NYSE$CBT

Cabot Corporation · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Cabot's fourth quarter earnings reflected a solid performance driven by growth in both segments.

Cabot Corporation reported a solid fourth quarter with an Adjusted EPS of $1.80, representing a 9% increase compared to the same quarter in the prior year. The company's strong Adjusted EPS results of $7.06 for the fiscal year, a 31% increase over fiscal 2023, were driven by EBIT growth in both segments. Strong operating performance resulted in $692 million in operating cash flow, enabling continued capital allocation priorities.

  • Fourth Quarter Diluted EPS of $2.43 and Adjusted EPS of $1.80, a 9% increase in Adjusted EPS compared to the prior year, benefiting from a lower operating tax rate.
  • Cash Flows from Operations of $204 million supported the return of $90 million of cash to shareholders through share repurchases and dividends.
  • Selected by the U.S. Department of Energy (DOE) for a $50 million award to build the first commercial-scale facility for battery-grade carbon nanotubes (CNTs) and conductive additive dispersions in the U.S.
  • Achieved the high end of 2021 Investor Day targets for Adjusted EPS CAGR and cumulative Discretionary Free Cash Flow (DFCF).

Headline financials

Total Revenue

$1B

Previous: $965M+3.7%
EPS (adj)

$1.80

Previous: $1.65+9.1%
Capital Expenditures

-$92M

Previous: $78M-217.9%
Free Cash Flow

$112M

Previous: $60M+86.7%
Net Income

$137M

Previous: $234M-41.5%
Operating Income

$150M

Previous: $142M+5.6%
Gross Profit

$240M

Previous: $225M+6.7%
R&D Expense

$17M

No prior period
Stock-Based Comp

$6M

Previous: $5M+20.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$1B

Q4 2024+3.7%vs Q4 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Cabot · $930M total across 2 segments · Q4 2023

  • Reinforcement Materials
    $624M-10.9%
  • Performance Chemicals
    $306M-9.5%

Forward guidance

Cabot expects Adjusted EPS to be in the range of $7.40 to $7.80 for fiscal year 2025, driven by continued growth in Reinforcement Materials and steady recovery in Performance Chemicals. The company anticipates strong operating cash flow and discretionary free cash flow to continue to support return of capital to shareholders.

Tailwinds

  • Continued growth in the Reinforcement Materials segment
  • Steady recovery in the Performance Chemicals segment
  • Strong operating cash flow
  • Strong discretionary free cash flow
  • Disciplined and balanced approach to capital allocation

Headwinds

  • Industry capacity utilization
  • Competition from other specialty chemical companies
  • Volatility in the price and availability of energy and raw materials
  • Negative or uncertain worldwide or regional economic conditions
  • Fluctuations in foreign currency rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.9%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+13.5%

Q4 2015

Best reaction

-13.4%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.1%+7.0%+2.4%
Q1 2026+10.3%+4.6%-1.8%
Q4 2025-7.0%-6.7%-2.7%
Q2 2025-6.8%-4.6%-3.3%
Q1 2025+3.9%+1.6%-0.9%
Q4 2024-0.1%+5.5%-1.3%
Q3 2024+12.6%+6.9%+12.6%
Q2 2024+7.4%+8.3%+4.6%
Q1 2024+5.8%+10.1%+18.3%
Q4 2023+5.7%+9.6%+13.6%
Q3 2023+1.9%+3.2%+4.4%
Q2 2023-4.5%-3.1%+6.2%
Q1 2023+1.1%+7.2%+1.4%
Q4 2022-7.1%-2.1%-5.3%
Q3 2022-2.3%+6.0%-1.8%
Q2 2022+5.6%+1.7%+12.5%
Q1 2022+11.8%+12.3%+31.7%
Q4 2021-1.3%-0.0%-3.2%
Q3 2021+0.2%+2.4%-4.8%
Q2 2021+4.6%+13.6%+16.4%
Q1 2021+5.4%+7.8%+13.6%
Q4 2020+7.2%+4.3%+6.1%
Q3 2020+0.1%+5.7%-0.1%
Q2 2020-9.3%-10.4%+21.8%
Q1 2020+5.8%+5.1%-3.5%
Q4 2019+8.7%+9.4%+0.6%
Q3 2019-5.7%-7.7%-3.4%
Q2 2019+0.5%-0.8%-6.5%
Q1 2019-9.7%-11.0%-3.9%
Q4 2018-3.9%-4.2%-7.9%
Q3 2018-4.4%-3.4%-4.4%
Q2 2018+6.5%+9.2%+14.0%
Q1 2018+6.5%-0.9%-3.5%
Q4 2017+5.2%+6.3%+1.8%
Q3 2017-2.9%-3.1%-3.0%
Q2 2017-6.6%-10.3%-13.2%
Q1 2017+4.1%+3.8%+5.5%
Q4 2016-3.1%-7.3%-2.1%
Q3 2016+5.6%+0.7%+2.7%
Q2 2016-8.0%
Q1 2016-1.1%
Q4 2015+13.5%
Q3 2015-1.1%
Q2 2015-7.4%
Q1 2015+4.7%
Q4 2014-4.1%
Q3 2014-5.4%
Q2 2014+1.3%
Q1 2014+0.5%
Q4 2013+2.0%
Q3 2013-2.5%
Q2 2013-2.3%
Q1 2013-13.4%
Q4 2012+1.2%
Q3 2012-5.4%
Q2 2012+3.5%
Q1 2012+13.5%
Q4 2011+9.3%
Q4 2010+2.1%
Q3 2011+2.1%
Q2 2011-0.4%
Q1 2010-0.0%
Q1 2011+2.5%
Q4 2008+2.9%
Q2 2010+2.9%
Q3 2009+0.1%
Q4 2009+0.1%
Q3 2010+0.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro