Cabot's rubber materials business sold more but earned 27% less

Cabot's Reinforcement Materials business sold 5% more volume in fiscal Q4, yet its earnings before interest and tax fell to $87 million from $119 million a year earlier. The business makes carbon materials used to strengthen tires and other rubber products.

Cabot said lower profit per ton reflected its calendar 2026 customer agreements and a less favorable regional mix. Added capacity in Indonesia and the acquired Mexican plant helped volumes rise.

Specialty chemicals covered part of the decline

Performance Chemicals earned $60 million, up from $42 million, helped by a better product mix, lower costs and higher volumes in battery materials and specialty carbons.

Research by Ticker Byline shows that this improvement covered about 56% of the earnings decline in Reinforcement Materials. Combined segment earnings fell to $147 million from $161 million.

Q4 net income attributable to Cabot rose to $66 million from $43 million as its excluded after-tax charges became much smaller. Adjusted earnings per share fell to $1.61 from $1.70.

The latest annual forecast was met

For the fiscal year ended September 30, adjusted earnings were $6.42 per share, within the $6.15 to $6.45 range set in August.

Cabot's first fiscal 2027 forecast is $6.15 to $6.75 in adjusted earnings per share. Its $6.45 midpoint is close to the year just reported.

The battery business delivered on its own target

Within Performance Chemicals, Cabot reported $43 million of Battery Materials EBITDA for the full year, above the approximately $40 million it had forecast. EBITDA is earnings before interest, taxes, depreciation and amortization.

Cabot also said it had signed a $50 million Department of Energy grant agreement to help expand battery-additive production in Louisiana and Texas.

The Cabot company profile sets out the segment results, lower annual cash generation and completed Mexican acquisition alongside the new outlook.