Cabot Corp Q2 Revenue $904M, Adjusted EPS $1.61, Dividend Up 5%
Cabot Corp reported Q2 net income of $68 million, EPS of $1.27 and adjusted EPS of $1.61 on revenue of $904 million. The company raised its quarterly dividend by 5% to $1.89 annually and forecasts $22 million in cost savings from planned South America and Europe plant closures.
1. Q2 Financial Results
Cabot Corp reported net income of $68 million in its fiscal second quarter, down from $94 million a year earlier, on revenue of $904 million. Diluted EPS was $1.27 and adjusted EPS was $1.61 after a $0.34 per-share non-recurring charge.
2. Segment Performance
Reinforcement Materials segment EBIT declined 29% year-over-year to $93 million as a 3% volume increase was more than offset by lower pricing and product mix. Performance Chemicals segment EBIT rose 18% to $59 million, driven by favorable mix, optimization efforts and momentum in battery materials and specialty carbons.
3. Balance Sheet and Capital Allocation
Operating cash flow totaled $77 million while capital expenditures amounted to $45 million and share repurchases reached $49 million. The company ended the quarter with $252 million in cash, $1.3 billion in available liquidity and a net debt to EBITDA ratio of 1.5 times.
4. Outlook and Asset Optimization
The quarterly dividend was increased by 5% to an annualized $1.89 and full-year adjusted EPS guidance was reaffirmed at $6.00–$6.50. Planned capacity rationalization in South America and Europe is expected to deliver $22 million in annualized cost savings despite potential demand disruptions from the Middle East conflict.