Net income attributable to Cabot increased to $66 million from $43 million, while reported diluted earnings per share rose to $1.25 from $0.79.

Adjusted diluted earnings per share declined to $1.61 from $1.70.

The company said stronger performance in its Performance Chemicals segment was supported by increased volumes in specialty carbons and battery materials, improved product mix and lower costs.

Cabot also announced a federal funding agreement intended to support additional U.S. production capacity for advanced conductive additives.

Performance Chemicals Reports Higher Earnings

Performance Chemicals reported fourth-quarter sales of $340 million, compared with $308 million in the same period of fiscal 2025.

Segment earnings before interest and taxes (EBIT) increased to $60 million from $42 million, an improvement of $18 million.

The company attributed the increase primarily to higher gross profit per ton and increased volumes.

Higher gross profit per ton reflected favorable product mix and reduced costs.

Volumes increased in the Battery Materials and Specialty Carbons product lines compared with the prior-year quarter.

Cabot did not disclose a separate percentage volume increase specifically for specialty carbons.

The segment includes specialty carbon black and other performance materials used in coatings, printing inks, electronics and additional industrial applications.

For coatings formulators, specialty carbon materials can provide color, electrical conductivity and other functional properties, depending on grade and formulation requirements.

Reinforcement Materials Volumes Rise but Earnings Decline

Cabot's Reinforcement Materials segment reported fourth-quarter sales of $634 million, compared with $563 million a year earlier.

Segment EBIT declined to $87 million from $119 million.

The decrease reflected lower gross profit per ton, partially offset by higher sales volumes.

Cabot attributed the decline in gross profit per ton primarily to the outcome of its 2026 customer agreements and a less favorable regional product mix.

Global Reinforcement Materials volumes increased 5%.

Volumes rose 10% in Asia-Pacific and 3% in the Americas but declined 7% in Europe, the Middle East and Africa.

The company said higher volumes in Asia-Pacific and the Americas were supported in part by a capacity addition in Indonesia and an acquisition in Mexico.

The contrasting segment results indicate that higher sales and volumes did not translate into stronger profitability across every part of Cabot's business.

Federal Grant Supports U.S. Conductive Additive Production

Cabot also disclosed that it signed an agreement with the U.S. Department of Energy for a $50 million grant to support expansion of domestic production of advanced conductive additives for batteries.

The planned investments involve Cabot facilities in Louisiana and Texas.

According to the company, the projects are intended to strengthen its North American Battery Materials platform and expand capabilities serving battery energy storage systems, electric vehicles and other specialty battery applications.

Cabot reported $43 million in Battery Materials EBITDA for fiscal 2026, a new high for the product line.

The funding agreement represents an additional step toward expanding U.S. production capacity. The company did not state that the planned manufacturing expansions had been completed.

The announcement also did not identify the products involved as new coatings additives. The immediate manufacturing application is battery materials, although conductive carbon technologies are relevant to the broader functional-materials market.

Fiscal 2026 Results and Cash Flow

For the full fiscal year ended September 30, Cabot reported sales of $3.74 billion, compared with $3.71 billion in fiscal 2025.

Net income attributable to the company declined to $213 million from $331 million.

Reported diluted EPS declined to $4.02 from $6.02, while adjusted EPS decreased to $6.42 from $7.25.

Performance Chemicals reported full-year EBIT of $235 million, compared with $194 million in fiscal 2025.

Reinforcement Materials full-year EBIT declined to $379 million from $508 million.

Cash flow from operating activities totaled $421 million during fiscal 2026.

The company invested $207 million in capital expenditures, paid $97 million in dividends and repurchased $146 million in shares.

In the fourth quarter, operating cash flow totaled $143 million.

Cabot reported that higher raw-material costs contributed to a $10 million increase in net working capital during the quarter.

At September 30, the company had $254 million in cash and cash equivalents and approximately $1.5 billion in available liquidity.

Its net debt-to-EBITDA ratio was 1.4.

Fiscal 2027 Outlook

Cabot expects fiscal 2027 adjusted diluted earnings per share between $6.15 and $6.75.

The company anticipates continued volume growth in battery materials, electronics and selected strategic customer accounts.

Management also expects to maintain margins while managing energy costs and competitive pressures.

Cabot plans to continue previously announced restructuring measures, manufacturing optimization and investments in yield improvement technologies.

The results are among the first reported under President and CEO Erica McLaughlin, who assumed the leadership role October 1.

PCI previously covered McLaughlin's appointment as Cabot president and CEO.

Cabot's specialty carbon performance provides a useful indicator of demand for pigments and functional materials used in coatings. Explore PCI's coverage of paint and coating pigments and coatings additives.