Slides
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Q4 Fiscal 2026 1CABOT CORPORATIONEARNINGS TELECONFERENCEFOURTH QUARTER - FISCAL 2026
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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 fiscal year 2027, including our expectations for adjusted earnings per share ("EPS") for fiscal 2027, our expectations for the benefits from investments we expect to make to increase our battery materials production capacity in the U.S., our expectations for our profit margins, cash flows and capital allocation, and our expectations for future performance, including for the first quarter of fiscal 2027, growth and value creation for shareholders and our assumptions underlying those 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 capacity additions, new products, 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; litigation or legal proceedings; 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 atwww.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.Q4 Fiscal 2026 2
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Fiscal 2026 Financial HighlightsFourth-quarter performance and full-year financial results Q4 Fiscal 2026 31. Non-GAAP measure – See Appendix Q4 2026PERFORMANCE CHEMICALS$60MSegment EBITFULL-YEAR 2026ADJUSTED EPS¹$6.42Diluted EPS of $4.02$379MReinforcement Materialssegment EBIT$235MPerformance Chemicalssegment EBIT$421MCash flow fromoperations$243M returned to shareholders$97M dividends | $146M share repurchasesCASH FLOWS FROM OPERATIONS & RETURNS$143M$70M returned to shareholders REINFORCEMENT MATERIALS$87MSegment EBIT ADJUSTED EPS¹$1.61Diluted EPS $1.25
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Fiscal 2026 Strategic Highlights 4Q4 FISCAL 2026 Completed acquisition of new reinforcing carbons plant in MexicoPerforming well with long-term supply agreement for BridgestoneIntegration activities completed as planned and on-track to meet financial targets Continued recognition for strong sustainability performance6th straight year of EcoVadis platinum rating2026 Responsible Care® Awards from the American Chemistry Council (ACC) for Waste & Water Stewardship and Facility Safety Enhanced liquidity position in dynamic environmentIncreased corporate credit facility capacity to $1.3 billion; completed bond offering for $350 millionEnded the year with $1.5 billion in liquidity and net debt to EBITDA ratio of 1.4 times Strong strategic execution and financial performance for our Performance Chemicals segment New level of EBIT performance for both the segment and the Battery Materials product lineBuilt Battery Materials momentum through customer wins and targeted growth investments
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Battery Materials Delivered Strong PerformanceCustomer momentum, portfolio breadth and capital-efficient expansions reinforce the long-term growth opportunityFiscal 2026 performance of $43 million of EBTIDA ahead of expectations and EBITDA margins of 26%Signed a multi-year supply agreement with PowerCo SE, a leading European original equipment battery manufacturer Awarded $50 million DOE grant in the fiscal year to support our targeted U.S. conductive additives investmentsQ4 Fiscal 2026 5 Future investments underway to enable continued growth that supports industry growth projected to be 15% through 2030
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Q4 2026 Financial HighlightsAdjusted EPS1$1.61Diluted EPS $1.25Cash & Cash Equivalents2$254 MillionDebt Balance2$1.3 BillionLiquidity2$1.5 BillionYTD OperatingTax Rate129%Capex$55 millionFull year CapEx of $207 millionOperating Cash Flow$143 MillionDiscretionary Free Cash Flow1$117 MillionQ4 Fiscal 2026 61. Non-GAAP measure – See Appendix2. As of September 30, 2026
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Reinforcement Materials SegmentOperating Performance Q4 Fiscal 2026 7 ΔQ4 FY25Q4 FY26(27%)$119M$87MSegment EBIT(19%)$137M$111MSegment EBITDA124%18%EBITDA Margin1Lower gross profit per ton driven by CY26 customer agreement outcomes and less favorable regional product mix, partially offset by higher volumes Volumes up 5% year-over-year with increases in Asia and the AmericasExpect modest sequential EBIT improvement despite normal volume seasonality due to favorable regional product mixAnticipate lower year-over-year EBIT due to outcomes of our CY26 customer agreementsQ4 FY26 Highlights Q1 FY27 Outlook1. Non-GAAP measure – See Appendix
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Performance Chemicals SegmentOperating Performance Q4 Fiscal 2026 8Volumes increased year-over-year in the battery materials and specialty carbons product linesHigher gross profit per ton was primarily due to favorable product mix and lower costs Expect lower sequential EBIT driven by the timing of higher costs and less favorable product mixAnticipate higher year-over-year EBIT due to increased volumesQ4 FY26 Highlights Q1 FY27 OutlookΔQ4 FY25Q4 FY26+43%$42M$60MSegment EBIT+30%$64M$83MSegment EBITDA121%24%EBITDA Margin11. Non-GAAP measure – See Appendix
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Reinforcement Materials Business Environment Q4 Fiscal 20269 Global tire production forecast to grow 0.3% in CY 20261, including declines in the AmericasGlobally 0.9% growth forecast in CY 20271, with declines in China and growth in South Asia.Global tire production forecast to grow 0.3% in CY 20261, including declines in the AmericasGlobally 0.9% growth forecast in CY 20271, with declines in China and growth in South Asia.Sources: 1. Global Data LV Production Q3 Forecast2. GTT Import Data as of August TIRE PRODUCTION OUTLOOKREGIONAL TRADE FLOWS(Tire Imports YTD through August 20262)North America-5%North America-5%Relatively flat demand projected with regional differences and some positive signs on tire imports into North America and EuropeEurope-11%Europe-11%South America+21%South America+21%
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Performance Chemicals Business Environment 10Sources: 1. IHS LV Production Oct Forecast2. Benchmark Minerals Intelligence, Q3CY26 Forecast Certain end markets impacted by geopolitical and economic challengesAutomotive: A decline of -1.8% projected for light vehicle production in CY2026; modest global growth of 0.5% expected in CY20271Construction: Continued softness in China and Europe; U.S. market more resilientStrong growth expected in battery, conductive and electronic applications supported by macro tailwindsBattery: Strong demand growth of 15%2through 2030 supported by EVs and BESSConductive and Electronics: Growth expected supported by grid modernization, energy infrastructure investment and electronics applicationsCertain end markets impacted by geopolitical and economic challengesAutomotive: A decline of -1.8% projected for light vehicle production in CY2026; modest global growth of 0.5% expected in CY20271Construction: Continued softness in China and Europe; U.S. market more resilientStrong growth expected in battery, conductive and electronic applications supported by macro tailwindsBattery: Strong demand growth of 15%2through 2030 supported by EVs and BESSConductive and Electronics: Growth expected supported by grid modernization, energy infrastructure investment and electronics applicationsDIVERSE SET OF END MARKETSDiverse set of applications served provides growth opportunities to offset mixed expectations for automotive and construction applicationsQ4 Fiscal 2026
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Fiscal 2027 Outlook Q4 Fiscal 2026 11FAVORABLE FREE CASH FLOWCash generation supports strategic investments and return of capital to shareholders.ADJUSTED EPS¹$6.15 – $6.75EXPECTED TAX RATE28% – 30%$200M – $250MCAPITAL SPENDING$200M - $230M
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Focus Areas for Fiscal 2027 12Q4 FISCAL 2026 11GROW IN ATTRACTIVE END MARKETSAdvance volume growth with key customers and key growth markets, including in battery materials, conductive and electronics22STRENGTHENCOMPETITIVENESSDrive commercial and operational excellence and optimization actions, and complete previously announced restructuring activities33EXECUTING ORGANIC GROWTH PROJECTSExecute high-return, organic growth investments in Battery Materials and invest in yield and process technology to enhance our margins44PURSUE INORGANIC OPPORTUNITIESPursue opportunities that strengthen our competitive position, drive growth and provide attractive economic returns in a 3-to-5-year time frame
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Cabot is Well Positioned for the Future Q4 Fiscal 2026 13 Leading business positionsCompetitive cost positionStrong cash generationParticipation in high growth end marketsFlexible global footprintFinancial flexibilityA STRONG PLATFORM FOR VALUE CREATIONWell positioned for strong performance and to pursue attractive growth opportunities to deliver value for shareholdersA STRONG PLATFORM FOR VALUE CREATIONWell positioned for strong performance and to pursue attractive growth opportunities to deliver value for shareholders
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QUESTIONS & ANSWERSQ4 Fiscal 2026 14
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APPENDIXQ4 Fiscal 2026 15
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FY27 Guidance & Modeling AssumptionsFull Year Modeling Assumptions~$6.15 to $6.75Adjusted Earnings per Share1~($73M) to ($77M)Interest Expense~$28M to $36MGeneral Unallocated Income (Expense)~$200M to $230MCapital Expenditures~$150M to $250M Shares Repurchases~28% to 30%Operating Tax Rate1 October RatesForecast FX RatesOctober Forward CurveOil & Energy PricesQ4 Fiscal 2026 161. 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 fourth quarter 2026 earnings release and filed on our Current Report on Form 8-K dated November 2, 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 grades 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.Q4 Fiscal 2026 17
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Non-GAAP Financial MeasuresAdjusted EPS Q4 Fiscal 2026 18Dec. Q Mar. Q June Q Sept. Q FY 20261.37$ 1.27$ 0.12$ 1.25$ 4.02$ (0.16) (0.34) (1.55) (0.36) (2.40) 1.53$ 1.61$ 1.67$ 1.61$ 6.42$ 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)Reconciliation of Adjusted EPS to GAAP EPSNet income (loss) per share attributable to Cabot CorporationLess: Certain items after tax per shareAdjusted earnings (loss) per shareFiscal 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 share
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Non-GAAP Financial MeasuresAdjusted EBITDA Q4 Fiscal 2026 19Sept. Q Full Year Sept. Q Full Year115$ 565$ 110$ 406$ 20 76 21 75 17 30 15 109 (6) (28) (13) (36) (2) (7) (1) (6) 40 154 47 175 188$ 804$ 181$ 735$ Fiscal 2026Fiscal 2025General unallocated (income) expenseLess: Equity in earnings of affiliated companiesDepreciation and amortizationIncome (loss) from operations before income taxes and equity in earnings of affiliated companiesReconciliation of Adjusted EBITDA to Income (loss) from operations before income taxes and equity in earnings of affiliated companiesDollars in millionsInterest expenseCertain itemsAdjusted EBITDA
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Non-GAAP Financial MeasuresSegment EBITDA Q4 Fiscal 2026 20Sept. Q Full Year Sept. Q Full Year119$ 508$ 87$ 379$ 18 70 24 84 137$ 578$ 111$ 463$ 563$ 2,341$ 634$ 2,297$ 24%25%18%20%Sept. Q Full Year Sept. Q Full Year42$ 194$ 60$ 235$ 22 84 23 91 64$ 278$ 83$ 326$ 308$ 1,250$ 340$ 1,319$ 21%22%24%25%Fiscal 2026Fiscal 2025Fiscal 2025 Fiscal 2026Performance Chemicals Depreciation and amortizationPerformance Chemicals EBITDAPerformance Chemicals Sales Performance Chemicals EBITDA Margin Reinforcement Materials EBITDA Reinforcement Materials SalesReinforcement Materials EBITDA Margin Dollars in millionsPerformance Chemicals EBIT Reinforcement Materials EBITReinforcement Materials Depreciation and amortizationDollars in millions
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Non-GAAP Financial MeasuresFree Cash Flow (FCF) & Discretionary Free Cash Flow (DFCF) Q4 Fiscal 2026 21Dec. Q Mar. Q June Q Sept. Q FY 2026126$ 77$ 75$ 143$ 421$ 69 45 38 55 207 57$ 32$ 37$ 88$ 214$ 69 45 38 55 207 5 (19) (44) (10) (68) 50 33 28 36 147 71$ 63$ 91$ 117$ 342$ (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 Q4 Fiscal 2026 22 (Provision) / Benefit for Income Taxes Rate (Provision) / Benefit for Income Taxes Rate(38)$ 34%(63)$ 55%(3) (30) (35)$ 28%(33)$ 25% (Provision) / Benefit for Income Taxes Rate (Provision) / Benefit for Income Taxes Rate(165)$ 41%(196)$ 35%(17) (36) (148)$ 29%(160)$ 27%Operating tax rate (D) (E)Twelve months ended September 30Dollars in millions (unaudited)Effective Tax RateLess: Non-GAAP tax adjustments(B)Effective Tax RateLess: Non-GAAP tax adjustments(B)20262025Operating tax rate (D) (E)20262025TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATEThree months ended September 30Dollars in millions (unaudited)(B)(C)(D)(E)Our operating tax rate for fiscal 2027 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.This table indicates the line items where certain items are recorded in the Consolidated Statements of Operations.