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Cabot Q2 2025 Earnings Report
Cabot Corporation reported its second quarter fiscal year 2025 results, with diluted EPS of $1.69 and Adjusted EPS of $1.90.
Key Takeaways
Cabot Corporation delivered strong financial performance in the second quarter of fiscal year 2025, with Adjusted EPS increasing by 7% year-over-year. The Performance Chemicals segment showed significant growth, while Reinforcement Materials experienced a decline due to lower volumes. The company also increased its quarterly dividend and returned cash to shareholders.
Diluted EPS was $1.69 and Adjusted EPS was $1.90, representing a 7% increase in Adjusted EPS compared to the prior year.
Reinforcement Materials segment EBIT was $131 million, down 12% compared to the same quarter in the prior year.
Performance Chemicals segment EBIT was $50 million, up 61% compared to the same quarter in the prior year.
The company returned $70 million of cash to shareholders through dividends and share repurchases and increased its quarterly dividend by 5%.
Revenue by Segment
Forward Guidance
Cabot Corporation revised its Adjusted EPS guidance for fiscal 2025 to be in the range of $7.15 to $7.50, reflecting expectations for lower demand due to recent tariff policies and cautious customer inventory levels, while maintaining strong operating cash flow and commitment to shareholder returns.
Positive Outlook
- Operating cash flow remains strong, allowing for continued investment in strategic growth projects.
- Company expects to return robust levels of cash to shareholders.
- Quarterly dividend increased by 5% from $0.43 to $0.45 per share.
- Company expects to continue to repurchase shares.
- Management is confident in its ability to adapt and execute in a dynamic environment.
Challenges Ahead
- Revised Adjusted EPS guidance for fiscal 2025 to $7.15 to $7.50.
- Uncertain impact of recent tariff policies on customer demand in the second half of the fiscal year.
- Expectations for lower demand as customers adopt a more cautious posture around inventory levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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