Slides
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CABOT CABOT CORPORATION EARNINGS TELECONFERENCE THIRD QUARTER FISCAL 2026 Q3 Fiscal 2026 1
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Forward Looking StatementsThis 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 2026, including our expectations for performance in our businesses, long-term growth in our battery materials product line as well as high return growth investments and our participation with leading battery manufacturers and the EBITDA we expect from the product line in fiscal 2026, and for adjusted earnings per share ("EPS") in fiscal year 2026, our operating tax rate for fiscal 2026, our expected capital expenditures and share repurchases for fiscal 2026 and for cash generation, our planned leadership transition and our assumptions underlying such expectations, are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward-looking statements. Important factors that could cause our results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the inherent uncertainty of management transitions and the ability of the Company to successfully execute its planned leadership transition; industry capacity utilization, shifts in the geographic area of tire production and competition from other specialty chemical companies; safety, health and environmental requirements and related constraints imposed on our business; regulatory and financial risk related to climate change developments; volatility in the price and availability of energy and raw materials, including with respect to the Russian invasion of Ukraine and the conflict in the Middle East; a significant adverse change in a customer relationship or the failure of a customer to perform its obligations under agreements with us; failure to achieve growth expectations from new products, new applications and technology developments; failure to realize benefits from acquisitions, alliances or joint ventures or achieve our portfolio management objectives; unanticipated delays in, or increased cost of site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations, global health matters or geo-political conflicts; interest rates, tax rates, currency exchange controls, tariffs and fluctuations in foreign currency rates; and the accuracy of the assumptions we used in establishing reserves for our estimated share of liability for respirator matters. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission (“SEC”), particularly under the heading “Risk Factors” in our annual report on Form 10-K for our fiscal year ended September 30, 2025, filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.Q3 Fiscal 2026 2
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Q3 Fiscal 2026 3 Executive Leadership Transition SEAN KEOHANEPresident & CEO(2016 -2026)ERICA McLAUGHLINPresident & CEO(Effective October 1, 2026)
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Q3 2026 Highlights Q3 Fiscal 2026 4Diluted EPS of $0.12; Adjusted EPS1of $1.67Reinforcement Materials segment EBIT of $97 millionPerformance Chemicals segment EBIT of $68 million 1. Non-GAAP measure – See Appendix Cash Flows from Operations of $75 million AwardedPlatinum rating from EcoVadis
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Battery Materials Platform Supporting Attractive Long-Term Growth Q3 Fiscal 2026 5 Global Battery Demand Outlook by ApplicationsBattery Demand Expected to More Than Double by 2030 Business HighlightsDiversified Growth DriversLeadership positions across EV, BESS and emerging applicationsGrowing with the leading global battery manufacturersNon-EV applications represent ~30% of demandDiversified Growth DriversLeadership positions across EV, BESS and emerging applicationsGrowing with the leading global battery manufacturersNon-EV applications represent ~30% of demandAttractive Earnings ProfileFY2026 EBITDA expected at approximately $40M24% Q3 FY26 TTM EBITDA marginAttractive Earnings ProfileFY2026 EBITDA expected at approximately $40M24% Q3 FY26 TTM EBITDA marginSource: Benchmark Minerals Intelligence, 2026 Q2 forecastBESSEVConsumer / Other20272028 20292025 2026 2030
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Battery Materials - Scaling for GrowthExpanding Capacity to Capture Battery Market Opportunities Q3 Fiscal 20266 Global Conductive Additives FootprintManufacturing and technical centers located across every major battery producing region Manufacturing CapacityTechnical Centers Broad Product Portfolio Conductive Additives Capacity ExpansionDifferentiated technology portfolio serving diverse battery applicationsIndustry-leading portfolio of conductive carbons, carbon nanotubes, carbon nanostructures, blends and dispersions enables tailored solutions across battery applications and optimized performanceTechnical expertise, global footprint, and strong customerrelationships support continued adoption across EV, BESS, consumer, and industrial battery applicationsDifferentiated technology portfolio serving diverse battery applicationsIndustry-leading portfolio of conductive carbons, carbon nanotubes, carbon nanostructures, blends and dispersions enables tailored solutions across battery applications and optimized performanceTechnical expertise, global footprint, and strong customerrelationships support continued adoption across EV, BESS, consumer, and industrial battery applicationsStrategic investments to support customer growthCapacity expansions in the U.S. and China to meet expected demand growth across battery applicationsExpansion leverages existing footprint, providing a capital-efficientapproach for capacity additionsStrategic investments to support customer growthCapacity expansions in the U.S. and China to meet expected demand growth across battery applicationsExpansion leverages existing footprint, providing a capital-efficientapproach for capacity additions
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Q3 2026 Financial HighlightsAdjusted EPS1$1.67Diluted EPS $0.12Cash & Cash Equivalents$250 MillionDebt Balance$1.3 BillionLiquidity$1.3 BillionYTD OperatingTax Rate129%FY26 forecast range of 28%-30%Capex$38 millionFY26 forecast range of $200 - $215 millionOperating Cash Flow$75 MillionDiscretionary Free Cash Flow1$91 MillionQ3 Fiscal 2026 71. Non-GAAP measure – See Appendix
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Reinforcement Materials SegmentOperating Performance Q3 Fiscal 2026 8 ΔQ3 FY25Q3 FY26(24%)$128M$97MSegment EBIT(20%)$146M$117MSegment EBITDA125%20%EBITDA Margin1Lower gross profit per ton driven by CY26 customer agreement outcomes partially offset by higher volumes and a more favorable regional product mixVolumes up 5% year-over-year with increases in Asia and the AmericasExpect a modest sequential EBIT declineAnticipate lower seasonal volumes and less favorable regional product mix impact, particularly in EMEAQ3 FY26 Highlights Q4 FY26 Outlook1. Non-GAAP measure – See Appendix
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Performance Chemicals SegmentOperating Performance Q3 Fiscal 2026 9Volumes increased year-over-year in the battery materials and fumed metal oxides product linesHigher gross profit per ton was primarily due to favorable product mix and price increases implemented ahead of rising material costsExpect segment EBIT to continue to be higher year-over-year, but lower sequentiallyLower sequential EBIT projection driven by lower expected seasonal volumes and the flow through of higher raw materialsQ3 FY26 Highlights Q4 FY26 OutlookΔQ3 FY25Q3 FY26+19%$57M$68MSegment EBIT+17%$78M$91MSegment EBITDA124%26%EBITDA Margin11. Non-GAAP measure – See Appendix
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Positioned for Continued Value Creation Q3 Fiscal 20261.Non-GAAP measure – See Appendix Tightening our fiscal 2026 Adjusted EPS1guidance range from $6.00 to $6.50 per share to $6.15 to $6.45 per shareExpect continued strong cash flow generation, balance sheet strength, and investment grade credit ratingTightening our fiscal 2026 Adjusted EPS1guidance range from $6.00 to $6.50 per share to $6.15 to $6.45 per shareExpect continued strong cash flow generation, balance sheet strength, and investment grade credit rating Fiscal 2026 financial outlook Fiscal 2026 financial outlook Infrastructure, electronics, and energy storage remain strong growth drivers for our businessInvesting in expected high-return growth projects, including conductive additive capacity expansions for battery materialsContinue to leverage operating platform of commercial and operational excellence along with global asset optimization to drive performanceLeadership transition provides continuity as we continue to execute our strategy and drive long term value creationInfrastructure, electronics, and energy storage remain strong growth drivers for our businessInvesting in expected high-return growth projects, including conductive additive capacity expansions for battery materialsContinue to leverage operating platform of commercial and operational excellence along with global asset optimization to drive performanceLeadership transition provides continuity as we continue to execute our strategy and drive long term value creationExecuting our strategy and investing for growthExecuting our strategy and investing for growth10
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QUESTIONS & ANSWERSQ3 Fiscal 2026 11
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APPENDIXQ3 Fiscal 2026 12
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FY26 Guidance & Modeling AssumptionsFull Year Modeling Assumptions~$6.15 to $6.45Adjusted Earnings per Share1~($72M) to ($75M)Interest Expense~$30M to $35MGeneral Unallocated Income (Expense)~$200M to $215MCapital Expenditures~$100M to $150M Shares Repurchases~28% to 30%Operating Tax Rate1 July RatesForecast FX RatesJuly Forward CurveOil & Energy PricesQ3 Fiscal 2026 131. Non-GAAP measure – See Appendix
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Use of Non-GAAP Financial MeasuresThis presentation includes references to adjusted earnings per share (EPS), 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 net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Segment EBITDA and Adjusted EBITDA to Income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non-GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow from operating activities, the most directly comparable GAAP financial measure, are provided in the tables included in our third quarter 2026 earnings release and filed on our Current Report on Form 8-K dated August 3, 2026.Reconciliations for segment EBITDA for each segment are included in the following slides.Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods.This presentation also includes our forecast of the range we expect our “operating tax rate”, which represents the tax rate on our recurring operating results, to fall within. This rate excludes discrete tax items, which are included in the effective tax rate. Discrete tax items are comprised of (i) unusual or infrequent items, (ii) items related to uncertain tax positions, and (iii) other tax items, such as the impact from the timing of losses in certain jurisdictions and cumulative tax rate adjustments, the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvested assertions. The operating tax rate also excludes the impact of the items of expense and income we identify as certain items on both our operating income and the tax provision. Management believes that the operating tax rate is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis and to understand what our tax rate on current operations would be without the impact of these items.Cabot does not provide a forward-looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition-related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods.To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow from operating activities. To calculate “Free Cash Flow” we deduct capital expenditures as disclosed in the consolidated statement of cash flows (as Additions to property, plant and equipment) from cash flow from operating activities.Explanation of Terms UsedProduct Mix.The term “product mix” refers to the mix of types and grade of products sold or the mix of geographic regions where products are sold, and the positive or negative impact this has on the revenue or profitability of the business or segment.Net Working Capital.The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued liabilities.Q3 Fiscal 2026 14
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Non-GAAP Financial MeasuresAdjusted EPS Q3 Fiscal 2026 15Dec. Q Mar. Q June Q Sept. Q FY 20261.37$ 1.27$ 0.12$ —$ 2.77$ (0.16) (0.34) (1.55) — (2.05) 1.53$ 1.61$ 1.67$ —$ 4.82$ Dec. Q Mar. Q June Q Sept. Q FY 20251.67$ 1.69$ 1.86$ 0.79$ 6.02$ (0.09) (0.21) (0.04) (0.91) (1.23) 1.76$ 1.90$ 1.90$ 1.70$ 7.25$ (A)Fiscal 2026 (A )Fiscal 2025 (A )Per share amounts are calculated after tax.Reconciliation of Adjusted EPS to GAAP EPSNet income (loss) per share attributable to Cabot CorporationLess: Certain items after tax per shareAdjusted earnings (loss) per shareReconciliation of Adjusted EPS to GAAP EPSNet income (loss) per share attributable to Cabot CorporationLess: Certain items after tax per shareAdjusted earnings (loss) per share
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Non-GAAP Financial MeasuresAdjusted EBITDA Q3 Fiscal 2026 16 Fiscal 2025 Fiscal 2026June Q June Q155$ 58$ 19 18 3 78 (6) (5) (1) (2) 39 43 211$ 194$ General unallocated (income) expenseLess: Equity in earnings of affiliated companiesDepreciation and amortizationAdjusted EBITDADollars in millionsReconciliation of Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companiesIncome (loss) from operations before income taxes and equity in earnings of affiliated companiesInterest expenseCertain items
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Non-GAAP Financial MeasuresSegment EBITDA Q3 Fiscal 2026 17 Fiscal 2025 Fiscal 2026June Q June Q128$ 97$ 18 20 146$ 117$ 573$ 599$ 25%20%Fiscal 2025 Fiscal 2026June Q June Q57$ 68$ 21 23 78$ 91$ 320$ 351$ 24%26%Dollars in millionsDollars in millionsPerformance Chemicals Depreciation and amortizationPerformance Chemicals EBITDAPerformance Chemicals Sales Performance Chemicals EBITDA Margin Reinforcement Materials Depreciation and amortizationReinforcement Materials EBITDA Reinforcement Materials SalesReinforcement Materials EBITDA Margin Performance Chemicals EBIT Reinforcement Materials EBIT
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Non-GAAP Financial MeasuresFree Cash Flow (FCF) & Discretionary Free Cash Flow (DFCF) Q3 Fiscal 2026 18Dec. Q Mar. Q June Q Sept. Q FY 2026126$ 77$ 75$ ―$ 278$ 69 45 38 — 152 57$ 32$ 37$ ―$ 126$ 69 45 38 — 152 5 (19) (44) — (58) 50 33 28 — 111 71$ 63$ 91$ ―$ 225$ (B)As provided in the Condensed Consolidated Statements of Cash Flows.(C)Fiscal 2026Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activitiesDefined as changes in Accounts and notes receivable, Inventories, and Accounts payable and accrued liabilities as presented on the Condensed Consolidated Statements of Cash Flows.Dollars in millionsLess: Sustaining and compliance capital expendituresDiscretionary free cash flowCash provided by (used in) operating activities (B)Less: Additions to property, plant and equipmentFree cash flowPlus: Additions to property, plant and equipmentLess: Changes in net working capital (C)
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Non-GAAP Financial MeasuresOperating Tax Rate Q3 Fiscal 2026 19 (Provision) / Benefit for Income Taxes Rate (Provision) / Benefit for Income Taxes Rate(46)$ 79%(43)$ 28%(4) — (42)$ 31%(43)$ 28% (Provision) / Benefit for Income Taxes Rate (Provision) / Benefit for Income Taxes Rate(127)$ 43%(133)$ 29%(14) (6) (113)$ 29%(127)$ 28%20262025TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATEThree months ended June 30Dollars in millions (unaudited)20262025Operating tax rate (C) (D)Effective Tax RateLess: Non-GAAP tax adjustments(A)Operating tax rate (C) (D)Nine months ended June 30Dollars in millions (unaudited)Effective Tax RateLess: Non-GAAP tax adjustments(A)(A)(B)(C)(D)This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations. Our operating tax rate for fiscal 2026 is expected to be in the range of 28% to 30%.The operating tax rate is calculated based upon management's forecast of the annual operating tax rate for the fiscal year applied to adjusted pre-tax earnings. The operating tax rate excludes income tax (expense) benefit on certain items, discrete tax items and, on a quarterly basis the timing of losses in certain jurisdictions.Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes and tax accruals on historic earnings due to changes in indefinite reinvestment assertions.