Cabot Corporation Highlights Growth Strategy and 3-Year Financial Targets at Investor Day
Cabot Corporation (NYSE: CBT) hosted its 2021 Investor Day in Boston, presenting its new growth strategy titled Creating for Tomorrow. Key focuses include investing in advanced growth, innovation, and optimization. The company anticipates generating over $1 billion in discretionary free cash flow over the next three years. The three-year financial targets involve an adjusted EPS CAGR of 8-12% and promising growth in its Reinforcement Materials and Performance Chemicals segments. The strategy aims to elevate shareholder value through sustainable practices and operational excellence.
- Introduction of new growth strategy 'Creating for Tomorrow' focused on sustainability and performance.
- Projected generation of over $1 billion in discretionary free cash flow over the next three years.
- 3-year financial targets include adjusted EPS CAGR of 8-12%.
- None.
Creating for Tomorrow Strategy
Cabot’s new strategy, Creating for Tomorrow, is underpinned by its purpose to create materials that improve daily life and enable a more sustainable future. The Company plans to execute this strategy by leveraging strengths to lead in performance and sustainability. The strategy is focused on three key pillars.
- Grow: Investing for advantaged growth
- Innovate: Developing innovative products and processes that enable a better future
- Optimize: Driving continuous improvement in everything we do
Execution of its ‘Creating for Tomorrow’ strategy is expected to drive significant shareholder value creation over time.
“Cabot is well-positioned for the next phase of growth and shareholder value creation as we execute our new ‘Creating for Tomorrow’ strategy. We will continue to drive our industry-leading businesses to achieve the next set of strategic objectives, which include growing our differentiated product lines, investing in higher margin applications and generating discretionary free cash flow in excess of
Key Themes for 2021 Investor Day
- Building on our strong track record of delivering on our financial commitments
- Announcing a new strategy to accelerate growth within a strong sustainability framework
- Investing in higher growth vectors such as Battery Materials and Inkjet with new capacity to meet significant growth in customer demand
- Elevating the performance of our industry leading businesses through commercial and operational excellence, innovation and bolt-on M&A
-
Expecting over
$1 billion - Driving disciplined execution of advantaged growth investments
- Maintaining strong balance sheet and investment grade credit rating
3-Year Financial Targets
The Company is introducing the following 3-year financial targets:
-
Adjusted EPS CAGR of 8
-12% -
Cumulative Discretionary Free Cash Flow (DFCF) of
$1B
In addition, the Company is announcing its 3-year outlook for its business segments:
Reinforcement Materials
-
Volume CAGR of 2
-3% -
EBIT CAGR of 5
-9%
Performance Chemicals
-
Volume CAGR of 9
-11% -
EBIT CAGR of 12
-15%
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About
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements and information in the press release, particularly statements and information regarding future economic performance, financials, and expectations and objectives of management constitute forward-looking statements. Our forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions or guarantees of future events or performance. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. For a discussion of some of the important factors that could cause actual results to differ from those contained in the forward -looking statements, please consult the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K.
Non-GAAP Measures: This press release contains certain non-GAAP measures which are provided to assist in an understanding of Cabot’s business and its performance. These measures should always be considered in conjunction with the appropriate GAAP measures. Please consult the slides that accompany this press release for information about these measures.
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Investor Relations
steve.delahunt@cabotcorp.com
(617) 342-6255
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