Q4 Fiscal 2026 1
Fiscal 2026 Financial Highlights Fourth-quarter performance and full-year financial results Q4 2026ADJUSTED EPS¹
$1.61
Diluted EPS $1.25
REINFORCEMENT MATERIALS
$87M
Segment EBIT
PERFORMANCE CHEMICALS
$60M
Segment EBIT
CASH FLOWS FROM OPERATIONS & RETURNS
$143M
$70M returned to shareholders
FULL-YEAR 2026ADJUSTED EPS¹
$6.42
Diluted EPS of $4.02
$379M
Reinforcement Materials segment EBIT
$235M
Performance Chemicals segment EBIT
$421M
Cash flow from operations
$243M returned to shareholders $97M dividends | $146M share repurchases
1. Non-GAAP measure - See Appendix
Q4 Fiscal 2026 3
Strong strategic execution and financial performance for our Performance Chemicals segment
New level of EBIT performance for both the segment and the Battery Materials product line
Built Battery Materials momentum through customer wins and targeted growth investments
Q4 FISCAL 2026
4
Fiscal 2026 Strategic HighlightsCompleted acquisition of new reinforcing carbons plant in Mexico
Performing well with long-term supply agreement for Bridgestone
Integration activities completed as planned and on-track to meet financial targets
Continued recognition for strong sustainability performance
6th straight year of EcoVadis platinum rating
2026 Responsible Care® Awards from the American Chemistry Council (ACC) for Waste & Water Stewardship and Facility Safety
Enhanced liquidity position in dynamic environment
Increased corporate credit facility capacity to $1.3 billion; completed bond offering for $350 million
Ended the year with $1.5 billion in liquidity and net debt to EBITDA ratio of 1.4 times
Fiscal 2026 performance of $43 million of EBTIDA ahead of expectations and EBITDA margins of 26%
Signed a multi-year supply agreement with PowerCo SE, a leading European original equipment battery manufacturer
Future investments underway to enable continued growth that supports industry growth projected to be 15% through 2030
Awarded $50 million DOE grant in the fiscal year to support our targeted U.S. conductive additives investments
Q4 Fiscal 2026 5
Q4 2026 Financial Highlights Adjusted EPS1$1.61
Diluted EPS$1.25
Cash & Cash Equivalents2$254 Million
Debt Balance2$1.3 Billion
Liquidity2$1.5 Billion
Operating Cash Flow$143 Million
Discretionary Free Cash Flow1$117 Million
YTD Operating Tax Rate129%
Capex$55 million
Full year CapEx of
$207 million
Non-GAAP measure - See Appendix
As of September 30, 2026
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Reinforcement Materials Segment1. Non-GAAP measure - See Appendix
Q4 Fiscal 2026 7
Q1 FY27 Outlook
Expect modest sequential EBIT improvement despite normal volume seasonality due to favorable regional product mix
Anticipate lower year-over-year EBIT due to outcomes of our CY26 customer agreements
Q4 FY26 Highlights
Lower gross profit per ton driven by CY26 customer agreement outcomes and less favorable regional product mix, partially offset by higher volumes
Volumes up 5% year-over-year with increases in Asia and the Americas
Q4 FY26 | Q4 FY25 | o | |
Segment EBIT | $87M | $119M | (27%) |
Segment EBITDA1 | $111M | $137M | (19%) |
EBITDA Margin1 | 18% | 24% |
1. Non-GAAP measure - See Appendix
Q4 Fiscal 2026 8
Q1 FY27 Outlook
Expect lower sequential EBIT driven by the timing of higher costs and less favorable product mix
Anticipate higher year-over-year EBIT due to increased volumes
Q4 FY26 Highlights
Volumes increased year-over-year in the battery materials and specialty carbons product lines
Higher gross profit per ton was primarily due to favorable product mix and lower costs
Q4 FY26 | Q4 FY25 | o | |
Segment EBIT | $60M | $42M | +43% |
Segment EBITDA1 | $83M | $64M | +30% |
EBITDA Margin1 | 24% | 21% |
Global tire production forecast to grow 0.3% in CY 2026 1, including declines in the
Americas
Globally 0.9% growth forecast in CY 2027 1, with declines in China and growth in South Asia.
North America
-5%
Europe
-11%
South America
+21%
Sources: 1. Global Data LV Production Q3 Forecast
2. GTT Import Data as of August
Q4 Fiscal 2026 9
Global tire production forecast to grow 0.3% in CY 2026 1, including declines in the Americas
Globally 0.9% growth forecast in CY 2027 1, with declines in China and growth in South Asia.
TIRE PRODUCTION OUTLOOK
Relatively flat demand projected with regional differences and some positive signs on tire imports into North America and Europe
South America
+21%
Europe
-11%
North America
-5%
REGIONAL TRADE FLOWS
(Tire Imports YTD through August 20262)
Certain end markets impacted by geopolitical and economic challenges
Automotive: A decline of -1.8% projected for light vehicle production in CY2026; modest global growth of 0.5% expected in CY20271
Construction: Continued softness in China and Europe; U.S. market more resilient
Strong growth expected in battery, conductive and electronic applications supported by macro tailwinds
Battery: Strong demand growth of 15%2 through 2030 supported by EVs and BESS
Conductive and Electronics: Growth expected supported by grid modernization, energy infrastructure investment and electronics applications
Performance Chemicals Business EnvironmentDIVERSE SET OF END MARKETS |
Certain end markets impacted by geopolitical and economic challenges
|
Diverse set of applications served provides growth opportunities to offset mixed expectations for automotive and construction applications |
Q4 Fiscal 2026 10
Sources: 1. IHS LV Production Oct Forecast
2. Benchmark Minerals Intelligence, Q3CY26 Forecast
$200M - $250M
Q4 Fiscal 2026 11
FAVORABLE FREE CASH FLOW
Cash generation supports strategic investments and return of capital to shareholders.
ADJUSTED EPS¹
$6.15 - $6.75
EXPECTED TAX RATE
28% - 30%
CAPITAL SPENDING
$200M - $230M
Focus Areas for Fiscal 20271
GROW IN ATTRACTIVE END MARKETSAdvance volume growth with key customers and key
growth markets, including in battery materials, conductive and electronics
2
STRENGTHEN COMPETITIVENESSDrive commercial and operational excellence and optimization actions, and complete previously announced restructuring activities
3
EXECUTING ORGANIC GROWTH PROJECTSExecute high-return, organic growth investments in Battery Materials and invest in yield and process technology to enhance our margins
4
PURSUE INORGANIC OPPORTUNITIESPursue opportunities that strengthen our competitive position, drive growth and provide attractive economic returns in a 3-to-5-year time frame
Q4 FISCAL 2026 12
A STRONG PLATFORM
FOR VALUE CREATION
Well positioned
for strong performance and to pursue attractive growth opportunities to deliver value for shareholders
Financial flexibility
Strong cash generation
Flexible global footprint
Competitive cost position
Participation in high growth end markets
Leading business positions
Q4 Fiscal 2026 13
QUESTIONS & ANSWERSQ4 Fiscal 2026 14
APPENDIXQ4 Fiscal 2026 15
FY27 Guidance & Modeling AssumptionsFull Year Modeling Assumptions | |
Adjusted Earnings per Share1 Interest Expense | ~$6.15 to $6.75 ~($73M) to ($77M) |
General Unallocated Income (Expense) | ~$28M to $36M |
Capital Expenditures | ~$200M to $230M |
Shares Repurchases | ~$150M to $250M |
Operating Tax Rate1 | ~28% to 30% |
Forecast FX Rates | October Rates |
Oil & Energy Prices | October Forward Curve |
1. Non-GAAP measure - See Appendix
Q4 Fiscal 2026 16
Use of Non-GAAP Financial MeasuresThis presentation includes references to adjusted earnings per share (EPS), segment EBITDA, adjusted EBITDA, free cash flow, discretionary free cash flow, and operating tax rate, which are non-GAAP measures. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Segment EBITDA and Adjusted EBITDA to Income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow from operating activities, the most directly comparable GAAP financial measure, are provided in the tables included in our fourth quarter 2026 earnings release and filed on our Current Report on Form 8-K dated November 2, 2026. Reconciliations for segment EBITDA for each segment are included in the following slides.
Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to "certain items," including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.
This presentation also includes our forecast of the range we expect our "operating tax rate", which represents the tax rate on our recurring operating results, to fall within. This rate excludes discrete tax items, which are included in the effective tax rate. Discrete tax items are comprised of (i) unusual or infrequent items, (ii) items related to uncertain tax positions, and (iii) other tax items, such as the impact from the timing of losses in certain jurisdictions and cumulative tax rate adjustments, the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvested assertions. The operating tax rate also excludes the impact of the items of expense and income we identify as certain items on both our operating income and the tax provision.
Management believes that the operating tax rate 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.
Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to "certain items," including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.
To calculate "Discretionary Free Cash Flow" we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow from operating activities. To calculate "Free Cash Flow" we deduct capital expenditures as disclosed in the consolidated statement of cash flows (as Additions to property, plant and equipment) from cash flow from operating activities.
Explanation of Terms Used
Product Mix. 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 or segment.
Net Working Capital. The term "net working capital" includes accounts receivable, inventory and accounts payable and accrued liabilities.
Q4 Fiscal 2026 17
Non-GAAP Financial Measures Adjusted EPSFiscal 2026 (A) | ||||
Dec. Q | Mar. Q June Q | Sept. Q | FY 2026 | |
Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation Less: Certain items after tax per share Adjusted earnings (loss) per share | $ 1.37 (0.16) | $ 1.27 $ 0.12 (0.34) (1.55) | $ 1.25 (0.36) | $ 4.02 (2.40) |
$ 1.53 | $ 1.61 $ 1.67 | $ 1.61 | $ 6.42 | |
Fiscal 2025 (A) | ||||
Dec. Q | Mar. Q June Q | Sept. Q | FY 2025 | |
Reconciliation of Adjusted EPS to GAAP EPS | ||||
Net income (loss) per share attributable to Cabot Corporation | $ 1.67 | $ 1.69 $ 1.86 | $ 0.79 | $ 6.02 |
Less: Certain items after tax per share | (0.09) | (0.21) (0.04) | (0.91) | (1.23) |
Adjusted earnings (loss) per share | $ 1.76 | $ 1.90 $ 1.90 | $ 1.70 | $ 7.25 |
(A) Per share amounts are calculated after tax. | ||||
Q4 Fiscal 2026 18
Non-GAAP Financial Measures Adjusted EBITDADollars in millions | Fiscal 2025 | Fiscal 2026 | ||
Sept. Q | Full Year | Sept. Q | Full Year | |
Reconciliation of Adjusted EBITDA to Income (loss) from operations before | ||||
income taxes and equity in earnings of affiliated companies | ||||
Income (loss) from operations before income taxes and equity in earnings of | ||||
affiliated companies | $ 115 | $ 565 | $ 110 | $ 406 |
Interest expense | 20 | 76 | 21 | 75 |
Certain items | 17 | 30 | 15 | 109 |
General unallocated (income) expense | (6) | (28) | (13) | (36) |
Less: Equity in earnings of affiliated companies | (2) | (7) | (1) | (6) |
Depreciation and amortization | 40 | 154 | 47 | 175 |
Adjusted EBITDA | $ 188 | $ 804 | $ 181 | $ 735 |
Q4 Fiscal 2026 19
Non-GAAP Financial Measures Segment EBITDADollars in millions | Fiscal 2025 Sept. Q Full Year | Fiscal 2026 Sept. Q Full Year | ||
Reinforcement Materials EBIT Reinforcement Materials Depreciation and amortization Reinforcement Materials EBITDA Reinforcement Materials Sales Reinforcement Materials EBITDA Margin | $ 119 18 | $ 508 70 | $ 87 24 | $ 379 84 |
$ 137 $ 563 | $ 578 $ 2,341 | $ 111 $ 634 | $ 463 $ 2,297 | |
24% 25% | 18% 20% | |||
Dollars in millions | Fiscal 2025 Sept. Q Full Year | Fiscal 2026 Sept. Q Full Year | ||
Performance Chemicals EBIT Performance Chemicals Depreciation and amortization Performance Chemicals EBITDA Performance Chemicals Sales Performance Chemicals EBITDA Margin | $ 42 22 | $ 194 84 | $ 60 23 | $ 235 91 |
$ 64 $ 308 | $ 278 $ 1,250 | $ 83 $ 340 | $ 326 $ 1,319 | |
21% 22% | 24% 25% | |||
Q4 Fiscal 2026 20
Non-GAAP Financial MeasuresFree Cash Flow (FCF) & Discretionary Free Cash Flow (DFCF)
Dollars in millions | Fiscal 2026 | ||||
Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activities | Dec. Q | Mar. Q | June Q | Sept. Q | FY 2026 |
Cash provided by (used in) operating activities (B) | $ 126 | $ 77 | $ 75 | $ 143 | $ 421 |
Less: Additions to property, plant and equipment | 69 | 45 | 38 | 55 | 207 |
Free cash flow | $ 57 | $ 32 | $ 37 | $ 88 | $ 214 |
Plus: Additions to property, plant and equipment | 69 | 45 | 38 | 55 | 207 |
Less: Changes in net working capital (C) | 5 | (19) | (44) | (10) | (68) |
Less: Sustaining and compliance capital expenditures | 50 | 33 | 28 | 36 | 147 |
Discretionary free cash flow | $ 71 | $ 63 | $ 91 | $ 117 | $ 342 |
(B) As provided in the Condensed Consolidated Statements of Cash Flows. (C) Defined as changes in Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows. | |||||
Q4 Fiscal 2026 21
Non-GAAP Financial Measures Operating Tax RateTABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE
Three months ended September 30 2026 2025
(Provision) / | ||||
Dollars in millions (unaudited) | Benefit for Income Taxes | Rate | Provision) / Benefit for Income Taxes | Rate |
Effective Tax Rate | $ (38) | 34% $ | (63) | 55% |
Less: Non-GAAP tax adjustments(B) | (3) | (30) | ||
Operating tax rate (D) (E) | $ (35) | 28% $ | (33) | 25% |
Twelve months ended September 30 2026 2025 | ||||
(Provision) / Benefit for (Provision) / Benefit Dollars in millions (unaudited) Income Taxes Rate for Income Taxes Rate | ||||
Effective Tax Rate | $ (165) | 41% $ | (196) | 35% |
Less: Non-GAAP tax adjustments(B) | (17) | (36) | ||
Operating tax rate (D) (E) | $ (148) | 29% $ | (160) | 27% |
(
(B) Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. 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.
(C) This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations.
(D) The operating tax rate is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions.
(E) Our operating tax rate for fiscal 2027 is expected to be in the range of 28% to 30%.
Q4 Fiscal 2026 22