Cabot Corporation Reports Q2 Fiscal 2025 Results with Increased Net Income

Cabot Corporation reported its financial results for the second quarter of fiscal 2025, revealing a net income attributable to the company of $94 million, or $1.69 per diluted share, compared to $84 million, or $1.49 per diluted share, in the same period last year. For the first six months of fiscal 2025, net income reached $187 million, or $3.36 per diluted share, up from $134 million, or $2.37 per diluted share, in the prior year. The increase in profitability was primarily driven by higher segment earnings in Performance Chemicals and a reduction in losses related to currency devaluation in Argentina.

Total net sales and other operating revenues for the second quarter were $936 million, down from $1.019 billion in the same quarter of fiscal 2024. The decline was attributed to lower volumes in the Reinforcement Materials segment, which saw a decrease of $48 million due to reduced tire demand, as well as unfavorable pricing and product mix across both segments. For the first half of fiscal 2025, total revenues were $1.891 billion, compared to $1.977 billion in the same period last year, reflecting similar trends in volume and pricing.

Cabot's operational performance showed mixed results across its two reportable segments. The Reinforcement Materials segment reported revenues of $594 million for the second quarter, down from $676 million a year earlier, with EBIT decreasing to $131 million from $149 million. In contrast, the Performance Chemicals segment maintained stable revenues of $311 million, with EBIT increasing to $50 million from $31 million, driven by higher volumes in the Fumed Metal Oxides product line. The company noted that demand in key end markets, particularly in construction and semiconductor applications, contributed to the improved performance in Performance Chemicals.

In terms of strategic developments, Cabot completed an asset acquisition in October 2024 for $27 million, aimed at enhancing its Battery Materials product line. The company also reported a decrease in selling and administrative expenses, which fell to $64 million from $75 million in the prior year, reflecting ongoing cost management efforts. As of March 31, 2025, Cabot had 53,723,082 shares of common stock outstanding, with a cash balance of $213 million and total assets of $3.784 billion.

Looking ahead, Cabot anticipates continued challenges in the Reinforcement Materials segment due to uncertain macroeconomic conditions, while expecting stable performance in Performance Chemicals. The company projects its operating tax rate for fiscal 2025 to be in the range of 27% to 29%. Overall, Cabot remains focused on managing its liquidity and capital investments, with plans for capital expenditures between $250 million and $275 million for the fiscal year.