Cabot (US:CBT)2025-11-03 22:30Earnings Performance - Fourth Quarter 2025 diluted EPS was $0.79, and adjusted EPS was $1.70, representing a 6% decrease year-over-year [5]. - Fiscal Year 2025 diluted EPS was $6.02, and adjusted EPS was $7.25, reflecting a 3% increase year-over-year [5]. - Diluted earnings per share for Q4 2025 were $0.79, a significant drop from $2.43 in Q4 2024 [32]. - Diluted earnings per share attributable to Cabot Corporation for the fiscal year 2025 was $6.02, down from $6.72 in fiscal year 2024, reflecting a decrease of 10.4% [37]. - Adjusted earnings per share for fiscal year 2025 was $7.25, compared to $7.06 in fiscal year 2024, showing an increase of 2.7% [37]. - Net income for the fiscal year 2025 was $376 million, down from $424 million in fiscal year 2024, a decline of 11.3% [36]. - Net income attributable to Cabot Corporation for the twelve months ended September 30, 2025, was $331 million, compared to $380 million for the same period in 2024, reflecting a decrease of 12.9% [32]. - Net income for the three months ended September 30, 2025, was $54 million, a decrease of 63% compared to $146 million in the same period of 2024 [39]. Sales and Revenue - Fourth Quarter 2025 net sales were $899 million, down from $1,001 million in the same quarter of the previous year [7]. - Net sales for Q4 2025 were $899 million, a decrease of 10.2% from $1,001 million in Q4 2024 [31]. - Net sales for the fiscal year 2025 were $3,591 million, a decrease of 6.9% compared to $3,860 million in fiscal year 2024 [36]. - The company reported a decrease in net sales for the Reinforcement Materials segment to $2,340 million in fiscal year 2025 from $2,610 million in fiscal year 2024, a drop of 10.4% [36]. - The Performance Chemicals segment reported sales of $1,250 million for fiscal year 2025, consistent with the previous fiscal year [36]. - Segment sales for Reinforcement Materials in Q4 2025 were $563 million, a decrease of 12.6% from $644 million in Q4 2024 [32]. Cash Flow and Investments - Cash flows from operations for Fiscal Year 2025 totaled $665 million, supporting $274 million in capital investments, $96 million in dividends, and $168 million in share repurchases [5]. - The company ended the fourth quarter with a cash balance of $258 million and generated $219 million in cash flows from operating activities [11]. - Cash provided by operating activities for the twelve months ended September 30, 2025, was $665 million, down from $692 million in 2024, reflecting a decrease of approximately 4% [39]. - Cash dividends paid to common stockholders for the twelve months ended September 30, 2025, totaled $96 million, slightly up from $93 million in 2024 [39]. - Free cash flow for FY 2025 was $391 million, with quarterly free cash flow of $47 million in December, $1 million in March, $188 million in June, and $155 million in September [45]. - Discretionary free cash flow for FY 2025 was $447 million, with quarterly figures of $114 million in December, $110 million in March, $114 million in June, and $109 million in September [45]. Assets and Liabilities - Total assets as of September 30, 2025, were $3,815 million, compared to $3,736 million as of September 30, 2024 [34]. - Total current liabilities increased to $957 million in September 2025 from $772 million in September 2024, representing a 24% increase [35]. - Long-term debt decreased to $856 million in September 2025 from $1,087 million in September 2024, a reduction of 21% [35]. - Total stockholders' equity rose to $1,705 million in September 2025, up from $1,590 million in September 2024, indicating a growth of 7.2% [35]. - Total inventories as of September 30, 2025, were $504 million, down from $552 million as of September 30, 2024 [34]. Taxation - The effective tax rate for the fourth quarter was 55%, with an operating tax rate for Fiscal Year 2025 at 27% [12]. - The effective tax rate for the twelve months ended September 30, 2025, was 35%, compared to 21% in 2024, reflecting a notable increase in the tax burden [41]. - The company expects its operating tax rate for fiscal 2026 to be in the range of 27% to 29% [43]. Sustainability and Future Outlook - The company achieved 11 out of 15 of its 2025 Sustainability Goals ahead of schedule and established new goals for 2030 [5]. - For Fiscal Year 2026, the company expects adjusted EPS to be in the range of $6.00 to $7.00, reflecting uncertain macroeconomic conditions [13]. Segment Performance - EBIT in Reinforcement Materials decreased by 5% year-over-year, while EBIT in Performance Chemicals increased by 18% [5]. - Segment earnings before interest and taxes for Performance Chemicals in Q4 2025 were $42 million, down from $44 million in Q4 2024 [32]. - Total Segment EBIT for fiscal 2025 was $702 million, compared to $665 million in fiscal 2024, showing an increase of approximately 5.6% [44]. - Total Segment EBITDA for FY 2025 was $856 million, with a quarterly breakdown of $212 million in December, $219 million in March, $224 million in June, and $201 million in September [45]. - Adjusted EBITDA for FY 2025 reached $804 million, with quarterly figures of $199 million in December, $206 million in March, $211 million in June, and $188 million in September [45]. - Reinforcement Materials Sales totaled $2,341 million for FY 2025, with quarterly sales of $611 million in December, $594 million in March, $573 million in June, and $563 million in September [45]. - Performance Chemicals Sales amounted to $1,250 million for FY 2025, with consistent quarterly sales of $311 million in December and March, $320 million in June, and $308 million in September [45]. - Reinforcement Materials EBITDA Margin averaged 25% for FY 2025, with quarterly margins of 24% in December, 25% in March, 25% in June, and 24% in September [45]. - Performance Chemicals EBITDA Margin averaged 22% for FY 2025, with quarterly margins of 21% in December, 23% in March, 24% in June, and 21% in September [45].