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Mar 31, 2022

Cabot Q2 2022 Earnings Report

Achieved strong EPS and record adjusted EPS.

Key Takeaways

Cabot Corporation reported strong second quarter fiscal year 2022 results, driven by record segment EBIT in Reinforcement Materials and Performance Chemicals. Diluted EPS increased by 42%, and adjusted EPS increased by 22% year-over-year. The company completed the divestiture of the Purification Solutions business and returned $36 million to shareholders through dividends and share repurchases.

Record segment EBIT results for the fiscal quarter in both Reinforcement Materials and Performance Chemicals driving a 42% increase in Diluted EPS and a 22% increase in Adjusted EPS year-over-year

Key win in Battery Materials with sales of conductive carbon additive blends to a top five battery producer

Completed the divestiture of the Purification Solutions business

Returned $36 million in the quarter to shareholders through dividends and share repurchases

Total Revenue
$1.09B
Previous year: $842M
+29.7%
EPS
$1.69
Previous year: $1.38
+22.5%
Operating Tax Rate
27%
Gross Profit
$232M
Previous year: $214M
+8.4%
Cash and Equivalents
$215M
Previous year: $146M
+47.3%
Free Cash Flow
-$31M
Previous year: $25M
-224.0%
Total Assets
$3.52B
Previous year: $3.05B
+15.7%

Cabot

Cabot

Cabot Revenue by Segment

Forward Guidance

Cabot Corporation increased its adjusted earnings per share outlook for the fiscal year by $0.30 at the midpoint to a new range of $5.80 to $6.20.

Positive Outlook

  • We are very pleased with the results for the first half of our fiscal year
  • We feel good about the underlying demand and the strength of our businesses
  • We are well positioned to deliver record adjusted earnings per share for the fiscal year
  • The ability to deliver exceptional results in both segments reflects the strength of our portfolio
  • Growth investments position us well for fiscal 2022 and the coming years

Challenges Ahead

  • There is still uncertainty around the geopolitical environment
  • There is still uncertainty around the pandemic-related restrictions

Revenue & Expenses

Visualization of income flow from segment revenue to net income