Cabot Reports Adjusted EPS of $1.61 in Fourth Quarter, Beats Revenue Estimates

Key Facts

Cabot reported fourth-quarter results for fiscal 2026 on November 2, posting adjusted EPS of $1.61, compared with $1.70 in the same period a year earlier. Revenue was $1.01 billion, topping the consensus estimate of $924.14 million. Revenue also rose 12% from the fourth quarter of 2025, when it was $899 million. The results show a divergence between sales growth and a year-over-year decline in adjusted EPS. The company reported results for the quarter and fiscal year ended September 30, 2026, on the same day.

Chief Executive Erika McLaughlin said the company "finished the year with a strong fourth quarter, delivering adjusted EPS of $1.61." McLaughlin attributed the earnings to strong performance in Performance Chemicals. But that segment's performance did not prevent adjusted EPS from falling from its year-earlier level. The segment results show a clear difference in the sources of pressure and support during the quarter.

Performance Chemicals posted earnings before interest and taxes of $60 million, up $18 million from the same period a year earlier. The coverage attributed the improvement to higher gross profit per ton and increased sales volumes of battery materials and specialty carbon. By contrast, earnings before interest and taxes in Reinforcement Materials fell $32 million to $87 million. The company said lower gross profit per ton was linked to 2026 customer contracts and a less favorable product mix by region. The segment's 5% volume growth offset some of the pressure but did not prevent earnings from falling. Overall sales growth therefore coincided with lower profitability in Reinforcement Materials.

The segment results followed Cabot's third quarter of fiscal 2026, when the company posted adjusted EPS of $1.67. Reinforcement Materials' earnings before interest and taxes were $97 million that quarter, compared with $68 million for Performance Chemicals. In August, the company said lower profitability per ton had weighed on Reinforcement Materials despite a 5% year-over-year increase in volume. Meanwhile, Performance Chemicals' earnings before interest and taxes rose $11 million in the third quarter, supported by volume growth and higher gross profit per ton. Fourth-quarter performance highlights continued pressure on profitability per ton in Reinforcement Materials, alongside a contribution from Performance Chemicals that supported adjusted earnings. In the fourth quarter of fiscal 2025, net income attributable to Cabot was $43 million and diluted EPS was $0.79, while adjusted EPS was $1.70.

In battery-related operations, Battery Materials products generated earnings before interest, taxes, depreciation and amortization of $43 million in fiscal 2026. The company also signed a $50 million grant agreement with the U.S. Department of Energy to support expanded production of conductive battery additives in Louisiana and Texas. These figures provide context for the growth in battery materials sales volumes that supported Performance Chemicals in the fourth quarter, according to Investing.com coverage. At the same time, the quarterly results showed the segment's contribution did not fully offset the decline in Reinforcement Materials earnings. Former CEO Sean Keohane had described fourth-quarter 2025 results as in line with expectations, with adjusted EPS down 6% from the corresponding quarter of 2024. That EPS was $1.70, the level the company used to compare with the current fourth-quarter result.

Cabot provided fiscal 2027 adjusted EPS guidance of $6.15 to $6.75. The midpoint is $6.45 per share, above the analyst consensus of $6.37, according to Investing.com. The company's shares fell 2.1% in after-hours trading on Monday, November 2, despite the quarterly results and guidance exceeding market expectations, according to the same source. CBT closed at $75.72 on November 2, according to EL7 data. Cabot is scheduled to hold a conference call and webcast to review fourth-quarter results on November 3, 2026, at 8:00 a.m. Eastern time. The event follows the release of results and financial guidance for the coming year.