Cabot Lifts Fourth-Quarter Sales and Performance Chemicals EBIT

The Tip Desk · November 3, 2026 · 3 min read

Fourth-quarter net sales reached $1.01 billion and Performance Chemicals EBIT rose to $60 million as Battery Materials posted a record $43 million of fiscal-year EBITDA.

Cabot Corporation (CBT) reported fourth-quarter net sales and other operating revenues of $1.01 billion, up from $899 million a year earlier, and diluted earnings of $1.25 a share, versus $0.79 a year earlier.

The specialty chemicals company said adjusted EPS was $1.61 a share, down from $1.70 a year earlier. Net income of $66 million included an after-tax charge of $0.36 a share from certain items, primarily related to restructuring actions.

Performance Chemicals was the quarter’s profit inflection. Segment EBIT rose to $60 million from $42 million a year earlier, which the company attributed to higher gross profit per ton and increased volumes in battery materials and specialty carbons. President and Chief Executive Officer Erica McLaughlin said the quarter was driven by robust performance in that segment.

Reinforcement Materials, the larger of the two reportable segments, moved the other way. EBIT fell to $87 million from $119 million a year earlier. The company said the decline was primarily driven by lower gross profit per ton, which more than offset higher volumes. Gross profit per ton declined primarily due to the outcomes of calendar-year 2026 customer agreements and less favorable regional product mix.

Volumes in Reinforcement Materials increased 5% from a year earlier, with Asia Pacific up 10%, the Americas up 3%, and Europe, Middle East, Africa down 7%. The company said the increase included higher volumes from capacity added in Indonesia and an acquisition in Mexico.

For the full fiscal year ended September 30, 2026, net sales were $3.74 billion, versus $3.71 billion a year earlier. Diluted EPS was $4.02 a share and adjusted EPS was $6.42 a share. Reinforcement Materials EBIT was $379 million for the year and Performance Chemicals EBIT was $235 million.

Battery Materials achieved $43 million of EBITDA for fiscal 2026, which the company described as a new high for the product line, above the approximately $40 million full-year expectation it had reaffirmed in the third quarter.

Cash flows from operations were $421 million for the fiscal year, which the company said enabled $207 million of capital investments, $97 million of dividends and $146 million of share repurchases. In the fourth quarter alone, operating cash flow was a source of $143 million. Uses included $55 million of capital expenditures, $25 million of dividends and $45 million of share repurchases, plus $10 million of higher net working capital due to higher raw material costs.

The company ended September 30, 2026 with cash and cash equivalents of $254 million, available liquidity of $1.5 billion and a net debt to EBITDA ratio of 1.4 times.

Cabot signed an agreement with the U.S. Department of Energy for a $50 million grant to support expansion of domestic production of advanced conductive additives for batteries at facilities in Louisiana and Texas. McLaughlin said the company expects the investments to strengthen the Battery Materials platform in North America and expand capabilities to support demand for battery energy storage systems, electric vehicles and other specialty battery applications.

Looking to fiscal 2027, the company expects adjusted EPS in a range of $6.15 to $6.75. McLaughlin said it anticipates continuing to increase volumes in battery materials and electronics as well as with strategic customer accounts, and expects to maintain solid margins as it manages volatile energy input costs and competitive pressures. The company also said it remains focused on completing previously announced restructuring actions, implementing optimization activities and investing in yield technology.