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Sep 30, 2024
Cabot Q4 2024 Earnings Report
Cabot's fourth quarter earnings reflected a solid performance driven by growth in both segments.
Key Takeaways
Cabot Corporation reported a solid fourth quarter with an Adjusted EPS of $1.80, representing a 9% increase compared to the same quarter in the prior year. The company's strong Adjusted EPS results of $7.06 for the fiscal year, a 31% increase over fiscal 2023, were driven by EBIT growth in both segments. Strong operating performance resulted in $692 million in operating cash flow, enabling continued capital allocation priorities.
Fourth Quarter Diluted EPS of $2.43 and Adjusted EPS of $1.80, a 9% increase in Adjusted EPS compared to the prior year, benefiting from a lower operating tax rate.
Cash Flows from Operations of $204 million supported the return of $90 million of cash to shareholders through share repurchases and dividends.
Selected by the U.S. Department of Energy (DOE) for a $50 million award to build the first commercial-scale facility for battery-grade carbon nanotubes (CNTs) and conductive additive dispersions in the U.S.
Achieved the high end of 2021 Investor Day targets for Adjusted EPS CAGR and cumulative Discretionary Free Cash Flow (DFCF).
Cabot
Cabot
Cabot Revenue by Segment
Revenue by Segment
Reinforcement Materials Revenue
CapyFin.comPerformance Chemicals Revenue
CapyFin.com Forward Guidance
Cabot expects Adjusted EPS to be in the range of $7.40 to $7.80 for fiscal year 2025, driven by continued growth in Reinforcement Materials and steady recovery in Performance Chemicals. The company anticipates strong operating cash flow and discretionary free cash flow to continue to support return of capital to shareholders.
Positive Outlook
- Continued growth in the Reinforcement Materials segment
- Steady recovery in the Performance Chemicals segment
- Strong operating cash flow
- Strong discretionary free cash flow
- Disciplined and balanced approach to capital allocation
Challenges Ahead
- Industry capacity utilization
- Competition from other specialty chemical companies
- Volatility in the price and availability of energy and raw materials
- Negative or uncertain worldwide or regional economic conditions
- Fluctuations in foreign currency rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income