Cabot Corporation Reports Q1 Fiscal 2025 Results with $93 Million Net Income

Cabot Corporation reported its financial results for the first quarter of fiscal 2025, ending December 31, 2024, revealing a net income attributable to the company of $93 million, or $1.67 per diluted share, compared to $50 million, or $0.88 per diluted share, in the same period last year. The company’s net sales and other operating revenues totaled $955 million, a slight decrease from $958 million in the prior year. The increase in profitability was primarily driven by lower foreign currency exchange losses and improved earnings across both of its reportable segments: Reinforcement Materials and Performance Chemicals.

In terms of operational performance, Cabot's gross profit increased to $235 million from $218 million year-over-year, attributed to higher volumes in both segments. The Reinforcement Materials segment generated $611 million in sales, down from $641 million, while the Performance Chemicals segment saw an increase in sales to $311 million from $285 million. The overall decrease in net sales was influenced by less favorable pricing and product mix, which was partially offset by higher volumes, particularly in the Asia Pacific and EMEA regions.

Cabot's strategic developments included the acquisition of certain assets and licensed technology for $27 million, aimed at enhancing its Battery Materials product line. The company also reported a decrease in selling and administrative expenses to $66 million from $67 million, and research and technical expenses fell to $14 million from $15 million. The company’s total assets decreased to $3.64 billion from $3.74 billion, with cash and cash equivalents at $183 million, down from $223 million at the end of the previous fiscal year.

The company’s operational metrics showed a slight decline in the weighted average common shares outstanding, with 54.3 million shares for the current quarter compared to 55.3 million in the prior year. Cabot's employee headcount remained stable, and the company continues to focus on managing its working capital effectively. The company’s liquidity position was impacted by a higher outstanding commercial paper balance, with $100 million in commercial paper outstanding as of December 31, 2024.

Looking ahead, Cabot Corporation anticipates a modest improvement in segment EBIT for the Reinforcement Materials segment in the second quarter of fiscal 2025, driven by a favorable geographic mix and seasonal demand. The company expects its operating tax rate for fiscal 2025 to range between 27% and 29%. However, potential impacts from recently announced tariffs between the United States and other countries are being assessed, as they could affect underlying demand levels for Cabot's products.