CABOT CORP SEC 10-Q Report

Cabot Corporation, a global specialty chemicals and performance materials company, has released its Form 10-Q report for the third quarter of fiscal 2025. The report provides a detailed overview of the company's financial performance and operational activities, reflecting the challenges and strategic initiatives undertaken during the period.

Financial Highlights

Net sales and other operating revenues: $923 million, decreased by $93 million compared to the same period in fiscal 2024 due to lower volumes and less favorable pricing and product mix.

Gross profit: $244 million, decreased by $12 million compared to the same period in fiscal 2024, primarily driven by lower volumes in both Reinforcement Materials and Performance Chemicals segments.

Income (loss) from operations: $167 million, decreased compared to the same period in fiscal 2024, reflecting lower segment EBIT in Reinforcement Materials.

Net income (loss) attributable to Cabot Corporation: $101 million, decreased from $109 million in the same period of fiscal 2024, primarily due to lower Segment EBIT in Reinforcement Materials.

Diluted EPS: $1.86, decreased from $1.94 in the same period of fiscal 2024, reflecting the decrease in net income.

Business Highlights

Revenue Segments

The Reinforcement Materials segment reported a decrease in sales by $76 million in the third quarter of fiscal 2025 compared to the same period in fiscal 2024, primarily due to lower volumes and less favorable pricing and product mix. The Performance Chemicals segment saw a decrease in sales by $12 million in the third quarter of fiscal 2025 compared to the same period in fiscal 2024, driven by lower volumes, partially offset by favorable foreign currency translation.

Geographical Performance

In the third quarter of fiscal 2025, the Americas region experienced a decline in sales for both Reinforcement Materials and Performance Chemicals due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. Asia Pacific also saw reduced volumes in Reinforcement Materials, while Europe, Middle East, and Africa maintained relatively stable sales.

Sales Units

The decrease in sales volumes in the Reinforcement Materials segment was primarily attributed to lower customer demand in the Americas and Asia Pacific regions, influenced by global economic uncertainties and tariff impacts.

New Production Launches

Cabot Corporation announced an agreement to acquire a carbon black manufacturing facility in Tamaulipas, Mexico, from Bridgestone Corporation for approximately $70 million, with the acquisition expected to close in the first half of fiscal 2026, subject to regulatory approval.

Future Outlook

For the fourth quarter of fiscal 2025, the Reinforcement Materials segment EBIT is expected to modestly decline due to anticipated higher costs, partially offset by expected higher volumes in Asia Pacific. The Performance Chemicals segment EBIT is projected to decline due to expected lower seasonal volumes and higher costs.

SEC Filing: CABOT CORP [ CBT ] - 10-Q - Aug. 05, 2025