Cabot Q4 adj EPS beats on strong chemicals segment

Overview

• US specialty chemicals maker's fiscal Q4 adjusted EPS beat analyst expectations

• Quarterly revenue rose yr/yr, driven by Performance Chemicals segment

• Company signed $50 mln US Energy Dept grant for battery materials expansion

Outlook

• Cabot expects fiscal 2027 Adjusted EPS between $6.15 and $6.75

• Company anticipates increasing volumes in battery materials, electronics, and strategic customer accounts

• Cabot expects to maintain solid margins while managing volatile energy input costs and competitive pressures

Result Drivers

• PERFORMANCE CHEMICALS - Co said Q4 adjusted EPS was driven by robust Performance Chemicals segment results

• REINFORCEMENT MATERIALS - Q4 EBIT in Reinforcement Materials declined due to lower gross profit per ton, partially offset by higher volumes in Asia Pacific and Americas

• BATTERY MATERIALS - Co achieved new high in battery materials EBITDA and signed $50 mln U.S. Energy Dept grant to expand domestic production

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "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 $90.00, about 20.9% above its October 30 closing price of $74.43

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

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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.)