CBT · Cabot Corporation

Cabot Corporation reported second quarter fiscal 2026 results with GAAP diluted EPS of $1.27 and Adjusted EPS of $1.61, compared to $1.69 and $1.90 respectively in the prior year quarter. Net sales declined 3% year-over-year to $904 million, driven by lower pricing and product mix in Reinforcement Materials, partially offset by higher volumes in both segments. Reinforcement Materials EBIT fell 29% to $93 million, primarily due to lower gross profit per ton from reduced pricing and product mix in tire customer agreements and increased competitive intensity in Asia Pacific, despite 3% volume growth. Performance Chemicals EBIT increased 18% to $59 million, benefiting from favorable product mix, optimization efforts, and higher volumes in battery materials and specialty carbons. The company generated $77 million in operating cash flow, invested $45 million in capital expenditures, returned $24 million in dividends and $49 million in share repurchases. Management announced an intention to close manufacturing operations in South America and Europe, targeting annualized fixed cost savings of approximately $22 million. The quarterly dividend was increased by 5% to an annualized $1.89 per share. For fiscal 2026, Cabot reaffirmed Adjusted EPS guidance of $6.00 to $6.50, reflecting cautious optimism amid geopolitical uncertainties and stable near-term demand.