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- **Record financial performance**: FY 2025 adjusted EPS $7.25 (3% YoY), EBIT $804M (3% growth), free cash flow $391M.
- **Strategic investments**: $168M share buyback, 5% dividend increase, accretive Mexico plant acquisition.
- **Battery materials growth**: 20% CM growth, new ESS product launch, strong sales to global battery producers.
- **2026 outlook**: Adjusted EPS $6-$7, driven by macroeconomic uncertainty and trade dynamics.
- **Challenges**: Asian tire imports reducing domestic production, delayed contract negotiations, macroeconomic headwinds in automotive/construction.
- **Sustainability leadership**: Platinum EcoVadis rating, 2030 sustainability targets.


**【Management Opening Remarks】**
- Earnings release and slide deck available on the Investor Relations website.
- Forward-looking statements and non-GAAP financial measures referenced.
- Reminder of upcoming stock sales by executives for tax obligations.

**【CEO Summary Section】**
- Fiscal 2025 highlights: Record adjusted EPS of $7.25 (3% YoY growth), total EBIT up 3% to $804M, free cash flow of $391M.
- Strategic initiatives: $168M share buyback, 5% dividend increase, acquisition of Bridgestone's Mexico plant (expected to close Q2 2026, accretive in first year).
- Battery materials growth: 20% YoY CM growth, new ESS product launch, strong sales of conductive additives to global battery producers.
- Sustainability: Platinum EcoVadis rating, 2025 sustainability report with 2030 targets.
- 2026 outlook: Adjusted EPS range $6-$7, driven by macroeconomic uncertainty and trade dynamics.

**【CFO Financial Commentary】**
- Q4 2025: Adjusted EPS $1.70 (6% YoY decline), cash flow from ops $219M, free cash flow $155M.
- FY 2025: Net debt-to-EBITDA 1.2x, liquidity $1.5B, capital expenditures $200M-$250M for FY 2026.
- Segment performance: Reinforcement Materials EBIT down $29M YoY (5% vol decline), Performance Chemicals EBIT up $30M YoY (battery materials and fumed metal oxides growth).
- 2026 expectations: Sequential Q1 EBIT decline in Reinforcement Materials, stable EBIT in Performance Chemicals.

**【Q&A Key Highlights】**
- **Regional utilization**: North America 75-80%, Europe 85%, South America 70s (improving with trade policy), Asia high utilization.
- **Dow's silicon plant closure**: Long-term agreement with Dow until 2028, discussions ongoing.
- **Contract negotiations**: 25% of 2026 contracts completed (vs. 45% last year), pricing pressures in Reinforcement Materials.
- **Performance Chemicals growth**: Battery materials, infrastructure, digitalization driving 1.5x-2x GDP growth, offsetting automotive/construction weakness.
- **Mix impact**: High-margin automotive and battery materials balanced, no significant margin uplift expected.


Cabot Corporation (CBT) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CBT

CBT fundamentals

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