Slide 1: Cabot Earnings Teleconference Second Quarter - Fiscal 2025
CABOT EARNINGS TELECONFERENCE Second 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 third quarter of and fiscal year 2025, including our expectations for perf
Slide 3: Q2 2025 Highlights
Q2 2025 Highlights Diluted EPS of $1.69; Adjusted EPS1 of $1.90 up 7% year 1 over year Reinforcement Materials segment EBIT of $131 million; up 2 1% sequentially; down 12% year over year Performance Chemicals segment EBIT of $50 million; up 3 11% sequentially; up 61% year over year Returned $70 mill
Slide 4: Direct Impacts from Tariffs Limited, Indirect Impact Related to Customer Demand
Direct Impacts from Tariffs Limited, Indirect Impact Related to Customer Demand Direct Impact Indirect Impact Cabot’s External Volumes Uncertain Macroeconomic Conditions Americas EMEA Asia Weaker GDP Outlook 97% 95% >99% Customers Cautious About Inventory Levels 3% 5% <1% Sold within Region of Manuf
Slide 5: Continued Focus On Execution To Deliver Shareholder Value
Continued Focus On Execution To Deliver Shareholder Value Actions We Are Taking Our Competitive Advantages Support customers with volumes across our global Largely “make in, sell in region” business with network as their supply chains adjust to tariffs customer preference for local suppliers Mar
Slide 6: Q2 2025 Financial Highlights
Q2 2025 Financial Highlights Adjusted EPS1 Cash Flow from Operations $1.90 $73 million Diluted EPS $1.69 Discretionary Free Cash Flow1 of $110M Capex Cash and Cash Equivalents $72 million $213 million FY25 expected to be in the range of $250M - $275M Debt Balance $1.3 billion YTD Operating Tax Rate1
Slide 7: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance Q2 2025 RESULTS SEGMENT EBIT & EBITDA Q3 2025 OUTLOOK ($ in millions) Global volumes down 7% Global macroeconomic year-over-year primarily due uncertainty causing customers to to lower tire demand and $166 be cautious about orders and -12% co
Slide 8: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance Q2 2025 RESULTS SEGMENT EBIT & EBITDA Q3 2025 OUTLOOK ($ in millions) Volumes up 4% year-over-year Global macroeconomic driven primarily by fumed metal uncertainty causing customers to $71 oxides sales into construction be cautious about orders
Slide 9: Tariff Policy has Weakened 2H Volume Outlook
Tariff Policy has Weakened 2H Volume Outlook November Earnings Change in Revised Earnings Guidance Assumptions Guidance Uncertain macroeconomic Reinforcement Materials Reinforcement Materials conditions impacting volume decline expected year- volume growth expected year- customer demand over-yea
Slide 10: Fiscal 2025 Outlook
Fiscal 2025 Outlook Operating Cash Flow Continue Disciplined Strong Results in First Revising Adjusted Capital Allocation Outlook Remains Half of Fiscal Year EPS1 Guidance Range Framework Strong Adjusted EPS1 up 10% $7.15 to $7.50 Adjusted Cash flow from Announced a 5% increase YTD in FY25 v
Slide 11: Q&A Q2 Fiscal 2025
Q&A Q2 FISCAL 2025 11
Slide 12: Appendix
Appendix Q2 FISCAL 2025 12
Slide 13: FY25 Guidance & Modeling Assumptions
FY25 Guidance & Modeling Assumptions Full Year Modeling Assumptions Adjusted Earnings per Share1 ~$7.15 to $7.50 Interest Expense ~($72M) to ($74M) General Unallocated Income (Expense) ~$22M to $26M Capital Expenditures ~$250M to $275M Shares Repurchases ~$100M to $200M Operating Tax Rate1 ~27% to 2
Slide 14: 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 15: Non-GAAP Financial Measures Adjusted EPS
Non-GAAP Financial Measures Adjusted EPS Fiscal 2025 (A) Dec. Q Mar. Q Q2 YTD Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation $ 1.67 $ 1.69 $ 3.36 Less: Certain items after tax per share (0.09) (0.21) (0.30) Adjusted earnings (loss) per share
Slide 16: 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 17: 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 18: 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 19: 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 March 31 2025 2024 (Provision) / Benefit for (Provision) / Benefit Dollars in millions (unaudited) Income Taxes Rate for Income Taxes Rate Effective Tax Rate $ (49) 3