Chemicals firm Cabot beats Q1 adjusted EPS expectations

Cabot

03/02/2026 21:38

Overview

Specialty chemicals firm's fiscal Q1 adjusted EPS beat analyst expectations despite a 13% decrease

Reinforcement Materials segment EBIT fell 22% yr/yr due to lower volumes

Company signed multi-year supply agreement with PowerCo SE for battery materials

Outlook

Cabot narrows full-year Adjusted EPS guidance to $6.00-$6.50 per share

Company expects earnings growth in Performance Chemicals, driven by Battery Materials

Cabot plans cost reductions in Reinforcement Materials amid challenging demand

Result Drivers

REINFORCEMENT MATERIALS DECLINE - EBIT for Reinforcement Materials fell 22% due to lower volumes in Americas and Asia Pacific

PERFORMANCE CHEMICALS GROWTH - EBIT for Performance Chemicals rose 7% due to favorable product mix and strong Battery Materials

SUPPLY AGREEMENT - Multi-year agreement with PowerCo SE to supply battery materials expected to support growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Beat
$1.53
$1.41 (5 Analysts)
Q1 Net Income
$73 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the specialty chemicals peer group is "buy."

Wall Street's median 12-month price target for Cabot Corp is $74.00, about 1.6% above its February 2 closing price of $72.86

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX6cRSVx

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)