Cabot Corp Reports First Quarter Fiscal 2025 Results
Cabot (NYSE: CBT) reported strong first quarter fiscal 2025 results with diluted EPS of $1.67 and Adjusted EPS of $1.76, representing a 13% increase year-over-year. The company's Reinforcement Materials segment achieved EBIT of $130 million, up 1%, while Performance Chemicals segment EBIT grew 32% to $45 million.
Net sales were $955 million, with net income of $93 million. The company generated operating cash flow of $124 million, returning $66 million to shareholders through dividends and share repurchases. Global Reinforcement Materials volumes increased 1%, with growth in Asia Pacific and EMEA, offset by a 1% decline in Americas. Performance Chemicals saw an 8% volume increase.
The company maintained its fiscal 2025 Adjusted EPS outlook of $7.40 to $7.80, supported by strong operational performance and successful customer agreement negotiations.
Cabot (NYSE: CBT) ha riportato risultati solidi per il primo trimestre dell'anno fiscale 2025, con un utile per azione diluito di $1,67 e un utile per azione rettificato di $1,76, pari a un aumento del 13% rispetto all’anno precedente. Il segmento Materiali di Rinforzo ha registrato un EBIT di $130 milioni, in aumento dell'1%, mentre l'EBIT del segmento Chimica dei Materiali è cresciuto del 32% a $45 milioni.
Le vendite nette sono state di $955 milioni, con un utile netto di $93 milioni. L'azienda ha generato un flusso di cassa operativo di $124 milioni, restituendo $66 milioni agli azionisti tramite dividendi e riacquisti di azioni. I volumi globali dei Materiali di Rinforzo sono aumentati dell'1%, con una crescita nella regione Asia-Pacifico e EMEA, compensata da un calo dell'1% nelle Americhe. La Chimica dei Materiali ha visto un aumento del volume dell'8%.
L'azienda ha mantenuto le proprie previsioni di utile per azione rettificato per il 2025 tra $7,40 e $7,80, sostenuta da solide prestazioni operative e da negoziazioni di accordi con i clienti di successo.
Cabot (NYSE: CBT) reportó resultados sólidos para el primer trimestre del año fiscal 2025, con un EPS diluido de $1.67 y un EPS ajustado de $1.76, lo que representa un aumento del 13% en comparación con el año anterior. El segmento de Materiales de Refuerzo logró un EBIT de $130 millones, un aumento del 1%, mientras que el EBIT del segmento de Químicos de Desempeño creció un 32% alcanzando los $45 millones.
Las ventas netas fueron de $955 millones, con una ganancia neta de $93 millones. La empresa generó un flujo de efectivo operativo de $124 millones, devolviendo $66 millones a los accionistas mediante dividendos y recompras de acciones. Los volúmenes globales de Materiales de Refuerzo aumentaron un 1%, con crecimiento en Asia-Pacífico y EMEA, compensado por una disminución del 1% en las Américas. Los Químicos de Desempeño experimentaron un aumento del volumen del 8%.
La compañía mantuvo su perspectiva de EPS ajustado para el 2025 entre $7.40 y $7.80, respaldada por un sólido desempeño operativo y negociaciones exitosas con los clientes.
카봇 (NYSE: CBT)는 2025 회계연도 첫 분기 실적을 발표하며 희석 주당 순이익(EPS)이 $1.67, 조정 주당 순이익이 $1.76으로 전년 동기 대비 13% 증가했다고 보고했습니다. 회사의 강화 소재 부문은 $130백만의 EBIT를 기록했으며, 이는 1% 증가한 수치입니다. 성능 화학 부문 EBIT는 32% 증가해 $45백만에 달했습니다.
순 매출은 $955백만, 순이익은 $93백만으로 집계되었습니다. 회사는 $124백만의 운영 현금 흐름을 창출하며, 주주에게 $66백만을 배당금 및 자사주 매입을 통해 반환했습니다. 전 세계 강화 소재 물량은 1% 증가했으며, 아시아 태평양 및 EMEA에서의 성장세가 있었으나, 아메리카 지역에서 1% 감소했습니다. 성능 화학 부문에서는 8%의 물량 증가가 있었습니다.
회사는 2025 회계연도 조정 EPS 전망을 $7.40에서 $7.80으로 유지하며, 이는 강력한 운영 성과와 성공적인 고객 계약 협상에 의해 뒷받침되었습니다.
Cabot (NYSE: CBT) a rapporté des résultats solides pour le premier trimestre de l'exercice 2025, avec un BPA dilué de 1,67 $ et un BPA ajusté de 1,76 $, représentant une augmentation de 13 % par rapport à l'année précédente. Le segment des Matériaux de Renfort a réalisé un EBIT de 130 millions de dollars, en hausse de 1 %, tandis que l'EBIT du segment des Produits Chimiques de Performance a augmenté de 32 % pour atteindre 45 millions de dollars.
Les ventes nettes ont atteint 955 millions de dollars, avec un bénéfice net de 93 millions de dollars. L'entreprise a généré un flux de trésorerie opérationnel de 124 millions de dollars, retournant 66 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions. Les volumes mondiaux des Matériaux de Renfort ont augmenté de 1 %, avec une croissance dans la région Asie-Pacifique et EMEA, compensée par une baisse de 1 % en Amérique. Les Produits Chimiques de Performance ont connu une augmentation de volume de 8 %.
L'entreprise a maintenu ses prévisions de BPA ajusté pour 2025, fixées entre 7,40 $ et 7,80 $, soutenues par de solides performances opérationnelles et de fructueuses négociations avec les clients.
Cabot (NYSE: CBT) hat starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025 gemeldet, mit einem verwässerten EPS von $1,67 und einem bereinigten EPS von $1,76, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht. Das Segment Verstärkungsmaterialien erzielte ein EBIT von $130 Millionen, was einem Anstieg von 1% entspricht, während das EBIT des Segments Leistungschemikalien um 32% auf $45 Millionen wuchs.
Der Nettoumsatz betrug $955 Millionen, mit einem Nettogewinn von $93 Millionen. Das Unternehmen generierte einen operativen Cashflow von $124 Millionen und gab $66 Millionen an die Aktionäre durch Dividenden und Aktienrückkäufe zurück. Die globalen Volumen von Verstärkungsmaterialien stiegen um 1%, mit Wachstum in Asien-Pazifik und EMEA, ausgeglichen durch einen Rückgang von 1% in den Amerikas. Die Leistungschemikalien verzeichneten einen Anstieg des Absatzvolumens um 8%.
Das Unternehmen hielt seine Prognose für das bereinigte EPS für 2025 in einer Spanne von $7,40 bis $7,80 aufrecht, unterstützt durch starke operative Leistungen und erfolgreiche Verhandlungen mit Kunden.
- Adjusted EPS increased 13% year-over-year to $1.76
- Performance Chemicals segment EBIT grew 32% to $45 million
- Strong operating cash flow of $124 million
- Reinforcement Materials volumes grew in Asia Pacific (2%) and EMEA (1%)
- Performance Chemicals volumes increased 8%
- Americas region volumes declined 1% in Reinforcement Materials
- Higher costs from maintenance spend and new assets in Performance Chemicals
- Net sales slightly decreased from $958M to $955M year-over-year
Insights
Cabot delivered a compelling first quarter performance that underscores its operational resilience and strategic execution. The 13% year-over-year increase in Adjusted EPS to
The Reinforcement Materials segment's performance reveals important geographic dynamics:
- Asia Pacific and EMEA showed positive volume growth, indicating market share gains and robust regional demand
- Americas experienced a
1% volume decline due to increased Asian tire imports, highlighting shifting trade patterns that could impact future quarters - Calendar year 2024 customer agreements yielded favorable pricing and mix benefits, though partially offset by lower energy center revenue
The Performance Chemicals segment's
Cash management remains exemplary with
The maintained FY2025 guidance of
Diluted earnings per share (“EPS”) of
BOSTON, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Cabot Corporation (NYSE: CBT) today announced results for its first quarter of fiscal year 2025.
Key Highlights
- Diluted EPS of
$1.67 and Adjusted EPS of$1.76 which represents a13% increase in Adjusted EPS compared to the same quarter in the prior year - Reinforcement Materials segment EBIT of
$130 million ; up1% compared to the same quarter in the prior year - Performance Chemicals segment EBIT of
$45 million ; up32% compared to the same quarter in the prior year - Cash Flows from Operations of
$124 million in the first fiscal quarter supported the return of$66 million of cash to shareholders in the quarter
- Hosted Investor Day highlighting growth strategy and 3-Year financial targets
| (In millions, except per share amounts) | Three Months Ended | ||||||
| 12/31/24 | 12/31/23 | ||||||
| Net sales and other operating revenues | $ | 955 | $ | 958 | |||
| Net income (loss) attributable to Cabot Corporation | $ | 93 | $ | 50 | |||
| Net earnings (loss) per share attributable to Cabot Corporation | $ | 1.67 | $ | 0.88 | |||
| Less: Certain items after tax per share | $ | (0.09 | ) | $ | (0.68 | ) | |
| Adjusted EPS | $ | 1.76 | $ | 1.56 | |||
Sean Keohane, Cabot President and Chief Executive Officer commented: “We continued to execute against our Creating for Tomorrow strategy, delivering another quarter of strong results and in-line with our expectations. The Cabot team demonstrated operational excellence and agility in a challenging market environment, resulting in Adjusted EPS of
Keohane continued, “During the first quarter, we delivered strong operating cash flow of
Financial Detail
For the first quarter of fiscal 2025, net income attributable to Cabot Corporation was
Segment Results
Reinforcement Materials – First quarter fiscal 2025 EBIT in Reinforcement Materials increased by
Global and regional volume changes for Reinforcement Materials for the first quarter of fiscal 2025 as compared to the same quarter of the prior year are set forth in the table below:
| First Quarter Year-over-Year Change | ||
| Global Reinforcement Materials Volumes | 1 | % |
| Asia Pacific | 2 | % |
| Europe, Middle East, Africa | 1 | % |
| Americas | (1 | %) |
Performance Chemicals – First quarter fiscal 2025 EBIT in Performance Chemicals increased by
Cash Performance – The Company ended the first quarter of fiscal 2025 with a cash balance of
Taxes – During the first quarter of fiscal 2025, the Company recorded a tax expense of
Outlook
Commenting on the outlook for the Company, Keohane said, “As we look ahead to the remainder of fiscal 2025, our outlook for Adjusted earnings per share for fiscal year 2025 remains in the range of
Keohane continued, “We are off to a good start to fiscal 2025 and I have confidence in our teams’ agility and execution capabilities. Our outlook for operating cash flow remains strong, which would allow us to continue investing in strategic growth projects and to continue to return robust levels of cash to shareholders through dividends and share repurchases. I believe Cabot is executing well against our Creating for Tomorrow strategy and our long-term targets to deliver attractive returns to our shareholders.”
Earnings Call
The Company will host a conference call with industry analysts at 8:00 a.m. Eastern time on Tuesday, February 4, 2025. The call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com
About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company is a leading provider of reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed metal oxides and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com. The Company regularly posts important information on its website and encourages investors and potential investors to consult the Cabot website regularly.
Forward-Looking Statements – This earnings release contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in fiscal year 2025, including our expectations for growth in our businesses and for Adjusted earnings per share for fiscal 2025, our expectations for capital allocation and operating cash flow for fiscal 2025, our expected operating tax rate for fiscal 2025, and our assumptions underlying those expectations are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward-looking statements. Important factors that could cause our results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, industry capacity utilization and competition from other specialty chemical companies; safety, health and environmental requirements and related constraints imposed on our business; regulatory and financial risks related to climate change developments; volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of Ukraine and the U.S.-China trade relationship; a significant adverse change in a customer relationship or the failure of a customer to perform its obligations under agreements with us; failure to achieve growth expectations from new products, applications and technology developments; failure to realize benefits from acquisitions, alliances, or joint ventures or achieve our portfolio management objectives; unanticipated delays in, or increased cost of site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations, global health matters or geo-political conflicts; litigation or legal proceedings; interest rates, tax rates, currency exchange controls and fluctuations in foreign currency rates; and the accuracy of the assumptions we used in establishing reserves for our share of liability for respirator claims. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission (“SEC”), particularly under the heading “Risk Factors” in our annual report on Form 10-K for our fiscal year ended September 30, 2024, which are filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Use of Non-GAAP Financial Measures
To supplement Cabot’s consolidated financial statements presented on a generally accepted accounting principle (“GAAP”) basis, the preceding discussion of our results and the accompanying financial tables report Adjusted EPS, Total Segment EBIT, Total Segment EBITDA, Adjusted EBITDA, our operating tax rate, Free Cash Flow and Discretionary Free Cash Flow, all of which are non-GAAP financial measures. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP, and the definitions of these measures may not be comparable to those used by other companies. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Total Segment EBIT, Total Segment EBITDA, and Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow provided by (used in) operating activities, the most directly comparable GAAP financial measure, are provided in the tables titled “Cabot Corporation Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate” and “Cabot Corporation Reconciliation of Non-GAAP Financial Measures.”
Management believes these non-GAAP measures provide investors with greater transparency to the information used by Cabot management in its financial and operational decision-making, allow investors to see Cabot’s results through the eyes of management, and better enable Cabot’s investors to understand Cabot’s operating performance and financial condition.
Adjusted EPS. In calculating Adjusted EPS, we exclude from our net income (loss) attributable to Cabot Corporation items of expense and income that management does not consider representative of the Company’s business operations. Accordingly, reporting earnings on an adjusted basis supplements the GAAP measure of performance and provides additional information related to the underlying performance of the business. For example, certain of the items we exclude are items that we are required by GAAP to recognize in one period that relate to activities extending over several periods or relate to single events that management considers to be unusual and infrequent, although not necessarily non-recurring. We refer to these items as “certain items.” Management believes excluding these items facilitates operating performance comparisons from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis and evaluates the Company’s operating performance without the impact of these costs or benefits. Management also uses Adjusted EPS as a key measure in evaluating management performance for incentive compensation purposes.
The items of income and expense that we exclude from our calculations of Adjusted EPS but that are included in our GAAP net income (loss) per share, as applicable in a particular reporting period, include, but are not limited to, the following:
- Argentina controlled currency devaluation loss related to the foreign exchange loss from government-controlled currency devaluations on our net monetary assets denominated in the Argentine peso and investment losses related to the utilization of government bond programs established for the settlement of certain foreign payables.
- Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations.
- Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business.
- Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes.
- Asset impairment charges, which primarily include charges associated with an impairment of goodwill, other long-lived assets or assets held for sale.
- Gains (losses) on sale of a business.
- Employee benefit plan settlements, which consist of either charges or benefits associated with the termination of a pension plan or the transfer of a pension plan to a multi-employer plan.
Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.
Total Segment EBIT. Total Segment EBIT reflects the sum of EBIT from our two reportable segments. In calculating Total Segment EBIT we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies, certain items and items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to corporate projects and initiatives.
Total Segment EBITDA. Total Segment EBITDA is equal to Total Segment EBIT (as defined above), but further adjusted for depreciation and amortization.
Adjusted EBITDA. Adjusted EBITDA reflects Total Segment EBITDA and is further adjusted for unallocated corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to corporate projects and initiatives.
Free Cash Flow. To calculate “Free Cash Flow” we deduct Additions to property, plant and equipment from cash flow provided by (used in) operating activities.
Discretionary Free Cash Flow. To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow provided by (used in) operating activities.
Operating Tax Rate. Our “operating tax rate” is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.
Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.
Explanation of Terms Used
Product Mix. The term “product mix” refers to the mix of types and grade of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business or segment.
Net Working Capital. The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued expenses.
| CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| Periods ended December 31 | Three Months | ||||||||
| Dollars in millions, except per share amounts (unaudited) | 2024 | 2023 | |||||||
| Net sales and other operating revenues | $ | 955 | $ | 958 | |||||
| Cost of sales | 720 | 740 | |||||||
| Gross profit | 235 | 218 | |||||||
| Selling and administrative expenses | 66 | 67 | |||||||
| Research and technical expenses | 14 | 15 | |||||||
| Income (loss) from operations | 155 | 136 | |||||||
| Interest and dividend income | 6 | 9 | |||||||
| Interest expense | (18 | ) | (22 | ) | |||||
| Other income (expense) | 1 | (29 | ) | ||||||
| Income (loss) from operations before income taxes and equity in | |||||||||
| earnings of affiliated companies | 144 | 94 | |||||||
| (Provision) benefit for income taxes | (41 | ) | (34 | ) | |||||
| Equity in earnings of affiliated companies, net of tax | 1 | 1 | |||||||
| Net income (loss) | 104 | 61 | |||||||
| Net income (loss) attributable to noncontrolling interests, net of tax | 11 | 11 | |||||||
| Net income (loss) attributable to Cabot Corporation | $ | 93 | $ | 50 | |||||
| Weighted-average common shares outstanding | |||||||||
| Basic | 54.3 | 55.3 | |||||||
| Diluted | 55.0 | 55.8 | |||||||
| Earnings (loss) per common share: | |||||||||
| Basic | $ | 1.69 | $ | 0.88 | |||||
| Diluted | $ | 1.67 | $ | 0.88 | |||||
| CABOT CORPORATION SUMMARY RESULTS BY SEGMENT | |||||||||
| Periods ended December 31 | Three Months | ||||||||
| Dollars in millions, except per share amounts (unaudited) | 2024 | 2023 | |||||||
| Sales | |||||||||
| Reinforcement Materials | $ | 611 | $ | 641 | |||||
| Performance Chemicals | 311 | 285 | |||||||
| Segment sales | 922 | 926 | |||||||
| Unallocated and other(A) | 33 | 32 | |||||||
| Net sales and other operating revenues | $ | 955 | $ | 958 | |||||
| Segment Earnings Before Interest and Taxes(B) | |||||||||
| Reinforcement Materials | $ | 130 | $ | 129 | |||||
| Performance Chemicals | 45 | 34 | |||||||
| Total Segment Earnings Before Interest and Taxes | 175 | 163 | |||||||
| Unallocated and Other | |||||||||
| Interest expense | (18 | ) | (22 | ) | |||||
| Certain items(C) | (6 | ) | (42 | ) | |||||
| Unallocated corporate costs | (13 | ) | (17 | ) | |||||
| General unallocated income (expense)(D) | 7 | 13 | |||||||
| Less: Equity in earnings of affiliated companies, net of tax | 1 | 1 | |||||||
| Income (loss) from operations before income taxes and equity in | |||||||||
| earnings of affiliated companies | 144 | 94 | |||||||
| (Provision) benefit for income taxes (including tax certain items) | (41 | ) | (34 | ) | |||||
| Equity in earnings of affiliated companies, net of tax | 1 | 1 | |||||||
| Net income (loss) | 104 | 61 | |||||||
| Net income (loss) attributable to noncontrolling interests, net of tax | 11 | 11 | |||||||
| Net income (loss) attributable to Cabot Corporation | $ | 93 | $ | 50 | |||||
| Diluted earnings (loss) per share of common stock | |||||||||
| attributable to Cabot Corporation | $ | 1.67 | $ | 0.88 | |||||
| Adjusted earnings (loss) per share(E) | $ | 1.76 | $ | 1.56 | |||||
| Diluted weighted average common shares outstanding | 55.0 | 55.8 | |||||||
| (A) | Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable. | ||||||||
| (B) | Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable. | ||||||||
| (C) | Details of Certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | ||||||||
| (D) | General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items. | ||||||||
| (E) | Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | ||||||||
| CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
| December 31, | September 30, | ||||||||
| Dollars in millions (unaudited) | 2024 | 2024 | |||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 183 | $ | 223 | |||||
| Accounts and notes receivable, net of reserve for doubtful accounts of | 677 | 733 | |||||||
| Inventories: | |||||||||
| Raw materials | 139 | 150 | |||||||
| Finished goods | 331 | 333 | |||||||
| Other | 66 | 69 | |||||||
| Total inventories | 536 | 552 | |||||||
| Prepaid expenses and other current assets | 100 | 97 | |||||||
| Total current assets | 1,496 | 1,605 | |||||||
| Property, plant and equipment | 4,049 | 4,082 | |||||||
| Accumulated Depreciation | (2,493 | ) | (2,548 | ) | |||||
| Net property, plant and equipment | 1,556 | 1,534 | |||||||
| Goodwill | 127 | 133 | |||||||
| Equity affiliates | 13 | 23 | |||||||
| Intangible assets, net | 57 | 53 | |||||||
| Deferred income taxes | 211 | 216 | |||||||
| Other assets | 182 | 172 | |||||||
| Total assets | $ | 3,642 | $ | 3,736 | |||||
| CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
| December 31, | September 30, | ||||||||
| Dollars in millions, except share and per share amounts (unaudited) | 2024 | 2024 | |||||||
| Current liabilities: | |||||||||
| Short-term borrowings | $ | 100 | $ | 45 | |||||
| Accounts payable and accrued liabilities | 599 | 676 | |||||||
| Income taxes payable | 39 | 43 | |||||||
| Current portion of long-term debt | 9 | 8 | |||||||
| Total current liabilities | 747 | 772 | |||||||
| Long-term debt | 1,089 | 1,087 | |||||||
| Deferred income taxes | 39 | 42 | |||||||
| Other liabilities | 252 | 245 | |||||||
| Stockholders' equity: | |||||||||
| Preferred stock: | |||||||||
| Authorized: 2,000,000 shares of | |||||||||
| Issued and Outstanding: None and none | — | — | |||||||
| Common stock: | |||||||||
| Authorized: 200,000,000 shares of Issued: 54,348,447 and 54,430,316 shares Outstanding: 54,215,426 and 54,297,251 shares | 54 | 54 | |||||||
| Less cost of 133,021 and 133,065 shares of common treasury stock | (3 | ) | (3 | ) | |||||
| Additional paid-in capital | — | — | |||||||
| Retained earnings | 1,772 | 1,734 | |||||||
| Accumulated other comprehensive income (loss) | (457 | ) | (360 | ) | |||||
| Total Cabot Corporation stockholders' equity | 1,366 | 1,425 | |||||||
| Noncontrolling interests | 149 | 165 | |||||||
| Total stockholders' equity | 1,515 | 1,590 | |||||||
| Total liabilities and stockholders' equity | $ | 3,642 | $ | 3,736 | |||||
| CABOT CORPORATION QUARTERLY RESULTS BY SEGMENT | ||||||||||||||||||||||||||||||
| Fiscal 2024 | Fiscal 2025 | |||||||||||||||||||||||||||||
| Dollars in millions, | ||||||||||||||||||||||||||||||
| except per share amounts (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY | Dec. Q | Mar. Q | June Q | Sept. Q | FY | ||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||||||
| Reinforcement Materials | $ | 641 | $ | 676 | $ | 649 | $ | 644 | $ | 2,610 | $ | 611 | $ ― | $ ― | $ ― | $ | 611 | |||||||||||||
| Performance Chemicals | 285 | 311 | 332 | 322 | 1,250 | 311 | — | — | — | 311 | ||||||||||||||||||||
| Segment sales | 926 | 987 | 981 | 966 | 3,860 | 922 | — | — | — | 922 | ||||||||||||||||||||
| Unallocated and other(A) | 32 | 32 | 35 | 35 | 134 | 33 | — | — | — | 33 | ||||||||||||||||||||
| Net sales and other operating revenues | $ | 958 | $ | 1,019 | $ | 1,016 | $ | 1,001 | $ | 3,994 | $ | 955 | $ ― | $ ― | $ ― | $ | 955 | |||||||||||||
| Segment Earnings Before Interest and Taxes(B) | ||||||||||||||||||||||||||||||
| Reinforcement Materials | $ | 129 | $ | 149 | $ | 136 | $ | 123 | $ | 537 | $ | 130 | $ ― | $ ― | $ ― | $ | 130 | |||||||||||||
| Performance Chemicals | 34 | 31 | 55 | 44 | 164 | 45 | — | — | — | 45 | ||||||||||||||||||||
| Total Segment Earnings Before Interest and Taxes | 163 | 180 | 191 | 167 | 701 | 175 | — | — | — | 175 | ||||||||||||||||||||
| Unallocated and Other | ||||||||||||||||||||||||||||||
| Interest expense | (22 | ) | (21 | ) | (19 | ) | (19 | ) | (81 | ) | (18 | ) | — | — | — | (18 | ) | |||||||||||||
| Certain items(C) | (42 | ) | (12 | ) | (2 | ) | (3 | ) | (59 | ) | (6 | ) | — | — | — | (6 | ) | |||||||||||||
| Unallocated corporate costs | (17 | ) | (18 | ) | (16 | ) | (17 | ) | (68 | ) | (13 | ) | — | — | — | (13 | ) | |||||||||||||
| General unallocated income (expense)(D) | 13 | 15 | 6 | 8 | 42 | 7 | — | — | — | 7 | ||||||||||||||||||||
| Less: Equity in earnings of affiliated companies, net of tax | 1 | 2 | 2 | 1 | 6 | 1 | — | — | — | 1 | ||||||||||||||||||||
| Income (loss) from operations before income taxes and | ||||||||||||||||||||||||||||||
| equity in earnings of affiliated companies | 94 | 142 | 158 | 135 | 529 | 144 | — | — | — | 144 | ||||||||||||||||||||
| (Provision) benefit for income taxes (including tax certain items) | (34 | ) | (47 | ) | (40 | ) | 10 | (111 | ) | (41 | ) | — | — | — | (41 | ) | ||||||||||||||
| Equity in earnings of affiliated companies, net of tax | 1 | 2 | 2 | 1 | 6 | 1 | — | — | — | 1 | ||||||||||||||||||||
| Net income (loss) | 61 | 97 | 120 | 146 | 424 | 104 | — | — | — | 104 | ||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests, net of tax | 11 | 13 | 11 | 9 | 44 | 11 | — | — | — | 11 | ||||||||||||||||||||
| Net income (loss) attributable to Cabot Corporation | $ | 50 | $ | 84 | $ | 109 | $ | 137 | $ | 380 | $ | 93 | $ ― | $ ― | $ ― | $ | 93 | |||||||||||||
| Diluted earnings (loss) per share of common stock | ||||||||||||||||||||||||||||||
| attributable to Cabot Corporation | $ | 0.88 | $ | 1.49 | $ | 1.94 | $ | 2.43 | $ | 6.72 | $ | 1.67 | $ | — | $ | — | $ | — | $ | 1.67 | ||||||||||
| Adjusted earnings (loss) per share(E) | $ | 1.56 | $ | 1.78 | $ | 1.92 | $ | 1.80 | $ | 7.06 | $ | 1.76 | $ | — | $ | — | $ | — | $ | 1.76 | ||||||||||
| Diluted weighted average common shares outstanding | 55.8 | 55.8 | 55.7 | 55.2 | 55.7 | 55.0 | — | — | — | 55.0 | ||||||||||||||||||||
| (A) | Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable. | |||||||||||||||||||||||||||||
| (B) | Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to measure consolidated operating results, assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable. | |||||||||||||||||||||||||||||
| (C) | Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | |||||||||||||||||||||||||||||
| (D) | General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items. | |||||||||||||||||||||||||||||
| (E) | Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table. | |||||||||||||||||||||||||||||
| CABOT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| Periods ended December 31 | Three Months | |||||
| Dollars in millions (unaudited) | 2024 | 2023 | ||||
| Cash Flows from Operating Activities: | ||||||
| Net income (loss) | ||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||
| Depreciation and amortization | 37 | 41 | ||||
| Other non-cash charges (gains), net | 7 | 49 | ||||
| Cash dividends received from equity affiliates | 12 | 1 | ||||
| Changes in assets and liabilities: | ||||||
| Changes in net working capital(A) | (38) | (46) | ||||
| Changes in other assets and liabilities, net | 2 | (1) | ||||
| Cash provided by (used in) operating activities | 124 | 105 | ||||
| Cash Flows from Investing Activities: | ||||||
| Additions to property, plant and equipment | (77) | (54) | ||||
| Cash paid for asset acquisition | (27) | — | ||||
| Cash provided by (used in) investing activities | (104) | (54) | ||||
| Cash Flows from Financing Activities: | ||||||
| Change in debt, net | 60 | 31 | ||||
| Cash dividends paid to common stockholders | (24) | (22) | ||||
| Other financing activities, net | (60) | (38) | ||||
| Cash provided by (used in) financing activities | (24) | (29) | ||||
| Effect of exchange rate changes on cash | (36) | (16) | ||||
| Increase (decrease) in cash and cash equivalents | (40) | 6 | ||||
| Cash and cash equivalents at beginning of period | 223 | 238 | ||||
| Cash and cash equivalents at end of period | ||||||
| (A) | Includes Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities. | |||||
| CABOT CORPORATION CERTAIN ITEMS AND RECONCILIATION OF ADJUSTED EPS AND OPERATING TAX RATE | ||||||||||||||||||||
| TABLE 1: DETAIL OF CERTAIN ITEMS | ||||||||||||||||||||
| Periods ended December 31 | Three Months | |||||||||||||||||||
| Dollars in millions, except per share amounts (unaudited) | 2024 | 2023 | ||||||||||||||||||
| Certain items before and after income taxes | ||||||||||||||||||||
| Legal and environmental matters and reserves | $ | (5 | ) | $ ― | ||||||||||||||||
| Argentina controlled currency devaluation and other losses | — | (33 | ) | |||||||||||||||||
| Global restructuring activities | — | (9 | ) | |||||||||||||||||
| Other certain items | (1 | ) | — | |||||||||||||||||
| Total certain items, pre-tax | (6 | ) | (42 | ) | ||||||||||||||||
| Non-GAAP tax adjustments(A) | 1 | 4 | ||||||||||||||||||
| Total certain items after tax | $ | (5 | ) | $ | (38 | ) | ||||||||||||||
| Total certain items after tax per share | $ | (0.09 | ) | $ | (0.68 | ) | ||||||||||||||
| TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEM | ||||||||||||||||||||
| Periods ended December 31 | Three Months | |||||||||||||||||||
| Dollars in millions, Pre-Tax (unaudited) | 2024 | 2023 | ||||||||||||||||||
| Statement of Operations Line Item (B) | ||||||||||||||||||||
| Cost of sales | $ | (6 | ) | $ | (9 | ) | ||||||||||||||
| Other income (expense) | — | (33 | ) | |||||||||||||||||
| Total certain items | $ | (6 | ) | $ | (42 | ) | ||||||||||||||
| TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE | ||||||||||||||||||||
| Three months ended December 31 | 2024 | 2023 | ||||||||||||||||||
| Dollars in millions (unaudited) | (Provision) / Benefit for Income Taxes | Rate | (Provision) / Benefit for Income Taxes | Rate | ||||||||||||||||
| Effective Tax Rate | $ | (41 | ) | 28 | % | $ | (34 | ) | 36 | % | ||||||||||
| Less: Non-GAAP tax adjustments(A) | 1 | 4 | ||||||||||||||||||
| Operating tax rate (C) (D) | $ | (42 | ) | 28 | % | $ | (38 | ) | 28 | % | ||||||||||
| TABLE 4: RECONCILIATION OF ADJUSTED EPS BY QUARTER FOR FISCAL 2025 and FISCAL 2024 | ||||||||||||||||||||
| Fiscal 2025 (E) | ||||||||||||||||||||
| Periods ended (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2025 | |||||||||||||||
| Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||||||
| Net income (loss) per share attributable to Cabot Corporation | $ | 1.67 | $ | — | $ | — | $ | — | $ | 1.67 | ||||||||||
| Less: Certain items after tax per share | (0.09 | ) | — | — | — | (0.09 | ) | |||||||||||||
| Adjusted earnings (loss) per share | $ | 1.76 | $ | — | $ | — | $ | — | $ | 1.76 | ||||||||||
| Fiscal 2024 (E) | ||||||||||||||||||||
| Periods ended (unaudited) | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | |||||||||||||||
| Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||||||
| Net income (loss) per share attributable to Cabot Corporation | $ | 0.88 | $ | 1.49 | $ | 1.94 | $ | 2.43 | $ | 6.72 | ||||||||||
| Less: Certain items after tax per share | (0.68 | ) | (0.29 | ) | 0.02 | 0.63 | (0.34 | ) | ||||||||||||
| Adjusted earnings (loss) per share | $ | 1.56 | $ | 1.78 | $ | 1.92 | $ | 1.80 | $ | 7.06 | ||||||||||
| (A) | Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. | |||||||||||||||||||
| (B) | This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations. | |||||||||||||||||||
| (C) | The operating tax rate is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. | |||||||||||||||||||
| (D) | Our operating tax rate for fiscal 2025 is expected to be in the range of | |||||||||||||||||||
| (E) | Per share amounts are calculated after tax. | |||||||||||||||||||
| CABOT CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||
| Fiscal 2025 (A) | ||||||||||||||||||
| Dec. Q | Mar. Q | June Q | Sept. Q | FY 2025 | ||||||||||||||
| Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||||
| Net income (loss) per share attributable to Cabot Corporation | $ | 1.67 | $ | — | $ | — | $ | — | $ | 1.67 | ||||||||
| Less: Certain items after tax per share | (0.09 | ) | — | — | — | (0.09 | ) | |||||||||||
| Adjusted earnings (loss) per share | $ | 1.76 | $ | — | $ | — | $ | — | $ | 1.76 | ||||||||
| Fiscal 2024 (A) | ||||||||||||||||||
| Dec. Q | Mar. Q | June Q | Sept. Q | FY 2024 | ||||||||||||||
| Reconciliation of Adjusted EPS to GAAP EPS | ||||||||||||||||||
| Net income (loss) per share attributable to Cabot Corporation | $ | 0.88 | $ | 1.49 | $ | 1.94 | $ | 2.43 | $ | 6.72 | ||||||||
| Less: Certain items after tax per share | (0.68 | ) | (0.29 | ) | 0.02 | 0.63 | (0.34 | ) | ||||||||||
| Adjusted earnings (loss) per share | $ | 1.56 | $ | 1.78 | $ | 1.92 | $ | 1.80 | $ | 7.06 | ||||||||
| (A) | Per share amounts are calculated after tax. | |||||||||||||||||
| Dollars in millions | Fiscal 2025 | |||||||||||||||||
| Dec. Q | Mar. Q | June Q | Sept. Q | FY 2025 | ||||||||||||||
| Reconciliation of Total Segment EBIT, Total Segment EBITDA and Adjusted EBITDA to Net Income and Segment EBITDA Margin | ||||||||||||||||||
| Net income (loss) attributable to Cabot Corporation | $ | 93 | $ ― | $ ― | $ ― | $ | 93 | |||||||||||
| Net income (loss) attributable to noncontrolling interests | 11 | — | — | — | 11 | |||||||||||||
| Equity in earnings of affiliated companies, net of tax | (1 | ) | — | — | — | (1 | ) | |||||||||||
| Provision (benefit) for income taxes | 41 | — | — | — | 41 | |||||||||||||
| Income (loss) from operations before income taxes and equity in earnings of affiliated companies | $ | 144 | $ ― | $ ― | $ ― | $ | 144 | |||||||||||
| Interest expense | 18 | — | — | — | 18 | |||||||||||||
| Certain items | 6 | — | — | — | 6 | |||||||||||||
| Unallocated corporate costs | 13 | — | — | — | 13 | |||||||||||||
| General unallocated (income) expense | (7 | ) | — | — | — | (7 | ) | |||||||||||
| Less: Equity in earnings of affiliated companies | (1 | ) | — | — | — | (1 | ) | |||||||||||
| Total Segment EBIT | $ | 175 | $ ― | $ ― | $ ― | $ | 175 | |||||||||||
| Depreciation and amortization excluding corporate depreciation and amortization | 37 | — | — | — | 37 | |||||||||||||
| Total Segment EBITDA | $ | 212 | $ ― | $ ― | $ ― | $ | 212 | |||||||||||
| Less: Unallocated corporate costs before corporate depreciation and amortization | 13 | — | — | — | 13 | |||||||||||||
| Adjusted EBITDA | $ | 199 | $ ― | $ ― | $ ― | $ | 199 | |||||||||||
| Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2025 | |||||||||||||
| Reinforcement Materials EBIT | $ | 130 | $ ― | $ ― | $ ― | $ | 130 | |||||||||||
| Reinforcement Materials Depreciation and amortization | 17 | — | — | — | 17 | |||||||||||||
| Reinforcement Materials EBITDA | $ | 147 | $ ― | $ ― | $ ― | $ | 147 | |||||||||||
| Reinforcement Materials Sales | $ | 611 | $ ― | $ ― | $ ― | $ | 611 | |||||||||||
| Reinforcement Materials EBITDA Margin | 24 | % | — | % | — | % | — | % | 24 | % | ||||||||
| Dollars in millions | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2025 | |||||||||||||
| Performance Chemicals EBIT | $ | 45 | $ ― | $ ― | $ ― | $ | 45 | |||||||||||
| Performance Chemicals Depreciation and amortization | 20 | — | — | — | 20 | |||||||||||||
| Performance Chemicals EBITDA | $ | 65 | $ ― | $ ― | $ ― | $ | 65 | |||||||||||
| Performance Chemicals Sales | $ | 311 | $ ― | $ ― | $ ― | $ | 311 | |||||||||||
| Performance Chemicals EBITDA Margin | 21 | % | — | % | — | % | — | % | 21 | % | ||||||||
| Dollars in millions | Fiscal 2025 | |||||||||||||||||
| Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activities | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2025 | |||||||||||||
| Cash provided by (used in) operating activities (B) | $ | 124 | $ ― | $ ― | $ ― | $ | 124 | |||||||||||
| Less: Additions to property, plant and equipment | 77 | — | — | — | 77 | |||||||||||||
| Free cash flow | $ | 47 | $ ― | $ ― | $ ― | $ | 47 | |||||||||||
| Plus: Additions to property, plant and equipment | 77 | — | — | — | 77 | |||||||||||||
| Less: Changes in net working capital (C) | (38 | ) | — | — | — | (38 | ) | |||||||||||
| Less: Sustaining and compliance capital expenditures | 48 | — | — | — | 48 | |||||||||||||
| Discretionary free cash flow | $ | 114 | $ ― | $ ― | $ ― | $ | 114 | |||||||||||
| (B) | As provided in the Condensed Consolidated Statements of Cash Flows. | |||||||||||||||||
| (C) | Defined as changes in Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows. | |||||||||||||||||
Investor Contact: Steve Delahunt
(617) 342-6255
FAQ
What was Cabot 's (CBT) Q1 2025 earnings per share?
How much cash did CBT return to shareholders in Q1 2025?
What is Cabot's (CBT) earnings guidance for fiscal 2025?
How did CBT's Performance Chemicals segment perform in Q1 2025?
What was CBT's operating cash flow in Q1 2025?
