Cabot (US:CBT) Globenewswireยท2025-11-03 21:30Core Insights - Cabot Corporation reported a strong year of Adjusted EPS growth, achieving $7.25, a 3% increase year-over-year, despite a challenging macroeconomic environment [5][6] - The company experienced a decline in net sales and other operating revenues for the fourth quarter, totaling $899 million, down from $1,001 million in the same quarter of the previous year [4][27] - The company announced an agreement to acquire Bridgestone Corporation's reinforcing carbons plant in Mexico, indicating a strategic move to enhance its operational capabilities [5] Fiscal Year Highlights - For fiscal year 2025, Cabot's net income attributable to the corporation was $331 million, down from $380 million in fiscal year 2024 [4][5] - The fiscal year 2025 Adjusted EPS was $7.25, reflecting a 3% increase compared to the previous year [5] - Cash flows from operations for the fiscal year were $665 million, which supported capital investments of $274 million, dividends of $96 million, and share repurchases of $168 million [5][6] Fourth Quarter Highlights - In the fourth quarter of fiscal 2025, net income attributable to Cabot Corporation was $43 million, a decrease from $137 million in the same quarter of fiscal 2024 [4][7] - The fourth quarter Adjusted EPS was $1.70, representing a 6% decrease year-over-year [5][7] - Cash flows from operations in the fourth quarter were $219 million, which facilitated $64 million returned to shareholders through dividends and share repurchases [5][10] Segment Performance - In the Reinforcement Materials segment, EBIT decreased by $4 million year-over-year, primarily due to lower volumes in the Americas and Asia Pacific [8][9] - The Performance Chemicals segment saw a slight EBIT decrease of $2 million, attributed to a 5% decrease in volumes, particularly in Europe [9][29] - Global volumes for Reinforcement Materials declined by 5%, with the Americas experiencing a 7% drop, while Europe, Middle East, and Africa saw a 5% increase [9][29] Cash Performance - The company ended the fourth quarter with a cash balance of $258 million, up from $223 million in the previous year [10][34] - Capital expenditures for the fourth quarter were $64 million, with additional cash used for dividends and share repurchases [10][34] Tax and Outlook - The effective tax rate for the fourth quarter was 55%, with an operating tax rate for fiscal 2025 at 27% [11][12] - Looking ahead to fiscal 2026, the company expects Adjusted EPS to range between $6.00 and $7.00, reflecting ongoing macroeconomic uncertainties [12][13]