# CABOT CORP (CBT)

Informational only - not investment advice.

CIK: 0000016040
SIC: 2890 Miscellaneous Chemical Products
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2890 Miscellaneous Chemical Products](/industry/2890/)
Latest 10-K filed: 2025-11-24
SEC page: https://www.sec.gov/edgar/browse/?CIK=16040
Filing source: https://www.sec.gov/Archives/edgar/data/16040/000119312525292412/cbt-20250930.htm

## At a glance

FY2025 · period end 2025-09-30 · filed 2025-11-24 · accession 0001193125-25-292412 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000016040.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 3,713,000,000 USD | 2025 | verified |
| Net income | 331,000,000 USD | 2025 | verified |
| Assets | 3,815,000,000 USD | 2025 | verified |
| Free cash flow | 391,000,000 USD | 2025 | computed |
| Net margin | 8.91% | 2025 | computed |
| Operating margin | 16.73% | 2025 | computed |
| Revenue YoY | -7.04% | 2025 | computed |
| ROE | 21.35% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CBT | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 8.9% | 1.2% | 67 | 219 |
| Operating margin | 16.7% | 3.0% | 74 | 201 |
| Revenue growth | -7.0% | 8.0% | 16 | 251 |
| FCF margin | 10.5% | -1.7% | 71 | 251 |
| ROE | 21.4% | -23.2% | 88 | 314 |
| ROA | 8.7% | -12.1% | 85 | 340 |
| Liabilities / equity | 1.46 | 0.61 | 72 | 319 |
| Current ratio | 1.61 | 3.93 | 15 | 341 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 28 Chemicals And Allied Products, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 3713000000 | USD | 2025 | 2025-11-24 |
| Net income | 331000000 | USD | 2025 | 2025-11-24 |
| Assets | 3815000000 | USD | 2025 | 2025-11-24 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000016040.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 2,411,000,000 | 2,717,000,000 | 3,242,000,000 | 3,337,000,000 | 2,614,000,000 | 3,409,000,000 | 4,321,000,000 | 3,931,000,000 | 3,994,000,000 | 3,713,000,000 |
| Net income | 147,000,000 | 248,000,000 | -113,000,000 | 157,000,000 | -238,000,000 | 250,000,000 | 209,000,000 | 445,000,000 | 380,000,000 | 331,000,000 |
| Operating income | 247,000,000 | 338,000,000 | 144,000,000 | 306,000,000 | 21,000,000 | 454,000,000 | 389,000,000 | 526,000,000 | 614,000,000 | 621,000,000 |
| Gross profit | 575,000,000 | 657,000,000 | 772,000,000 | 685,000,000 | 500,000,000 | 799,000,000 | 885,000,000 | 839,000,000 | 960,000,000 | 940,000,000 |
| Diluted EPS | 2.32 | 3.91 | -1.85 | 2.63 | -4.21 | 4.34 | 3.62 | 7.73 | 6.72 | 6.02 |
| Operating cash flow | 392,000,000 | 348,000,000 | 298,000,000 | 363,000,000 | 377,000,000 | 257,000,000 | 100,000,000 | 595,000,000 | 692,000,000 | 665,000,000 |
| Capital expenditures | 112,000,000 | 147,000,000 | 229,000,000 | 224,000,000 | 200,000,000 | 195,000,000 | 211,000,000 | 244,000,000 | 241,000,000 | 274,000,000 |
| Dividends paid | 65,000,000 | 77,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 84,000,000 | 88,000,000 | 93,000,000 | 96,000,000 |
| Share buybacks | 45,000,000 | 61,000,000 | 142,000,000 | 173,000,000 | 44,000,000 | 3,000,000 | 53,000,000 | 98,000,000 | 172,000,000 | 168,000,000 |
| Assets | 3,052,000,000 | 3,338,000,000 | 3,244,000,000 | 3,004,000,000 | 2,781,000,000 | 3,306,000,000 | 3,525,000,000 | 3,604,000,000 | 3,736,000,000 | 3,815,000,000 |
| Stockholders' equity | 1,274,000,000 | 1,504,000,000 | 1,154,000,000 | 998,000,000 | 691,000,000 | 947,000,000 | 898,000,000 | 1,264,000,000 | 1,425,000,000 | 1,550,000,000 |
| Cash and cash equivalents | 200,000,000 | 280,000,000 | 175,000,000 | 169,000,000 | 151,000,000 | 168,000,000 | 206,000,000 | 238,000,000 | 223,000,000 | 258,000,000 |
| Free cash flow | 280,000,000 | 201,000,000 | 69,000,000 | 139,000,000 | 177,000,000 | 62,000,000 | -111,000,000 | 351,000,000 | 451,000,000 | 391,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 6.10% | 9.13% | -3.49% | 4.70% | -9.10% | 7.33% | 4.84% | 11.32% | 9.51% | 8.91% |
| Operating margin | 10.24% | 12.44% | 4.44% | 9.17% | 0.80% | 13.32% | 9.00% | 13.38% | 15.37% | 16.73% |
| Return on equity | 11.54% | 16.49% | -9.79% | 15.73% | -34.44% | 26.40% | 23.27% | 35.21% | 26.67% | 21.35% |
| Return on assets | 4.82% | 7.43% | -3.48% | 5.23% | -8.56% | 7.56% | 5.93% | 12.35% | 10.17% | 8.68% |
| Liabilities / equity | 1.40 | 1.22 | 1.81 | 2.01 | 3.02 | 2.49 | 2.93 | 1.85 | 1.62 | 1.46 |
| Current ratio | 2.64 | 1.75 | 1.46 | 2.02 | 1.85 | 1.24 | 1.65 | 1.98 | 2.08 | 1.61 |

## As-reported value updates

7 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/CBT/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000016040.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-12-31 |  |  | 0.93 | reported discrete quarter |
| 2023-Q2 | 2023-03-31 |  |  | 1.29 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  |  | 1.43 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 965,000,000 | 234,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-31 | 958,000,000 | 50,000,000 | 0.88 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 1,019,000,000 | 84,000,000 | 1.49 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 | 1,016,000,000 | 109,000,000 | 1.94 | reported discrete quarter |
| 2024-Q4 | 2024-09-30 | 1,001,000,000 | 137,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-31 | 955,000,000 | 93,000,000 | 1.67 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 936,000,000 | 94,000,000 | 1.69 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 | 923,000,000 | 101,000,000 | 1.86 | reported discrete quarter |
| 2025-Q4 | 2025-09-30 | 899,000,000 | 43,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-31 | 849,000,000 | 73,000,000 | 1.37 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 | 904,000,000 | 68,000,000 | 1.27 | reported discrete quarter |
| 2026-Q3 | 2026-06-30 | 982,000,000 | 6,000,000 | 0.12 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CBT's latest 10-K: [/company/CBT/business/](/company/CBT/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CBT's latest 10-K: [/company/CBT/risk-factors/](/company/CBT/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/16040/000119312526332489/cbt-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Recently Issued Accounting Pronouncements

Refer to the discussion under the heading “Recent Accounting Pronouncements” in Note B of our Notes to the unaudited Consolidated Financial Statements.

Results of Operations

The Company has two reportable segments: Reinforcement Materials and Performance Chemicals. The Performance Chemicals reporting segment aggregates the specialty carbons, specialty compounds, fumed metal oxides, battery materials, inkjet colorants and aerogel product lines.

Our measure of business segment earnings is Segment earnings before interest and taxes (“Segment EBIT”) and is the measure utilized by the Chief Operating Decision Maker (“CODM”) to allocate resources and to assess operating results and financial performance. The CODM reviews the change in the actual results compared to the same period forecast, the same period year-ago, and the preceding period on a quarterly basis. Segment EBIT includes all items that are controlled by the business segment and those management considers are representative of the fundamental on-going segment results.

The Company is also organized for operational purposes into three geographic regions: the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific. The discussion of our results of operations for the periods presented reflects these structures.

Definition of Terms

When discussing our results of operations, we use the term “product mix”, which refers to the mix of types and grades of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business and/or segment.

Overview

During the third quarter of fiscal 2026, Income (loss) before income taxes and equity in earnings of affiliated companies decreased as compared to the third quarter of fiscal 2025. The decrease was primarily due to higher expenses related to restructuring activities, lower Segment EBIT in our Reinforcement Materials segment, and a settlement charge for the termination of two pension plans in the U.K., partially offset by higher Segment EBIT in our Performance Chemicals segment.

Third quarter of Fiscal 2026 versus Third quarter of Fiscal 2025—Consolidated

Net Sales and Other Operating Revenues and Gross Profit

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[[/GREPCENT_TABLE]]

For the three and nine months ended June 30, 2026, Net sales and other operating revenue increased by $59 million and decreased $79 million, respectively, compared to the same periods of fiscal 2025.

The increase in Net sales and other operating revenue in the third quarter of fiscal 2026 compared to the same period of fiscal 2025 was driven by higher volumes in both our Reinforcement Materials and Performance Chemicals segments ($51 million combined). The higher volumes in our Reinforcement Materials segment were primarily due to increases in Asia Pacific and the Americas, including higher volumes from our capacity addition in Indonesia and our acquisition in Mexico. The higher volumes in our Performance Chemicals segment were primarily due to higher demand in our battery materials and fumed metal oxides product lines. The increase in battery materials volumes was driven by higher demand for electric vehicles and battery energy storage systems and our strengthening participation with market-leading global battery manufacturers. The increase in fumed metal oxides volumes was driven by growth in electronics applications.

The decrease in Net sales and other operating revenue in the first nine months of fiscal 2026 compared to the same period of fiscal 2025 was primarily driven by less favorable pricing and product mix in our Reinforcement Materials segment ($173 million), partially offset by the favorable impact from foreign currency translation in both our Reinforcement Materials and Performance Chemicals segments ($77 million combined) and higher volumes in both our Reinforcement Materials and Performance Chemicals segments ($20 million combined). The less favorable pricing and product mix in our Reinforcement Materials segment was primarily due to less favorable pricing and product mix in our 2026 calendar year customer agreements, lower raw materials costs, which are generally passed through to our customers, and lower pricing from increased competitive intensity in Asia Pacific. The higher volumes in our Reinforcement Materials segment were primarily due to increases in Asia Pacific, including increased sales volume from our capacity addition in Indonesia and acquisition in Mexico. The higher volumes in our Performance Chemicals segment were primarily due to higher demand in our battery materials product line. The increase in battery materials volumes was driven by higher

24

demand for electric vehicles and battery energy storage systems and our strengthening participation with market-leading global battery manufacturers.

For the three and nine months ended June 30, 2026, gross profit decreased by $60 million and $115 million, respectively, compared to the same periods of fiscal 2025.

The decrease in Gross profit in the third quarter of fiscal 2026 as compared to the same period of fiscal 2025 was driven primarily by lower gross profit per ton in our Reinforcement Materials segment ($40 million) and higher restructuring expenses ($38 million), partially offset by higher volumes in both our Reinforcement Material and Performance Chemicals segments ($22 million combined). The lower gross profit per ton in our Reinforcement Materials segment was primarily due to less favorable pricing and product mix in our 2026 calendar year customer agreements. The higher restructuring expenses were primarily estimated severance costs, asset impairments, and accelerated depreciation related to ceasing production at our facility in Campana, Argentina, ceasing production of fumed silica at our manufacturing plant in Barry, Wales and the intention to close multiple manufacturing lines at our facility in Botlek, The Netherlands. The higher volumes in our Reinforcement Materials segment were primarily due to higher demand in Asia Pacific and the Americas, including higher volumes from our capacity addition in Indonesia and our acquisition in Mexico. The higher volumes in our Performance Chemicals segment were primarily due to higher demand in our battery materials and fumed metal oxides product lines. The increase in battery materials volumes was driven by higher demand for electric vehicles and battery energy storage systems and our strengthening participation with market-leading global battery manufacturers. The increase in fumed metal oxides volumes was driven by growth in electronics applications.

The decrease in Gross profit in the first nine months of fiscal 2026 as compared to the same period of fiscal 2025 was driven primarily by lower gross profit per ton in our Reinforcement Materials segment ($105 million) and higher restructuring expenses ($49 million), partially offset by higher gross profit per ton in our Performance Chemicals segment ($18 million) and higher volumes in both our Reinforcement Materials and Performance Chemicals segments ($10 million combined). The lower gross profit per ton in our Reinforcement Materials segment was primarily due to less favorable pricing and product mix in our 2026 calendar year customer agreements and lower pricing from increased competitive intensity in Asia Pacific. The higher restructuring expenses were primarily for estimated severance costs, asset impairments, and accelerated depreciation related to ceasing carbon black production at our facility in Campana, Argentina, ceasing production of fumed silica at our manufacturing plant in Barry, Wales and the intention to close multiple manufacturing lines at our facility in Botlek, The Netherlands. The higher gross profit per ton in our Performance Chemicals segment was primarily due to price increases implemented ahead of rising material costs and a favorable product mix and optimization efforts. The higher volumes in our Reinforcement Materials segment were primarily due to higher demand in Asia Pacific, including increased sales volume from our capacity addition in Indonesia and our acquisition in Mexico. The higher volumes in our Performance Chemicals segment were primarily due to higher demand in our battery materials product line. The increase in battery materials volumes was driven by higher demand for electric vehicles and battery energy storage systems and our strengthening participation with market-leading global battery manufacturers.

Selling and Administrative Expenses

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30","","","Nine Months Ended June 30"],["","","2026","","","2025","","","2026","","","2025"],["","","(In millions)"],["Selling and administrative expenses","","$","73","","","$","62","","","$","209","","","$","192"]]
[[/GREPCENT_TABLE]]

Selling and administrative expenses increased by $11 million and $17 million, respectively, for the three and nine months ended June 30, 2026 compared to the same periods of fiscal 2025. The higher selling and administrative expenses for the three and nine months ended June 30, 2026 compared to the same period of fiscal 2025 were primarily due to higher legal and digital expenses.

Research and Technical Expenses

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30","","","Nine Months Ended June 30"],["","","2026","","","2025","","","2026","","","2025"],["","","(In millions)"],["Research and technical expenses","","$","13","","","$","15","","","$","40","","","$","44"]]
[[/GREPCENT_TABLE]]

Research and technical expenses decreased by $2 million and $4 million, respectively, for the three and nine months ended June 30, 2026 compared to the same periods of fiscal 2025 primarily due to cost management efforts.

25

Interest and Dividend Income, Interest Expense and Other Income (Expense)

[[GREPCENT_TABLE]]
[["","","Three Months Ended June 30","","","Nine Months Ended June 30"],["","","2026","","","2025","","","2026","","","2025"],["","","(In millions)"],["Interest and dividend income","","$","8","","","$","7","","","$","22","","","$","20"],["Interest expense","","$","(18",")","","$","(19",")","","$","(54",")","","$","(56",")"],["Other income (expense)","","$","(30",")","","$","\u2014","","","$","(28",")","","$","2"]]
[[/GREPCENT_TABLE]]

Interest and dividend income increased by $1 million and $2 million, respectively, for the three and nine months ended June 30, 2026 compared to the same periods of fiscal 2025 primarily due to higher average cash balances and higher interest rates on cash and investments in South America.

Interest expense decreased by $1 million for the three months ended June 30, 2026 compared to the same period of fiscal 2025 primarily due to lower average short-term borrowings. Interest expense decreased by $2 million for the nine months ended June 30, 2026 compared to the same periods of fiscal 2025 primarily due to lower average balances and lower rates on short term borrowings

Other income (expense) increased by $30 million for the three and nine months ended June 30, 2026 compared to the same periods of fiscal 2025 primarily due to a settlement charge for the termination of two pension plans in the U.K.

(Provision) Benefit for Income Taxes and Effective Tax Rate

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/16040/000119312525292412/cbt-20250930.htm
Complete FY 2025 MD&A: /company/CBT/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-24
Report date: 2025-09-30

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Critical Accounting Estimates

Our consolidated financial statements have been prepared in conformity with U.S. GAAP. This preparation of our financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and related disclosure of contingent assets and liabilities. We consider an accounting estimate to be critical to the financial statements if (i) the estimate is complex in nature or requires a high degree of judgment and if (ii) different estimates and assumptions were used, the results could have a material impact on the consolidated financial statements. On an ongoing basis, we evaluate our estimates and the application of our policies. We base our estimates on historical experience, current conditions, and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. We believe the following critical accounting estimates are the most significant to understanding our consolidated financial statements.

Deferred Tax Assets

We have established valuation allowances against a variety of deferred tax assets, including net operating loss carryforwards, capital loss carryforwards, foreign tax credits and other income tax credits. We assess the realizability of our deferred tax assets quarterly and recognize a valuation allowance when it is more likely than not that some or all of our deferred tax assets are not realizable. This assessment is completed on a jurisdiction-by-jurisdiction basis and relies on the weight of all positive and negative evidence available. Cumulative pre-tax losses for a three-year period are considered significant objective negative evidence that some or all of our deferred tax assets may not be realizable. Cumulative reported pre-tax income is considered objectively verifiable positive evidence of our ability to generate positive pretax income in the future.

In accordance with U.S. GAAP, when there is a recent history of pre-tax losses, there is little weight placed on forecasts for purposes of assessing the recoverability of our deferred tax assets. Judgment is required when considering the relative impact of positive and negative evidence. The weight given to the potential effect of positive and negative evidence is commensurate with the extent that it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary to support a conclusion that a valuation allowance is not needed. We consider the availability of objectively verifiable evidence, such as positive recent core operating results after adjusting for nonrecurring items in determining our ability to utilize deferred tax assets. We use systematic and logical methods to estimate when deferred tax liabilities will reverse and generate taxable income and when deferred tax assets will reverse and generate tax deductions. Assumptions, judgment, and estimates are required when estimating future income and scheduling the reversal of deferred tax assets and liabilities, and the exercise is inherently complex and subjective.

Refer to Note A and Note Q of our Notes to the Consolidated Financial Statements for description of our policies related to income taxes.

Contingencies

We have recorded a significant reserve for respirator liability claims. Our current estimate of the cost of our share of pending and future respirator liability claims is based on facts and circumstances existing at this time, including the number and nature of the remaining claims. Developments that could affect our estimate include, but are not limited to, (i) significant changes in the number of future claims, (ii) changes in the rate of dismissals without payment of pending claims, (iii) significant changes in the average cost of resolving claims, including potential settlements of groups of claims, (iv) significant changes in the legal costs of defending these claims, (v) changes in the nature of claims received or changes in our assessment of the viability of these claims, (vi) trial and appellate outcomes, (vii) changes in the law and procedure applicable to these claims, (viii) the financial viability of the parties that contribute to the payment of respirator claims, (ix) exhaustion or changes in the recoverability of the insurance coverage maintained by certain of the parties that contribute to the settlement of respirator claims, or a change in the availability of the indemnity provided by a former owner of the business, (x) changes in the allocation of costs among the various parties paying legal and settlement costs, and (xi) a determination that the assumptions that were used to estimate our share of liability are no longer reasonable. We cannot determine the impact of these potential developments on our current estimate of our share of liability for these existing and future claims. Because reserves are limited to amounts that are probable and estimable as of a relevant measurement date, and there is inherent difficulty in projecting the impact of potential developments on our share of liability for these existing and future claims, it is reasonably possible that the liabilities for existing and future claims could change in the near term and that change could be material. Refer to Note A and Note S of our Notes to the Consolidated Financial Statements for description of our policies related to contingencies.

29

Goodwill Impairment

Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized and is subject to impairment testing annually, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value.

Evaluating goodwill for impairment involves applying significant assumptions including discount rates and forecasted results for the applicable reporting unit, including earnings before interest and tax (“EBIT”), market multiples and growth rates. These assumptions are forward-looking and could be affected by future economic and market conditions. We engage third-party valuation specialists as needed to develop the assumptions used in the calculation and the evaluation of goodwill balances. Refer to Note A and Note F of our Notes to the Consolidated Financial Statements for a description of our policies related to goodwill.

Recently Issued Accounting Pronouncements

Refer to the discussion in Note B of our Notes to the Consolidated Financial Statements.

Results of Operations

Cabot is organized into two reportable segments: Reinforcement Materials and Performance Chemicals. Cabot is also organized for operational purposes into three geographic regions: the Americas; EMEA; and Asia Pacific. The discussions of our results of operations for the periods presented reflect these structures.

Our analysis of financial condition and operating results should be read together with our consolidated financial statements and accompanying notes. Unless a calendar year is specified, all references to years in this discussion are to our fiscal years ended September 30.

This section discusses our fiscal 2025 and 2024 results of operations and year-to-year comparisons between fiscal 2025 and 2024. For the discussions of our fiscal 2023 results and year-to-year comparisons between fiscal 2024 and fiscal 2023, refer to our discussions under the headings “Results of Operations” and “Cash Flows and Liquidity” in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which was filed with the United States Securities and Exchange Commission on November 20, 2024.

Definition of Terms and Non-GAAP Financial Measures

When discussing our results of operations, we use several terms as described below.

The term “product mix” refers to the mix of types and grades of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business and/or segment.

Our discussion under the heading “(Provision) Benefit for Income Taxes and Reconciliation of Effective Tax Rate to Operating Tax Rate” includes a discussion and reconciliation of our “effective tax rate” and our “operating tax rate” for the periods presented, as well as management’s projection of our operating tax rate range for the next fiscal year. Our operating tax rate is a non-GAAP financial measure and should not be considered as an alternative to our effective tax rate, the most comparable GAAP financial measure. The operating tax rate excludes income tax (expense) benefit on certain items and discrete tax items. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions. Our definition of the operating tax rate may not be comparable to the definition used by other companies. Management believes that this non-GAAP financial measure is useful supplemental information because it helps our investors compare our tax rate year-to-year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.

30

Our discussion under the heading “Fiscal 2025 versus Fiscal 2024—By Business Segment” includes a discussion of Total segment EBIT, which is a non-GAAP financial measure defined as Income (loss) from operations before income taxes and equity in earnings from affiliated companies less certain items and other unallocated items. Our Chief Operating Decision Maker, who is our President and Chief Executive Officer, uses segment EBIT to evaluate the operating results of each segment and to allocate resources to the segments. We believe Total segment EBIT, which reflects the sum of EBIT from our reportable segments, provides useful supplemental information for our investors as it is an important indicator of our operational strength and performance, allows investors to see our results through the eyes of management, and provides context for our discussion of individual business segment performance. Total segment EBIT should not be considered an alternative for Income (loss) from operations before income taxes and equity in earnings of affiliated companies, which is the most directly comparable U.S. GAAP financial measure. A reconciliation of Total segment EBIT to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is provided under the heading “Fiscal 2025 versus Fiscal 2024—By Business Segment”. Investors should consider the limitations associated with this non-GAAP measure, including the potential lack of comparability of this measure from one company to another.

In calculating Total segment EBIT, we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies (i) items of expense and income that management does not consider representative of our fundamental on-going segment results, which we refer to as “certain items”, and (ii) items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments,

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CBT/mda/fy2025/
All MD&A years: /company/CBT/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CBT/mda/fy2024/): filed 2024-11-20; accession 0000950170-24-129210 (https://www.sec.gov/Archives/edgar/data/16040/000095017024129210/cbt-20240930.htm)
- [FY 2023 MD&A](/company/CBT/mda/fy2023/): filed 2023-11-22; accession 0000950170-23-065844 (https://www.sec.gov/Archives/edgar/data/16040/000095017023065844/cbt-20230930.htm)
- [FY 2022 MD&A](/company/CBT/mda/fy2022/): filed 2022-11-23; accession 0001564590-22-038228 (https://www.sec.gov/Archives/edgar/data/16040/000156459022038228/cbt-10k_20220930.htm)
- [FY 2021 MD&A](/company/CBT/mda/fy2021/): filed 2021-11-29; accession 0001564590-21-058692 (https://www.sec.gov/Archives/edgar/data/16040/000156459021058692/cbt-10k_20210930.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2890 Miscellaneous Chemical Products) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CBT.md · JSON record: /company/CBT.json · verified financials: /company/CBT/financials.json / /company/CBT/financials.csv · machine TOC for the whole site: /llms.txt