Key Highlights

  • CBT reported fourth-quarter fiscal 2026 Revenue of $1,009 million, up from $899 million a year earlier.
  • Diluted EPS was $1.25 versus $0.79, while adjusted EPS was $1.61 versus $1.70.
  • Fiscal 2026 adjusted EPS was $6.42, down from $7.25, and diluted EPS was $4.02, down from $6.02.
  • Performance Chemicals EBIT was $60 million and Reinforcement Materials EBIT was $87 million in the quarter.
  • Fiscal 2027 adjusted EPS is expected in a range of $6.15 to $6.75.

Net Income Climbs to $66 Million While Adjusted EPS Edges Lower

Cabot (NYSE:CBT) reported fourth-quarter and fiscal 2026 results on Nov 2, 2026, for the period ended Sep 30, 2026. Revenue for the quarter was $1,009 million, compared with $899 million a year earlier, an increase of about 12.2% (calculated). Net Income attributable to the company was $66 million, up from $43 million, or $1.25 per diluted share versus $0.79.

Adjusted EPS moved the other way, falling to $1.61 from $1.70. The gap reflects certain items that reduced Earnings by $0.36 per share, mainly restructuring charges, against $0.91 per share a year earlier. Gross Profit slipped to $204 million from $220 million as cost of sales rose to $805 million from $679 million.

Cabot is a Boston-based specialty chemicals and performance materials company. Its products include reinforcing carbons, specialty carbons, battery materials, fumed metal oxides and aerogel.

Performance Chemicals Gains $18 Million of EBIT as Reinforcement Materials Slips

Performance Chemicals EBIT was $60 million, up $18 million from the fourth quarter of fiscal 2025. The company credited higher gross profit per ton from favorable product mix and lower costs, along with higher volumes in battery materials and specialty carbons.

Reinforcement Materials EBIT was $87 million, down $32 million. Lower gross profit per ton, tied to the outcomes of calendar 2026 customer agreements and a less favorable regional mix, outweighed a 5% rise in volumes.

By region, Reinforcement Materials volumes rose 10% in Asia Pacific and 3% in the Americas but fell 7% in Europe, the Middle East and Africa.

Fiscal Year Profit Falls to $213 Million as Battery Materials Reaches $43 Million of EBITDA

For fiscal 2026, revenue was $3,744 million versus $3,713 million. Net income attributable to the company was $213 million, down from $331 million, and diluted EPS was $4.02 compared with $6.02. Adjusted EPS was $6.42, against $7.25 in fiscal 2025.

Segment EBIT for the year was $235 million in Performance Chemicals and $379 million in Reinforcement Materials. Battery Materials produced EBITDA of $43 million, a new high for the product line, and the company signed an agreement with the U.S. Department of Energy for a $50 million grant to expand domestic production of conductive additives for batteries at its Louisiana and Texas sites.

Operating cash flow for the year was $421 million. Cabot spent $207 million on capital investments, paid $97 million in dividends and repurchased $146 million of shares.

Fiscal 2027 Adjusted EPS Range of $6.15 to $6.75 and a New CEO at the Helm

Cabot ended September with $254 million of cash, $1.5 billion of available Liquidity and a net Debt to EBITDA ratio of 1.4 times. Fourth-quarter Operating Cash Flow was $143 million, and the quarter's tax expense was $38 million, an effective rate of 34%, compared with an operating tax rate of 29% for the full year.

The new CEO said fiscal 2027 adjusted EPS is expected to land between $6.15 and $6.75. Management expects higher volumes in battery materials and electronics, solid margins despite volatile energy costs, and completion of announced restructuring actions. Next to watch are those restructuring milestones and the battery materials expansion supported by the Department of Energy grant.