Company now has capabilities across key regions to advance sustainable offerings BOSTON, Feb. 18, 2026 (GLOBE NEWSWIRE) -- Cabot Corporation (NYSE: CBT) today announced the availability to produce in Asia Pacific its circular reinforcing carbons powered by its EVOLVE Sustainable Solutions technology platform. As such, Cabot's manufacturing facilities in Cilegon, Indonesia and Tianjin, China have successfully validated their ability to produce circular reinforcing carbons. These products use tire pyrolysis ...

Core Viewpoint - Cabot reported a 21% year-over-year decline in net profit to $73 million and an 11% decrease in net sales to $849 million for Q1 of fiscal year 2026, primarily due to weak demand in major global markets [1] Financial Performance - Adjusted earnings per share (EPS) decreased by 13% to $1.53, although it exceeded market expectations [1] - The company narrowed its full-year EPS guidance for fiscal year 2026 to a range of $6.00 to $6.50, down from the previous fiscal year's actual earnings of $7.25 [1] Business Segment Analysis - The performance of the Enhanced Materials segment saw a 15% decline in sales to $520 million, with EBITDA down by 22% [1] - The Specialty Chemicals segment experienced a 4% decrease in sales to $300 million, but benefited from product mix optimization, resulting in a 9% increase in EBITDA [1] Market Impact - The CEO, Sean Keohane, indicated that the impact of tire imports on the North American and European markets continues to affect the demand environment for the Enhanced Materials business [1] - Despite challenges, the Specialty Chemicals segment is expected to achieve profit growth in fiscal year 2026, with the battery materials product line maintaining strong momentum [1]

Core Insights - Cabot Corporation has successfully acquired Mexico Carbon Manufacturing S.A. de C.V. from Bridgestone Corporation, finalizing a transaction valued at approximately $70 million [1][3][7] - The acquisition enhances Cabot's global production network and operational flexibility, particularly in the tire and industrial rubber sectors, by leveraging efficiencies from the proximity to existing operations in Altamira, Mexico [2][4][7] - This strategic move supports Cabot's goal to expand capacity in key markets and strengthens its long-standing commercial relationship with Bridgestone [3][4] Company Performance - Shares of Cabot Corporation (CBT) have experienced a decline of 10.4% over the past year, which is comparatively better than the industry's decline of 17.4% [4] - CBT currently holds a Zacks Rank of 3 (Hold), while other companies in the Basic Materials sector, such as Albemarle Corporation, Novozymes A/S, and Methanex Corporation, have higher rankings [5]

Core Viewpoint - Cabot is a leading global specialty chemicals and high-performance materials company, recognized for its strong social responsibility, advanced product technology, talented workforce, and substantial financial investment since entering China in 1988 [1]. Market Overview - The article outlines various market segments for 2025, including lithium carbonate, electrolytes, copper foil, lithium cobalt oxide, ternary materials, lithium iron phosphate, and sodium-ion batteries, among others [2][3]. Energy Storage Systems - Energy storage systems are becoming crucial for energy security and grid stability, playing a key role in balancing grid loads, enhancing renewable energy utilization, and ensuring stable power output during peak demand [3]. - The performance and lifespan of energy storage systems depend on the battery's performance over thousands of charge-discharge cycles, with a core challenge being the construction of a stable and efficient conductive network during long-term service [3]. LITX® 95F Conductive Additive - The LITX® 95F conductive additive is designed to address the challenges in energy storage applications by creating a continuous conductive network within the battery's anode and cathode [5][7]. - This unique high-structure form of LITX® 95F helps to slow down internal resistance growth during battery cycling, effectively reducing capacity decay and extending the overall lifespan of the energy storage system [7]. Value Proposition for Battery Manufacturers - LITX® 95F offers performance enhancements, flexibility in formulation for both anode and cathode systems, and ensures global reliable supply and quality consistency, supporting manufacturers in achieving global production layouts [9]. - The additive improves cycle stability, enhances capacity retention during long-term charge-discharge processes, and optimizes processing performance of electrode slurries [10].

Financial Performance - For the first quarter of fiscal 2026, net sales and other operating revenues decreased by $106 million to $849 million compared to $955 million in the same period of fiscal 2025, driven by unfavorable pricing and product mix as well as lower volumes [85]. - Gross profit for the first quarter of fiscal 2026 was $211 million, a decrease of $24 million from $235 million in the first quarter of fiscal 2025, primarily due to lower volumes in both segments [86]. - Total segment EBIT for the first quarter of fiscal 2026 was $150 million, down from $175 million in the first quarter of fiscal 2025, reflecting lower EBIT in the Reinforcement Materials segment [96]. - Net income attributable to Cabot Corporation for the first quarter of fiscal 2026 was $73 million ($1.37 per diluted share), compared to $93 million ($1.67 per diluted share) in the same period of fiscal 2025 [94]. - Selling and administrative expenses increased by $3 million to $69 million in the first quarter of fiscal 2026, primarily due to higher legal expenses [87]. - Research and technical expenses decreased by $1 million to $13 million in the first quarter of fiscal 2026, attributed to cost management efforts [89]. - The effective tax rate for the first quarter of fiscal 2026 was 31%, with a provision for income taxes of $37 million, compared to a provision of $41 million in the same period of fiscal 2025 [90]. - Net income (loss) attributable to noncontrolling interests decreased by $2 million to $9 million in the first quarter of fiscal 2026, primarily due to lower earnings from joint ventures in China [93]. - Total other unallocated items remained flat at $(25) million in Q1 fiscal 2026 compared to Q1 fiscal 2025 [98]. Segment Performance - Reinforcement Materials sales decreased by $91 million to $520 million in Q1 fiscal 2026, primarily due to less favorable pricing and lower volumes [100]. - EBIT for Reinforcement Materials decreased by $28 million to $102 million in Q1 fiscal 2026, driven by lower volumes and lower gross profit per ton [101]. - Performance Chemicals sales decreased by $11 million to $300 million in Q1 fiscal 2026, primarily due to lower volumes and less favorable pricing [103]. - EBIT for Performance Chemicals increased by $3 million to $48 million in Q1 fiscal 2026, driven by higher gross profit per ton [104]. Cash Flow and Investments - Cash and cash equivalents decreased by $26 million to $230 million as of December 31, 2025 [107]. - Cash provided by operating activities totaled $126 million in Q1 fiscal 2026, compared to $124 million in Q1 fiscal 2025 [113]. - Investing activities consumed $69 million in Q1 fiscal 2026, down from $104 million in Q1 fiscal 2025 [117]. - Financing activities consumed $92 million in Q1 fiscal 2026, primarily due to share repurchases and dividend payments [121]. - Capital expenditures for fiscal 2026 are expected to be between $200 million and $230 million [119]. Risks and Challenges - The company faces risks from industry capacity utilization and competition from other specialty chemical companies [126]. - Regulatory and financial risks related to climate change developments are significant concerns for the company [126]. - The volatility in the price and availability of energy and raw materials, particularly due to geopolitical events like the Russian invasion of Ukraine, poses challenges [126]. - The company has experienced adverse changes in customer or joint venture relationships, impacting performance expectations [126]. - There are concerns regarding the failure to achieve growth expectations from new products and technology developments [126]. - The company may not realize benefits from acquisitions, alliances, or joint ventures, affecting portfolio management objectives [126]. - Unanticipated delays and increased costs in site development projects could hinder operational efficiency [126]. - Negative global or regional economic conditions may limit market opportunities for the company [126]. - The accuracy of assumptions used in establishing reserves for respirator claims is critical to financial reporting [126]. - Market risks for the period ended December 31, 2025 remain consistent with previous disclosures [127].

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for the first quarter was $1.53, which is 13% lower than the same quarter last year [19] - Operating cash flow was strong at $126 million, with discretionary free cash flow of $71 million [19] - The company ended the quarter with a cash balance of $230 million and a liquidity position of approximately $1.4 billion [20] - Capital expenditures for the first quarter were $69 million, with expectations for fiscal 2026 to be between $200 million and $230 million [20] - The debt balance was $1.1 billion, with a net debt to EBITDA ratio of 1.2 times [21] Business Segment Data and Key Metrics Changes - EBIT in the Reinforcement Materials segment declined by 22% compared to the first quarter of fiscal 2025, primarily due to lower volumes in the Americas and Asia Pacific [4][19] - EBIT in the Performance Chemicals segment increased by 7% compared to the first quarter of fiscal 2025, driven by a favorable product mix and momentum in battery materials [4][19] - In Reinforcement Materials, volumes decreased by 7% year-over-year, with a 15% decline in the Americas and a 7% decline in Asia Pacific, while Europe saw a 6% increase [21] Market Data and Key Metrics Changes - Tire imports from Asia have increased by approximately 4% year-over-year in the U.S., while Brazil experienced a 4% year-over-year decline in passenger car tire imports due to tariffs [7] - In Europe, tire imports remain elevated, with an 8% increase year-to-date as of November 2025 [8] - The company anticipates that domestic tire production in Western regions will return to growth in 2026 and 2027, influenced by trade measures and pent-up demand [26] Company Strategy and Development Direction - The company is focused on reinforcing its leadership in the market and maintaining strong margins and cash generation through cost-saving measures and strategic investments [10][29] - A multiyear agreement with PowerCo, a subsidiary of Volkswagen Group, is expected to enhance the company's position in the battery materials market [16] - The company plans to rationalize Carbon Black capacity in the Americas and Europe to align with current demand levels [12] Management's Comments on Operating Environment and Future Outlook - The management noted that the global demand environment, particularly in Reinforcement Materials, remains challenging due to depressed tire production levels and inflation affecting the replacement cycle [6][26] - The company expects improving EBIT in the second half of fiscal 2026, driven by new capacity in Indonesia and an acquisition in Mexico [22][25] - Management anticipates continued strong free cash flow generation and a robust balance sheet, allowing for flexibility in cash usage [25][29] Other Important Information - The company delivered $50 million in cost savings in fiscal year 2025 and expects to maintain these benefits in fiscal 2026, with an additional $30 million in cost reduction programs planned [10][11] - The Battery Materials product line saw a revenue growth of 39% compared to the first quarter of fiscal 2025, with EBITDA margins at 22% [14] Q&A Session Summary Question: What are you seeing on tire exports leaving the ports in Asia? - Management indicated that tire imports in the Americas have been decreasing sequentially, with a modest year-over-year decline in South America due to tariffs [32][33] Question: Is the volume weakness in Europe silicas due to the construction silicones market or Dow's silanes closure? - Management clarified that the demand weakness is more related to general market conditions rather than Dow's closure [35] Question: Have you quantified the expected earnings contribution from the PowerCo agreement? - Management did not disclose specific earnings contributions due to confidentiality but emphasized the strategic importance of the agreement [38] Question: How does the new Mexico plant fit into America's manufacturing footprint? - The new plant is seen as strategically important, providing operational synergies and supporting long-term partnerships with customers [45][46] Question: How were volumes realized by region in the annual contracts? - Management noted that overall volumes are expected to be relatively flat globally, with some volume loss in Europe due to contract negotiations [48]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for the first quarter was $1.53, which is 13% lower than the same quarter last year [19] - Operating cash flow was strong at $126 million, with discretionary free cash flow of $71 million [19] - The company ended the quarter with a cash balance of $230 million and a liquidity position of approximately $1.4 billion [20] - Capital expenditures for the first quarter were $69 million, with expectations for fiscal 2026 to be between $200 million and $230 million [20] - The debt balance was $1.1 billion, with a net debt to EBITDA ratio of 1.2 times [21] Business Segment Data and Key Metrics Changes - EBIT in the Reinforcement Materials segment declined by 22% compared to the first quarter of fiscal 2025, primarily due to lower volumes in the Americas and Asia Pacific [4][19] - EBIT in the Performance Chemicals segment increased by 7% compared to the first quarter of fiscal 2025, driven by a favorable product mix and momentum in battery materials [4] - In the Reinforcement Materials segment, volumes decreased by 7% year-over-year, with a 15% decline in the Americas and a 7% decline in Asia Pacific, while Europe saw a 6% increase [21] - In Performance Chemicals, volumes were down 3% year-over-year, mainly due to lower demand in Europe [23] Market Data and Key Metrics Changes - Tire imports from Asia have increased by approximately 4% year-over-year in the U.S., while Brazil saw a 4% decline in passenger car tire imports due to tariffs [7] - In Europe, tire imports remain elevated, with an 8% increase year-to-date as of November 2025 [8] - The competitive environment in the carbon black market has intensified, with pricing declines of 7%-9% compared to 2025 levels [9] Company Strategy and Development Direction - The company is focusing on reinforcing its leadership in the Battery Materials product line, which saw a revenue growth of 39% compared to the first quarter of fiscal 2025 [14] - A multiyear agreement with PowerCo, a subsidiary of Volkswagen Group, is expected to enhance the company's position in the battery materials market [16] - The company plans to rationalize carbon black capacity in the Americas and Europe to improve efficiency and profitability [12] - Cost-saving measures are expected to deliver $30 million in additional savings in fiscal 2026 [11] Management's Comments on Operating Environment and Future Outlook - The management noted that the global demand environment remains challenging, particularly in the Reinforcement Materials segment, due to depressed tire production levels [6] - There are expectations for a recovery in domestic tire production in Western regions in 2026 and 2027, influenced by trade measures and pent-up demand [26] - The company anticipates adjusted EPS guidance for fiscal 2026 to be between $6 and $6.50, reflecting flat volumes in Reinforcement Materials and low single-digit growth in Performance Chemicals [24][25] Other Important Information - The company delivered $50 million in cost savings in fiscal year 2025 and expects to maintain these benefits in fiscal 2026 [10] - The company is reducing capital expenditures to align with the current market environment, with a new CapEx range approximately $60 million lower than 2025 actuals [11] Q&A Session Summary Question: What are you seeing on tire exports leaving the ports in Asia? - The company noted that tire imports in the Americas have been decreasing sequentially, while Brazil has seen a modest year-over-year decline due to tariffs [32][33] Question: Is the volume weakness in Europe silicas due to the construction silicones market or Dow's silanes closure? - The management indicated that the overall demand is not materially impacted by Dow's closure, attributing the weakness to general market conditions in housing and construction [35] Question: Have you quantified the expected earnings contribution from the agreement with PowerCo? - The company has not disclosed specific earnings contributions due to confidentiality but emphasized the strategic importance of the agreement [38] Question: How does the new Mexico plant fit into America's manufacturing footprint? - The Mexico plant is seen as strategically important, providing operational synergies and supporting long-term partnerships with customers like Bridgestone [45][46] Question: How were volumes realized by region for the annual contracts? - The company expects volumes across reinforcement materials to be relatively flat globally, with no significant change in share position in the Americas and a decline in Europe [48]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for the first quarter was $1.53, which is 13% lower than the same quarter last year [18] - Operating cash flow was strong at $126 million, with discretionary free cash flow of $71 million [18] - The company ended the quarter with a cash balance of $230 million and a liquidity position of approximately $1.4 billion [18] - Capital expenditures for the first quarter were $69 million, with expectations for fiscal 2026 to be between $200 million and $230 million [18] Business Segment Data and Key Metrics Changes - EBIT in the Reinforcement Materials segment declined by 22% compared to the first quarter of fiscal 2025, primarily due to lower volumes in the Americas and Asia Pacific [4][8] - EBIT in the Performance Chemicals segment increased by 7% compared to the first quarter of fiscal 2025, driven by a more favorable product mix and momentum in battery materials [4][8] - In Reinforcement Materials, volumes were down 7% year-over-year, with a 15% decline in the Americas and a 3% decline in Asia Pacific, while Europe saw a 6% increase [19] Market Data and Key Metrics Changes - Tire imports from Asia have increased by approximately 4% year-over-year in the U.S., while Brazil experienced a 4% year-over-year decline in passenger car tire imports due to tariffs [6] - In Europe, tire imports remain elevated, with an 8% increase year-to-date as of November 2025 [7] - The company anticipates that domestic tire production in Western regions will return to growth in 2026 and 2027, influenced by trade measures and pent-up demand [24] Company Strategy and Development Direction - The company is focused on reinforcing its leadership in the Reinforcement Materials segment while investing in growth opportunities in Battery Materials [9][12] - A multiyear agreement with PowerCo, a subsidiary of Volkswagen Group, is expected to enhance the company's position in the battery materials market [15] - The company plans to rationalize Carbon Black capacity in the Americas and Europe to align with current demand levels [11] Management's Comments on Operating Environment and Future Outlook - The management noted that the global demand environment remains challenging, particularly in the Reinforcement Materials segment, due to depressed tire production levels [5] - There are expectations for improving EBIT in the second half of fiscal 2026, driven by new capacity in Indonesia and an acquisition in Mexico [20][22] - The company anticipates continued strong free cash flow generation and plans to return cash to shareholders through dividends and share repurchases [23][27] Other Important Information - The company delivered $50 million in cost savings in fiscal year 2025 and expects to achieve an additional $30 million in cost reductions in fiscal 2026 [9][10] - EBITDA margins for the Battery Materials product line remain attractive at 22% on a trailing twelve-month basis [13] Q&A Session Summary Question: What are you seeing on tire exports leaving the ports in Asia? - The company noted that tire imports in the Americas have been decreasing sequentially, while in South America, tariffs have resulted in a modest year-over-year decline [30] Question: Is the volume weakness in Europe silicas due to the construction silicones market or Dow's silanes closure? - The management indicated that the demand weakness is more related to general market conditions rather than Dow's closure [32] Question: Have you quantified the expected earnings contribution from the agreement with PowerCo? - The company has not disclosed specific earnings contributions due to confidentiality but emphasized the strategic importance of the agreement [35] Question: How does the new Mexico plant fit into America's manufacturing footprint? - The Mexico plant is seen as strategically important, providing operational synergies and supporting long-term partnerships with customers like Bridgestone [44] Question: How are volumes trending in the Americas compared to the December quarter? - Volumes in January are up year-over-year in the Americas, with a sequential increase expected due to seasonal factors [61]

CABOT CORPORATION EARNINGS TELECONFERENCE FIRST QUARTER - FISCAL 2026 Q1 Fiscal 2026 1 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 second quarter of and fiscal year 2026, including our expectations for performance in our businesses, cash flow generation, our growth in battery materials, for cost savings we will recognize and for ...

分组1 - Cabot reported quarterly earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.4 per share, but down from $1.76 per share a year ago, representing an earnings surprise of +9.36% [1] - The company posted revenues of $849 million for the quarter, missing the Zacks Consensus Estimate by 3.73%, and down from $955 million year-over-year [2] - Over the last four quarters, Cabot has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] 分组2 - The stock has gained approximately 9.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $891.24 million, and for the current fiscal year, it is $6.47 on revenues of $3.52 billion [7] - The Zacks Industry Rank for Chemical - Diversified is currently in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stock performance [8]