Slide 1: Cabot Earnings Teleconference Third Quarter Fiscal 2025
CABOT EARNINGS TELECONFERENCE Third Quarter - Fiscal 2025
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in the fourth quarter of and fiscal year 2025, including our expectations for per
Slide 3: Q3 2025 Highlights
Q3 2025 Highlights Diluted EPS of $1.86; Adjusted EPS1 of $1.90 down 1% year over 1 year Reinforcement Materials segment EBIT of $128 million; down 6% 2 year over year Performance Chemicals segment EBIT of $57 million; up 4% year 3 over year Returned $64 million to shareholders through dividends and
Slide 4: Strategic Highlights
Strategic Highlights Announced an agreement to acquire Bridgestone’s reinforcing carbons plant in Mexico for $70 million Awarded platinum rating from EcoVadis for exceptional leadership in sustainability performance for fifth consecutive year Notable growth in Battery Materials Continued progress in
Slide 5: Agreement to Acquire Bridgestone Mexico Reinforcing Carbons Plant
Agreement to Acquire Bridgestone Mexico Reinforcing Carbons Plant Agreement to acquire Bridgestone’s reinforcing carbons plant in Mexico for $70 million Acquisition strengthens our longstanding partnership with Bridgestone through the long- term supply of reinforcing carbon products Altamira, Me
Slide 6: Advancing our ESG Priorities | EcoVadis Platinum
Advancing our ESG Priorities| EcoVadis Platinum Achieved EcoVadis’ highest rating of Platinum for the fifth consecutive year EcoVadis is the world’s largest and most trusted provider of business sustainability ratings, with more than 150,000 rated companies Cabot ranked in the top 1% of companies as
Slide 7: Notable Growth in Battery Materials
Notable Growth in Battery Materials Over the last year…. Contribution margin improvement of 20%1 driven by growth in our differentiated products Bifurcation strategy is taking hold: Profitability improvement through product optimization in China, building incumbent position outside of China Close pa
Slide 8: Performance Chemicals Key Growth Areas Performing Well
Performance Chemicals Key Growth Areas Performing Well Wire and Cable1 Growth driven by the electric grid renewal, growth in power generation demand and development of alternative energy sources +15% Selling a range of conductive carbon products, targeting the wire and cable market Strong repu
Slide 9: Q3 2025 Financial Highlights
Q3 2025 Financial Highlights Adjusted EPS1 Cash Flow from Operations $1.90 $249 million Diluted EPS $1.86 Free Cash Flow1 of $188M Capex Cash and Cash Equivalents $61 million $239 million FY25 expected to be in the range of $250M - $275M Debt Balance $1.2 billion YTD Operating Tax Rate1 Liquidity 28
Slide 10: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance Q3 2025 RESULTS SEGMENT EBIT & EBITDA Q4 2025 OUTLOOK ($ in millions) Global volumes down 8% year- Expect a modest sequential EBIT over-year primarily due to lower $152 decline and slightly higher EBIT volumes in Asia Pacific and the -6% $146
Slide 11: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance Q3 2025 RESULTS SEGMENT EBIT & EBITDA Q4 2025 OUTLOOK ($ in millions) Higher gross profit per ton driven Expect lower EBIT sequentially by continued optimization and and relatively consistent EBIT $78 cost management efforts $75 year over year
Slide 12: M&A Priorities
M&A Priorities STRATEGIC FOCUS AREAS Accretive acquisitions to support strategy Strengthen and drive incremental growth above targets Business Competitive Capability and capacity in high growth segments Position - Battery Materials Growth Accretive to - Inkjet Packaging and/or Margin Earnings En
Slide 13: Effectively Deploying Capital within our Balanced Capital Allocation Framework
Effectively Deploying Capital within our Balanced Capital Allocation Framework Accretive High Confidence, Grow Share Maintain Financial M&A High Return Growth Dividend Repurchases Flexibility Investments Disciplined approach Prioritize investments Maintain an industry- Expect to be active in Committ
Slide 14: Fiscal 2025 Outlook
Fiscal 2025 Outlook Reaffirming Adjusted Executing in a Dynamic Cash Flow Outlook Effectively Deploying EPS Guidance Range1 Environment Remains Strong Capital Continue to expect range Focused on commercial Funding targeted organic Cash flow from of $7.15 to $7.50 and operational growth proje
Slide 15: Q&A
Q&A Q3 FISCAL 2025 15
Slide 16: Appendix
Appendix Q3 FISCAL 2025 16
Slide 17: FY25 Guidance & Modeling Assumptions
FY25 Guidance & Modeling Assumptions Full Year Modeling Assumptions Adjusted Earnings per Share1 ~$7.15 to $7.50 Interest Expense ~($74M) to ($76M) General Unallocated Income (Expense) ~$26M to $28M Capital Expenditures ~$250M to $275M Shares Repurchases ~$150M to $200M Operating Tax Rate1 ~27% to 2
Slide 18: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation includes references to adjusted earnings per share (EPS), total segment EBIT, 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 ne
Slide 19: Non-GAAP Financial Measures: Adjusted EPS
Non-GAAP Financial Measures Adjusted EPS 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 $ — $ 5.22 Less: Certain items after tax per share (0.09) (0.21) (0.04) — (0.34)
Slide 20: Non-GAAP Financial Measures: Total Segment EBIT and Adjusted EBITDA
Non-GAAP Financial Measures Total Segment EBIT and Adjusted EBITDA Our Chief Operating Decision Maker uses segment income (loss) from continuing operations before interest and taxes (which we refer to as segment “EBIT”) to evaluate the operating results of each segment and to allocate resources to t
Slide 21: Non-GAAP Financial Measures: Segment EBITDA
Non-GAAP Financial Measures Segment EBITDA Segment EBITDA is comprised of Segment EBIT plus depreciation and amortization. Management believes that Segment EBITDA is useful supplemental information because it provides investors with a view of the cash generated by each of the Company’s segments, whi
Slide 22: Non-GAAP Financial Measures: Free cash flow & Discretionary free cash flow
Non-GAAP Financial Measures Free cash flow (FCF) & Discretionary free cash flow (DFCF) Dollars in millions Fiscal 2025 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 2025 Cash provided by (used in)
Slide 23: Non-GAAP Financial Measures: Operating Tax Rate
Non-GAAP Financial Measures Operating Tax Rate TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE Three months ended June 30 2025 2024 (Provision) / Benefit for (Provision) / Benefit Dollars in millions (unaudited) Income Taxes Rate for Income Taxes Rate Effective Tax Rate $ (43) 28