Cabot (CBT) Q4 2026 earnings summary

Executive summary

• FY26 adjusted EPS was $6.42 versus diluted EPS of $4.02; Q4 adjusted EPS was $1.61 versus diluted EPS of $1.25.

• FY27 adjusted EPS guidance is $6.15–$6.75 amid variable demand scenarios and ongoing Reinforcement Materials customer negotiations.

• Q4 Performance Chemicals EBIT rose 43% YoY to $60M, while Reinforcement Materials EBIT declined 27% to $87M.

Financial highlights

• Q4 net sales were $1,009M versus $899M YoY; FY26 net sales were $3,744M versus $3,713M.

• Q4 net income attributable to Cabot was $66M versus $43M YoY; FY26 net income was $213M versus $331M.

• Q4 operating cash flow was $143M and discretionary free cash flow was $117M; FY26 operating cash flow was $421M.

• FY26 operating income was $477M versus $621M; adjusted EBITDA was $735M versus $804M.

Outlook and guidance

• FY27 adjusted EPS guidance is $6.15–$6.75, with a 28%–30% operating tax rate and $200M–$230M of capital expenditures.

• FY27 modeling assumptions include interest expense of $73M–$77M, general unallocated income of $28M–$36M, and share repurchases of $150M–$250M.

• Q1 FY27 Reinforcement Materials EBIT is expected to improve modestly sequentially but decline YoY; Performance Chemicals EBIT is expected lower sequentially but higher YoY.

• Battery Materials EBITDA is expected in the high $40M range in FY27, up from $43M in FY26; new capacity is expected to contribute from FY28.

• FY27 outlook anticipates favorable free cash flow, with higher volumes expected in battery materials, electronics and strategic accounts.