Cabot Delivers Q2 EPS of $1.61, Reaffirms 2026 Guidance

Overview

• The company reported adjusted earnings of $1.61 per share, with a strong Performance Chemicals result offset by pressure in Reinforcement Materials.
• Reinforcement Materials EBIT fell 29% year over year due to lower gross profit per ton and tougher competition in Asia Pacific, even as volumes rose 3%.
• Performance Chemicals EBITDA rose 18% on demand for battery materials and specialty carbons, with battery revenue up 43% and about $40 million of EBITDA expected in fiscal 2026.
• Cabot generated $77 million in operating cash flow, returned $73 million through dividends and buybacks, raised the dividend 5% to an annualized $1.89, and cut full‑year capital spending to $200–$230 million.
• Management kept full‑year EPS guidance at $6.00 to $6.50, pointed to contract formulas that pass through raw‑material costs with no lag to protect margins, and said results depend on stable demand and energy prices.