non-current:
Operating lease liabilities	Trade payables and other	98	95
Finance lease liabilities	Long-term debt	25	25
Total lease liabilities		151	142

(A) Finance lease assets are recorded net of accumulated depreciation and impairment of $76 million and $65 million as of December 31,

2025 and 2024, respectively.

The following table presents the classification of lease related expenses as reported with our Consolidated Income

Statements:


		At December 31,
(in millions of U.S. dollars)	Consolidated Income Statement	2025	2024	2023
Operating lease costs (A)	Cost of sales (excluding depreciation and amortization)	(24)	(23)	(24)
	Selling and administrative expenses	(2)	(3)	(2)
Depreciation related to finance lease	Depreciation and amortization	(6)	(7)	(13)

(A) Operating lease costs exclude short-term lease and variable lease costs for $23 million, $22 million and $20 million as of December 31,

2025, 2024 and 2023, respectively.

The following table presents the classification of lease related cash-flows as reported with our Consolidated Statement of

Cash Flows:


	At December 31,
(in millions of U.S. dollars)	2025	2024	2023
Financing cash flows from finance leases	(6)	(8)	(19)
Operating cash flows from operating leases	(27)	(25)	(26)

Property, plant and equipment acquired through finance leases amounted to $5 million, $5 million and $6 million for the

years ended December 31, 2025, 2024 and 2023, respectively. These leases and financings are excluded from the Consolidated

Statement of Cash Flow as they are non-cash investing transactions. The following table presents supplemental information on

our finance and operating leases as of December 31, 2025 and 2024:


	At December 31,
	2025	2024
Weighted-average remaining lease term
Operating leases	6.7 years	7.5 years
Finance leases	4.2 years	6.1 years
Weighted-average discount rate
Operating leases	6.04%	6.56%
Finance leases	4.52%	4.22%

Future minimum lease payments as of December 31, 2025, for our operating and finance leases having an initial or

remaining non-cancelable lease term in excess of one year are as follows:


	At December 31, 2025
(in millions of U.S. dollars)	Operating Leases	Finance Leases
Years ending
2026	27	8
2027	24	7
2028	21	6
2029	18	6
2030	15	7
Thereafter	38	1
Total non-cancelable minimum lease payments	143	35
Less: interest	(24)	(3)
Present value of lease liabilities	119	32

Historical Timeline

Fiscal Year	Filed
2025	Feb 25, 2026	Showing above
2024	Feb 28, 2025

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

CONSTELLIUM SE Leases Disclosure

Historical Timeline

About Leases Disclosures

Other Available Disclosures