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Sep 30, 2021
Cabot Q4 2021 Earnings Report
Cabot delivered solid fourth quarter results with year over year increases across all segments.
Key Takeaways
Cabot Corporation reported solid fourth quarter results with year over year increases across all segments. The company's Battery Materials revenue doubled year over year and fiscal 2021 financial results were in line with expectations. Liquidity remained strong at approximately $1.3 billion, with a Net Debt to EBITDA ratio of 1.6 times as of September 30, 2021.
Delivered record Adjusted EPS in fiscal 2021, with significant year over year growth across the segments.
Reinforcement Materials led the way delivering an increase in EBIT of $167 million while Performance Chemicals also recorded strong results across all major product lines with an increase in segment EBIT of $93 million.
Delivered 63% growth year over year in Adjusted EPS from higher volumes and improved margins.
Record fiscal 2021 financial performance demonstrates the strength of our businesses and successful execution of our corporate strategy
Cabot
Cabot
Cabot Revenue by Segment
Revenue by Segment
Reinforcement Materials Revenue
CapyFin.comPerformance Chemicals Revenue
CapyFin.com Forward Guidance
Looking forward to fiscal 2022, the company believes robust end-market demand will continue and the benefits from their growth investments will support another year of strong results. Consistent with this outlook, they expect fiscal year 2022 adjusted earnings per share to be in the range of $5.20 to $5.60.
Positive Outlook
- Expect to benefit from higher volumes driven by strong forecasted levels of tire production.
- Expect higher pricing in calendar year 2022 customer agreements as customers are placing a premium on supply security.
- Anticipate continued demand growth across our broad set of applications
- Anticipate particular strength in battery materials and inkjet packaging.
- Remain focused on generating strong discretionary free cash flow and returning cash to shareholders.
Challenges Ahead
- Rising input costs
- Global supply chain disruptions
- Semi-conductor chip shortage
- External challenges are likely to remain in the short-term
- External challenges will moderate as we move through the fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income