Cabot Corp

Latest Results (15.05.2026):

Cabot Corporation (Cabot Corp) reported results for the Second Quarter of Fiscal Year 2026. GAAP diluted EPS was $1.27 and Adjusted EPS was $1.61 on net sales of $904 million. Net income attributable to Cabot Corp was $68 million for the quarter. Reinforcement Materials EBIT weakened while Performance Chemicals EBIT improved; Battery Materials showed continued momentum. Management raised the quarterly dividend, reiterated asset-optimization actions and reaffirmed full‑year Adjusted EPS guidance.

Profitability

Diluted GAAP EPS for Q2 FY2026 was $1.27; Adjusted EPS was $1.61. Net income attributable to Cabot Corp for the quarter was $68 million (down from $94 million a year earlier).

Revenue and margins

Net sales were $904 million in Q2 FY2026 versus $936 million in the prior-year quarter. Gross profit fell to $210 million from $241 million and operating income was $129 million (prior $162 million).

Segment performance

Reinforcement Materials sales were $544 million with EBIT of $93 million (down from $131M prior year). Performance Chemicals sales were $328 million with EBIT of $59 million (up from $50M prior year).

Battery materials

Management reported continued Battery Materials momentum, citing strong execution and growing demand from BESS and EV-related markets and noting a meaningful EBITDA contribution from this area.

Cash flow and liquidity

Cash provided by operating activities in Q2 was $77 million and was $203 million for the first six months. Cash and cash equivalents ended the quarter at $252 million. Free cash flow for the first half was $89 million and discretionary free cash flow was $134 million.

Capital allocation and dividend

Cabot announced a 5% increase in the quarterly dividend, raising the annualized dividend from $1.80 to $1.89. Additions to property, plant and equipment were $45 million in the quarter and $114 million for the six months; the company also paid $66 million for an acquisition during the period.

Balance sheet and leverage

Short-term borrowings stood at $175 million and long-term debt at $863 million. Total stockholders’ equity was $1.687 billion, supporting management’s statement that the balance sheet and liquidity remain strong.

Restructuring and asset optimization

Cabot said it is pursuing asset optimization across its global plant network with the intention to close certain manufacturing operations in South America and Europe, subject to local consultation processes; global restructuring charges were $8 million pre-tax in the quarter.

Taxes and effective rates

Q2 recorded a tax expense of $44 million with an effective tax rate of 37%; the company’s operating tax rate for the quarter (excluding certain tax adjustments) was 28%.

Outlook

Management reaffirmed its full‑year Adjusted EPS guidance for fiscal 2026 (the specific range was referenced in the release but not provided in the excerpt) and emphasized continued focus on commercial execution, cost management and asset rationalizations to navigate a volatile demand environment.