Cabot Corporation Overview
Cabot is a Boston-based specialty chemicals and performance materials company built on one core competence: making, modifying and formulating very fine particles. It is one of the two largest carbon black producers in the world and a leading supplier of specialty carbons, fumed silica, conductive battery additives, masterbatches, inkjet colorants and aerogel. About two-thirds of sales come from Reinforcement Materials, a cash-generative tire and rubber franchise under cyclical and import-driven pressure. The remaining third comes from Performance Chemicals, a higher-growth portfolio tied to batteries, power cables, semiconductors and infrastructure. Cabot makes and sells within each region from a plant network spanning more than 20 countries, with China about a quarter of revenue. The investment case rests on strong cash conversion, an investment-grade balance sheet, a dividend maintained or raised since 1968, and a battery materials line expected to earn about USD 40 million of EBITDA in FY2026. It is offset by tire-contract price erosion and a first-time CEO transition.
What the company does
In its FY2025 Form 10-K, Cabot describes itself as a global specialty chemicals and performance materials company headquartered in Boston. Its principal products are reinforcing and specialty carbons, specialty compounds, conductive additives, carbon nanotubes, fumed metal oxides, inkjet colorants and aerogel. The company and its affiliates operate manufacturing facilities in the United States and more than 20 other countries.
The 10-K frames the portfolio around four competencies:
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making and handling very fine particles;
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modifying particle surfaces to change their function;
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designing particles to give a formulation specific properties;
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combining particles with other ingredients into formulated intermediates or composites.
The independent characterization is simpler. Cabot is a particle-engineering company whose economics are still dominated by carbon black. The reinforcing carbons business turns low-value refinery, coal-tar and ethylene-cracker residues into a material that tires cannot be made without. The specialty businesses apply the same furnace and flame-process know-how to higher-value markets where the buyer pays for conductivity, colour, rheology or purity rather than tonnage.
Business and revenue model
Cabot is almost entirely a product company. It has no subscription revenue, and licensing and service income is immaterial. Revenue arises from four mechanisms.
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Annual supply agreements in reinforcing carbons. About 60% of reinforcing carbons volume in FY2025 was sold under agreements that typically last one year, mostly with customers in the Americas and Europe (Form 10-K FY2025). The agreements usually adjust prices for feedstock and natural gas indices and, in many cases, for other costs such as European CO2 credits. The annual negotiation of price and volume, concluded around the turn of each calendar year, is the most important driver of segment profit. The calendar 2026 round went against Cabot and explains most of the FY2026 decline in segment EBIT.
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Spot and short-cycle sales. Asia Pacific reinforcing carbons and most Performance Chemicals products are priced on value-in-use and adjusted when raw materials move. Cabot announced global price increases for specialty carbons and specialty compounds on 12 March 2026 and for aerogel on 1 October 2026.
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Toll conversion and fence-line arrangements in fumed silica. Cabot converts chlorosilane streams from adjacent silicone producers into fumed silica. Six contract customers account for about one-third of fumed metal oxides revenue (Form 10-K FY2025).
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Energy centre revenue. Nine reinforcing carbons sites and four combined reinforcing and specialty sites recover tail gas to make steam or electricity, which is used internally or sold. A further energy centre is being installed at Ville Platte, Louisiana (Form 10-K FY2025).
"Unallocated and other" revenue was USD 122 million in FY2025. It mainly represents shipping and handling fees charged to customers.
Value chain position
Cabot sits between heavy-residue suppliers (refiners, coal-tar distillers, ethylene producers, chlorosilane producers) and industrial formulators (tire makers, rubber goods producers, plastics compounders, cable makers, battery cell manufacturers, silicone and adhesive formulators, ink makers). Its materials are usually a small share of the customer's cost but are critical to performance. This supports qualification-based stickiness in specialty lines. In the commodity grades of reinforcing carbons, buyers are large and concentrated and exert real pricing power.
Customers and end-markets
| Segment | Customer types | End-markets | Concentration disclosed |
|---|---|---|---|
| Reinforcement Materials | Global and regional tire makers; industrial rubber producers (hoses, belts, profiles, moulded goods) | Replacement and original-equipment tires; automotive; mining; construction; general industry | Five major tire customers are a material portion of segment sales |
| Performance Chemicals: specialty carbons and compounds | Plastics resin producers and converters, cable makers, ink, coatings and toner formulators | Infrastructure, wire and cable, automotive, packaging, agriculture, electronics | Broad customer base |
| Performance Chemicals: battery materials | Lithium-ion and advanced lead-acid battery makers | Electric vehicles, battery energy storage, consumer and industrial devices | Four customers are about 50% of product-line revenue |
| Performance Chemicals: fumed metal oxides | Silicone producers, adhesive and sealant formulators, CMP slurry makers | Construction, automotive lightweighting, wind blades, semiconductors, medical silicones | Six contract customers are about one-third of product-line revenue |
| Performance Chemicals: inkjet | Printer OEMs and ink formulators | Office and home printing; commercial, packaging and graphic arts printing | — |
| Performance Chemicals: aerogel | Building products makers, coatings formulators, battery pack designers | Building insulation, daylighting, battery thermal barriers | — |
Source: Form 10-K FY2025, Item 1.
Most of the reinforcing carbons market is replacement tires, which historically follow miles driven rather than vehicle production. Cabot now says explicitly that rising exports of Asian-made tires into the Americas and Western Europe have weakened that stability, because they displace local tire production in the regions where Cabot earns its highest margins.
Strategy
Cabot Corporation offers a broad range of products and solutions and serves key industries such as infrastructure, transportation, environment, and consumer across the globe. The company is working on improving energy efficiency and technology advancement to create materials that deliver new levels of performance and efficiency across the entire global footprint. Also, the company’s strategy is growing investment, developing innovative products and processes, and optimizing everything that will enable a better future. Moreover, it has set a target towards sustainability to achieve net zero emissions with the Paris Climate Agreement and is working on reducing greenhouse gas emissions by 2050.
Financial Narrative
All figures are USD millions unless stated, for fiscal years ended 30 September. Income statement, balance sheet and cash flow rows for FY2021 to FY2024 are taken from an aggregator extraction of the 10-Ks (StockTitan §), cross-checked against Cabot releases where available. FY2025 is verified against Cabot's releases.
Income statement
Revenue CAGR, FY2021 to FY2025: 2.2% ‡. The StockTitan five-year CAGR of 7.3% is measured from the depressed FY2020 base of USD 2.6 billion.
Source conflicts.
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One aggregator (TipRanks) shows FY2023 basic and diluted EPS as USD 7.93. Cabot's FY2023 release shows diluted EPS of USD 7.73, which is used here; the basic figure of USD 7.79 is recalled.
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FY2022 income from operations is shown as USD 389 million (StockTitan, Macrotrends). This includes the loss on the Purification Solutions sale. TipRanks shows USD 574 million, which appears to exclude it.
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Cabot's own adjusted EBITDA was USD 804 million in FY2025, a 22% margin, up 3% on FY2024 (Annual Report 2025). The EBITDA row above is a simpler GAAP-based construct and is lower because it carries corporate costs and certain items.
Balance sheet
Balance sheet totals for FY2021 to FY2024 are reconstructed from aggregator growth rates and rounded-billion figures. They reconcile to the published current ratios and returns on equity, but should be checked against the 10-Ks before reuse.
Debt detail, verified dates only (USD M)
Source: Q3 FY2026 earnings release, statements of financial position.
Cash flow
Source: StockTitan extraction of 10-K cash flow statements §; FY2025 confirmed in the Q4 FY2025 release (USD 665 million, USD 274 million, USD 96 million, USD 168 million).
Ratios
Single-point ratios:
Adjusted ROIC: 18% in FY2025 (company-defined, Annual Report 2025).
Net debt to EBITDA: 1.2x at 30 September 2025 (Annual Report 2025) and 1.4x at 30 June 2026 (Q3 FY2026 release).
Cash conversion cycle: not disclosed by the company. For FY2025 the analyst estimate is about 47 days ‡ (receivables about 66 days of sales, inventory about 66 days of cost of sales, payables and accruals about 85 days). The payables figure includes accrued liabilities, so the true cycle is probably longer.
Commentary on trends, inflections and drivers
Revenue. Revenue tracks feedstock prices as much as volume, because contract formulas pass oil-linked costs through. The peak of USD 4.3 billion in FY2022 reflected the post-pandemic rebound and the energy spike. The fall to USD 3.7 billion in FY2025 reflected lower Reinforcement Materials volumes and less favourable price and mix. Revenue is therefore a poor guide to earnings. Gross profit per ton, which Cabot does not publish, is the operative metric.
Margins. Gross margin rose from 20.5% to 25.3% between FY2022 and FY2025, and operating margin from 9.0% to 16.7%. Three things drove this: favourable tire-contract outcomes for calendar 2023 and 2024, the exit from loss-making Purification Solutions, and mix improvement in Performance Chemicals. FY2025 was the high point. In the nine months to June 2026, gross profit fell to USD 605 million from USD 720 million, as the calendar 2026 contracts reset prices lower and competition intensified in Asia Pacific.
Earnings quality. GAAP earnings were distorted in three of the five years:
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FY2022 carried the Purification Solutions divestiture loss.
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FY2023 benefited from a partial release of a tax valuation allowance (the fourth-quarter diluted EPS of USD 4.10 was 150% above the prior year).
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FY2025 carried a USD 36 million non-GAAP tax adjustment in the fourth quarter, mainly an increased valuation allowance on US deferred tax assets, giving a 55% effective rate for that quarter.
Adjusted EPS is the cleaner series: USD 5.02, 6.28, 5.38, 7.06 and 7.25.
Cash flow. FY2022 operating cash flow of only USD 100 million shows how working capital absorbs cash when oil rises. The same effect appeared in Q3 FY2026, when sharply higher oil added USD 44 million to net working capital. In FY2023 to FY2025 operating cash flow averaged about USD 650 million and funded roughly USD 250 million a year of capex plus USD 260 million a year of shareholder returns. Nine-month FY2026 operating cash flow was USD 278 million, against USD 446 million a year earlier.
Balance sheet. Long-term debt has been stable at about USD 1.1 billion gross. The reclassification of the USD 250 million 2026 notes to current explains the FY2025 drop in the non-current line. Equity has rebuilt from under USD 0.9 billion to about USD 1.6 billion despite buybacks. Leverage of 1.4x net debt to EBITDA leaves headroom, but it has risen from 1.2x in nine months because EBITDA fell and short-term borrowings funded the MXCB purchase and buybacks.
7. SEGMENTAL AND GEOGRAPHIC REVENUE MAPPING
Segment by region, FY2025
Source: Form 10-K FY2025, segment note (Asia Pacific and EMEA as disclosed). Americas is the arithmetic residual.
Segment by region, nine months
Source: Form 10-Q for the quarter ended 30 June 2026.
Nine-month growth by region ‡: Americas down 5.4%, Asia Pacific up 0.3%, EMEA down 4.1%. Within Asia Pacific, Performance Chemicals grew 11.3% while Reinforcement Materials fell 6.4%.
Country-level revenue
Source: Form 10-K FY2025, Note U (United States and Other countries as disclosed). China is the residual of total revenue less the two disclosed lines. The FY2025 figure matches the company's statement that China was about 25% of revenue. China also held about 21% of property, plant and equipment at 30 September 2025. Full-year regional splits for FY2023 and FY2024 were not captured in this run.
Fastest-growing and declining regions
Fastest-growing: Asia Pacific Performance Chemicals. Battery materials demand from electric vehicles and energy storage, electronics-related fumed silica and conductive carbons for cables are all concentrated in Asia. In Q3 FY2026, Reinforcement Materials volumes in Asia Pacific also rose 10%. Management attributed this to the Indonesian capacity addition, underlying demand and a weak prior-year quarter in China.
Declining: Americas Reinforcement Materials and EMEA. Americas Reinforcement Materials sales fell 7% in the nine months despite the Mexican acquisition, because calendar 2026 contract pricing was lower and first-quarter volumes were weak (global volumes down 7% in Q1 FY2026). EMEA Reinforcement Materials volumes fell 4% in Q3 FY2026. The cause in both regions is the same: tire imports from Asia displacing local tire production. There are early signs of relief. Management cited EU tire imports down 16% year to date through April 2026 and North American imports down about 3%, and welcomed EU anti-dumping duties on Chinese tires, mostly in a 24% to 45% range.
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Segment Overview
| Segment | Contains | Principal products |
|---|---|---|
Reinforcement Materials | Reinforcing carbons for tires and industrial rubber; engineered elastomer composites (E2C); EVOLVE circular and renewable grades; energy centre sales | Carbon black grades for tread, carcass and industrial rubber; E2C composites; circular reinforcing carbons |
Performance Chemicals | Specialty carbons; specialty compounds (masterbatch and conductive compounds); battery materials; fumed metal oxides; aerogel; inkjet | Specialty carbon blacks, masterbatches, conductive carbons, carbon nanotubes and nanostructures, dispersions, fumed silica and alumina, aerogel particles, pigment dispersions and inks |
Segment revenue (USD Mn)
| Segment revenue (USD Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Reinforcement Materials sales | 2,563 | 2,610 | 2,341 |
Performance Chemicals sales (FY2023 and FY2024 †) | 1,225 | 1,250 | 1,250 |
Unallocated and other (FY2023 and FY2024 ‡) | 143 | 134 | 122 |
Net sales and other operating revenues | 3,931 | 3,994 | 3,713 |
Segment EBIT (USD Mn)
| Segment EBIT (USD Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Reinforcement Materials EBIT | 482 | 537 | 508 |
Performance Chemicals EBIT | 125 | 164 | 194 |
Total segment EBIT ‡ | 607 | 701 | 702 |
Segment EBIT margin (% of segment sales) ‡
| Segment EBIT margin (% of segment sales) ‡ | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Reinforcement Materials EBIT margin (%) | 18.8 | 20.6 | 21.7 |
Performance Chemicals EBIT margin (%) | 10.2 | 13.1 | 15.5 |
Year-on-year growth (%) ‡
| Year-on-year growth (%) ‡ | FY2024 | FY2025 |
|---|---|---|
Reinforcement Materials sales growth (%) | 1.8 | -10.3 |
Performance Chemicals sales growth (%) | 2.0 | 0.0 |
Reinforcement Materials EBIT growth (%) | 11.4 | -5.4 |
Performance Chemicals EBIT growth (%) | 31.2 | 18.3 |
Share of consolidated revenue (%) ‡
| Share of consolidated revenue (%) ‡ | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Reinforcement Materials share (%) | 65.2 | 65.3 | 63.0 |
Performance Chemicals share (%) | 31.2 | 31.3 | 33.7 |
Unallocated and other share (%) | 3.6 | 3.4 | 3.3 |
Revenue by Segment and Per-Share Data
| Quarterly metric (USD Mn) | Q1 FY2025 | Q2 FY2025 | Q3 FY2025 | Q4 FY2025 | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 |
|---|---|---|---|---|---|---|---|
Reinforcement Materials sales | 611 | 594 | 573 | 563 | 520 | 544 | 599 |
Performance Chemicals sales | 311 | 311 | 320 | 308 | 300 | 328 | 351 |
Net sales and other operating revenues | 955 | 936 | 923 | 899 | 849 | 904 | 982 |
Reinforcement Materials EBIT | 130 | 131 | 128 | 119 | 102 | 93 | 97 |
Performance Chemicals EBIT | 45 | 50 | 57 | 42 | 48 | 59 | 68 |
Certain items (pre-tax) | -6 | -4 | -3 | -17 | -7 | -9 | -78 |
Net income attributable to Cabot | 93 | 94 | 101 | 43 | 73 | 68 | 6 |
Diluted EPS (USD) | 1.67 | 1.69 | 1.86 | 0.79 | 1.37 | 1.27 | 0.12 |
Adjusted EPS (USD) | 1.76 | 1.90 | 1.90 | 1.70 | 1.53 | 1.61 | 1.67 |
Segment EBITDA, nine months FY2026 (USD Mn)
| Segment EBITDA, nine months FY2026 (USD Mn) | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 |
|---|---|---|---|
Reinforcement Materials EBITDA | 121 | 114 | 117 |
Reinforcement Materials EBITDA margin (%) | 23 | 21 | 20 |
Performance Chemicals EBITDA | 70 | 82 | 91 |
Performance Chemicals EBITDA margin (%) | 23 | 25 | 26 |
Adjusted EBITDA (consolidated) | 179 | 181 | 194 |
Product Lines
| Product line | Description and capability | Target customer | Named offerings | Latest development |
|---|---|---|---|---|
Reinforcing carbons for tires | Furnace carbon blacks engineered for tread durability, lower rolling resistance and traction | Tire manufacturers | VULCAN, REGAL, STERLING, SPHERON grade families †; PROPEL low-rolling-resistance grades † | Capacity added at Cilegon (2025); MXCB plant acquired (February 2026) |
Reinforcing carbons for industrial rubber | Grades for hoses, belts, extruded profiles and moulded goods; contribute strength, fluid resistance, conductivity or resistivity | Industrial rubber goods makers | STERLING and SPHERON semi-reinforcing grades † | Ongoing |
Engineered elastomer composites (E2C) | Composites of reinforcing carbon and rubber made by a patented process; improve wear and fatigue resistance and reduce rolling resistance; need fewer mixing stages | Makers of giant off-road tires, commercial truck tires and mining rubber parts | E2C solutions, made at Port Dickson, Malaysia (98% owned) | Named growth focus in the FY2025 10-K |
EVOLVE Sustainable Solutions | Platform for products in three categories: Renewable, Recovered and Reduced (renewable feedstock, material recovered from end-of-life tires, lower-emission processes) | Tire makers with recycled-content targets | Circular reinforcing carbons under the VULCAN and STERLING names † | North American manufacturing capability announced 7 October 2025; Asia Pacific capability announced 18 February 2026; Dunlop MoU 22 January 2026 |
Energy centre output | Steam and electricity from tail gas | Site neighbours and grids | Not branded | Ville Platte energy centre under construction |
Specialty carbons | Carbon blacks for colour, UV protection, conductivity, static control and rheology; plastics is the largest use | Plastics compounders, cable makers, ink, coating, adhesive and toner formulators | BLACK PEARLS, MONARCH, REGAL, VULCAN (conductive grades), ELFTEX, MOGUL, EMPEROR † | Global price increase announced 12 March 2026; record order backlogs in wire and cable (Q3 FY2026 call) |
Masterbatch (specialty compounds) | Carbon black, white and additive concentrates in polymer carriers for ease of handling and dispersion | Resin producers and plastics converters | PLASBLAK, PLASWITE, PLASADD, TECHBLAK † | Global price increase announced 12 March 2026 |
Conductive compounds | Electrically conductive plastics that protect against electrostatic discharge | Electronics packaging, automotive fuel systems, industrial plastics | CABELEC † | Ongoing |
Battery conductive carbons | High-purity carbons that form the conductive network in lithium-ion cathodes and anodes | Lithium-ion cell makers | LITX family; LITX 95F for energy storage cells (launched 29 July 2025) | LITX capacity to be added at Franklin, Louisiana by end-2028 |
Carbon nanotubes and dispersions | Multi-walled nanotubes and ready-to-use dispersions for higher energy density and fast charging | Lithium-ion cell makers | ENERMAX family | Supply agreement with PowerCo covers conductive carbons and dispersions (7 January 2026) |
Carbon nanostructures (CNS) | Cabot's most advanced conductive additive; branched nanotube networks | Next-generation cell makers | Part of the ENERMAX family | First commercial-scale production planned at Pampa, Texas by end-2028 |
Fumed alumina for batteries | Ultra-fine alumina used to limit cathode and electrolyte decomposition | Cathode and cell makers | SpectrAl † | Ongoing |
Lead-acid battery additives | Conductive carbons for advanced lead-acid batteries | Lead-acid battery makers | PBX † | Ongoing |
Fumed silica | Ultra-fine, high-purity silica for reinforcing, thickening, abrasion and anti-caking | Silicone, adhesive, sealant, coating, CMP slurry, cosmetics and pharmaceutical formulators | CAB-O-SIL; CAB-O-SPERSE dispersions † | Electronics demand up in Q3 FY2026; Barry, Wales production ceased in Q3 FY2026 |
Fumed alumina (non-battery) | Abrasive, absorbent or barrier agent for inkjet media, lighting, coatings and polishing | Coating and slurry formulators | SpectrAl † | Ongoing |
Aerogel | Hydrophobic silica particles with very high surface area for thermal insulation and matting | Building products makers, coating formulators, battery pack designers | Thermal Wrap blankets; LUMIRA, ENOVA, ENTERA † | Frankfurt plant idled at FY2025 year-end; price increase announced 1 October 2026 |
Inkjet colorants and inks | Pigment dispersions using patented surface modification and polymer encapsulation; inks for commercial printing | Printer OEMs and ink formulators | CAB-O-JET † | Named growth focus: high-speed packaging and graphic arts printing |
Income statement (USD Mn)
| Income statement (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales and other operating revenues | 3,409 | 4,321 | 3,931 | 3,994 | 3,713 |
Gross profit | 799 | 885 | 839 | 960 | 940 |
Selling and administrative expenses | 289 | 258 | 253 | 283 | 260 |
Research and technical expenses | 56 | 55 | 57 | 63 | 59 |
Income from operations | 454 | 389 | 526 | 614 | 621 |
Depreciation and amortization § | 160 | 146 | 144 | 151 | 154 |
EBITDA (income from operations plus D&A) ‡ | 614 | 535 | 670 | 765 | 775 |
Interest expense | 49 | 56 | 90 | 81 | 76 |
Pre-tax income § | 406 | 335 | 451 | 529 | 565 |
Income tax provision (benefit) | 123 | 102 | -28 | 111 | 196 |
Net income attributable to Cabot | 250 | 209 | 445 | 380 | 331 |
Per-share data (USD)
| Per-share data (USD) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Basic EPS (FY2023 †) | 4.35 | 3.65 | 7.79 | 6.79 | 6.07 |
Diluted EPS | 4.34 | 3.62 | 7.73 | 6.72 | 6.02 |
Adjusted EPS (non-GAAP; FY2021 and FY2022 †) | 5.02 | 6.28 | 5.38 | 7.06 | 7.25 |
Dividends per share ‡ | 1.40 | 1.48 | 1.54 | 1.66 | 1.76 |
Margins (%)
| Margins (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 23.4 | 20.5 | 21.3 | 24.0 | 25.3 |
Operating margin (%) | 13.3 | 9.0 | 13.4 | 15.4 | 16.7 |
EBITDA margin (%) ‡ | 18.0 | 12.4 | 17.0 | 19.2 | 20.9 |
Net margin (%) | 7.3 | 4.8 | 11.3 | 9.5 | 8.9 |
Balance Sheet
| Balance sheet (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets ‡ | 3,306 | 3,525 | 3,604 | 3,736 | 3,815 |
Cash and equivalents | 168 | 206 | 238 | 223 | 258 |
Inventories | 523 | 664 | 585 | 552 | 504 |
Current assets ‡ | 1,426 | 1,821 | 1,626 | 1,605 | 1,539 |
Current liabilities ‡ | 1,147 | 1,105 | 822 | 772 | 957 |
Working capital (current assets less current liabilities) ‡ | 279 | 716 | 804 | 833 | 582 |
Goodwill | 140 | 129 | 134 | 133 | 134 |
Long-term debt (non-current) ‡ | 717 | 1,089 | 1,094 | 1,087 | 856 |
Cabot stockholders' equity ‡ | 947 | 898 | 1,264 | 1,425 | 1,550 |
Debt and liquidity
| Debt and liquidity | 30 Sep 2025 | 30 Jun 2026 |
|---|---|---|
Short-term borrowings | 14 | 184 |
Current portion of long-term debt | 260 | 261 |
Long-term debt | 856 | 828 |
Total debt ‡ | 1,130 | 1,273 |
Cash and equivalents | 258 | 250 |
Net debt ‡ | 872 | 1,023 |
Intangible assets, net | 55 | 52 |
Goodwill | 134 | 137 |
Noncontrolling interests | 155 | 129 |
Total stockholders' equity including noncontrolling interests | 1,705 | 1,734 |
Cash flow (USD Mn)
| Cash flow (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash from operating activities | 257 | 100 | 595 | 692 | 665 |
Capital expenditures | 195 | 211 | 244 | 241 | 274 |
Free cash flow (operating cash flow less capex) | 62 | -111 | 351 | 451 | 391 |
Dividends paid | 80 | 84 | 88 | 93 | 96 |
Share repurchases | 3 | 53 | 98 | 172 | 168 |
Margin Analysis (%) and Financial Ratios (x)
| Ratios | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Return on equity (%) § | 26.4 | 23.3 | 35.2 | 26.7 | 21.3 |
Return on assets (%) § | 7.6 | 5.9 | 12.3 | 10.2 | 8.7 |
Current ratio (x) § | 1.24 | 1.65 | 1.98 | 2.08 | 1.61 |
Long-term debt to equity (x) § | 0.76 | 1.21 | 0.87 | 0.76 | 0.55 |
Interest coverage (operating income / interest expense, x) ‡ | 9.3 | 6.9 | 5.8 | 7.6 | 8.2 |
Asset turnover (revenue / year-end assets, x) ‡ | 1.03 | 1.23 | 1.09 | 1.07 | 0.97 |
Free cash flow margin (%) § | 1.8 | -2.6 | 8.9 | 11.3 | 10.5 |
Effective tax rate (%) ‡ | 30.3 | 30.4 | -6.2 | 21.0 | 34.7 |
Region (USD Mn, FY2025) Overview
| Region (USD Mn, FY2025) | Reinforcement Materials | Performance Chemicals | Segment total | Share of segment sales (%) ‡ |
|---|---|---|---|---|
Americas ‡ | 944 | 373 | 1,317 | 36.7 |
Asia Pacific | 865 | 536 | 1,401 | 39.0 |
Europe, Middle East and Africa | 532 | 341 | 873 | 24.3 |
Segment revenues | 2,341 | 1,250 | 3,591 | 100.0 |
Income Statement
| Region (USD Mn) | 9M FY2025 | 9M FY2026 |
|---|---|---|
Americas: Reinforcement Materials | 714 | 661 |
Americas: Performance Chemicals | 283 | 282 |
Americas: total | 997 | 943 |
Asia Pacific: Reinforcement Materials | 659 | 617 |
Asia Pacific: Performance Chemicals | 400 | 445 |
Asia Pacific: total | 1,059 | 1,062 |
EMEA: Reinforcement Materials | 405 | 385 |
EMEA: Performance Chemicals | 259 | 252 |
EMEA: total | 664 | 637 |
Segment revenues | 2,720 | 2,642 |
Revenue by country (USD Mn)
| Revenue by country (USD Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
United States | 738 | 733 | 670 |
China (derived residual) ‡ | 972 | 983 | 931 |
Other countries | 2,221 | 2,278 | 2,112 |
Total | 3,931 | 3,994 | 3,713 |
Growth by country (%) ‡
| Growth by country (%) ‡ | FY2024 | FY2025 |
|---|---|---|
United States growth (%) | -0.7 | -8.6 |
China growth (%) | 1.1 | -5.3 |
Other countries growth (%) | 2.6 | -7.3 |
Share Price & Returns
| Reference point | Price (USD) | Source |
|---|---|---|
52-week low (closing) | 58.71 | Equibles § |
16 Oct 2025 close | 69.08 | MarketBeat § |
52-week high (closing) | 93.40 | Equibles § |
9 Aug 2026 | 87.62 | Investing.com § |
19 Aug 2026 close | 85.18 | Equibles § |
15 Sep 2026 (pre-market) | 80.73 | RTTNews § |
Latest quote seen (2 Oct 2026) | 78.00 | Motley Fool quote § |
Performance to About USD 78.00 Details
| Performance to about USD 78.00 | Change | Basis |
|---|---|---|
1 year | About +13% ‡ | From USD 69.08 on 16 October 2025 |
3 years | About +15% † | — |
5 years | About +50% † | — |
Valuation Snapshot
| Multiple | Value | Basis ‡ |
|---|---|---|
P/E on trailing adjusted EPS | 12.0x | USD 78.00 / USD 6.52 (Q4 FY2025 1.70 plus 9M FY2026 4.82) |
P/E on FY2026 guidance midpoint | 12.4x | USD 78.00 / USD 6.30 |
P/E on trailing GAAP EPS | 21.9x | USD 78.00 / USD 3.56 |
EV / trailing adjusted EBITDA | About 6.8x | EV about USD 5.05 billion (market cap 4.03 billion plus net debt 1.02 billion); EBITDA about USD 740 million implied by the 1.4x leverage ratio |
EV / trailing sales | About 1.4x | Trailing revenue USD 3,634 million |
Price / book | 2.5x | Cabot stockholders' equity USD 1,605 million, or about USD 31.09 a share |
Dividend yield | 2.4% | USD 1.89 / USD 78.00 |
Shareholder returns
| Shareholder returns | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividends per share (USD) ‡ | 1.40 | 1.48 | 1.54 | 1.66 | 1.76 |
Dividends paid (USD Mn) | 80 | 84 | 88 | 93 | 96 |
Share repurchases (USD Mn) | 3 | 53 | 98 | 172 | 168 |
Total returned (USD Mn) ‡ | 83 | 137 | 186 | 265 | 264 |
Quarterly dividend rate after each May decision (USD)
| Quarterly dividend rate after each May decision (USD) | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|
Quarterly dividend per share | 0.40 | 0.43 | 0.45 | 0.4725 |
Credit Ratings
| Agency | Rating |
|---|---|
Moody's | Baa2 (expected rating on the August 2026 notes) |
S&P Global | BBB (expected rating on the August 2026 notes) |
Fitch | Not rated, to the analyst's knowledge † |
Capital Instruments
| Instrument | Amount | Maturity | Status |
|---|---|---|---|
3.40% senior notes | USD 250 million | 15 September 2026 | Matured; repayment from the August 2026 issue was the stated use of proceeds (repayment not independently confirmed) |
4.00% senior notes | USD 300 million | 1 July 2029 | Outstanding |
4.950% senior notes | USD 350 million | 2029 (interest payable 15 February and 15 August) | Issued 21 August 2026 at 99.993 |
5.00% senior notes | USD 400 million | 30 June 2032 | Outstanding |
Medium-term notes | USD 8 million | Various | Outstanding |
US revolving credit agreement | USD 1 billion commitment; USD 994 million available at 30 September 2025 | Expires fiscal 2027 | Backs the commercial paper programme |
Euro revolving credit agreement | EUR 300 million commitment | Expires fiscal 2027 | Outstanding |
Short-term borrowings | USD 184 million at 30 June 2026 | Short term | Commercial paper and local lines |
Timing Details
| Timing | Item | Why it matters |
|---|---|---|
Early Nov 2026 | FY2026 results and FY2027 guidance; first results under McLaughlin | Shows whether FY2026 is the trough; possible reset of medium-term targets |
Late 2026 | Permanent CFO appointment | Capital allocation continuity |
Dec 2026 | EU decision on countervailing duties for Chinese tires | Volume and pricing in EMEA |
Dec 2026 - Feb 2027 | Calendar 2027 tire supply agreements | The largest single driver of FY2027 earnings |
FY2027 | Botlek consultation outcome and closures; Campana exit complete | Delivery of USD 22 million of savings |
FY2027 | Renewal of the USD 1 billion and EUR 300 million credit facilities | Liquidity |
2026-2027 | EU carbon black substance review; EU ETS benchmark updates | Regulatory cost |
Ongoing | Battery materials EBITDA against the USD 40 million marker; PowerCo ramp; Franklin and Pampa construction | Growth credibility |
Ongoing | Oil and feedstock prices; working capital | Cash flow |
Ongoing | Ville Platte arbitration and compliance date; Sarnia controls | Capex and legal exposure |
Ongoing | Aerogel plant restart at Frankfurt | Small but symbolic for the thermal-barrier thesis |
Executive Leadership
Executive Leadership Team
| Name | Title | Tenure and background | Education |
|---|---|---|---|
Erica McLaughlin | President and Chief Executive Officer; director | CEO since 1 October 2026. Joined Cabot in 2002. Previously EVP, CFO and Head of Corporate Strategy; VP Business Operations for Reinforcement Materials and general manager of the tire business; VP Investor Relations and Corporate Communications; Global Director of Strategy, Planning and Finance. Earlier at KPMG audit. Director of Azenta Life Sciences. | BS Accounting and MBA, Boston College; CPA |
Steve Delahunt | Interim Chief Financial Officer; Vice President and Corporate Treasurer | Interim CFO from 1 October 2026 while an external and internal search continues. Formerly led investor relations. | — |
Jeff Zhu | EVP and President, Carbon and Silica Technologies, Battery Materials and Asia Pacific Region | Leads Performance Chemicals product lines and the region. | — |
William (Bill) Masterson | SVP and President, Reinforcement Materials | Appointed 21 November 2025. Joined Cabot from W. R. Grace in 2011; previously VP Global Business Operations for Carbon and Silica Technologies. | — |
Karen A. Kalita | SVP and General Counsel | Named executive officer in the 2026 proxy. | — |
Jennifer Chittick | SVP, Safety, Health and Environment and Government Affairs; Chief Sustainability Officer | Per June 2026 sustainability report release. | — |
Robert Rist | VP, Investor Relations and Corporate Planning | Appointed 3 November 2025. | — |
Executive Leadership Team — Sean D. Keohane
| Name | Former role | Departure |
|---|---|---|
Sean D. Keohane | President and CEO since 2016; with Cabot nearly 25 years | Retired 30 September 2026; advisory, non-executive employee through 31 December 2026 under a transition agreement dated 29 July 2026 |
Hobart (Bart) C. Kalkstein | EVP and President, Reinforcement Materials (segment head since April 2016; joined 2005) | Stepped down 15 June 2025; retired 5 January 2026 |
Matthew F. Wood | SVP and President, Reinforcement Materials (from 15 June 2025) | Left 21 November 2025, effective immediately; the company stated the exit did not involve any disagreement over performance, operations, financial statements, controls or auditors |
Directors' Remuneration
| Executive | Salary (USD) | Stock awards (USD) | Option awards (USD) | Non-equity incentive (USD) | Pension change (USD) | All other (USD) | Total (USD) |
|---|---|---|---|---|---|---|---|
Sean D. Keohane, President and CEO | 1,100,000 | 4,224,847 | 2,274,925 | 1,402,501 | 31,307 | 274,303 | 9,307,883 |
Erica McLaughlin, EVP, CFO and Head of Corporate Strategy | 625,767 | 974,885 | 524,987 | 515,583 | 1,129 | 133,705 | 2,776,056 |
Jeff Zhu, EVP and President, Carbon and Silica Technologies | 577,472 | 714,893 | 384,986 | 472,294 | 0 | 1,374,889 | 3,524,533 |
Karen A. Kalita, SVP and General Counsel | 549,632 | 552,412 | 297,450 | 462,012 | 540 | 119,927 | 1,981,973 |
Hobart C. Kalkstein, former EVP and President, Reinforcement Materials | 605,095 | 779,862 | 640,535 | 427,177 | 9,802 | 116,061 | 2,578,532 |
Matthew F. Wood, former SVP and President, Reinforcement Materials | 371,764 | 329,889 | 0 | 0 | 0 | 604,271 | 1,305,924 |
Board of Directors
| Director | Role and committees | Background |
|---|---|---|
Michael M. Morrow | Non-Executive Chair (since 1 October 2023); Chair, Governance and Nominating; Chair, Executive Committee | Retired PwC partner (1977-2016); chairs the Financial Accounting Standards Advisory Council |
Erica McLaughlin | President and CEO; Executive Committee | See above; class expiring at the 2029 annual meeting |
Cynthia A. Arnold | SHE and Sustainability; Compensation | Former CTO, Valspar (2011-2017) and Sun Chemical; director of Fluence, Milliken and Citrine Informatics |
Douglas G. Del Grosso | Compensation | Former CEO, Adient plc (2018-2023); BS Lawrence Technological University, MBA Michigan State |
Raffiq Nathoo | Audit | Managing Partner, TX3 Sage Rock; 22 years at Blackstone; director of American Water; BA Dartmouth, MBA Harvard |
Thierry Vanlancker | Chair, SHE and Sustainability; Governance and Nominating | Managing director, Aliaxis; former CEO, AkzoNobel (2017-2022); Chairman of Sika AG; MSc Chemical Engineering, Ghent |
Michelle Williams, Ph.D. | Audit; SHE and Sustainability | Former Global Group President, Altuglas International (Arkema); 23 years at Rohm and Haas and Dow; director of Brady Corporation |
Frank A. Wilson | Chair, Audit; Governance and Nominating; Executive Committee | Former CFO, PerkinElmer (2009-2018); director of Alkermes and Novanta; CPA |
Christine Y. Yan | Chair, Compensation; Governance and Nominating | Former President Asia, Stanley Black and Decker; director of Modine, onsemi and Ansell |
Major Shareholders
| Holder | Shares | Stake (%) |
|---|---|---|
BlackRock, Inc. | 6,624,537 | 12.7 |
The Vanguard Group, Inc. | 5,928,895 | 11.4 |
Wellington Management Group LLP | 3,751,569 | 7.18 |
EARNEST Partners, LLC | 3,105,914 | 5.95 |
Fuller and Thaler Asset Management, Inc. | 2,343,322 | 4.49 |
State Street Global Advisors, Inc. | 2,025,589 | 3.88 |
American Century Investment Management Inc | 2,019,922 | 3.87 |
Dimensional Fund Advisors LP | 1,663,283 | 3.19 |
Geode Capital Management, LLC | 1,331,061 | 2.55 |
Governance Timeline
| Date | Initiative | Detail and targets |
|---|---|---|
Sep 2024 | DOE grant for a Michigan battery materials plant | Up to USD 50 million; redirected in September 2026 |
| 2025 | Cilegon expansion | About 80,000 tonnes of reinforcing carbons capacity |
29 Jul 2025 | LITX 95F launch | Conductive carbon for energy storage cells |
4 Aug 2025 | MXCB acquisition | About USD 70 million; closed 2 February 2026 |
23 Sep 2025 | 2030 Sustainability Goals | Six priority topics; Scope 1 and 2 GHG intensity down 15%; SO2 down 20% in absolute terms |
7 Oct 2025 and 18 Feb 2026 | EVOLVE manufacturing capability | Circular reinforcing carbons in North America and Asia Pacific |
Q1 FY2026 | 2026 Performance Chemicals restructuring plan | Fumed metal oxides; Barry production ceased Q3 FY2026 |
7 Jan 2026 | PowerCo supply agreement | Multi-year; conductive carbons and dispersions |
22 Jan 2026 | Dunlop memorandum of understanding | Commercial adoption of circular reinforcing carbon |
12 Mar 2026 | Global price increases | Specialty carbons and specialty compounds |
1 May 2026 | Reinforcement Materials restructuring | Campana closure; Botlek unit closures; pre-tax charges of about USD 79 million (USD 63 million in FY2026, USD 16 million in FY2027) |
5-6 May 2026 | Cost programme | USD 30 million of savings targeted in FY2026 (procurement, headcount, process technology); USD 22 million of annual fixed-cost savings from rationalization by mid-2027; about USD 24 million of cash cost over two to three years; about 120,000 tonnes of capacity removed |
3 Aug 2026 | Battery capacity programme | About USD 125 million at two US sites plus investment in China; on line in 2028; sized for about three years of growth |
17 Sep 2026 | Modified DOE grant | USD 50 million of federal funding plus about USD 75 million from Cabot; Franklin (LITX) and Pampa (CNS); operational by end-2028 |
Governance Overview
| Item | Guidance | Source |
|---|---|---|
FY2026 adjusted EPS | USD 6.15 to 6.45 (tightened from 6.00-6.50; initial range 6.00-7.00) | Releases of 3 Nov 2025, 5 May 2026, 3 Aug 2026 |
FY2026 capital expenditure | USD 200 to 215 million (earlier 200-230) | Q3 FY2026 call |
FY2026 operating tax rate | 28% to 30% | Q3 FY2026 release |
FY2026 battery materials EBITDA | About USD 40 million | Q3 FY2026 release |
FY2026 environmental capital spending | About USD 60 million (USD 74 million in FY2025) | Form 10-K FY2025 |
Performance Chemicals volume growth | Low single digits in FY2026; 1.5 to 2 times GDP in a normal environment | Q3 FY2026 call |
Capex beyond FY2026 | Similar to recent levels, including the battery programme | Q3 FY2026 call |
Competitive Landscape
Competitors by Segment
| Product line | Principal competitors | Positioning relative to Cabot |
|---|---|---|
Reinforcing carbons (global) | Birla Carbon (Aditya Birla Group); Orion S.A.; Tokai Carbon (including Cancarb and its US operations); Continental Carbon (CSRC Group) | Birla Carbon and Cabot are the two largest by capacity †; Orion is the closest listed peer, with a similar rubber and specialty mix at about half the revenue |
Reinforcing carbons (regional) | PCBL Chemical and Himadri (India); Jiangxi Black Cat and Longxing (China); OCI (Korea); Omsk Carbon (Russia) | Lower-cost regional producers, increasingly exporting; cited by Cabot as a source of overcapacity from China and India |
Substitutes | Precipitated silica (Evonik, Solvay, PPG); recovered carbon black producers | Silica displaces carbon black in passenger tire treads; recovered carbon is marketed on sustainability |
Specialty carbons | Orion S.A.; Birla Carbon; Imerys (conductive grades); Denka (acetylene black); Mitsubishi Chemical | Cabot and Orion lead in breadth; niche producers lead in specific conductive grades |
Battery conductive additives | Imerys; Denka; Orion; Jiangsu Cnano; LG Chem; OCSiAl | Chinese nanotube makers lead on scale in China; Cabot differentiates on breadth and Western footprint |
Fumed silica and alumina | Evonik (AEROSIL); Wacker Chemie (HDK); Tokuyama; Chinese producers | Evonik is the largest †; Cabot and Wacker follow; Evonik is the one global fumed alumina rival |
Aerogel | Aspen Aerogels; Chinese producers | Aspen is larger and blanket-focused; Cabot is particle-focused |
Specialty compounds | Avient; Ampacet; LyondellBasell (compounding); regional masterbatch makers | Fragmented; Cabot is strong in black masterbatch |
Inkjet colorants | DIC / Sun Chemical; Fujifilm; Clariant; dye producers | Niche; competition from dyes and other pigment dispersions |
Peer Comparison FY2025
| Metric | Cabot (FY2025, Sep) | Orion S.A. (FY2024, Dec) † | Evonik Industries (FY2024, Dec) † | Tokai Carbon (FY2024, Dec) † |
|---|---|---|---|---|
Revenue | USD 3,713 million | USD 1,878 million | EUR 15.2 billion | About JPY 350 billion |
Revenue growth | -7.0% | About -1% | About -1% | — |
EBITDA margin | 21.7% adjusted (USD 804 million) | About 16% adjusted (about USD 302 million) | About 13.6% adjusted (about EUR 2.07 billion) | — |
Operating margin | 16.7% | — | — | — |
R&D intensity | 1.6% of revenue | — | About 3% of revenue | — |
Relevance | Whole company | Closest pure-play peer | Silica is one division of a diversified group | Carbon black is one of several businesses |
Recent Developments
The 30 June 2026 10-Q states that the restructuring actions reduced the workforce across business and functional teams; press coverage of Campana cited about 130 jobs.
