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Jun 30, 2024

Cabot Q3 2024 Earnings Report

Cabot's financial performance improved with increased EPS and strong segment results.

Key Takeaways

Cabot Corporation reported a strong third quarter in fiscal year 2024, with adjusted EPS of $1.92, a 35% increase compared to the prior year. The company saw strength in its Reinforcement Materials segment and a significant EBIT increase in the Performance Chemicals segment. Operating cash flow was $207 million, supporting $73 million returned to shareholders.

Diluted EPS was $1.94 and Adjusted EPS was $1.92, representing a 35% increase in Adjusted EPS compared to the prior year.

Reinforcement Materials segment EBIT was $136 million, up 3% year-over-year.

Performance Chemicals segment EBIT was $55 million, up 72% compared to the prior year.

Cash Flows from Operations were $207 million, supporting the return of $73 million of cash to shareholders.

Total Revenue
$1.02B
Previous year: $968M
+5.0%
EPS
$1.92
Previous year: $1.42
+35.2%
Operating Tax Rate
27%
Gross Profit
$257M
Previous year: $223M
+15.2%
Cash and Equivalents
$197M
Previous year: $220M
-10.5%
Free Cash Flow
$155M
Previous year: $163M
-4.9%
Total Assets
$3.58B
Previous year: $3.39B
+5.7%

Cabot

Cabot

Cabot Revenue by Segment

Forward Guidance

Cabot raised its adjusted EPS guidance range for fiscal 2024 to $7.00 to $7.10, reflecting improved results in the Performance Chemicals segment and continued strong results in the Reinforcement Materials segment.

Positive Outlook

  • Expectations for improved results in the Performance Chemicals segment from higher demand.
  • Expectations for a more favorable product mix in Performance Chemicals.
  • Continued strong results in the Reinforcement Materials segment.
  • On track to deliver greater than 30% year-over-year adjusted EPS growth.
  • Strong cash flow and disciplined approach to capital allocation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income