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Jun 30, 2022

Cabot Q3 2022 Earnings Report

Cabot team delivered significant growth in adjusted EPS year-over-year driven by higher margins and stronger volumes across the Company.

Key Takeaways

Cabot Corporation reported strong Q3 fiscal year 2022 results, with a 14% increase in Diluted EPS and a 28% increase in Adjusted EPS year-over-year. The company saw record Reinforcement Materials segment EBIT results and a 17% increase in Performance Chemicals segment EBIT. Battery Materials continued to show momentum with a 60% volume increase year-over-year.

Diluted EPS increased by 14% and Adjusted EPS increased by 28% year-over-year.

Reinforcement Materials segment achieved record EBIT results for the fiscal quarter.

Performance Chemicals segment EBIT increased by 17% year-over-year due to dynamic pricing and strong product mix.

Battery Materials volumes increased by 60% year-over-year.

Total Revenue
$1.15B
Previous year: $917M
+25.3%
EPS
$1.73
Previous year: $1.35
+28.1%
Operating Tax Rate
24%
Gross Profit
$235M
Previous year: $214M
+9.8%
Cash and Equivalents
$208M
Previous year: $173M
+20.2%
Free Cash Flow
-$16M
Previous year: $25M
-164.0%
Total Assets
$3.57B
Previous year: $3.23B
+10.6%

Cabot

Cabot

Cabot Revenue by Segment

Forward Guidance

Cabot tightens the range of adjusted earnings per share outlook for the fiscal year 2022 to $6.10 to $6.20.

Positive Outlook

  • We are tightening the range of our adjusted earnings per share outlook for the fiscal year to $6.10 to $6.20.
  • This is at the high-end of our previously communicated range of $5.80 to $6.20 and reflects an increase of $0.15 at the midpoint.
  • We anticipate continued strong pricing execution
  • We will continue to leverage our broad global network and reputation for reliability to support our customers in these dynamic times.
  • We are on track to deliver greater than 20% year-over-year adjusted EPS growth.

Challenges Ahead

  • We expect to see a normal seasonal impact on our volumes.
  • We expect to see higher levels of maintenance activity during the fourth quarter.
  • impacts of pandemic-related lockdowns in China
  • continued logistics challenges
  • higher energy and raw material costs

Revenue & Expenses

Visualization of income flow from segment revenue to net income