Slide 1: Cabot Corporation Earnings Teleconference
CABOT CORPORATION EARNINGS TELECONFERENCE F I RST QUA RT ER - F IS CA L 2 0 26 Q1 Fiscal 2026 1
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 second quarter of and fiscal year 2026, including our expectations for per
Slide 3: Q1 2026 Highlights
Q1 2026 Highlights Signed multi-year Cash Flows from GAAP EPS of $1.37; Reinforcement supply agreement Adjusted EPS1 Performance with PowerCo SE to Operations of $126 of $1.53 which Materials segment Chemicals segment million; returned EBIT of $102 million; supply conductive $76 million to represent
Slide 4: Challenging Market Conditions Impacted CY26 Reinforcement Materials Customer Negotiations
Challenging Market Conditions Impacted CY26 Reinforcement Materials Customer Negotiations Declining western tire production driven by elevated tire imports from Asia Pacific Western carbon black demand remains weak and carbon black plant utilizations in the Americas & Europe have been impacted by th
Slide 5: Driving Countermeasures
Driving Countermeasures Actions underway to help offset challenging market conditions Expect to maintain the $50 million of costs savings delivered in the prior year - Implemented and realized in fiscal year 2025 Targeting an additional $30 million of savings in Fiscal Year 2026 - Global programs fo
Slide 6: Battery Materials Building Momentum
Battery Materials Building Momentum A global leader with the broadest range of conductive additives, formulations and blends Strong performance in Battery Materials product line with revenue growth of 39% over Q1 FY25 and Q1 FY26 TTM EBITDA margins of 22% Global lithium-ion battery demand projected
Slide 7: Battery Energy Storage Systems (BESS) Growth
Battery Energy Storage Systems (BESS) Growth BESS is a fast-growing application enabling clean, reliable, and flexible power for grids, renewables, and rapidly expanding data centers Battery Energy Storage Systems (BESS) demand is expected to grow at ~26%1 CAGR over the next five years accounting fo
Slide 8: Q1 2026 Financial Highlights
Q1 2026 Financial Highlights Adjusted EPS1 Debt Balance Cash & Cash $1.53 $1.1 Billion Equivalents GAAP EPS Liquidity $230 Million $1.37 $1.4 Billion Operating Cash Flow Operating Capex $126 Million Tax Rate1 $69 million Discretionary 28% FY26 forecast range FY26 forecast range of $200 - $230 Free C
Slide 9: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance Q1 FY26 Q1 FY25 Δ Segment EBIT $102M $130M (22%) Segment EBITDA1 $121M $147M (18%) EBITDA Margins1 23% 24% Q1 FY26 Highlights Q2 FY26 Outlook Volumes declined 7% year-over-year primarily due to lower volumes in the Americas and Expect lower s
Slide 10: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance Q1 FY26 Q1 FY25 Δ Segment EBIT $48M $45M +7% Segment EBITDA1 $70M $65M +8% EBITDA Margins1 23% 21% Q1 FY26 Highlights Q2 FY26 Outlook Higher gross profit per ton from a favorable Expect segment EBIT to be relatively product mix consistent seque
Slide 11: Fiscal 2026 Outlook
Fiscal 2026 Outlook Adjusted EPS1 Guidance Full Year Segment Continued Disciplined Capital Range Assumptions Allocation Framework $6.00 to $6.50 Adjusted EPS1 Reinforcement Materials Balance sheet remains strong expected for fiscal 2026 Expect flat volumes year-over- with Net Debt to EBITDA
Slide 12: Drivers of Future Demand Growth
Drivers of Future Demand Growth Reinforcement Materials Performance Chemicals GlobalData forecast for domestic tire production in the Growth in lithium-ion battery applications (EV and BESS) western regions projecting a return to growth for expected to drive Battery Materials product line growth
Slide 13: Industry Leadership Backed by Scale, Competitiveness, and Strategic Growth Levers
Industry Leadership Backed by Scale, Competitiveness, and Strategic Growth Levers Technology Leadership A proven technology leader with advanced product offerings and the ability to leverage process technology across our global scale Competitive Global Assets Global footprint of strategically-locate
Slide 14: Questions & Answers
QUESTIONS & ANSWERS Q1 Fiscal 2026 14
Slide 15: Appendix
CABOT APPENDIX Qi Fiscal 2026 15
Slide 16: FY26 Guidance & Modeling Assumptions
FY26 Guidance & Modeling Assumptions Full Year Modeling Assumptions Adjusted Earnings per Share1 ~$6.00 to $6.50 Interest Expense ~($71M) to ($75M) General Unallocated Income (Expense) ~$21M to $25M Capital Expenditures ~$200M to $230M Shares Repurchases ~$100M to $200M Operating Tax Rate1 ~27% to 2
Slide 17: 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 18: Non-GAAP Financial Measures: Adjusted EPS
Non-GAAP Financial Measures Adjusted EPS Fiscal 2026 (A) Dec. Q Mar. Q June Q Sept. Q FY 2026 Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation $ 1.37 $ — $ — $ — $ 1.37 Less: Certain items after tax per share (0.16) — — — (0.16) Adjusted earnin
Slide 19: Non-GAAP Financial Measures: Total Segment EBIT & Adjusted EBITDA
Non-GAAP Financial Measures Total Segment EBIT & 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 the
Slide 20: Non-GAAP Financial Measures: Segment EBITDA
Non-GAAP Financial Measures Segment EBITDA Dollars in millions Fiscal 2025 Fiscal 2026 Dec. Q Dec. Q Reinforcement Materials EBIT $ 130 $ 102 Reinforcement Materials Depreciation and amortization 17 19 Reinforcement Materials EBITDA $ 147 $ 121 Reinforcement Materials Sales $ 611 $ 520 Reinforcement
Slide 21: 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 2026 Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activities Dec. Q Cash provided by (used in) operating activities (B) $ 126
Slide 22: 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 December 31 2025 2024 (Provision) / Benefit for (Provision) / Benefit Dollars in millions (unaudited) Income Taxes Rate for Income Taxes Rate Effective Tax Rate $ (37