Cabot Corporation (NYSE:CBT) reported its fourth quarter and full fiscal year 2025 results on November 3, 2025, highlighting a 3% year-over-year increase in full-year adjusted earnings per share (EPS) to $7.25, despite a challenging macroeconomic environment. The company also announced a cautious outlook for fiscal year 2026.
For the full fiscal year ended September 30, 2025, Cabot Corporation posted diluted EPS of $6.02, compared to $6.72 in fiscal year 2024. Full-year adjusted EPS rose to $7.25, up from $7.06 a year prior. The company's segment earnings before interest and taxes (EBIT) saw a 5% decrease in Reinforcement Materials, while Performance Chemicals EBIT increased by 18%. Cabot generated $665 million in cash flows from operations during the fiscal year, which supported $274 million in capital investments, $96 million in dividends, and $168 million in share repurchases. The company also announced an agreement to acquire Bridgestone Corporation's reinforcing carbons plant in Mexico.
In the fourth quarter of fiscal 2025, net sales were $899 million, a decrease from $1,001 million in the same period of fiscal 2024. Net income attributable to Cabot Corporation was $43 million, or $0.79 per diluted share, compared to $137 million, or $2.43 per diluted share, in the prior year's fourth quarter. Adjusted EPS for the fourth quarter was $1.70, a 6% decrease from $1.80 in the fourth quarter of fiscal 2024. Segment EBIT in Reinforcement Materials declined due to lower volumes in the Americas and Asia Pacific, partly offset by cost management. Performance Chemicals EBIT also decreased, primarily due to lower volumes in Europe, with cost management efforts providing some offset.
Sean Keohane, Cabot President and Chief Executive Officer, stated, "I am very pleased with another strong year of Adjusted EPS growth where we achieved $7.25, up 3% year over year, in a year with a challenging macroeconomic backdrop." He attributed this performance to higher EBIT in the Performance Chemicals segment and disciplined operational and commercial execution. Keohane also noted that strong operating performance resulted in $665 million in operating cash flow, enabling the company to deliver on capital allocation priorities, including a 5% increase in dividends and share repurchases. He added, "Our balance sheet remains strong despite the challenging macroeconomic backdrop, with a net debt to EBITDA ratio of 1.2 times, which allows us to invest to grow the company while returning capital to shareholders."
Looking ahead to fiscal year 2026, Cabot anticipates Adjusted EPS to be in the range of $6.00 to $7.00. Keohane commented that the company does not yet see signs of improvement in the external environment, particularly concerning regional demand trends in Reinforcement Materials due to elevated Asian tire imports. He expects profit improvement in Performance Chemicals, driven by areas like Battery Materials and targeted infrastructure, alternative energy, and consumer applications. The company anticipates strong operating cash flow and discretionary free cash flow to support growth investments.
The company also released its 2024 Sustainability Report, noting that it achieved 11 out of 15 of its 2025 Sustainability Goals ahead of schedule and has established 2030 Sustainability Goals.
