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Mar 31, 2023

Cabot Q2 2023 Earnings Report

Cabot's operating performance led to adjusted EPS significantly higher than the first quarter and in-line with expectations.

Key Takeaways

Cabot Corporation reported Q2 fiscal year 2023 results with adjusted EPS of $1.33. The Reinforcement Materials segment achieved a record EBIT of $122 million, up 21% year-over-year. The company's cash flow from operations was $162 million, supporting a return of $37 million to shareholders through dividends and share repurchases. The quarterly dividend was increased to $0.40 per share, an 8% increase.

Reinforcement Materials segment EBIT was a record $122 million, up 21% year-over-year.

Cash Flows from Operations were $162 million.

Returned $37 million to shareholders through dividends and share repurchases.

Increased quarterly dividend to $0.40 per share, up 8% over the prior dividend.

Total Revenue
$1.03B
Previous year: $1.09B
-5.4%
EPS
$1.33
Previous year: $1.69
-21.3%
Operating Tax Rate
25%
Previous year: 27%
-7.4%
Gross Profit
$210M
Previous year: $232M
-9.5%
Cash and Equivalents
$205M
Previous year: $215M
-4.7%
Free Cash Flow
$111M
Previous year: -$31M
-458.1%
Total Assets
$3.52B
Previous year: $3.52B
-0.1%

Cabot

Cabot

Cabot Revenue by Segment

Forward Guidance

Cabot expects adjusted EPS for the fiscal year to be in the range of $6.10 to $6.50.

Positive Outlook

  • Underlying demand improved in the second quarter as compared to the first quarter of the fiscal year.
  • Reinforcement Materials continues to perform extremely well.
  • The outlook for the Reinforcement Materials segment remains robust.
  • Demand in Performance Chemicals is improving sequentially.
  • Demand in Performance Chemicals is expected to continue through the fiscal year.

Challenges Ahead

  • The pace of demand recovery and volume momentum across Performance Chemicals end markets is slower than what was expected last quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income