Cabot shares rise 12.08% after hours on PowerCo battery materials deal and MXCB acquisition expansion.

Cabot (CBT) surged 12.08% in after-hours trading following its Q1 2026 earnings call, strategic acquisitions, and positive operational updates. The company reported strong operating cash flow of $126 million and $71 million in discretionary free cash flow, supporting growth projects and shareholder returns. The Performance Chemicals segment saw a 7% EBIT increase, driven by a favorable product mix and 39% battery materials revenue growth. Additionally, Cabot’s acquisition of Mexico Carbon Manufacturing (MXCB) expanded its global footprint and reinforced its partnership with Bridgestone. A multiyear PowerCo supply agreement also signaled long-term growth potential in battery materials. Despite weaker Reinforcement Materials EBIT and narrowed 2026 EPS guidance to $6–$6.50, the market responded positively to robust liquidity, strategic expansion, and high-margin battery materials momentum.