Austin, Dec. 06, 2025 (GLOBE NEWSWIRE) -- According to SNS Insider, The Carbon Black Market Size is estimated at USD 26.17 Billion in 2025 and is expected to reach USD 38.54 Billion by 2033 and grow at a CAGR of 4.97% over the forecast period 2026-2033. Due to its widespread use in the automobile industry, especially in the production of tires, the Carbon Black Market analysis was conducted. Carbon black is most commonly used in tires as a reinforcing filler that improves performance, durability, and wear r ...

A month has gone by since the last earnings report for Cabot (CBT) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cabot due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Cabot Corporation before we dive into how investors and analysts have reacted as of late.Cabot's Q4 Earnings and Sales Miss Estim ...

Group 1 - JPMorgan has lowered the price target on Cabot (CBT) to $54 from $75, maintaining an Underweight rating on the shares [1] - Carbon black volumes in the Americas have decreased by 6% for three consecutive years [1] - Margins are being pressured as consumers shift from higher quality tires to lower quality and less expensive options [1] Group 2 - JPMorgan anticipates further downside for Cabot shares due to the weak carbon black price and volume environment [1]

Core Insights - Investors in Cabot Corporation (CBT) should monitor the stock closely due to significant movements in the options market, particularly the Dec 19, 2025 $95.00 Put, which has high implied volatility [1] Company Overview - Cabot Corporation currently holds a Zacks Rank 5 (Strong Sell) in the Chemical - Diversified Industry, placing it in the bottom 9% of the Zacks Industry Rank [3] - Over the past 60 days, there have been no upward or downward revisions in analyst estimates for the current quarter, resulting in a decrease in the Zacks Consensus Estimate from $1.97 per share to $1.66 per share [3] Market Sentiment - The high implied volatility in Cabot's options suggests that traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a rally or sell-off [2][4] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the stock does not move as much as expected [4]

Financial Performance - Net sales and other operating revenues decreased by $281 million in fiscal 2025 compared to fiscal 2024, driven by lower volumes in the Reinforcement Materials segment ($125 million) and less favorable pricing and product mix in both segments ($160 million combined) [186] - Gross profit decreased by $20 million in fiscal 2025 compared to fiscal 2024, primarily due to lower volumes in the Reinforcement Materials segment, partially offset by higher volumes in the Performance Chemicals segment [187] - Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased in fiscal 2025 compared to fiscal 2024, primarily due to lower losses from currency devaluations in Argentina and higher segment EBIT in Performance Chemicals [185] - The decrease in net sales was attributed to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment [186] - Net income attributable to Cabot Corporation decreased to $331 million in fiscal 2025 from $380 million in fiscal 2024, primarily due to a higher provision for income taxes [196] - Total segment EBIT for fiscal 2025 was $702 million, slightly up from $701 million in fiscal 2024 [198] - Sales in Reinforcement Materials decreased by $269 million in fiscal 2025, totaling $2,341 million, primarily due to lower volumes and less favorable pricing [202] - EBIT in Performance Chemicals increased by $30 million in fiscal 2025, totaling $194 million, driven by higher volumes and lower selling and administrative expenses [205] Expenses and Cost Management - Selling and administrative expenses decreased from $283 million in fiscal 2024 to $260 million in fiscal 2025 [187] - Selling and administrative expenses decreased by $23 million in fiscal 2025 compared to fiscal 2024, primarily due to cost management efforts [188] - Research and technical expenses decreased by $4 million in fiscal 2025, totaling $59 million, compared to $63 million in fiscal 2024 [188] - Interest and dividend income decreased by $5 million in fiscal 2025, totaling $27 million, primarily due to lower interest rates [189] - Interest expense decreased by $5 million in fiscal 2025, totaling $76 million, primarily due to lower interest rates on short-term borrowings [189] - Other expense decreased by $29 million in fiscal 2025, totaling $(7) million, primarily due to lower foreign currency losses in Argentina [190] Cash Flow and Liquidity - As of September 30, 2025, the liquidity position increased by $75 million, with cash and cash equivalents of $258 million and borrowing availability of $1.2 billion [207] - Cash provided by operating activities totaled $665 million in fiscal 2025, down from $692 million in fiscal 2024 [214] - Cash flows from investing activities consumed $298 million in fiscal 2025, compared to $235 million in fiscal 2024, primarily for capital expenditures [217] - Financing activities consumed $336 million in cash in fiscal 2025, down from $415 million in fiscal 2024, with significant repurchases of common stock totaling $168 million [220] - The company repurchased approximately 1.8 million shares for $156 million in fiscal 2025, compared to 1.7 million shares for $159 million in fiscal 2024 [223] - Cash dividends paid were $1.76 per share in fiscal 2025, totaling $96 million, compared to $1.66 per share totaling $93 million in fiscal 2024 [224] Capital Expenditures and Future Outlook - Capital expenditures for fiscal 2026 are expected to be between $200 million and $250 million, focusing on sustaining and compliance projects [219] - The company had $130 million in borrowings outstanding under the Euro Credit Agreement as of September 30, 2025, with no outstanding borrowings under the U.S. Credit Agreement [211] - The weighted-average interest rate on fixed-rate long-term debt was 4.29% as of September 30, 2025 [222] Foreign Currency and Taxation - The assessment of deferred tax assets is conducted quarterly, with valuation allowances established when it is more likely than not that some or all of the deferred tax assets are not realizable [168] - The company recorded a significant reserve for respirator liability claims, with potential developments that could materially affect the estimate of liabilities [171] - Goodwill is subject to annual impairment testing, with significant assumptions including discount rates and forecasted results for the applicable reporting unit [172] - Foreign currency translations increased segment EBIT by $10 million in fiscal 2025, while in fiscal 2024, it decreased EBIT by $5 million [238] - The company recognized net foreign exchange losses of $8 million in fiscal 2025, compared to $46 million in fiscal 2024, largely due to changes in the Argentine peso [239]

Core Viewpoint - The article emphasizes the strategic importance of Chemical Mechanical Polishing (CMP) slurries in the semiconductor manufacturing process, highlighting the risks associated with reliance on foreign suppliers and the need for domestic alternatives in China [2][4][19]. Group 1: Market Overview - The global CMP slurry market has surpassed $2 billion, growing at a compound annual growth rate (CAGR) of approximately 8%, yet domestic market share in China for high-end slurries (14nm and below) is less than 10% [4]. - Major players in the global CMP slurry market include Cabot, Versum Materials, Hitachi, Fujimi, and Dow, which collectively hold nearly 80% of the market share, with Cabot alone accounting for about 33% [8][11]. Group 2: Domestic Market Dynamics - By 2025, China's 12-inch wafer production capacity is expected to account for approximately 25% of the global total, leading to a CMP slurry market projected to exceed 6 billion RMB [16]. - Currently, foreign brands dominate the high-end CMP slurry market in China, holding over 90% market share, which poses significant supply chain risks, cost pressures, and service response challenges [17][19]. Group 3: Technological Insights - Cerium oxide-based slurries are crucial for advanced CMP processes, providing a competitive edge in semiconductor manufacturing [14][22]. - The transition from traditional mechanical grinding to chemical etching in cerium oxide slurries enhances material removal efficiency and reduces defect rates, making it essential for high-performance applications [22][23]. Group 4: Future Outlook - To break through in the high-end CMP slurry market, collaboration among material companies, wafer manufacturers, and equipment suppliers is essential, alongside sustained investment and focus on key materials like nanosphere cerium oxide [26][27][28].

Core Viewpoint - Cabot Corporation has appointed William Masterson as the new senior vice president and president of the Reinforcement Materials segment, effective November 21, 2025, succeeding Matthew Wood who has left the company immediately [1][2]. Group 1: Leadership Transition - William Masterson has been with Cabot since 2011 and has held various leadership roles, most recently as vice president of Global Business Operations for Carbon and Silica Technologies, overseeing multiple manufacturing facilities globally [3]. - Masterson's previous roles included vice president and regional business director for the Americas in specialty carbons and fumed metal oxides, where he was responsible for sales, marketing, and technical service activities [3]. - The departure of Matthew Wood was not due to any disagreements regarding the company's business performance or operations [2]. Group 2: Masterson's Qualifications - Masterson brings a strong background in global business operations and commercial strategy, with a proven track record in leading complex organizations [4]. - He is recognized for his collaborative leadership style and ability to develop talent within the company, which is expected to support the Reinforcement Materials business [4]. - The existing team in the Reinforcement Materials segment is described as long-tenured and highly experienced, providing a solid foundation for Masterson's leadership [4]. Group 3: Company Overview - Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts, known for its products including reinforcing carbons, specialty carbons, battery materials, and fumed metal oxides [5].

Core Insights - Cabot Corporation's LITX® 95F conductive carbon has been recognized as one of the "Top 10 Exhibits of 2025" at the China International Import Expo (CIIE), highlighting its significance in the energy storage systems (ESS) market [1][2][3] Company Achievements - The recognition of LITX® 95F marks it as the first product from the specialty chemicals and performance materials sector to receive this award, showcasing Cabot's leadership in clean energy technology [2][3] - The award was presented during a global forum that emphasizes sustainable economic development, reinforcing Cabot's commitment to innovation in conductive additives [2][3] Market Impact - The LITX® 95F product is positioned to enhance the reliability and efficiency of energy storage systems, catering to the growing demand for clean energy and the expansion of AI and data centers globally [3] - The 8th CIIE featured over 4,100 exhibiting companies from 155 countries, indicating a robust international presence and competition in the energy storage sector [3] Company Overview - Cabot Corporation is a global leader in specialty chemicals and performance materials, providing a diverse range of products including reinforcing carbons and battery materials [5]

Core Insights - Cabot Corporation (CBT) has established a strong financial foundation while its stock remains undervalued compared to recent highs, presenting a potential investment opportunity [2][3] - The company generates solid cash flow, maintains resilient margins, and offers an attractive valuation, making it appealing for income and value-focused investors [2] Financial Metrics - Cabot's free cash flow yield stands at 10.8%, which is notably high compared to many stocks [8] - The company has experienced a 3-year average revenue growth of -2.5% and maintains an operating margin of 15.0%, indicating sound fundamentals despite revenue challenges [8] - CBT stock is currently trading 47% below its 2-year high and 18% below its 1-month high, with a price-to-sales ratio lower than its 3-year average [8] Market Performance - Historical data shows average forward returns of 10.4% over 6 months and 20.4% over 12 months, with a win rate of approximately 74% for positive returns over a 12-month span [9] - The investment strategy applied to high free cash flow yield stocks has yielded nearly 18% average return over 12 months, even during non-crash periods, with a 70% win rate [10] Risk Considerations - CBT has experienced significant declines in the past, including an 83% drop during the Global Financial Crisis and a 55% drop during the Covid sell-off, highlighting its vulnerability to market volatility [11] - The stock can also decline in strong market conditions due to factors like earnings announcements and business updates, indicating that sound fundamentals are crucial for stability [12]

Core Insights - Cabot Corporation (CBT) reported fourth-quarter fiscal 2025 earnings of 79 cents per share, a significant decline from $2.43 in the same quarter last year [1] - Adjusted earnings were $1.70 per share, down from $1.80 year-over-year, and missed the Zacks Consensus Estimate of $1.72 [1] - Net sales for the quarter were $899 million, falling short of the Zacks Consensus Estimate of $952.6 million, and representing a 10.2% decrease from the prior-year quarter [1] Segment Performance - Sales in the Reinforcement Materials segment decreased by approximately 12.6% year-over-year to $563 million, missing the Zacks Consensus Estimate of $617 million [2] - Earnings before interest and tax (EBIT) in the Reinforcement Materials segment were $119 million, down around 3.3% from the previous year, primarily due to lower volumes in the Asia Pacific and the Americas [2] - The Performance Chemicals division saw a 4.3% decline in sales to $308 million, also missing the Zacks Consensus Estimate of $313 million [3] - EBIT in the Performance Chemicals segment decreased by approximately 4.6% to $42 million, driven by a 5% decrease in volumes, particularly due to reduced demand in Europe [3] Financial Overview - At the end of the fourth quarter, Cabot had a cash balance of $258 million, with cash flows from operating activities amounting to $219 million [4] - Capital expenditures for the quarter totaled $64 million, while $25 million was used for dividends and $39 million for share repurchases [4] Future Outlook - The company does not expect a recovery in the external environment for fiscal 2026, citing ongoing weakness in regional demand for Reinforcement Materials due to high Asian tire imports [5] - Adjusted EPS for fiscal 2026 is projected to be between $6.00 and $7.00, reflecting macroeconomic uncertainty and competitive pressures [5] - Performance Chemicals is expected to show profit growth, supported by strength in Battery Materials and opportunities in infrastructure and alternative energy [5] Stock Performance - Cabot's shares have declined by 47.6% over the past year, compared to a 39.1% decline in the industry [6]