Cabot Q3 2026 Earnings Call Transcript

Cabot (NYSE: CBT ) reported third-quarter financial results on Tuesday.

The transcript from the company's third-quarter earnings call has been provided below.

This content is powered APIs.

For comprehensive financial data and transcripts, visit View the webcast at Summary Cabot Corporation reported adjusted EPS of $1.67 for Q3 fiscal 2026, a 4% sequential increase, driven by strong performance in the Performance Chemicals segment.

The company is undergoing a leadership transition with Erica McLaughlin succeeding Shawn as President and CEO, effective end of fiscal year 2026.

Cabot's Reinforcement Materials segment faced pricing headwinds but achieved an EBIT of $97 million, while Performance Chemicals saw a 19% year-over-year EBIT increase to $68 million.

The company generated $75 million in operating cash flow, with $38 million invested in capital expenditures, focusing on strategic growth in battery materials.

Cabot received a Platinum sustainability rating from EcoVadis for the sixth consecutive year, highlighting its commitment to sustainability.

The company reaffirmed its fiscal 2026 EBITDA guidance for Battery Materials at approximately $40 million, with ongoing investments to expand global capacity.

Cabot is adjusting its fiscal 2026 adjusted EPS guidance to a range of $6.15 to $6.45, citing geopolitical uncertainties and raw material cost volatility.

Strategic initiatives include focusing on battery materials, network optimization, and cost improvements to position for long-term growth.

Full Transcript Rob, Investor Relations For our third quarter of fiscal 2026, copies of which are posted in the Investor Relations section of our website.

The slide deck that accompanies this call is also available in the Investor Relations portion of our website and will be available in conjunction with the replay of this call.

During this conference call, we will make forward-looking statements about our expected future operational and financial performance.

Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements.

Additional information regarding these factors appears under the heading Forward-Looking Statements in the press release we issued last night and in our annual report on Form 10-K for the fiscal year ending September 30, 2025, and in subsequent filings we make with the SEC, all of which are available on the company's website.

In order to provide greater transparency regarding our operating performance, we refer to certain non-GAAP financial measures that involve adjustments to GAAP results.

Any non-GAAP financial measure presented should not be considered to be an alternative to a financial measure required by GAAP.

Any non-GAAP financial measure referenced on this call is reconciled to the most directly comparable GAAP financial measure in a table at the end of our earnings release issued last night and available in the Investors section on our website.

I will now turn the call over to Shawn, who will discuss the third quarter highlights followed by several company and business updates.

Erica will review the third quarter financial highlights and the business segment results.

Following this, Shawn will provide closing comments on our fiscal 2026 outlook and then open the floor to questions.

Shawn, President and CEO Thank you, Rob.

Good morning, ladies and gentlemen, and welcome to our call today.

Before we begin our review of the quarter, I'd like to briefly address the leadership transition announced last week.

After nearly 25 years with Cabot, including the last 10 years as President and CEO, I have decided to retire effective at the end of the fiscal year on September 30, 2026.

To support a smooth transition, I will continue in an advisory capacity through the end of the calendar year.

My decision to retire reflects a thoughtful and well-planned succession process in partnership with our Board of Directors.

Leading Cabot has been the privilege of my professional career and I am incredibly proud of what we have accomplished during my tenure as President and CEO.

We have strengthened our portfolio significantly, increased our business segment profitability, incubated and scaled our battery materials product line into a leading position, executed a consistent, disciplined approach to capital allocation, and focused relentlessly on creating value for our shareholders.

While my decision is naturally based on personal considerations, I also believe it comes at an appropriate time for the company.

Cabot is operating from a position of strength.

We have a clear strategy, a strong balance sheet, an experienced leadership team, and significant opportunities ahead to grow.

I am thrilled by the Board's appointment of Erica McLaughlin as Cabot's next President and CEO.

Having worked in partnership with Erica for many years, including during her most recent tenure as Chief Financial Officer and Head of Corporate Strategy, I have seen firsthand her ability to drive results, shape strategy, and lead through complexity.

Many of you already know Erica well through her role as CFO and in her previous experience leading investor relations.