Cabot Stock Price, News & Analysis

Cabot Corporation (NYSE: CBT) has announced its commitment to align its sustainability goals with the Paris Climate Agreement, aiming for net zero emissions by 2050. The CEO, Sean Keohane, emphasized this ambition as part of the company’s strategy to enhance its competitive advantage while promoting environmental responsibility. Cabot aims to reduce greenhouse gas emissions intensity by 20% from a 2005 baseline, having achieved 77% of this goal to date. The company plans to utilize the Science Based Targets Initiative methodology for setting interim targets.

Cabot Corporation (NYSE: CBT) hosted its 2021 Investor Day in Boston, presenting its new growth strategy titled Creating for Tomorrow. Key focuses include investing in advanced growth, innovation, and optimization. The company anticipates generating over $1 billion in discretionary free cash flow over the next three years. The three-year financial targets involve an adjusted EPS CAGR of 8-12% and promising growth in its Reinforcement Materials and Performance Chemicals segments. The strategy aims to elevate shareholder value through sustainable practices and operational excellence.

Cabot Corporation (NYSE: CBT) has signed a Memorandum of Understanding (MOU) with IFF Health and Biosciences to develop and commercialize sustainable reinforcing additives for rubber products. This collaboration aims to reduce greenhouse gas emissions and increase renewable bio-based content in rubber applications. Utilizing IFF’s Nuvolve™ engineered polysaccharide, developed from European sugar beets, Cabot will lead the project, integrating it with its reinforcing carbons. This partnership aligns with Cabot's commitment to sustainability and innovation in the rubber industry.

One Equity Partners has signed an agreement to acquire Norit Activated Carbon from Cabot Corporation (NYSE: CBT). Norit specializes in activated carbon products used across various sectors including renewable energy, pharmaceuticals, and water treatment. With operations in North America and Europe, the global activated carbon market is projected to grow at a CAGR of ~9%, driven by rising regulatory standards. The acquisition aims to enhance Norit's growth through geographic expansion and innovation, with closure expected by the end of Q1 2022.

Cabot Corporation (NYSE: CBT) has signed an agreement to sell its Purification Solutions business to One Equity Partners for approximately $111 million, subject to adjustments. This segment generated $257 million in revenue in fiscal 2021. The deal, expected to close in the second fiscal quarter of 2022, will lead to a pre-tax impairment charge between $155 million and $165 million. The net cash proceeds are anticipated to be around $80 million. Despite this, Cabot's adjusted EPS outlook for fiscal 2022 remains unchanged at $5.20-$5.60.

Cabot Corporation (NYSE: CBT) has announced its definitive agreement to acquire Tokai Carbon (Tianjin) Co., Ltd. for $9 million, aimed at bolstering its Battery Materials product line. The acquisition will allow Cabot to leverage Tokai's existing facility in Tianjin, which produces up to 50,000 metric tons of carbon black annually. This move is strategically aligned with the growing demand for lithium-ion batteries, enhancing production capabilities for advanced battery-grade materials.

On November 12, 2021, Cabot Corporation (NYSE: CBT) announced a quarterly dividend of $0.37 per share, marking a 6% increase from the previous dividend. This dividend will be payable on December 10, 2021, to stockholders of record by the close of business on November 26, 2021. The annualized dividend rate now stands at $1.48 per share, an increase from $1.40. Cabot's consistent dividend payments for over 50 years underscore its commitment to providing shareholder value.