Cabot Corp (CBT)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
$81.48+0.36%
Close 2026-09-04 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
QuarterlyIQ Insights · CBT
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within materials on a research-validated quality screen. As of 2026-09-04.
The screen ranks CBT against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 0 of the last 3 quarter-over-quarter moves. Historically, Materials names rated neutral grew net income 46% of the time over the next year (vs 54% for the rest of the cohort, n=2582).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Expand global conductive additive capacity and strengthen participation with leading battery manufacturers to support growing demand in battery materials.
Stated as a priority in 3 of last 3 quarters. Management reaffirmed approximately $40 million of EBITDA expectation for battery materials in fiscal 2026. Performance Chemicals segment EBIT, which includes battery materials, increased 7% year-over-year in 2026-Q1 and 19% year-over-year in 2026-Q3. The trajectory is delivering with continued growth and capacity expansion.
“Battery Materials product line expanding global conductive additive capacity to support growing demand; reaffirming expectation of approximately $40 million of EBITDA for the full fiscal year”
“Battery Materials momentum continues, supported by strong execution, growing battery energy storage systems (BESS) and electric vehicle related demand, providing meaningful EBITDA contribution”
“Performance Chemicals segment EBIT increased 7% year-over-year supported by continued momentum in our Battery Materials product line”
Pursue capacity rationalization and plant closures in South America and Europe to better align production with demand and generate fixed cost savings.
Stated as a priority in 3 of last 3 quarters. Management is pursuing capacity rationalization in South America and Europe to generate approximately $22 million in annualized fixed cost savings. Restructuring charges impacted EPS in 2026-Q3. The trajectory shows ongoing focus with limited progress on cost savings realized so far.
Generate robust operating cash flow to support capital expenditures, dividends, and share repurchases while maintaining a strong balance sheet.
Stated as a priority in 3 of last 3 quarters. Operating cash flow declined from $126 million in 2026-Q1 to $75 million in 2026-Q3, while net debt to EBITDA ratio remained stable around 1.4-1.5x. Management continues to return cash to shareholders via dividends and share repurchases. The trajectory shows sustained cash generation with disciplined capital allocation.
Achieve full-year fiscal 2026 Adjusted EPS within the guidance range of $6.00 to $6.50 per share, reflecting operational execution and market conditions.
Stated as a priority in 3 of last 3 quarters. Management maintained fiscal 2026 Adjusted EPS guidance in the range of $6.00 to $6.50 per share, tightening it to $6.15 to $6.45 in 2026-Q3. Adjusted EPS for the first nine months was $4.82, indicating progress toward the full-year target. The trajectory is mixed with guidance reaffirmed but actual EPS below prior year.
Manage a planned leadership transition with Erica McLaughlin succeeding Sean Keohane as President and CEO effective October 1, 2026.
Newly stated in 2026-Q3. Management announced the planned CEO transition with Erica McLaughlin succeeding Sean Keohane effective October 1, 2026. No financial metrics apply to this priority. The announcement reflects a key upcoming leadership change.
“Announced a planned leadership transition, with Erica McLaughlin elected to succeed Sean Keohane as President and CEO effective October 1, 2026”
Over the trailing year it converted 1.10x of net income into operating cash flow. Historically, Materials names rated neutral grew net income 49% of the time over the next year (vs 50% for the rest of the cohort, n=1862).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
7 material management or governance events in the past 24 months, led by executive changes. Historically, Materials names rated neutral grew net income 49% of the time over the next year (vs 52% for the rest of the cohort, n=976).
Not investment advice. As of 2026-09-04.
“Charges for restructuring actions and termination of employee benefit plans impacting EPS”
“Pursuing asset optimization across our global plant network with an intention to close manufacturing operations in South America and Europe”
“Focused on countermeasures including cost reductions, optimization actions across global footprint and capacity rationalization”
“Cash flows from operating activities were a source of $75 million; ended quarter with $250 million cash and $1.3 billion liquidity”
“Cash flows from operating activities were a source of $77 million; balance sheet strong with $252 million cash and net debt to EBITDA ratio of 1.5 times”
“Operating cash flow was $126 million; invested in capital expenditures, paid dividends and repurchased shares”
“Tightening fiscal 2026 Adjusted EPS guidance range from $6.00 to $6.50 to $6.15 to $6.45 per share”
“Reaffirming Adjusted EPS guidance for full year to be in range of $6.00 to $6.50 per share”
“Narrowing Adjusted EPS for full year to be in range of $6.00 to $6.50 per share”