Group 1 - Cabot Corporation declared a quarterly dividend of $0.45 per share on all outstanding shares of its common stock, payable on September 11, 2025, to stockholders of record at the close of business on August 29, 2025 [1] - Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts, providing a range of products including reinforcing carbons, specialty carbons, battery materials, and more [2] Group 2 - The company is listed on the New York Stock Exchange under the ticker symbol CBT [2]

Core Viewpoint - Cabot Corporation will release its third quarter operating results for fiscal 2025 on August 4, 2025, after market close, followed by a conference call on August 5, 2025 [1]. Company Overview - Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts [3]. - The company specializes in providing reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, inkjet colorants, masterbatches, conductive compounds, fumed metal oxides, and aerogel [3]. Conference Call Details - The conference call will begin at 8:00 am (ET) on August 5, 2025, and will be available via live webcast on Cabot's website [1][2]. - An archived version of the call and accompanying slide presentation will also be accessible on the company's website for those unable to attend the live session [2].

Core Insights - Cabot Corporation has achieved a platinum rating from EcoVadis for the fifth consecutive year, placing it among the top 1% of companies globally in sustainability performance [1][2] - The company's overall score increased by three points this year, with notable improvements in the sustainable procurement category, and it received "outstanding" scores in both the environment and labor & human rights categories [2][4] - Cabot also maintained a 'B' rating in climate change and water security from CDP, positioning it as a leading carbon black manufacturer [3][4] Group 1: Sustainability Recognition - Cabot Corporation has been recognized for its exceptional sustainability performance by EcoVadis, receiving the highest platinum rating [1][3] - The company is committed to continuous improvement in sustainability, as reflected in its ability to maintain high ratings despite evolving criteria [4] Group 2: Performance Metrics - Cabot's overall EcoVadis score increased by three points this year, indicating significant progress in sustainability efforts [2] - The company received top scores in the environment and labor & human rights categories, showcasing its strong performance in these areas [2][4] Group 3: Industry Positioning - Cabot's 'B' ratings from CDP in climate change and water security highlight its leadership among carbon black manufacturers [3][4] - The rigorous evaluation frameworks of EcoVadis and CDP emphasize the increasing challenges in maintaining high sustainability scores [4]

Company Overview - Cabot (CBT) shares have increased by approximately 3.9% over the past month, underperforming the S&P 500 index [1] - The most recent earnings report is crucial for understanding the key drivers affecting the stock [1] Earnings Estimates - Estimates for Cabot have trended downward in the past month, with a consensus estimate shift of -6.59% [2] - The overall direction of estimate revisions indicates a negative outlook for the stock [4] VGM Scores - Cabot has a Growth Score of B, but a low Momentum Score of F, while achieving an A grade in value, placing it in the top 20% for this investment strategy [3] - The aggregate VGM Score for Cabot is B, which is relevant for investors not focused on a single strategy [3] Industry Performance - Cabot is part of the Zacks Chemical - Diversified industry, where another player, Air Products and Chemicals (APD), has seen a 5.9% gain over the past month [5] - Air Products and Chemicals reported revenues of $2.92 billion for the last quarter, reflecting a year-over-year decline of -0.5% [5] - The expected earnings for Air Products and Chemicals for the current quarter is $2.97 per share, indicating a -7.2% change from the previous year [6]

Group 1 - Cabot, Dow, and Stepan will trade ex-dividend on 5/30/25, with respective dividends of $0.45, $0.70, and $0.385 to be paid on 6/13/25 [1] - The dividend yield for Cabot is approximately 0.59%, for Dow is 2.42%, and for Stepan is 0.68%, indicating expected price drops on the ex-dividend date [2] - Historical dividend stability is crucial for assessing future yields, with current estimated annualized yields of 2.36% for Cabot, 9.68% for Dow, and 2.73% for Stepan [4] Group 2 - In recent trading, Cabot shares increased by about 3%, Dow shares by 2.1%, and Stepan shares by 3.7% [5]

Group 1 - The last analysis on Cabot Corporation (NYSE: CBT) occurred in late January, resulting in a downgrade to a 'Hold' rating due to muted growth rates and poor near-term EPS revisions [1] - The company operates in the specialty chemicals and performance materials sector, focusing on undervalued profitable stocks with strong balance sheets and minimal debt [1] Group 2 - The investment strategy includes writing calls against positions to generate additional income, with risk management controlled through position sizing and trailing stop losses [1]

Core Insights - Cabot Corporation (CBT) reported second-quarter fiscal 2025 earnings of $1.69 per share, an increase from $1.49 in the same quarter last year, with adjusted earnings at $1.90 per share, surpassing the Zacks Consensus Estimate of $1.86 [1] - The company's net sales for the quarter were $936 million, falling short of the Zacks Consensus Estimate of $1,038.1 million, representing an 8.2% decrease year-over-year [1] Segment Highlights - Sales in the Reinforcement Materials segment decreased by 12.1% year-over-year to $594 million, missing the Zacks Consensus Estimate of $678.5 million, with EBIT down 12.1% to $131 million due to lower tire demand and contract outcomes in South America [2] - Performance Chemicals unit sales remained flat at $311 million, below the Zacks Consensus Estimate of $328.9 million, while EBIT increased by 61.2% to $50 million, driven by higher volumes in fumed metal oxides for construction and semiconductor applications [3] Financials - At the end of the second quarter, the company had a cash balance of $213 million, with cash flows from operating activities generating $73 million [4] - Capital expenditures totaled $72 million, with $23 million used for dividends and $47 million for share repurchases during the quarter [4] Outlook - The company revised its adjusted EPS guidance for fiscal 2025 to a range of $7.15 to $7.50, reflecting expectations of softer demand due to the uncertain impact of recently implemented tariff policies [5][6] - The revised guidance assumes the company will maintain profit margins consistent with those achieved in the second fiscal quarter [6] Price Performance - Cabot's shares have declined by 27% over the past year, compared to a 30.4% decline in the industry [7]

Part I. Financial Information This section provides the unaudited interim financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the company [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Cabot Corporation's unaudited consolidated financial statements for the interim periods ended March 31, **2025**, and **2024**, along with detailed notes on accounting policies and disclosures [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Cabot Corporation's unaudited consolidated statements show decreased net sales but increased net income for both the three and six months ended March **31**, **2025** Consolidated Statements of Operations Highlights (In millions, except per share amounts) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales and other operating revenues | $936 | $1,019 | $1,891 | $1,977 | | Gross profit | $241 | $246 | $476 | $464 | | Income from operations | $162 | $156 | $317 | $292 | | Net income attributable to Cabot Corporation | $94 | $84 | $187 | $134 | | Diluted Earnings per common share | $1.69 | $1.49 | $3.36 | $2.37 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March **31**, **2025**, total assets increased slightly to **$3.784 billion**, while total liabilities also rose, and total stockholders' equity remained flat Consolidated Balance Sheet Highlights (In millions) | Metric | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $213 | $223 | | Total current assets | $1,603 | $1,605 | | Net property, plant and equipment | $1,603 | $1,534 | | Total assets | $3,784 | $3,736 | | **Liabilities & Equity** | | | | Total current liabilities | $818 | $772 | | Long-term debt | $1,090 | $1,087 | | Total liabilities | $2,194 | $2,146 | | Total stockholders' equity | $1,590 | $1,590 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended March **31**, **2025**, cash provided by operating activities decreased, while cash used in investing activities increased, and cash used in financing activities significantly decreased Consolidated Cash Flow Summary (In millions) | Cash Flow Activity | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $197 | $281 | | Cash used in investing activities | ($174) | ($95) | | Cash used in financing activities | ($7) | ($195) | | Increase (decrease) in cash | ($10) | ($32) | | Cash and cash equivalents at end of period | $213 | $206 | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed information supporting the financial statements, covering accounting policies, acquisitions, contingencies, and segment performance - In October **2024**, the Company acquired certain assets and licensed technology for its Battery Materials product line for **$27 million**, allocated to property, plant and equipment (**$19 million**) and intangible assets (**$8 million**)[37](index=37&type=chunk) - The Company maintains a reserve of **$34 million** as of March **31**, **2025**, for expected liabilities related to a former respirator products business[40](index=40&type=chunk)[41](index=41&type=chunk) - Foreign exchange losses related to Argentina were significantly lower in the first six months of fiscal **2025** (**$2 million**) compared to the same period in **2024** (**$40 million**), which included a **$33 million** loss from a single devaluation event[32](index=32&type=chunk) Segment EBIT (In millions) | Segment | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Reinforcement Materials | $131 | $149 | $261 | $278 | | Performance Chemicals | $50 | $31 | $95 | $65 | | **Total Segment EBIT** | **$181** | **$180** | **$356** | **$343** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results, highlighting decreased net sales but increased gross profit for the six-month period, alongside detailed segment performance, liquidity, and cash flow activities [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Consolidated net sales for Q2 **2025** decreased year-over-year, while net income attributable to Cabot rose in both the quarter and six-month period, largely due to lower foreign exchange losses - Q2 **2025** net sales decreased by **$83 million** YoY, driven by lower Reinforcement Materials volumes (**$48M**), unfavorable pricing/mix (**$24M**), and negative currency impact (**$28M**), partly offset by higher Performance Chemicals volumes (**$16M**)[78](index=78&type=chunk)[79](index=79&type=chunk) - Net income for Q2 **2025** rose to **$94 million** from **$84 million** YoY, mainly due to higher Segment EBIT in Performance Chemicals (**+$19M**) and lower losses from Argentina's currency devaluation (**+$8M**), which offset lower EBIT from Reinforcement Materials (**-$18M**)[95](index=95&type=chunk) - The company expects the operating tax rate for fiscal **2025** to be in the range of **27% to 29%**[92](index=92&type=chunk) [Business Segment Analysis](index=27&type=section&id=Business%20Segment%20Analysis) In Q2 **2025**, Reinforcement Materials EBIT fell due to lower volumes, while Performance Chemicals EBIT grew from higher volumes and improved gross profit per ton Reinforcement Materials Segment Results (In millions) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales | $594 | $676 | $1,205 | $1,317 | | EBIT | $131 | $149 | $261 | $278 | - The decrease in Reinforcement Materials EBIT was primarily driven by lower volumes (**$20 million** impact) resulting from lower tire demand and contract outcomes in South America[103](index=103&type=chunk) Performance Chemicals Segment Results (In millions) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales | $311 | $311 | $622 | $596 | | EBIT | $50 | $31 | $95 | $65 | - The increase in Performance Chemicals EBIT was driven by higher gross profit per ton (**$9 million**) and higher volumes (**$9 million**), particularly in the Fumed Metal Oxides product line[107](index=107&type=chunk)[108](index=108&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position decreased in the first six months of fiscal **2025**, with reduced cash from operations, increased capital expenditures, and significant share repurchases - As of March **31**, **2025**, the company had cash and cash equivalents of **$213 million** and borrowing availability of **$1.0 billion** under its revolving credit agreements[112](index=112&type=chunk) - Cash provided by operating activities decreased to **$197 million** in the first six months of fiscal **2025**, compared to **$281 million** in the prior year period, mainly due to an increase in net working capital[119](index=119&type=chunk)[120](index=120&type=chunk) - Capital expenditures for fiscal **2025** are projected to be between **$250 million and $275 million**[124](index=124&type=chunk) - During the first six months of fiscal **2025**, the company repurchased **$89 million** of its shares and paid **$47 million** in dividends to common stockholders[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that information regarding market risks for the period ended March **31**, **2025**, has not materially changed from prior disclosures - There are no material changes in market risk disclosures from the company's **2024** **10-K** report[131](index=131&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on evaluation, the company's disclosure controls and procedures were effective as of March **31**, **2025**, with no material changes to internal controls over financial reporting - Management, including the CEO and CFO, concluded that as of March **31**, **2025**, the company's disclosure controls and procedures were effective[132](index=132&type=chunk) - No changes occurred during the fiscal quarter ended March **31**, **2025**, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[133](index=133&type=chunk) Part II. Other Information This section includes information on unregistered sales of equity securities, other general disclosures, and a list of exhibits filed with the report [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended March **31**, **2025**, Cabot repurchased a total of **527,379** shares of common stock under a board-authorized program that was recently expanded Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | — | — | | February 2025 | 462,379 | $86.51 | | March 2025 | 65,000 | $82.05 | | **Total** | **527,379** | **N/A** | - In December **2024**, the Board of Directors authorized the repurchase of an additional **ten million** shares of common stock[134](index=134&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The company reports that no directors or officers entered into, modified, or terminated any Rule **10b5-1** trading plans or non-Rule **10b5-1** trading arrangements during the quarter - No directors or officers entered into, modified, or terminated Rule **10b5-1** trading plans or other trading arrangements during the quarter ended March **31**, **2025**[135](index=135&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form **10-Q**, including corporate governance documents, equity award certificates, and required officer certifications - Filed exhibits include corporate governance documents, forms of equity award certificates, and required officer certifications (Rule **13a-14(a)** and Section **1350**)[136](index=136&type=chunk)

Cabot (CBT) Q2 2025 Earnings Call May 06, 2025 08:00 AM ET Company Participants Steven Delahunt - VP of Investor Relations & TreasurerSean Keohane - Director, President & CEOErica McLaughlin - EVP, CFO and Head of Corporate StrategyJohn Roberts - Managing DirectorJosh Spector - Executive DirectorDan Rizzo - Senior Vice President Conference Call Participants Jeffrey Zekauskas - Analyst Operator Good day and thank you for standing by. Welcome to the Cabot Second Quarter twenty twenty five Earnings Conference ...

CABOT EARNINGS TELECONFERENCE Second Quarter - Fiscal 2025 Forward Looking Statements This presentation contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in the third quarter of and fiscal year 2025, including our expectations for performance and growth in our businesses and for adjusted earnings per share ('EPS") and adjusted earnings before interest, taxes, depreciation and amortizat ...