Cabot Corporation Reports Fourth Quarter and Fiscal Year 2026 Results

Performance Chemicals improved quarterly earnings, while lower profit per ton weighed on Reinforcement Materials.

Rhea-AI Summary

Cabot Corporation (CBT) reported fourth-quarter fiscal 2026 adjusted earnings per share of $1.61, down from the prior-year quarter. Revenue rose to $1,009 million from $899 million, while diluted EPS increased to $1.25 from $0.79. Adjusted EPS was $1.70 a year earlier. Performance Chemicals earnings before interest and taxes rose $18 million to $60 million; Reinforcement Materials fell $32 million to $87 million.

For fiscal 2026, revenue reached $3,744 million, versus $3,713 million. Diluted EPS fell to $4.02 from $6.02, and adjusted EPS declined to $6.42 from $7.25. Operating cash flow of $421 million supported $207 million in capital investments, $97 million in dividends and $146 million in repurchases. Cabot signed a $50 million Department of Energy grant agreement for battery-additive production expansion in Louisiana and Texas. The company expects fiscal 2027 adjusted EPS of $6.15–$6.75.

17 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointFourth-quarter revenue increased to $1,009 million from $899 million a year earlier.
• Moderate pointFourth-quarter net income rose to $66 million from $43 million; diluted EPS increased to $1.25 from $0.79.
• Moderate pointPerformance Chemicals quarterly EBIT, earnings before interest and taxes, increased $18 million to $60 million.
• Moderate pointReinforcement Materials quarterly volumes increased 5% year over year, including Indonesia capacity and the Mexico acquisition.
• Moderate point$50 million Department of Energy grant agreement supports battery-additive production expansion in Louisiana and Texas. 1.3% of market cap
• Moderate pointFiscal 2026 operating cash flow totaled $421 million; fourth-quarter operating cash flow was $143 million.
• Moderate pointFiscal 2026 share repurchases returned $146 million to shareholders. 3.7% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted EPS is expected at $6.15–$6.75, versus fiscal 2026 adjusted EPS of $6.42.

9 minor points

• Minor pointFiscal 2026 revenue increased to $3,744 million from $3,713 million.
• Minor pointPerformance Chemicals profitability benefited from favorable product mix, lower costs and increased volumes.
• Minor pointAsia Pacific Reinforcement Materials volumes rose 10% year over year in the fourth quarter.
• Minor pointAmericas Reinforcement Materials volumes rose 3% year over year in the fourth quarter.
• Minor pointFiscal 2026 segment EBIT totaled $235 million for Performance Chemicals and $379 million for Reinforcement Materials.
• Minor pointBattery Materials fiscal 2026 EBITDA, earnings before interest, taxes, depreciation and amortization, reached $43 million.
• Minor pointFiscal 2026 capital investments totaled $207 million, including $55 million in the fourth quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 volume growth is expected in battery materials, electronics and strategic customer accounts.
• Minor point. Forward-looking: it has not happened yet and may not happen.Network competitiveness plans include completing restructuring, optimization activities and investment in yield technology.

Negative

• Moderate pointFiscal 2026 net income fell to $213 million from $331 million; diluted EPS declined to $4.02 from $6.02.
• Moderate pointReinforcement Materials quarterly EBIT decreased $32 million to $87 million.
• Moderate pointGross profit fell to $204 million from $220 million quarterly and $809 million from $940 million annually.
• Moderate pointOperating income fell to $121 million from $137 million quarterly and $477 million from $621 million annually.
• Minor pointFiscal 2026 adjusted EPS declined to $6.42 from $7.25.

7 minor points

• Minor pointFourth-quarter adjusted EPS declined to $1.61 from $1.70 a year earlier.
• Minor pointReinforcement Materials profit per ton declined with calendar 2026 customer agreements and less favorable regional product mix.
• Minor pointEurope, Middle East and Africa Reinforcement Materials volumes fell 7% year over year in the fourth quarter.
• Minor pointSelling and administrative expenses increased to $69 million from $68 million quarterly and $278 million from $260 million annually.
• Minor pointFourth-quarter after-tax charges were $0.36 per share, primarily related to restructuring actions.
• Minor pointHigher raw material costs required $10 million of additional net working capital in the fourth quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Volatile energy input costs and competitive pressures remain factors Cabot expects to manage in fiscal 2027.

Key Figures

Fiscal-year diluted EPS: $4.02 Fiscal-year Adjusted EPS: $6.42 Fourth-quarter diluted EPS: $1.25 +5 more

Fiscal-year diluted EPS

$4.02

Fiscal 2026; $6.02 in fiscal 2025

Fiscal-year Adjusted EPS

$6.42

Fiscal 2026; $7.25 in fiscal 2025

Fourth-quarter diluted EPS

$1.25

Fourth quarter fiscal 2026; $0.79 in the prior-year quarter

Fourth-quarter Adjusted EPS

$1.61

Fourth quarter fiscal 2026; $1.70 in the prior-year quarter

Battery Materials EBITDA

$43 million

Fiscal 2026; described as a new high for the product line

DOE grant

$50 million

Grant agreement supports domestic advanced conductive additives production

Adjusted EPS outlook

$6.15–$6.75

Fiscal 2027

Reinforcement Materials segment EBIT

$379 million

Fiscal 2026; $508 million in fiscal 2025

Previous Earnings Reports

1 past event · Latest: Aug 03

Same Type 1 event

1. Aug 03

   Q3 earnings report

   24h Move

   -8.5%

   Adjusted EPS was $1.67 versus $1.90 a year earlier; fiscal 2026 guidance was $6.15–$6.45.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebit, ebitda, net working capital, non-gaap

4 terms

ebit financial

"The segment delivered EBIT of $60 million in the quarter"

EBIT (Earnings Before Interest and Taxes) measures a company's profit from normal business operations after paying direct running costs but before subtracting interest on debt and income taxes. Think of it as how well a store does at selling its goods once everyday expenses are covered, ignoring loan payments and tax bills. Investors use EBIT to compare operational performance across companies without the distortion of different financing or tax situations.

View in glossary

ebitda financial

"delivering $43 million of EBITDA for fiscal 2026"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

net working capital financial

"$10 million of higher net working capital due to higher raw material costs"

Net working capital is the amount left when you subtract a company’s short-term bills (like accounts payable and short-term loans) from its short-term assets (cash, money owed to it, and inventory). Think of it as the cash cushion a business has to keep daily operations running — a bigger cushion means fewer short-term funding worries, while a small or negative number can signal pressure to raise cash or cut activity, which matters to investors assessing stability and short-term risk.

non-gaap financial

"The provision for income taxes included non-GAAP adjustments of $3 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Fourth Quarter 2026 Diluted earnings per share (“EPS”) of $1.25 and Adjusted EPS of $1.61
Fiscal Year 2026 Diluted EPS of $4.02 and Adjusted EPS of $6.42

BOSTON, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Cabot Corporation (NYSE: CBT) today announced results for its fourth quarter and fiscal year 2026.

Fiscal Year Highlights

• Fiscal year Diluted EPS of $4.02 and Adjusted EPS of $6.42
• Performance Chemicals segment EBIT of $235 million and Reinforcement Materials segment EBIT of $379 million
• Fiscal year 2026 Cash Flows from Operations of $421 million enabled capital investments of $207 million and the payment of $97 million in dividends and $146 million in share repurchases during the fiscal year
  
• Battery Materials achieved $43 million of EBITDA for the fiscal year, reflecting strong performance and continued growth in the product line

Fourth Quarter Highlights

• Fourth Quarter Diluted EPS of $1.25 and Adjusted EPS of $1.61
• Performance Chemicals segment EBIT of $60 million and Reinforcement Materials segment EBIT of $87 million
  
• Signed agreement with the U.S. Department of Energy for a $50 million grant to support expansion of domestic production of advanced conductive additives for batteries at Cabot's facilities in Louisiana and Texas

(In millions, except per share amounts)	Three Months Ended						Fiscal Year Ended
	9/30/26			9/30/25			9/30/26			9/30/25
Net sales and other operating revenues	$	1,009		$	899		$	3,744		$	3,713
Net income (loss) attributable to Cabot Corporation	$	66		$	43		$	213		$	331
Net earnings (loss) per share attributable to Cabot Corporation	$	1.25		$	0.79		$	4.02		$	6.02
Less: Certain items after tax per share	$	(0.36)		$	(0.91)		$	(2.40)		$	(1.23)
Adjusted EPS	$	1.61		$	1.70		$	6.42		$	7.25

Erica McLaughlin, Cabot President and Chief Executive Officer commented: “I am pleased by the strong execution of our teams during a fiscal year that was shaped by a difficult macroeconomic backdrop in many of our key end markets. We finished the year with a strong fourth quarter, delivering Adjusted EPS of $1.61, driven by robust performance in our Performance Chemicals segment. The segment delivered EBIT of $60 million in the quarter and $235 million for the fiscal year. Reinforcement Materials delivered segment EBIT of $87 million in the quarter and $379 million for the full year."

McLaughlin continued, "We also achieved an important milestone in our Battery Materials product line, delivering $43 million of EBITDA for fiscal 2026, a new high for the product line. Building on this momentum, we signed an agreement with the U.S. Department of Energy for a $50 million grant to support our expansion of domestic production of advanced conductive additives for batteries at our facilities in Louisiana and Texas. We expect these investments to strengthen our Battery Materials platform in North America and expand our capabilities to support growing demand for battery energy storage systems, electric vehicles, and other specialty battery applications. As I look ahead, I am excited about Cabot's prospects and our ability to build on our strong foundation in Battery Materials to drive long-term growth and shareholder value."

Fourth Quarter Financial Detail
For the fourth quarter of fiscal 2026, net income attributable to Cabot Corporation was $66 million ($1.25 per common share). Net income reflects an after-tax per share charge from certain items of $0.36, primarily related to charges for restructuring actions. Adjusted EPS for the fourth quarter of fiscal 2026 was $1.61 per share.

Segment Results

Reinforcement Materials – Fourth quarter fiscal 2026 EBIT in Reinforcement Materials decreased by $32 million compared to the fourth quarter of fiscal 2025. The decline in EBIT was primarily driven by lower gross profit per ton, which was partially offset by higher volumes. Gross profit per ton declined primarily due to the outcomes of our calendar year 2026 customer agreements and less favorable regional product mix. Volumes increased by 5% in the fourth quarter of fiscal 2026 as compared to the fourth quarter of fiscal 2025 driven by higher volumes in Asia Pacific and the Americas, including higher volumes from our capacity addition in Indonesia and our acquisition in Mexico.

Global and regional volume changes for Reinforcement Materials for the fourth quarter of fiscal 2026 as compared to the same quarter of the prior year are set forth in the table below:

	Fourth Quarter Year-over-Year Change
Global Reinforcement Materials Volumes	5%
Asia Pacific	10%
Europe, Middle East, Africa	(7%)
Americas	3%

Performance Chemicals – Fourth quarter fiscal 2026 EBIT in Performance Chemicals increased by $18 million compared to the fourth quarter of fiscal 2025 primarily due to higher gross profit per ton and increased volumes. The higher gross profit per ton was driven by favorable product mix and lower costs. Volumes increased in our battery materials and specialty carbons product lines in the fourth quarter of fiscal 2026 as compared to the fourth quarter of fiscal 2025.

Cash Performance – The Company ended the fourth quarter of fiscal 2026 with cash and cash equivalents of $254 million. During the fourth quarter of fiscal 2026, cash flows from operating activities were a source of $143 million. Uses of cash during the quarter included funding $10 million of higher net working capital due to higher raw material costs, $55 million in capital expenditures, $25 million for the payment of dividends and $45 million in share repurchases. We ended the fourth quarter with $1.5 billion in available liquidity and a net debt to EBITDA ratio of 1.4 times as of September 30, 2026. 

Taxes – During the fourth quarter of fiscal 2026, the Company recorded tax expense of $38 million, resulting in an effective tax rate of 34%. The provision for income taxes included non-GAAP adjustments of $3 million which is primarily related to an increase in the valuation allowance on deferred tax assets. Our operating tax rate for the full year fiscal 2026 was 29%.

Outlook
Erica McLaughlin said, “I am honored and excited to take on the role of CEO for Cabot. Having been part of Cabot for many years, I have a deep appreciation for the strength of our businesses, the quality of our people and the differentiated positions we have built across our portfolio. I am energized by the opportunity to lead the company and build on this strong foundation as we enter our next phase of growth.”

Commenting on the outlook, McLaughlin continued, “Looking ahead to fiscal 2027, we expect Adjusted EPS to be in the range of $6.15 to $6.75. We anticipate continuing to increase volumes within our key growth markets, such as battery materials and electronics, as well as with strategic customer accounts. We expect to maintain solid margins as we manage volatile energy input costs and competitive pressures. We remain focused on completing our previously announced restructuring actions, implementing optimization activities and investing in yield technology to improve the competitiveness of our network.”

“While we continue to operate in a dynamic macroeconomic environment, I am confident in the strength of our businesses and our ability to execute. We anticipate continuing to generate strong operating cash flow and maintaining our balanced capital allocation framework that supports growth investments while continuing to return cash to shareholders. In addition, we remain focused on advancing our strategic growth priorities and maintaining commercial and operational discipline to deliver long-term value for our shareholders,” McLaughlin concluded.

Earnings Call
The Company will host a conference call with industry analysts at 8:00 a.m. Eastern time on Tuesday, November 3, 2026. The call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com

About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. 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. For more information on Cabot, please visit the company’s website at cabotcorp.com. The Company regularly posts important information on its website and encourages investors and potential investors to consult the Cabot website regularly.

Forward-Looking Statements – This earnings release contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in fiscal year 2027, including our expectations for Adjusted EPS for fiscal 2027 , our expectations for the benefits from investments we expect to make to increase our battery materials production capacity in the U.S., our expectations for our profit margins, cash flows and capital allocation, and our expectations for future performance, growth and value creation for shareholders and our assumptions underlying those expectations are forward-looking statements. 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 our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward-looking statements. Important factors that could cause our results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the inherent uncertainty of management transitions and the ability of the Company to successfully execute its planned leadership transition; industry capacity utilization, shifts in the geographic area of tire production and competition from other specialty chemical companies; safety, health and environmental requirements and related constraints imposed on our business; regulatory and financial risks related to climate change developments; volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of Ukraine and conflict in the Middle East; a significant adverse change in a customer relationship or the failure of a customer to perform its obligations under agreements with us; failure to achieve growth expectations from capacity additions, new products, applications and technology developments; failure to realize benefits from acquisitions, alliances, or joint ventures or achieve our portfolio management objectives; unanticipated delays in, or increased cost of, site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations, global health matters or geo-political conflicts; litigation or legal proceedings; interest rates, tax rates, currency exchange controls, tariffs and fluctuations in foreign currency rates; and the accuracy of the assumptions we used in establishing reserves for our share of liability for respirator claims. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission (“SEC”), particularly under the heading “Risk Factors” in our annual report on Form 10-K for our fiscal year ended September 30, 2025, which are filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

Use of Non-GAAP Financial Measures
To supplement Cabot’s consolidated financial statements presented on a generally accepted accounting principles (“GAAP”) basis, the preceding discussion of our results and the accompanying financial tables report Adjusted EPS, Adjusted EBITDA, our operating tax rate, Free Cash Flow and Discretionary Free Cash Flow, all of which are non-GAAP financial measures. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP, and the definitions of these measures may not be comparable to those used by other companies. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow provided by (used in) operating activities, the most directly comparable GAAP financial measure, are provided in the tables titled “Cabot Corporation Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate” and “Cabot Corporation Reconciliation of Non-GAAP Financial Measures.”

Management believes these non-GAAP measures provide investors with greater transparency to the information used by Cabot management in its financial and operational decision-making, allow investors to see Cabot’s results through the eyes of management, and better enable Cabot’s investors to understand Cabot’s operating performance and financial condition.

Adjusted EPS. In calculating Adjusted EPS, we exclude from our net income (loss) attributable to Cabot Corporation items of expense and income that management does not consider representative of the Company’s business operations. Accordingly, reporting earnings on an adjusted basis supplements the GAAP measure of performance and provides additional information related to the underlying performance of the business. For example, certain of the items we exclude are items that we are required by GAAP to recognize in one period that relate to activities extending over several periods or relate to single events that management considers to be unusual and infrequent, although not necessarily non-recurring. We refer to these items as “certain items.” Management believes excluding these items facilitates operating performance comparisons from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis and evaluates the Company’s operating performance without the impact of these costs or benefits. Management also uses Adjusted EPS as a key measure in evaluating management performance for incentive compensation purposes.

The items of income and expense that we exclude from our calculations of Adjusted EPS but that are included in our GAAP net income (loss) per share, as applicable in a particular reporting period, include, but are not limited to, the following:

• Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations.
• Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business.
• Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes.
• Employee benefit plan settlements, which consist of either charges or benefits associated with the termination of a pension plan
• Indirect tax settlement charges, which include unfavorable charges related to the settlement of indirect taxes

Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.

Adjusted EBITDA. Adjusted EBITDA reflects Income (loss) from operations before income taxes and equity in earnings of affiliated companies adjusted for certain items, interest expense, depreciation and amortization, equity in earnings of affiliated companies, and unallocated corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarters expenses, plus costs related to corporate projects and initiatives.

Free Cash Flow. To calculate “Free Cash Flow” we deduct Additions to property, plant and equipment from cash flow provided by (used in) operating activities.

Discretionary Free Cash Flow. To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow provided by (used in) operating activities.

Operating Tax Rate. Our “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. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.

Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.

Explanation of Terms Used

Product Mix. The term “product mix” refers to the mix of types and grades 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.

Net Working Capital. The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued expenses.

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
Periods ended September 30	Three Months								Twelve Months
Dollars in millions, except per share amounts (unaudited)	2026				2025				2026				2025
Net sales and other operating revenues	$	1,009			$	899			$	3,744			$	3,713
Cost of sales		805				679				2,935				2,773
Gross profit		204				220				809				940
Selling and administrative expenses		69				68				278				260
Research and technical expenses		14				15				54				59
Income (loss) from operations		121				137				477				621
Interest and dividend income		7				7				29				27
Interest expense		(21	)			(20	)			(75	)			(76	)
Other income (expense)		3				(9	)			(25	)			(7	)
Income (loss) from operations before income taxes and equity in earnings of affiliated companies		110				115				406				565
(Provision) benefit for income taxes		(38	)			(63	)			(165	)			(196	)
Equity in earnings of affiliated companies, net of tax		1				2				6				7
Net income (loss)		73				54				247				376
Net income (loss) attributable to noncontrolling interests, net of tax		7				11				34				45
Net income (loss) attributable to Cabot Corporation	$	66			$	43			$	213			$	331
Weighted-average common shares outstanding
Basic		51.5				53.1				51.9				53.7
Diluted		51.9				53.4				52.2				54.2
Earnings (loss) per common share:
Basic	$	1.26			$	0.79			$	4.04			$	6.07
Diluted	$	1.25			$	0.79			$	4.02			$	6.02

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION SUMMARY RESULTS BY SEGMENT
Periods ended September 30		Three Months								Twelve Months
Dollars in millions, except per share amounts (unaudited)		2026				2025				2026				2025
Sales
Reinforcement Materials		$	634			$	563			$	2,297			$	2,341
Performance Chemicals			340				308				1,319				1,250
Segment sales			974				871				3,616				3,591
Unallocated and other (A)			35				28				128				122
Net sales and other operating revenues		$	1,009			$	899			$	3,744			$	3,713
Segment Earnings Before Interest and Taxes (B)
Reinforcement Materials		$	87			$	119			$	379			$	508
Performance Chemicals			60				42				235				194
Unallocated and Other
Interest expense			(21	)			(20	)			(75	)			(76	)
Certain items (C)			(15	)			(17	)			(109	)			(30	)
Unallocated corporate costs			(13	)			(13	)			(54	)			(52	)
General unallocated income (expense) (D)			13				6				36				28
Less: Equity in earnings of affiliated companies, net of tax			1				2				6				7
Income (loss) from operations before income taxes and equity in earnings of affiliated companies			110				115				406				565
(Provision) benefit for income taxes (including tax certain items)			(38	)			(63	)			(165	)			(196	)
Equity in earnings of affiliated companies, net of tax			1				2				6				7
Net income (loss)			73				54				247				376
Net income (loss) attributable to noncontrolling interests, net of tax			7				11				34				45
Net income (loss) attributable to Cabot Corporation		$	66			$	43			$	213			$	331
Diluted earnings (loss) per share of common stock attributable to Cabot Corporation		$	1.25			$	0.79			$	4.02			$	6.02
Adjusted earnings (loss) per share (E)		$	1.61			$	1.70			$	6.42			$	7.25
Diluted weighted average common shares outstanding			51.9				53.4				52.2				54.2
(A)	Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable.
(B)	Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable.
(C)	Details of Certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.
(D)	General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items.
(E)	Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
	September 30,				September 30,
Dollars in millions (unaudited)	2026				2025
Current assets:
Cash and cash equivalents	$	254			$	258
Accounts and notes receivable, net of reserve for doubtful accounts of $5 and $5		801				671
Inventories:
Raw materials		161				134
Finished goods		354				303
Other		69				67
Total inventories		584				504
Prepaid expenses and other current assets		107				106
Total current assets		1,746				1,539
Property, plant and equipment		4,588				4,405
Accumulated Depreciation		(2,874	)			(2,694	)
Net property, plant and equipment		1,714				1,711
Goodwill		138				134
Equity affiliates		20				16
Intangible assets, net		50				55
Deferred income taxes		165				180
Other assets		195				180
Total assets	$	4,028			$	3,815

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
	September 30,				September 30,
Dollars in millions, except share and per share amounts (unaudited)	2026				2025
Current liabilities:
Short-term borrowings	$	65			$	14
Accounts payable and accrued liabilities		716				648
Income taxes payable		21				35
Current portion of long-term debt		7				260
Total current liabilities		809				957
Long-term debt		1,180				856
Deferred income taxes		32				39
Other liabilities		236				258
Stockholders' equity:
Preferred stock:
Authorized: 2,000,000 shares of $1 par value
Issued and Outstanding: None and none		—				—
Common stock:
Authorized: 200,000,000 shares of $1 par value Issued: 51,445,245 and 52,962,353 shares Outstanding: 51,338,798 and 52,842,481 shares		51				53
Less cost of 106,447 and 119,872 shares of common treasury stock		(2	)			(3	)
Additional paid-in capital		—				—
Retained earnings		1,837				1,835
Accumulated other comprehensive income (loss)		(251	)			(335	)
Total Cabot Corporation stockholders' equity		1,635				1,550
Noncontrolling interests		136				155
Total stockholders' equity		1,771				1,705
Total liabilities and stockholders' equity	$	4,028			$	3,815

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION QUARTERLY RESULTS BY SEGMENT
			Fiscal 2025																Fiscal 2026
Dollars in millions,
except per share amounts (unaudited)			Dec. Q			Mar. Q			June Q			Sept. Q			FY				Dec. Q			Mar. Q			June Q			Sept. Q			FY
Sales
Reinforcement Materials			$	611		$	594		$	573		$	563		$	2,341			$	520		$	544		$	599		$	634		$	2,297
Performance Chemicals				311			311			320			308			1,250				300			328			351			340			1,319
Segment sales				922			905			893			871			3,591				820			872			950			974			3,616
Unallocated and other (A)				33			31			30			28			122				29			32			32			35			128
Net sales and other operating revenues			$	955		$	936		$	923		$	899		$	3,713			$	849		$	904		$	982		$	1,009		$	3,744
Segment Earnings Before Interest and Taxes (B)
Reinforcement Materials			$	130		$	131		$	128		$	119		$	508			$	102		$	93		$	97		$	87		$	379
Performance Chemicals				45			50			57			42			194				48			59			68			60			235
Unallocated and Other
Interest expense				(18	)		(19	)		(19	)		(20	)		(76	)			(18	)		(18	)		(18	)		(21	)		(75	)
Certain items (C)				(6	)		(4	)		(3	)		(17	)		(30	)			(7	)		(9	)		(78	)		(15	)		(109	)
Unallocated corporate costs				(13	)		(13	)		(13	)		(13	)		(52	)			(12	)		(15	)		(14	)		(13	)		(54	)
General unallocated income (expense) (D)				7			9			6			6			28				6			12			5			13			36
Less: Equity in earnings of affiliated companies, net of tax				1			3			1			2			7				1			2			2			1			6
Income (loss) from operations before income taxes and equity in earnings of affiliated companies				144			151			155			115			565				118			120			58			110			406
(Provision) benefit for income taxes (including tax certain items)				(41	)		(49	)		(43	)		(63	)		(196	)			(37	)		(44	)		(46	)		(38	)		(165	)
Equity in earnings of affiliated companies, net of tax				1			3			1			2			7				1			2			2			1			6
Net income (loss)				104			105			113			54			376				82			78			14			73			247
Net income (loss) attributable to noncontrolling interests, net of tax				11			11			12			11			45				9			10			8			7			34
Net income (loss) attributable to Cabot Corporation			$	93		$	94		$	101		$	43		$	331			$	73		$	68		$	6		$	66		$	213
Diluted earnings (loss) per share of common stock attributable to Cabot Corporation			$	1.67		$	1.69		$	1.86		$	0.79		$	6.02			$	1.37		$	1.27		$	0.12		$	1.25		$	4.02
Adjusted earnings (loss) per share (E)			$	1.76		$	1.90		$	1.90		$	1.70		$	7.25			$	1.53		$	1.61		$	1.67		$	1.61		$	6.42
Diluted weighted average common shares outstanding				55.0			54.4			53.8			53.4			54.2				52.9			52.2			52.0			51.9			52.2
(A)		Unallocated and other reflects external shipping and handling fees, the impact of unearned revenue, and discounting charges for certain Notes receivable.
(B)		Segment EBIT is a measure used by Cabot's Chief Operating Decision-Maker to assess segment performance and allocate resources. Segment EBIT includes Equity in earnings of affiliated companies, net of tax, Net income attributable to noncontrolling interests, net of tax, and discounting charges for certain Notes receivable.
(C)		Details of certain items are presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.
(D)		General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments. This does not include items of income or expense from the items that are separately treated as Certain items.
(E)		Adjusted EPS is a non-GAAP measure, and a reconciliation of Adjusted EPS to GAAP EPS is presented in the Certain Items and Reconciliation of Adjusted EPS and Operating Tax Rate table.

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Periods ended September 30	Three Months								Twelve Months
Dollars in millions (unaudited)	2026				2025				2026				2025
Cash Flows from Operating Activities:
Net income (loss)	$	73			$	54			$	247			$	376
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	51				40				191				154
Other non-cash charges (gains), net	24				35				98				73
Cash dividends received from equity affiliates	—				—				2				13
Changes in assets and liabilities:
Changes in net working capital (A)	(10		)		69				(68		)		56
Changes in other assets and liabilities, net	5				21				(49		)		(7		)
Cash provided by (used in) operating activities	143				219				421				665
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(55		)		(64		)		(207		)		(274		)
Acquisition of business, net of cash acquired	—				—				(66		)		—
Asset acquisition	—				—				—				(27		)
Other investing activities, net	(6		)		5				(4		)		3
Cash provided by (used in) investing activities	(61		)		(59		)		(277		)		(298		)
Cash Flows from Financing Activities:
Change in debt, net	(21		)		(88		)		111				(23		)
Cash dividends paid to common stockholders	(25		)		(25		)		(97		)		(96		)
Other financing activities, net	(32		)		(33		)		(180		)		(217		)
Cash provided by (used in) financing activities	(78		)		(146		)		(166		)		(336		)
Effect of exchange rate changes on cash	—				5				19				4
Increase (decrease) in cash, cash equivalents and restricted cash	4				19				(3		)		35
Cash, cash equivalents and restricted cash at beginning of period	251				239				258				223
Cash, cash equivalents and restricted cash at end of period (B)	$	255			$	258			$	255			$	258

(A)	Includes Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities.
(B)	Restricted cash was $1 million as of September 30, 2026. There was no restricted cash as of September 30, 2025.

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION CERTAIN ITEMS AND RECONCILIATION OF ADJUSTED EPS AND OPERATING TAX RATE
TABLE 1: DETAIL OF CERTAIN ITEMS
Periods ended September 30	Three Months						Twelve Months
Dollars in millions, except per share amounts (unaudited)	2026			2025			2026			2025
Certain items before and after income taxes
Global restructuring activities	$	(15	)	$	(5	)	$	(72	)	$	(11	)
Employee benefit plan settlement and other charges		—			(3	)		(30	)		(3	)
Legal and environmental matters and reserves		—			(1	)		(5	)		(7	)
Acquisition and integration-related charges		—			(1	)		(2	)		(1	)
Indirect tax settlement charges		—			(7	)		—			(7	)
Other certain items		—			—			—			(1	)
Total certain items, pre-tax		(15	)		(17	)		(109	)		(30	)
Non-GAAP adjustments(A)		(3	)		(32	)		(17	)		(38	)
Total certain items after tax	$	(18	)	$	(49	)	$	(126	)	$	(68	)
Total certain items after tax per share	$	(0.36	)	$	(0.91	)	$	(2.40	)	$	(1.23	)
TABLE 2: CERTAIN ITEMS STATEMENT OF OPERATIONS LINE ITEM
Periods ended September 30	Three Months						Twelve Months
Dollars in millions, Pre-Tax (unaudited)	2026			2025			2026			2025
Statement of Operations Line Item (C)
Cost of sales	$	(13	)	$	(3	)	$	(72	)	$	(13	)
Selling and administrative expenses		(2	)		(3	)		(7	)		(4	)
Research and technical expenses		—			(1	)		—			(2	)
Other income (expense)		—			(10	)		(30	)		(11	)
Total certain items	$	(15	)	$	(17	)	$	(109	)	$	(30	)
TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE
Three months ended September 30	2026						2025
Dollars in millions (unaudited)	(Provision) / Benefit for Income Taxes			Rate			(Provision) / Benefit for Income Taxes			Rate
Effective Tax Rate	$	(38	)		34	%	$	(63	)		55	%
Less: Non-GAAP tax adjustments(B)		(3	)					(30	)
Operating tax rate (D) (E)	$	(35	)		28	%	$	(33	)		25	%
Twelve months ended September 30	2026						2025
Dollars in millions (unaudited)	(Provision) / Benefit for Income Taxes			Rate			(Provision) / Benefit for Income Taxes			Rate
Effective Tax Rate	$	(165	)		41	%	$	(196	)		35	%
Less: Non-GAAP tax adjustments(B)		(17	)					(36	)
Operating tax rate (D) (E)	$	(148	)		29	%	$	(160	)		27	%
TABLE 4: RECONCILIATION OF ADJUSTED EPS BY QUARTER FOR FISCAL 2026 and FISCAL 2025
	Fiscal 2026 (F)
Periods ended (unaudited)	Dec. Q			Mar. Q			June Q			Sept. Q				FY 2026
Reconciliation of Adjusted EPS to GAAP EPS
Net income (loss) per share attributable to Cabot Corporation	$	1.37		$	1.27		$	0.12		$	1.25			$	4.02
Less: Certain items after tax per share		(0.16	)		(0.34	)		(1.55	)		(0.36	)		$	(2.40	)
Adjusted earnings (loss) per share	$	1.53		$	1.61		$	1.67		$	1.61			$	6.42
	Fiscal 2025 (F)
Periods ended (unaudited)	Dec. Q			Mar. Q			June Q			Sept. Q				FY 2025
Reconciliation of Adjusted EPS to GAAP EPS
Net income (loss) per share attributable to Cabot Corporation	$	1.67		$	1.69		$	1.86		$	0.79			$	6.02
Less: Certain items after tax per share		(0.09	)		(0.21	)		(0.04	)		(0.91	)			(1.23	)
Adjusted earnings (loss) per share	$	1.76		$	1.90		$	1.90		$	1.70			$	7.25

(A)	Non-GAAP adjustments includes Non-GAAP tax adjustments, which are described in (B) below, and in fiscal 2025 an adjustment to the historical earnings allocated to a noncontrolling interest partner, which is included in Net income (loss) attributable to noncontrolling interests, net of tax in the Consolidated Statement of Operations.
(B)	Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions.
(C)	This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations.
(D)	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. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions.
(E)	Our operating tax rate for fiscal 2027 is expected to be in the range of 28% to 30%.
(F)	Per share amounts are calculated after tax.

Fourth Quarter Earnings Announcement, Fiscal 2026
CABOT CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
			Fiscal 2026 (A)
			Dec. Q			Mar. Q			June Q			Sept. Q			FY 2026
Reconciliation of Adjusted EPS to GAAP EPS
Net income (loss) per share attributable to Cabot Corporation			$	1.37		$	1.27		$	0.12		$	1.25		$	4.02
Less: Certain items after tax per share				(0.16	)		(0.34	)		(1.55	)		(0.36	)		(2.40	)
Adjusted earnings (loss) per share			$	1.53		$	1.61		$	1.67		$	1.61		$	6.42
			Fiscal 2025 (A)
			Dec. Q			Mar. Q			June Q			Sept. Q			FY 2025
Reconciliation of Adjusted EPS to GAAP EPS
Net income (loss) per share attributable to Cabot Corporation			$	1.67		$	1.69		$	1.86		$	0.79		$	6.02
Less: Certain items after tax per share				(0.09	)		(0.21	)		(0.04	)		(0.91	)		(1.23	)
Adjusted earnings (loss) per share			$	1.76		$	1.90		$	1.90		$	1.70		$	7.25
	(A)	Per share amounts are calculated after tax.
Dollars in millions			Fiscal 2026
			Dec. Q			Mar. Q			June Q			Sept. Q			FY 2026
Reconciliation of Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companies
Income (loss) from operations before income taxes and equity in earnings of affiliated companies			$	118		$	120		$	58		$	110		$	406
Interest expense				18			18			18			21			75
Certain items				7			9			78			15			109
General unallocated (income) expense				(6	)		(12	)		(5	)		(13	)		(36	)
Less: Equity in earnings of affiliated companies				(1	)		(2	)		(2	)		(1	)		(6	)
Depreciation and amortization				41			44			43			47			175
Adjusted EBITDA			$	179		$	181		$	194		$	181		$	735
Dollars in millions			Dec. Q			Mar. Q			June Q			Sept. Q			FY 2026
Reinforcement Materials EBIT			$	102		$	93		$	97		$	87		$	379
Reinforcement Materials Depreciation and amortization				19			21			20			24			84
Reinforcement Materials EBITDA			$	121		$	114		$	117		$	111		$	463
Reinforcement Materials Sales			$	520		$	544		$	599		$	634		$	2,297
Reinforcement Materials EBITDA Margin				23	%		21	%		20	%		18	%		20	%
Dollars in millions			Dec. Q			Mar. Q			June Q			Sept. Q			FY 2026
Performance Chemicals EBIT			$	48		$	59		$	68		$	60		$	235
Performance Chemicals Depreciation and amortization				22			23			23			23			91
Performance Chemicals EBITDA			$	70		$	82		$	91		$	83		$	326
Performance Chemicals Sales			$	300		$	328		$	351		$	340		$	1,319
Performance Chemicals EBITDA Margin				23	%		25	%		26	%		24	%		25	%
Dollars in millions			Fiscal 2026
Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activities			Dec. Q			Mar. Q			June Q			Sept. Q			FY 2026
Cash provided by (used in) operating activities (B)			$	126		$	77		$	75		$	143		$	421
Less: Additions to property, plant and equipment				69			45			38			55			207
Free cash flow			$	57		$	32		$	37		$	88		$	214
Plus: Additions to property, plant and equipment				69			45			38			55			207
Less: Changes in net working capital (C)				5			(19	)		(44	)		(10	)		(68	)
Less: Sustaining and compliance capital expenditures				50			33			28			36			147
Discretionary free cash flow			$	71		$	63		$	91		$	117		$	342
	(B)	As provided in the Condensed Consolidated Statements of Cash Flows.
	(C)	Defined as changes in Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows.

Investor Contact: 
Robert Rist
(617) 342-6374

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Cabot's fourth-quarter fiscal 2026 earnings?

Cabot reported diluted EPS of $1.25 and adjusted EPS of $1.61, compared with $0.79 and $1.70, respectively, a year earlier. Net income attributable to Cabot was $66 million, versus $43 million.

What is Cabot's fiscal 2027 earnings outlook?

Cabot expects fiscal 2027 adjusted EPS of $6.15 to $6.75. Fiscal 2026 adjusted EPS was $6.42.

How much liquidity did Cabot have at the end of fiscal 2026?

Cabot ended fiscal 2026 with $1.5 billion in available liquidity and $254 million in cash and cash equivalents. Its net debt to EBITDA ratio was 1.4 times as of September 30, 2026.