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Jun 30, 2025
Cabot Q3 2025 Earnings Report
Cabot Corporation reported its third quarter fiscal year 2025 results, with diluted EPS of $1.86 and adjusted EPS of $1.90, alongside varied performance across its segments.
Key Takeaways
Cabot Corporation delivered a strong financial performance in the third quarter of fiscal year 2025, achieving an Adjusted EPS of $1.90 despite a challenging demand environment. The company focused on disciplined execution, managing pricing and costs, and leveraging its global footprint to respond to uncertainties from tariffs and a weaker global macroeconomic environment. While Reinforcement Materials EBIT saw a decline, Performance Chemicals EBIT increased, and the company generated strong operating cash flow.
Diluted EPS was $1.86 and Adjusted EPS was $1.90, representing a 1% decrease in Adjusted EPS compared to the prior year's same quarter.
Reinforcement Materials segment EBIT decreased by 6% to $128 million, primarily due to lower volumes in Asia Pacific and the Americas.
Performance Chemicals segment EBIT increased by 4% to $57 million, driven by higher gross profit per ton despite an 8% decrease in volumes.
The company generated $249 million in operating cash flow and returned $64 million to shareholders through dividends and share repurchases.
Revenue by Segment
Forward Guidance
Cabot is reaffirming its Adjusted Earnings Per Share guidance for fiscal 2025 in the range of $7.15 to $7.50. Customer demand is being impacted by tariff uncertainty and the global macroeconomic environment, leading to expected lower volumes in the second half of fiscal 2025 for both Reinforcement Materials and Performance Chemicals segments.
Positive Outlook
- Reaffirming Adjusted EPS guidance for fiscal 2025.
- Expects to deliver earnings growth in the fiscal year.
- Anticipates strong operating cash flow.
- Focus on reducing costs and optimizing across the network.
- Strong cash flow and balance sheet allow investment in strategic growth projects and capital return to shareholders.
Challenges Ahead
- Customer demand impacted by uncertainty around tariffs.
- Weaker global macroeconomic environment affecting demand.
- Lower volumes expected in the second half of fiscal 2025 for both Reinforcement Materials and Performance Chemicals segments.
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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