Financial Data and Key Metrics Changes - The company reported Q3 adjusted earnings per share of $1.90, which is down 1% compared to the same period last year and in line with Q2 results [6][17] - Operating cash flow for the quarter was strong at $249 million, which included a working capital decrease of $101 million [17][18] - Discretionary free cash flow was $114 million, with a cash balance of $239 million at the end of the quarter [18] Business Segment Data and Key Metrics Changes - EBIT for Reinforcement Materials was $128 million, a decrease of $8 million year over year, primarily due to an 8% decline in global volumes [19][20] - Performance Chemicals saw EBIT increase by $2 million year over year, driven by higher gross profit per ton despite an 8% decline in global volumes [21][22] Market Data and Key Metrics Changes - In the Americas, volumes for Reinforcement Materials were down 9% year over year, with Asia Pacific down 11% and Europe up 4% [20] - The battery materials segment increased contribution margin by 20% compared to the same period last year, with a focus on differentiating products for the EV market [11][12] Company Strategy and Development Direction - The company announced the acquisition of Bridgestone's reinforcing carbons plant in Mexico for $70 million, which is expected to be accretive in the first year [8][9] - Sustainability remains a core focus, with the company receiving a platinum rating from EcoVadis for the fifth consecutive year, placing it among the top 1% of companies in the basic chemicals manufacturing sector [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenging macroeconomic environment, reaffirming the full-year adjusted earnings per share guidance of $7.15 to $7.50 [27][29] - The company is focused on executing its operating platform of commercial and operational excellence to address uncertainties from tariffs and global demand [28][29] Other Important Information - Capital expenditures for the fiscal year are expected to be between $250 million to $275 million, with $61 million spent in Q3 [18][25] - The company plans to repurchase between $150 million to $200 million of shares in fiscal 2025 [25][24] Q&A Session Summary Question: Relationship between tariffs and demand in North America - Management discussed the dynamic nature of tariffs, noting that passenger car tires from Southeast Asia have tariffs in the 19% to 29% range, while those from China are around 70% [34][35] Question: Differences in volumes between North America and South America - Volumes in the Americas were down 9%, with North America and South America experiencing different impacts due to market conditions and contract season losses [42][43] Question: Impact of tariffs on tire imports and local production - Management indicated that tariffs are expected to enhance the competitiveness of local production, although the timing and magnitude of these effects are uncertain [36][54] Question: Carbon black price negotiations in North America - Early stages of contract negotiations for carbon black prices are underway, following typical seasonal patterns [48] Question: Inventory levels in the tire market - Management noted that tire inventories appear balanced, with some budget brands having elevated levels, but overall, the situation seems to be stabilizing [52][53] Question: Operating leverage from network optimization initiatives - Management explained that network optimization efforts are broad and aimed at improving product mix and cost efficiency, which should favorably impact operating leverage [61][62]

Financial Data and Key Metrics Changes - The company reported Q3 adjusted earnings per share of $1.9, which was down 1% compared to the same period last year and in line with Q2 results [6][16] - Operating cash flow for the quarter was strong at $249 million, funding capital expenditures and enabling $64 million returned to shareholders [7][17] - The company’s cash balance at the end of the quarter was $239 million, with a liquidity position of approximately $1.4 billion [17] Business Segment Data and Key Metrics Changes - Reinforcement Materials segment EBIT was $128 million, down $8 million year over year, primarily due to an 8% decline in global volumes [18][19] - Performance Chemicals segment EBIT increased by $2 million year over year, driven by higher gross profit per ton, despite an 8% decline in global volumes [20] Market Data and Key Metrics Changes - Volumes in Asia Pacific were down 11%, while volumes in The Americas decreased by 9%, with Europe experiencing a 4% increase [19] - The battery materials segment saw a 20% increase in contribution margin compared to the same period last year, with a focus on differentiating products for the EV market [11][12] Company Strategy and Development Direction - The company announced an acquisition of Bridgestone's reinforcing carbons plant in Mexico for $70 million, expected to be accretive in the first year [7][9] - Sustainability is a core focus, with the company receiving a platinum rating from EcoVadis for its sustainability leadership [10] - The company aims to build a leadership position in battery materials, targeting high-value segments in both China and Western economies [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging macroeconomic environment, reaffirming the full-year EPS guidance of $7.15 to $7.5 [27][29] - The company is focused on executing operational excellence and optimizing its supply chain to mitigate the impacts of tariffs and lower demand [28][29] Other Important Information - The company expects to maintain a competitive dividend yield and has plans for share repurchases between $150 million to $200 million in fiscal 2025 [25][29] - The company has completed a new unit in Indonesia and expanded CNT capacity in China, supporting its growth strategy [25] Q&A Session Summary Question: Relationship between tariffs and demand in North America - Management discussed the dynamic nature of tariffs, noting that passenger car tires from Southeast Asia have tariffs in the 19% to 29% range, while those from China are around 70% [34][35] Question: Volume differences in The Americas - Management confirmed that volumes in The Americas were down 9% year over year, with North America and South America experiencing different market conditions [41][42] Question: Impact of tariffs on inventory levels - Management indicated that tire inventories appear balanced, with some budget brands having elevated levels, but overall, the situation seems to be stabilizing [54][55] Question: Network optimization initiatives - Management explained that network optimization efforts are broad and aimed at improving product mix and cost efficiency, which should favorably impact operating leverage [63][66] Question: Corporate cost reductions - Management attributed a $12 million improvement in unallocated corporate costs to a mix of headcount actions and lower third-party spending [69][70] Question: Carbon black volumes in The Americas - Management noted that elevated tire imports have negatively impacted local production levels, but there are signs of stabilization and potential improvement in the future [73][75]

Financial Performance - Diluted EPS was $1.86, while adjusted EPS was $1.90, a decrease of 1% year-over-year[5] - Performance Chemicals segment EBIT reached $57 million, showing a 4% increase year-over-year[5] - Reinforcement Materials segment EBIT amounted to $128 million, a decrease of 6% year-over-year[5] - The company returned $64 million to shareholders through dividends and share repurchases[5] - Cash flow from operations was $249 million, with free cash flow of $188 million[22] - The company expects capital expenditures for fiscal year 2025 to be in the range of $250 million to $275 million[22] Strategic Initiatives - An agreement was announced to acquire Bridgestone's reinforcing carbons plant in Mexico for $70 million[7, 11] - Cabot was awarded a platinum rating from EcoVadis for exceptional sustainability performance for the fifth consecutive year, ranking in the top 1% of companies assessed by EcoVadis globally[8, 14] - Notable growth was achieved in Battery Materials, with a 20% contribution margin improvement driven by differentiated products[7, 15] Outlook - The company reaffirms its adjusted EPS guidance range of $7.15 to $7.50 for fiscal year 2025[38, 41, 46]

Core Insights - Cabot (CBT) reported quarterly earnings of $1.9 per share, exceeding the Zacks Consensus Estimate of $1.8 per share, but down from $1.92 per share a year ago, indicating a slight year-over-year decline [1] - The company posted revenues of $923 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.09% and down from $1.02 billion year-over-year [2] - Cabot shares have declined approximately 21.2% year-to-date, contrasting with the S&P 500's gain of 6.1% [3] Earnings Performance - Over the last four quarters, Cabot has surpassed consensus EPS estimates two times [2] - The recent earnings surprise of +5.56% indicates a positive deviation from expectations, while the previous quarter's surprise was +2.15% [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.79, with projected revenues of $984.79 million, and for the current fiscal year, the EPS estimate is $7.25 on revenues of $3.83 billion [7] - The estimate revisions trend for Cabot was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] Industry Context - The Chemical - Diversified industry, to which Cabot belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Cabot's stock performance [5]

[Executive Summary & Q3 FY25 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q3%20FY25%20Highlights) Cabot Corporation reported Q3 FY25 diluted EPS of $1.86 and adjusted EPS of $1.90, with strong operating cash flow and balance sheet strength despite a challenging demand environment [Q3 FY25 Financial Highlights](index=1&type=section&id=Q3%20FY25%20Financial%20Highlights) Cabot Corporation reported Q3 FY25 diluted EPS of $1.86 and adjusted EPS of $1.90, representing a 1% decrease in Adjusted EPS compared to the prior year. Net sales and other operating revenues decreased to $923 million from $1,016 million in Q3 FY24 | Metric | Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | | :---------------------------------- | :------ | :------ | :------------ | :------------ | | Net sales and other operating revenues (million USD) | $923 M | $1,016 M | $2,814 M | $2,993 M | | Net income attributable to Cabot Corp. (million USD) | $101 M | $109 M | $288 M | $243 M | | Net earnings per share (Diluted) (USD) | $1.86 | $1.94 | $5.22 | $4.30 | | Adjusted EPS (USD) | $1.90 | $1.92 | $5.56 | $5.25 | - Adjusted EPS of **$1.90** represents a **1% decrease** compared to the same quarter in the prior year[4](index=4&type=chunk) - Reinforcement Materials segment EBIT was **$128 million**, down **6%** compared to the same quarter in the prior year[4](index=4&type=chunk) - Performance Chemicals segment EBIT was **$57 million**, up **4%** compared to the same quarter in the prior year[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Sean Keohane highlighted strong Q3 financial performance despite a challenging demand environment, attributing it to disciplined execution, focus on managing pricing and costs, and leveraging the global footprint. He noted strong operating cash flow and balance sheet strength - Management remains focused on managing pricing and costs and leveraging its global footprint to adeptly respond to uncertainty from tariffs and a weaker global macroeconomic environment[6](index=6&type=chunk) - The company delivered strong operating cash flow of **$249 million** and returned **$64 million** of cash to shareholders through **$24 million** in dividends and **$40 million** in share repurchases[6](index=6&type=chunk) - Balance sheet strength is reflected in a Net Debt to EBITDA ratio of **1.3x** and liquidity of **$1.4 billion**[6](index=6&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section details Cabot Corporation's Q3 FY25 financial results, including overall net income, segment-specific EBIT performance, cash flow generation, and tax expenses [Overall Financial Detail](index=2&type=section&id=Overall%20Financial%20Detail) For Q3 FY25, net income attributable to Cabot Corporation was $101 million ($1.86 per diluted common share), with Adjusted EPS at $1.90 per share, after a $0.04 per share charge from certain items | Metric | Q3 FY25 | | :--------------------------------------- | :------ | | Net income attributable to Cabot Corporation (million USD) | $101 M | | Diluted common share (USD) | $1.86 | | After-tax per share charge from certain items (USD) | $0.04 | | Adjusted EPS (USD) | $1.90 | [Segment Results](index=2&type=section&id=Segment%20Results) Reinforcement Materials EBIT decreased by $8 million (6%) due to lower volumes in Asia Pacific and the Americas, while Performance Chemicals EBIT increased by $2 million (4%) driven by higher gross profit per ton from cost savings, despite 8% lower volumes [Reinforcement Materials](index=2&type=section&id=Reinforcement%20Materials) Reinforcement Materials segment experienced an EBIT decrease of $8 million (6%) primarily due to lower volumes across Asia Pacific and the Americas - EBIT in Reinforcement Materials decreased by **$8 million (6%)** compared to Q3 FY24[8](index=8&type=chunk) - The decrease in EBIT was primarily driven by lower volumes in Asia Pacific and the Americas[8](index=8&type=chunk) | Region | Year-over-Year Change (Volumes) | | :-------------------------- | :------------------------------ | | Global Reinforcement Materials | (8%) | | Asia Pacific | (11%) | | Europe, Middle, Africa | 4% | | Americas | (9%) | [Performance Chemicals](index=2&type=section&id=Performance%20Chemicals) Performance Chemicals segment saw a $2 million (4%) EBIT increase, driven by higher gross profit per ton from cost savings despite an 8% decline in volumes - EBIT in Performance Chemicals increased by **$2 million (4%)** compared to Q3 FY24[8](index=8&type=chunk) - The increase was primarily due to higher gross profit per ton, partially offset by **8% lower volumes**[8](index=8&type=chunk) - Higher gross profit per ton was primarily due to cost savings measures and optimization initiatives[8](index=8&type=chunk) - Lower volumes were due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment, particularly in auto-related applications[8](index=8&type=chunk) [Cash Performance](index=2&type=section&id=Cash%20Performance) Cabot Corporation ended Q3 FY25 with a cash balance of $239 million. Operating activities generated $249 million in cash, while capital expenditures were $61 million. The company returned $64 million to shareholders through $24 million in dividends and $40 million in share repurchases | Metric | Q3 FY25 | | :-------------------------------- | :------ | | Cash balance (end of quarter) (million USD) | $239 M | | Cash flows from operating activities (million USD) | $249 M | | Capital expenditures (million USD) | $61 M | | Dividends paid (million USD) | $24 M | | Share repurchases (million USD) | $40 M | [Taxes](index=3&type=section&id=Taxes) The company recorded a tax expense of $43 million in Q3 FY25, with an effective tax rate of 28%. The operating tax rate for fiscal year 2025 is projected to be between 27% and 29% | Metric | Q3 FY25 | | :------------------ | :------ | | Tax expense (million USD) | $43 M | | Effective tax rate (%) | 28% | - The operating tax rate for fiscal 2025 is expected to be in the range of **27% to 29%**[11](index=11&type=chunk) [Outlook and Corporate Information](index=3&type=section&id=Outlook%20and%20Corporate%20Information) This section outlines Cabot Corporation's fiscal year 2025 Adjusted EPS guidance, provides an overview of the company, and details the nature of forward-looking statements [Fiscal Year 2025 Outlook](index=3&type=section&id=Fiscal%20Year%202025%20Outlook) Cabot reaffirms its Adjusted EPS guidance for fiscal 2025 at $7.15 to $7.50. Due to lower customer demand from tariffs and macroeconomic uncertainty, particularly in the second half, the company expects to be in the middle to lower end of this range, with potential for higher if recent tariff announcements boost Q4 demand - Reaffirms Adjusted Earnings Per Share guidance for fiscal 2025 of **$7.15 to $7.50**[12](index=12&type=chunk) - Expects to be in the **middle to lower end** of the guidance range due to lower volumes in both Reinforcement Materials and Performance Chemicals segments in the second half of fiscal 2025[12](index=12&type=chunk) - If more recent announcements on tariffs translate into higher demand in the fourth fiscal quarter, the company would expect to be **higher in the guidance range**[12](index=12&type=chunk) - Despite challenges, the company expects to deliver earnings growth and strong operating cash flow in the fiscal year, focusing on cost reduction, network optimization, and disciplined commercial execution[12](index=12&type=chunk) [About Cabot Corporation](index=3&type=section&id=About%20Cabot%20Corporation) Cabot Corporation is a global specialty chemicals and performance materials company based in Boston, Massachusetts, specializing in reinforcing carbons, specialty carbons, battery materials, and other engineered materials - Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts[13](index=13&type=chunk) - 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[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines that the earnings release contains forward-looking statements regarding future expectations, performance, capital allocation, operating cash flow, and tax rates for fiscal year 2025. It cautions that these statements are not guarantees of future performance and are subject to various risks and uncertainties, including industry competition, regulatory changes, raw material volatility, customer relationships, and global economic conditions - All statements that address expectations or projections about the future, including expectations for performance, Adjusted EPS, capital allocation, operating cash flow, and operating tax rate for fiscal year 2025, are forward-looking statements[14](index=14&type=chunk) - 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 the company's control and difficult to predict[14](index=14&type=chunk) - Important factors that could cause results to differ materially include industry capacity utilization and competition, safety/health/environmental requirements, climate change developments, volatility in energy/raw material prices, customer relationships, new product growth, acquisition benefits, project delays, economic conditions, litigation, interest/tax/currency rates, tariffs, and respirator claims[16](index=16&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section provides detailed definitions and explanations for various non-GAAP financial measures, including Adjusted EPS, Total Segment EBIT, EBITDA, and Free Cash Flow, used by management to assess performance [Adjusted EPS](index=5&type=section&id=Adjusted%20EPS) Adjusted EPS excludes items management deems not representative of core business operations, such as unusual gains/losses, restructuring costs, legal/environmental matters, acquisition charges, asset impairments, business sale gains/losses, and employee benefit plan settlements. This measure aims to provide greater transparency and facilitate period-to-period performance comparisons - Adjusted EPS excludes items of expense and income that management does not consider representative of the Company's business operations to provide additional information related to the underlying performance of the business[20](index=20&type=chunk) - Excluded 'certain items' include Argentina controlled currency devaluation loss, global restructuring activities, legal and environmental matters, acquisition and integration-related charges, asset impairment charges, gains (losses) on sale of a business, and employee benefit plan settlements[22](index=22&type=chunk) - Management uses Adjusted EPS as a key measure in evaluating management performance for incentive compensation purposes[20](index=20&type=chunk) [Total Segment EBIT, Total Segment EBITDA, Adjusted EBITDA](index=6&type=section&id=Total%20Segment%20EBIT%2C%20Total%20Segment%20EBITDA%2C%20Adjusted%20EBITDA) Total Segment EBIT is the sum of EBIT from the two reportable segments, excluding certain items, interest expense, and unallocated corporate costs. Total Segment EBITDA further adjusts Total Segment EBIT for depreciation and amortization. Adjusted EBITDA reflects Total Segment EBITDA adjusted for unallocated corporate costs before corporate depreciation and amortization - Total Segment EBIT excludes certain items and items not controlled by business segments, such as interest expense and other unallocated corporate costs[25](index=25&type=chunk) - Total Segment EBITDA is equal to Total Segment EBIT, further adjusted for depreciation and amortization[26](index=26&type=chunk) - Adjusted EBITDA reflects Total Segment EBITDA and is further adjusted for unallocated corporate costs[26](index=26&type=chunk) [Free Cash Flow and Discretionary Free Cash Flow](index=6&type=section&id=Free%20Cash%20Flow%20and%20Discretionary%20Free%20Cash%20Flow) Free Cash Flow is calculated by deducting additions to property, plant, and equipment from cash flow provided by operating activities. Discretionary Free Cash Flow further deducts sustaining and compliance capital expenditures and changes in Net Working Capital from operating cash flow - Free Cash Flow is calculated by deducting Additions to property, plant and equipment from cash flow provided by (used in) operating activities[27](index=27&type=chunk) - Discretionary Free Cash Flow is calculated by deducting sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow provided by (used in) operating activities[27](index=27&type=chunk) [Operating Tax Rate](index=6&type=section&id=Operating%20Tax%20Rate) The operating tax rate is based on management's forecast of the annual operating tax rate applied to adjusted pre-tax earnings, excluding income tax (expense) benefit on certain items, discrete tax items, and quarterly timing of losses in certain jurisdictions. This non-GAAP measure helps investors compare tax rates consistently year-over-year - 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[28](index=28&type=chunk) - It excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions[28](index=28&type=chunk) - Management believes this non-GAAP financial measure is useful supplemental information because it helps investors compare the tax rate year to year on a consistent basis and to understand what the tax rate on current operations would be without the impact of these items[28](index=28&type=chunk) [Explanation of Other Terms Used](index=7&type=section&id=Explanation%20of%20Other%20Terms%20Used) This section defines 'Product Mix' as the mix of product types, grades, or geographic regions sold and its impact on revenue or profitability, and 'Net Working Capital' as accounts receivable, inventory, accounts payable, and accrued expenses - 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[31](index=31&type=chunk) - The term 'net working capital' includes accounts receivable, inventory and accounts payable and accrued expenses[31](index=31&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated statements of operations, financial position, and cash flows, providing a comprehensive overview of the company's financial performance and health [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show a decrease in net sales and other operating revenues for Q3 FY25 to $923 million from $1,016 million in Q3 FY24. Net income attributable to Cabot Corporation decreased to $101 million from $109 million YoY | Metric | Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | | :---------------------------------------------------- | :------ | :------ | :------------ | :------------ | | Net sales and other operating revenues (million USD) | $923 M | $1,016 M | $2,814 M | $2,993 M | | Cost of sales (million USD) | $679 M | $760 M | $2,094 M | $2,273 M | | Gross profit (million USD) | $244 M | $256 M | $720 M | $720 M | | Income (loss) from operations (million USD) | $167 M | $172 M | $484 M | $464 M | | Net income (loss) attributable to Cabot Corporation (million USD) | $101 M | $109 M | $288 M | $243 M | | Diluted earnings (loss) per common share (USD) | $1.86 | $1.94 | $5.22 | $4.30 | [Consolidated Statements of Financial Position](index=12&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of June 30, 2025, total assets were $3,837 million, an increase from $3,736 million at September 30, 2024. Total liabilities were $1,954 million, and total stockholders' equity was $1,683 million | Metric | June 30, 2025 | Sept 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total current assets (million USD) | $1,573 M | $1,605 M | | Net property, plant and equipment (million USD) | $1,672 M | $1,534 M | | Total assets (million USD) | $3,837 M | $3,736 M | | Total current liabilities (million USD) | $740 M | $772 M | | Long-term debt (million USD) | $1,105 M | $1,087 M | | Total liabilities (million USD) | $1,954 M | $1,946 M | | Total stockholders' equity (million USD) | $1,683 M | $1,590 M | [Condensed Consolidated Statements of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q3 FY25, cash provided by operating activities was $249 million, up from $207 million in Q3 FY24. Investing activities used $65 million, and financing activities used $183 million. The cash balance increased by $26 million during the quarter, ending at $239 million | Metric | Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | | :------------------------------------------ | :------ | :------ | :------------ | :------------ | | Net income (loss) (million USD) | $113 M | $120 M | $322 M | $278 M | | Cash provided by (used in) operating activities (million USD) | $249 M | $207 M | $446 M | $488 M | | Cash provided by (used in) investing activities (million USD) | $(65) M | $(51) M | $(239) M | $(146) M | | Cash provided by (used in) financing activities (million USD) | $(183) M | $(131) M | $(190) M | $(326) M | | Increase (decrease) in cash and cash equivalents (million USD) | $26 M | $(9) M | $16 M | $(41) M | | Cash and cash equivalents at end of period (million USD) | $239 M | $197 M | $239 M | $197 M | [Segment Financial Data (Unaudited)](index=9&type=section&id=Segment%20Financial%20Data%20(Unaudited)) This section provides unaudited financial data broken down by segment, including summary results and detailed quarterly performance for Reinforcement Materials and Performance Chemicals [Summary Results by Segment](index=9&type=section&id=Summary%20Results%20by%20Segment) In Q3 FY25, Reinforcement Materials sales were $573 million (down from $649 million YoY), and Performance Chemicals sales were $320 million (down from $332 million YoY). Reinforcement Materials EBIT was $128 million (down from $136 million YoY), while Performance Chemicals EBIT was $57 million (up from $55 million YoY) | Metric | Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | | :------------------------------------ | :------ | :------ | :------------ | :------------ | | **Sales** | | | | | | Reinforcement Materials (million USD) | $573 M | $649 M | $1,778 M | $1,966 M | | Performance Chemicals (million USD) | $320 M | $332 M | $942 M | $928 M | | **Segment Earnings Before Interest and Taxes (EBIT)** | | | | | | Reinforcement Materials (million USD) | $128 M | $136 M | $389 M | $414 M | | Performance Chemicals (million USD) | $57 M | $55 M | $152 M | $120 M | | Total Segment EBIT (million USD) | $185 M | $191 M | $541 M | $534 M | [Quarterly Results by Segment](index=14&type=section&id=Quarterly%20Results%20by%20Segment) This section provides a detailed quarterly breakdown of sales and EBIT for both Reinforcement Materials and Performance Chemicals segments for fiscal years 2024 and 2025, showing trends and specific quarterly performance | Metric (Sales) | Dec. Q FY24 | Mar. Q FY24 | June Q FY24 | Sept. Q FY24 | FY24 | Dec. Q FY25 | Mar. Q FY25 | June Q FY25 | Sept. Q FY25 | FY25 | | :--------------------- | :---------- | :---------- | :---------- | :----------- | :--- | :---------- | :---------- | :---------- | :----------- | :--- | | Reinforcement Materials (million USD) | $641 M | $676 M | $649 M | $644 M | $2,610 M | $611 M | $594 M | $573 M | $— | $1,778 M | | Performance Chemicals (million USD) | $285 M | $311 M | $332 M | $322 M | $1,250 M | $311 M | $311 M | $320 M | $— | $942 M | | Segment Sales (million USD) | $926 M | $987 M | $981 M | $966 M | $3,860 M | $922 M | $905 M | $893 M | $— | $2,720 M | | Metric (EBIT) | Dec. Q FY24 | Mar. Q FY24 | June Q FY24 | Sept. Q FY24 | FY24 | Dec. Q FY25 | Mar. Q FY25 | June Q FY25 | Sept. Q FY25 | FY25 | | :--------------------- | :---------- | :---------- | :---------- | :----------- | :--- | :---------- | :---------- | :---------- | :----------- | :--- | | Reinforcement Materials (million USD) | $129 M | $149 M | $136 M | $123 M | $537 M | $130 M | $131 M | $128 M | $— | $389 M | | Performance Chemicals (million USD) | $34 M | $31 M | $55 M | $44 M | $164 M | $45 M | $50 M | $57 M | $— | $152 M | | Total Segment EBIT (million USD) | $163 M | $180 M | $191 M | $167 M | $701 M | $175 M | $181 M | $185 M | $— | $541 M | [Non-GAAP Reconciliations (Unaudited)](index=19&type=section&id=Non-GAAP%20Reconciliations%20(Unaudited)) This section presents unaudited reconciliations of non-GAAP financial measures, including Adjusted EPS, operating tax rate, EBIT, EBITDA, and various cash flow metrics, to their most comparable GAAP equivalents [Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate](index=19&type=section&id=Certain%20Items%20and%20Reconciliation%20of%20Adjusted%20EPS%20and%20Operating%20Tax%20Rate) This section provides detailed tables reconciling GAAP EPS to Adjusted EPS and the effective tax rate to the operating tax rate, outlining the specific 'certain items' (e.g., global restructuring, legal matters, currency devaluation) that are excluded and their pre-tax and after-tax impact | Certain Items (Pre-tax) | Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | | :------------------------------------------ | :------ | :------ | :------------ | :------------ | | Global restructuring activities (million USD) | $(3) M | $(1) M | $(6) M | $(13) M | | Legal and environmental matters and reserves (million USD) | — | — | $(6) M | $(1) M | | Argentina controlled currency devaluation and other losses (million USD) | — | $(2) M | — | $(43) M | | Other certain items (million USD) | — | $1 M | $(1) M | $1 M | | Total certain items, pre-tax (million USD) | $(3) M | $(2) M | $(13) M | $(56) M | | Total certain items after tax per share (USD per share) | $(0.04) | $0.02 | $(0.34) | $(0.95) | | Tax Rate Reconciliation | Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | | :-------------------------------- | :------ | :------ | :------------ | :------------ | | Effective Tax Rate (%) | 28% | 25% | 29% | 31% | | Operating Tax Rate (%) | 28% | 27% | 28% | 28% | | Adjusted EPS Reconciliation | Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | | :------------------------------------------ | :------ | :------ | :------------ | :------------ | | Net income (loss) per share attributable to Cabot Corporation (USD per share) | $1.86 | $1.94 | $5.22 | $4.30 | | Less: Certain items after tax per share (USD per share) | $(0.04) | $0.02 | $(0.34) | $(0.95) | | Adjusted earnings (loss) per share (USD per share) | $1.90 | $1.92 | $5.56 | $5.25 | [Reconciliation of Non-GAAP Financial Measures (EBIT, EBITDA, Cash Flow)](index=22&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20(EBIT%2C%20EBITDA%2C%20Cash%20Flow)) This section provides reconciliations for Total Segment EBIT, Total Segment EBITDA, Adjusted EBITDA, Free Cash Flow, and Discretionary Free Cash Flow to their most directly comparable GAAP measures, offering a comprehensive view of non-GAAP adjustments | Metric (EBIT/EBITDA Reconciliation) | Dec. Q FY25 | Mar. Q FY25 | June Q FY25 | FY25 (9 Months) | | :---------------------------------------------------- | :---------- | :---------- | :---------- | :-------------- | | Net income (loss) attributable to Cabot Corporation (million USD) | $93 M | $94 M | $101 M | $288 M | | Income (loss) from operations before income taxes and equity in earnings of affiliated companies (million USD) | $144 M | $151 M | $155 M | $450 M | | Total Segment EBIT (million USD) | $175 M | $181 M | $185 M | $541 M | | Total Segment EBITDA (million USD) | $212 M | $219 M | $224 M | $655 M | | Adjusted EBITDA (million USD) | $199 M | $206 M | $211 M | $616 M | | Metric (Segment EBITDA & Margin) | Dec. Q FY25 | Mar. Q FY25 | June Q FY25 | FY25 (9 Months) | | :-------------------------------- | :---------- | :---------- | :---------- | :-------------- | | Reinforcement Materials EBITDA (million USD) | $147 M | $148 M | $146 M | $441 M | | Reinforcement Materials EBITDA Margin (%) | 24% | 25% | 25% | 25% | | Performance Chemicals EBITDA (million USD) | $65 M | $71 M | $78 M | $214 M | | Performance Chemicals EBITDA Margin (%) | 21% | 23% | 24% | 23% | | Metric (Cash Flow Reconciliation) | Dec. Q FY25 | Mar. Q FY25 | June Q FY25 | FY25 (9 Months) | | :---------------------------------------------------- | :---------- | :---------- | :---------- | :-------------- | | Cash provided by (used in) operating activities (million USD) | $124 M | $73 M | $249 M | $446 M | | Free cash flow (million USD) | $47 M | $1 M | $188 M | $236 M | | Discretionary free cash flow (million USD) | $114 M | $110 M | $114 M | $338 M |

Core Insights - Cabot Corporation reported diluted earnings per share (EPS) of $1.86 and adjusted EPS of $1.90 for Q3 FY25, reflecting a slight decrease compared to the previous year [1][4][5] - The company experienced a decline in net sales to $923 million from $1,016 million year-over-year, with net income attributable to Cabot Corporation at $101 million, down from $109 million [3][4][5] - The company reaffirmed its adjusted EPS guidance for fiscal 2025 in the range of $7.15 to $7.50, indicating expectations of earnings growth despite a challenging macroeconomic environment [9] Financial Performance - For Q3 FY25, net sales were $923 million, a decrease of 9% from $1,016 million in Q3 FY24, while net income was $101 million compared to $109 million in the same quarter last year [3][4] - Adjusted EPS for Q3 FY25 was $1.90, down 1% from $1.92 in Q3 FY24, while diluted EPS decreased from $1.94 to $1.86 [4][5] - Operating cash flow was strong at $249 million, with $64 million returned to shareholders through dividends and share repurchases [3][7] Segment Results - The Reinforcement Materials segment reported EBIT of $128 million, down 6% year-over-year, while the Performance Chemicals segment saw a 4% increase in EBIT to $57 million [5][6] - Global volumes for Reinforcement Materials decreased by 8%, with significant declines in Asia Pacific (11%) and the Americas (9%), while Europe, the Middle East, and Africa saw a 4% increase [6][5] - Performance Chemicals experienced an 8% drop in volumes, attributed to lower customer demand due to tariff uncertainties and a weaker macroeconomic environment [6] Cash Flow and Balance Sheet - The company ended Q3 FY25 with a cash balance of $239 million and a net debt to EBITDA ratio of 1.3x, indicating strong balance sheet health [7] - Capital expenditures for the quarter were $61 million, reflecting ongoing investments in operational capabilities [7] Tax and Outlook - The effective tax rate for Q3 FY25 was 28%, with an expected operating tax rate for the fiscal year in the range of 27% to 29% [8] - The company anticipates lower volumes in the second half of FY25 due to ongoing tariff uncertainties but expects to remain within the middle to lower end of its adjusted EPS guidance range [9]

Core Viewpoint - Cabot Corporation has announced a definitive agreement to acquire Mexico Carbon Manufacturing S.A. de C.V. from Bridgestone Corporation for $70 million, enhancing its position in the global carbon black market and reinforcing its partnership with Bridgestone [1][3]. Group 1: Acquisition Details - The acquisition involves a facility that has been operational since 2005 and is located near Cabot's existing facility in Altamira, Mexico, which has been in operation since 1990 [1]. - The transaction is expected to close within three to six months, pending regulatory approval in Mexico [3]. - The acquisition is structured on a debt-free, cash-free basis, with customary closing adjustments [3]. Group 2: Strategic Implications - This acquisition will strengthen Cabot's long-term supply of reinforcing carbon products to Bridgestone and enhance its global capabilities [2]. - The facility will also have the capacity to manufacture a variety of reinforcing carbon products, providing flexibility for future growth opportunities [2]. - The deal aligns with Cabot's strategy to grow in core markets and emphasizes its commitment to operational excellence and customer value [3]. Group 3: Company Background - Cabot Corporation is a global specialty chemicals and performance materials company, recognized as a leading provider of reinforcing carbons and other specialty materials [4]. - Bridgestone Corporation is a global leader in tires and rubber, employing approximately 121,000 people and operating in over 150 countries [5].

LITX 95F导电添加剂旨在提升电池的循环寿命和能量密度。在基于厚电极设计的软包电池性能测试 中，该材料展现出优异的容量保持率，为电池制造商优化各类储能系统配方提供了灵活性。其高结构形 态有助于在反复充放电循环中增强电极的导电性与稳定性。此外，它还能适配锂离子电池正极厚电极设 计，在保证电池性能的同时有效降低材料成本。 据介绍，在全球"双碳"目标下，作为构建以新能源为主体的新型电力系统的重要支撑技术，全球储能市 场在过去几年里蓬勃发展。与此同时，工商业对于电力供应的稳定性提出较高要求，而工商储能的经济 性正逐步显现，行业开始快速发展。随着市场规模持续扩大，电池制造商需要提供兼具高性能与成本效 益的产品解决方案。在此背景下，卡博特LITX 95F导电添加剂解决方案应运而生，通过提供关键的性 能与效率优势，助力加速储能ESS的普及与应用。 中化新网讯 7月29日，卡博特公司推出全新LITX 95F导电添加剂。这款产品专为锂离子电池在储能系统 (ESS)中的应用而开发，可有效提升电池导电性、延长循环寿命并改善加工性能，尤其适用于对高频次 循环条件下保持优异耐用性和稳定性有严苛要求的储能系统，可广泛应用于户储、工商 ...

Core Viewpoint - Cabot Corporation has launched the new LITX® 95F conductive additive specifically designed for lithium-ion batteries in energy storage systems (ESS), enhancing conductivity, cycle life, and processing performance, particularly under demanding conditions [1][2]. Group 1: Product Launch and Features - The LITX® 95F conductive additive is aimed at improving the cycle life and energy density of lithium-ion batteries, showcasing excellent capacity retention in performance tests with thick electrode designs [2]. - The high structural form of the LITX® 95F additive enhances the conductivity and stability of electrodes during repeated charge and discharge cycles, providing flexibility for battery manufacturers in optimizing various energy storage system formulations [2]. Group 2: Market Context and Demand - The global energy storage market has been thriving in recent years, driven by the dual carbon goals and the need for stable power supply in commercial and industrial sectors, highlighting the economic viability of industrial energy storage [2]. - As the market continues to expand, battery manufacturers are required to deliver products that balance high performance with cost-effectiveness, which the LITX® 95F conductive additive addresses by providing key performance and efficiency advantages [2]. Group 3: Company Commitment and Vision - Cabot's Global Executive Vice President emphasized the need for advanced materials that balance performance and efficiency in the evolving energy landscape, indicating that the LITX® 95F additive is a precise response to market demands and customer needs [3]. - The product launch reflects Cabot's commitment to technological innovation and supporting global energy transition towards a more sustainable future [3].

Core Insights - Cabot Corporation has launched LITX 95F, a new conductive carbon additive designed for lithium-ion batteries in energy storage systems (ESS), enhancing conductivity, cycle life, and processability [1][2][4] Company Overview - Cabot Corporation is a global specialty chemicals and performance materials company based in Boston, Massachusetts, known for its range of products including reinforcing carbons and battery materials [5] Industry Context - The global ESS market is experiencing rapid growth due to increasing demand for grid flexibility, renewable energy transition, and reliable power across various sectors [2] - Advanced lithium-ion batteries are essential for meeting the evolving needs of the ESS market, requiring superior cycle life and long-term reliability [2] Product Features - LITX 95F is engineered to improve cycle life and energy density, demonstrating excellent capacity retention in pouch cell performance testing [3] - The product's high structure morphology enhances conductivity and stability during charge-discharge cycles, allowing for thick cathode designs that reduce material costs without sacrificing performance [3] Market Response - The launch of LITX 95F reflects Cabot's commitment to providing innovative solutions that support the energy transition and accelerate the adoption of ESS applications [4]