Cabot Corporation

Cabot Corporation (NYSE: CBT) makes specialty chemicals and performance materials. Reinforcement Materials produces carbon additives used in tires and other rubber products. Performance Chemicals serves markets including batteries, electronics and specialty industrial applications. Its fiscal year ends September 30.

Fiscal Q4: volume and profit moved apart

For July through September 2026, Reinforcement Materials volumes increased 5% from a year earlier. Segment earnings before interest and tax fell to $87 million from $119 million. Cabot attributed lower profit per ton to its calendar 2026 customer agreements and a less favorable regional mix. Growth included added capacity in Indonesia and the acquired Mexican plant.

Performance Chemicals segment earnings rose to $60 million from $42 million. Combined segment earnings were $147 million, versus $161 million. These figures precede unallocated corporate and other company-level items.

Q4 sales were $1.009 billion, versus $899 million. Net income attributable to Cabot was $66 million, versus $43 million; GAAP diluted earnings were $1.25 per share, versus $0.79. Adjusted earnings were $1.61, versus $1.70.

Full-year financial results

The table compares fiscal years ended September 30. Amounts are USD millions, except per-share figures. Net income is attributable to Cabot.

Fiscal 2026 adjusted earnings remove $2.40 per share of specified after-tax charges, including restructuring, benefit-plan settlements and tax adjustments. The prior-year adjustment was $1.23. In Q4 alone, the adjustments were $0.36 and $0.91, respectively.

Annual Reinforcement Materials segment earnings fell to $379 million from $508 million. Performance Chemicals rose to $235 million from $194 million.

Cash generation and the balance sheet

Free cash flow is operating cash flow less all capital spending. It declined about 45% to $214 million despite lower investment spending. Working capital used $68 million of cash, compared with a $56 million release in fiscal 2025.

Cabot paid $97 million in common dividends and spent $146 million on buybacks during fiscal 2026, for a total of $243 million. The Mexican acquisition cost $66 million in cash after deducting cash acquired.

At September 30, cash and equivalents were $254 million, compared with $258 million a year earlier. Long-term debt was $1.180 billion, with $7 million due currently and $65 million of separate short-term borrowings. Available liquidity was approximately $1.5 billion.

Earlier expectations and the new outlook

In August, Cabot narrowed its fiscal 2026 adjusted earnings forecast to $6.15 to $6.45 per share. The final result was $6.42. Its initial fiscal 2027 forecast is $6.15 to $6.75, with a midpoint of $6.45.

Within Performance Chemicals, Cabot reports $43 million of Battery Materials EBITDA for fiscal 2026, exceeding its earlier expectation of approximately $40 million. EBITDA is earnings before interest, taxes, depreciation and amortization.

The company announced a signed $50 million Department of Energy grant agreement to support battery-additive capacity in Louisiana and Texas.

Completed acquisition and leadership change

Cabot acquired Mexico Carbon Manufacturing, S.A. de C.V. on January 31, 2026, for $68 million, including $2 million of acquired cash. The Tamaulipas plant is part of Reinforcement Materials.

Erica McLaughlin succeeded Sean Keohane as president and chief executive officer on October 1, 2026.