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What changed in CABOT CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CABOT CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+282 added−283 removedSource: 10-K (2025-11-24) vs 10-K (2024-11-20)

Top changes in CABOT CORP's 2025 10-K

282 paragraphs added · 283 removed · 239 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

90 edited+9 added−21 removed67 unchanged
Biggest changeEnvironmental Protection Agency (“EPA”) and the Louisiana Department of Environmental Quality (“LDEQ”) regarding Cabot’s three carbon black manufacturing facilities in the U.S., and a significant portion of our anticipated capital expenditures for fiscal 2025 will continue to be for the installation of air pollution control equipment at our third and final plant in Ville Platte, Louisiana.
Biggest changeA significant portion of these costs have been for the installation of air pollution control equipment, including costs associated with our compliance with the Consent Decree we entered into in November 2013 with the U.S. Environmental Protection Agency (“EPA”) and the Louisiana Department of Environmental Quality (“LDEQ”) regarding Cabot’s three carbon black manufacturing facilities in the U.S.
In addition to general global economic conditions, demand for reinforcing carbons in tires is mainly influenced by the number of replacement and original equipment tires produced, which in turn is driven by (i) vehicle and driving 5 trends, including the number of miles driven, and the number of vehicles produced and registered, (ii) changes in supply chain inventory levels to adapt to end-market demand, (iii) demand for high-performance tires, (iv) demand for larger tires and larger vehicles, such as trucks, buses, off-road vehicles used in agriculture, mining and similar vehicles, (v) demand for electric and hybrid vehicles, (vi) consumer and industrial spending on new vehicles and (vii) changes in regulatory requirements impacting vehicle fuel efficiency and tire regulations.
In addition to general global economic conditions, demand for reinforcing carbons in tires is mainly influenced by the number of replacement and original equipment tires produced, which in turn is driven by (i) vehicle and driving trends, including the number of miles driven, and the number of vehicles produced and registered, (ii) changes in supply chain inventory levels to adapt to end-market demand, (iii) demand for high-performance tires, (iv) demand for larger tires and larger 5 vehicles, such as trucks, buses, off-road vehicles used in agriculture, mining and similar vehicles, (v) demand for electric and hybrid vehicles, (vi) consumer and industrial spending on new vehicles and (vii) changes in regulatory requirements impacting vehicle fuel efficiency and tire regulations.
Fumed silica is an ultra-fine, high-purity particle used as a reinforcing, thickening, abrasive, thixotropic, suspending or anti-caking agent in a wide variety of products for the automotive, construction, microelectronics, batteries and consumer products 7 industries. These products include adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries and pharmaceuticals.
Fumed silica is an ultra-fine, high-purity particle used as a reinforcing, thickening, abrasive, thixotropic, suspending or anti-caking agent in a wide variety of products for the automotive, construction, microelectronics, batteries and consumer products industries. These products include adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing 7 slurries and pharmaceuticals.
Additionally, because E2C®solutions can be integrated into current product methods without additional significant capital investment, and require fewer mixing stages, lower mixing temperatures and shorter mixing cycles than conventional products, operating and production costs may be reduced. E2C® is one of our focus areas for growth. In fiscal 2023, we launched a new technology platform, EVOLVE® Sustainable Solutions.
Additionally, because E2C® composites can be integrated into current product methods without additional significant capital investment, and require fewer mixing stages, lower mixing temperatures and shorter mixing cycles than conventional products, operating and production costs may be reduced. E2C is one of our focus areas for growth. In fiscal 2023, we launched a new technology platform, EVOLVE® Sustainable Solutions.
Our Core Values & Culture 10 Our deeply held values of integrity, respect, excellence and responsibility are the foundation of our company and the way we operate. They are the standards by which we interact with our customers, stakeholders and each other, fostering a positive working environment that inspires collaboration and innovation, and supports our focus on delivering shareholder value.
Our Core Values & Culture Our deeply held values of integrity, respect, excellence, and responsibility are the foundation of our company and the way we operate. They are the standards by which we interact with our customers, stakeholders, and each other, fostering a positive working environment that inspires collaboration and innovation, and supports our focus on delivering shareholder value.
Adjustments are made to the reserve based on our continuing analysis of our share of costs likely to be incurred at each site. Inherent uncertainties exist in these estimates due to unknown conditions at the various sites, changing governmental regulations and legal standards regarding liability, and changing technologies for handling site investigation and 14 remediation.
Adjustments are made to the reserve based on our continuing analysis of our share of costs likely to be incurred at each site. Inherent uncertainties exist in these estimates due to unknown conditions at the various sites, changing governmental regulations and legal standards regarding liability, and changing technologies for handling site investigation and remediation.
Our R&D activities included those focused in the areas of conductive additives, inkjet dispersions and engineered elastomer composites. We are also focused on process innovation across our product lines. We are investing in furthering our sustainability efforts across various areas in order to reduce waste, reduce emissions and utilize more sustainable material in our production processes.
Our R&D activities included those focused in the areas of conductive additives, inkjet dispersions, and engineered elastomer composites. We are also focused on process innovation across our product lines. We are investing in furthering our sustainability efforts across various areas in order to reduce emissions and utilize more sustainable material in our production processes.
We intend to pace our investments in additional battery materials manufacturing capacity to meet demand. 9 Global Operations Both of our segments operate globally, and a significant portion of our revenues and operating profits is derived from operations outside the U.S.
We intend to pace our investments in additional battery materials manufacturing capacity to meet demand. Global Operations Both of our segments operate globally, and a significant portion of our revenues and operating profits is derived from operations outside the U.S.
Our specialty compounds are predominately produced in facilities that we own, or have a controlling interest in, located in Belgium, Canada, China and the United Arab Emirates. Our inkjet colorants and inks are manufactured at our facility in the U.S.
Our specialty compounds are predominately produced in facilities that we own, or have a controlling interest in, located in Belgium, Canada, Indonesia, China, and the United Arab Emirates. Our inkjet colorants and inks are manufactured at our facility in the U.S.
Raw Materials The principal raw material used in the manufacture of our reinforcing carbons is composed of by-product residual heavy oils derived from petroleum refining operations, the distillation of coal tars, and the production of ethylene throughout the world.
The principal raw material used in the manufacture of our reinforcing carbons is composed of by-product residual heavy oils derived from petroleum refining operations, the distillation of coal tars, and the production of ethylene throughout the world.
As described above, environmental agencies worldwide are increasingly implementing regulations and other requirements resulting in more restrictive air emission limits globally, particularly as they relate to nitrogen oxide, sulfur dioxide and particulate matter emissions.
As described above, environmental agencies worldwide are increasingly implementing regulations and other requirements resulting in more restrictive air emissions limits globally, particularly as they relate to nitrogen oxide, sulfur dioxide and particulate matter emissions.
Through our global SHE & Sustainability Commitment, which is endorsed by our Executive Committee and adopted by our Board of Directors, we hold ourselves accountable to demonstrate our company values and continuously improve the way we operate.
Through our global SHE & Sustainability Commitment, which is endorsed by our Management Executive Committee and adopted by our Board of Directors, we hold ourselves accountable to demonstrate our company values and continuously improve the way we operate.
We have communicated IARC’s classification of carbon black to our customers and employees and have included that information in our safety data sheets and elsewhere, as appropriate.
We have communicated IARC’s classification of carbon black to our customers and 13 employees and have included that information in our safety data sheets and elsewhere, as appropriate.
Our inkjet inks, which utilize our pigment-based colorant dispersions, are used in the commercial printing segment for graphic arts. Drivers of Demand and Sales and Customers Our specialty carbons products have a wide variety of end-uses and demand is largely driven by the growth and development of the construction and infrastructure, automotive, electronics and consumer products industries.
Our inkjet inks, which utilize our pigment-based colorant dispersions, are used in the commercial printing segment within graphic arts. Drivers of Demand and Sales and Customers Our specialty carbons products have a wide variety of end-uses and demand is largely driven by the growth and development of the construction and infrastructure, automotive, electronics and consumer products industries.
This "feedstock" is not made-for-purpose, but is a by-product stream of other industrial processes and would generally otherwise be consumed as a fuel oil and burned for heat or power. Natural gas is also used as a feedstock in the production of our reinforcing carbons. Our manufacturing process also requires water and electricity.
This "feedstock" is not made-for-purpose; it is a by-product stream of other industrial processes and would generally otherwise be consumed as a fuel oil and burned for heat or power. Natural gas is also used as a feedstock in the production of our reinforcing carbons. Our manufacturing process also requires water and electricity.
These areas of focus are also represented in our 2025 Sustainability Goals, which include: • fostering an environment where employees report high levels of inclusion and support for their professional development; • increasing diverse representation in leadership and professional roles; and • reducing injuries and frequency of significant process safety events by 50%.
These areas of focus are also represented in our 2025 Sustainability Goals, which include: • fostering an environment where employees report high levels of inclusion and support for their professional development; • increasing broad representation in leadership and professional roles; and • reducing injuries and frequency of significant process safety events by 50%.
As part of our “Drive to Zero” initiative, we have set a long-term goal of achieving zero injuries at our facilities worldwide.
As part of our “Drive to Zero” initiative, we have set a long-term goal of achieving zero injuries at our 11 facilities worldwide.
Our conductive additives consist of conductive carbons, carbon nanotubes and carbon nano structures, and blends of these materials, each of which offers different levels of conductivity and formulation flexibility for battery manufacturers to address performance (energy density, fast charging), cost and safety.
Our conductive additives consist of conductive carbons, carbon nanotubes and carbon nano structures, and blends of these materials, each of which offers different levels of conductivity and formulation flexibility for battery manufacturers to address performance (energy density, cycle life, fast charging), cost and safety.
Demand for our inkjet colorants is mainly influenced by developments in print media, pages printed in office and work-from-home environments, as well as press sales and utilization levels as digital aqueous pigment-based inks penetrate commercial and packaging applications historically served by analog printing methods. Sales of these products are made by Cabot employees and through distributors and sales representatives.
Demand for our inkjet colorants is mainly influenced by developments in print media, pages printed in office and work-from-home environments, as well as press sales and utilization levels as digital aqueous pigment-based inks penetrate graphic arts and packaging applications historically served by analog printing methods. Sales of these products are made by Cabot employees and through distributors and sales representatives.
Of this global employee population, 42% are employed in manufacturing roles. Our Management Executive Committee (“Executive Committee”) is comprised of our CEO and his nine direct reports who, collectively, have management responsibility for our businesses and regional operations, our financial, legal, safety, health, environment and sustainability, human resources, research and development, global business services and digital functions.
Of this global employee population, 43% are employed in manufacturing roles. Our Management Executive Committee (“Executive Committee”) is comprised of our CEO and his nine direct reports who, collectively, have management responsibility for our businesses and regional operations, our financial, legal, safety, health, environment and sustainability, human resources, research and development, global business services, global engineering, and digital functions.
Accordingly, our management team places significant focus and attention on matters concerning Cabot’s workforce – particularly in the areas of employee health and safety, talent, engagement, diversity, retention and development, and total rewards.
Accordingly, our management team places significant focus and attention on matters concerning Cabot’s workforce – particularly in the areas of employee health and safety, talent, engagement, composition, retention and development, and total rewards.
The recent investments we have made for growth in this segment, including in respect of these specific areas of focus, are described below under the heading “Operations”.
The recent investments we have made for growth in this segment, including with respect to these specific areas of focus, are described below under the heading “Operations”.
Recognizing that it may take many years to achieve our Drive to Zero goal, we have established a continuous improvement goal for personal safety to achieve a 50% reduction in our recordable and severe injury rate from our baseline measurement in 2019 by 2025.
Recognizing that it may take many years to achieve our Drive to Zero goal, we established a continuous improvement goal for personal safety to achieve a 50% reduction in our recordable and severe injury rate from our baseline measurement in calendar year 2019 by calendar year 2025.
While our trademarks are important to Cabot, the loss of any one of our trademarks would not materially affect our business, taken as a whole. Research and Development Our products are highly versatile and meet specific performance requirements across many industries, creating opportunities for innovation. In fiscal 2024, we spent approximately $63 million on technology development.
While our trademarks are important to Cabot, the loss of any one of our trademarks would not materially affect our business, taken as a whole. Research and Development Our products are highly versatile and meet specific performance requirements across many industries, creating opportunities for innovation. In fiscal 2025, we spent approximately $59 million on technology development.
The dispersions are used in aqueous inkjet inks to impart color, sharp print characteristics and durability, while maintaining high printhead reliability. These products are used in various inkjet printing applications, including traditional work-from-home and corporate office settings, and, increasingly, in commercial and corrugated packaging, all of which require a high level of dispersibility and colloidal stability.
The dispersions are used in aqueous inkjet inks to impart color, sharp print characteristics and durability, while maintaining high printhead reliability. These products are used in various inkjet printing applications, including traditional work-from-home and corporate office settings, and, increasingly, in graphic arts and packaging printing applications, all of which require a high level of dispersibility and colloidal stability.
(See “Legal Proceedings” in Item 3 below, and Note T in Item 8 below, under the heading “Contingencies”.) During the next several years, as remediation of various environmental sites is carried out, we expect to spend against our environmental reserve for costs associated with such remediation. As of September 30, 2024, our environmental reserve was approximately $5 million.
(See “Legal Proceedings” in Item 3 below, and Note S in Item 8 below, under the heading “Contingencies”.) During the next several years, as remediation of various environmental sites is carried out, we expect to spend against our environmental reserve for costs associated with such remediation. As of September 30, 2025, our environmental reserve was approximately $5 million.
The following table shows our ownership interest as of September 30, 2024 in operations in which we own less than 100%: Location Percentage Interest Tianjin, China (Specialty Carbons and Compounds business) 90% (consolidated subsidiary) Jiangxi Province, China (Fumed Metal Oxides business) 90% (consolidated subsidiary) Wuhai, China (Fumed Metal Oxides business) 80% (consolidated subsidiary) Mettur Dam, India (Fumed Metal Oxides business) 50% (equity affiliate) Currently, four of our reinforcing carbons/specialty carbons manufacturing sites have energy centers.
The following table shows our ownership interest as of September 30, 2025 in operations in which we own less than 100%: Location Percentage Interest Tianjin, China (Specialty Carbons and Compounds business) 90% (consolidated subsidiary) Jiangxi Province, China (Fumed Metal Oxides business) 90% (consolidated subsidiary) Wuhai, China (Fumed Metal Oxides business) 80% (consolidated subsidiary) Mettur Dam, India (Fumed Metal Oxides business) 50% (equity affiliate) Cilegon, Indonesia (Specialty Compounds business) 98% (consolidated subsidiary) Currently, four of our reinforcing carbons/specialty carbons manufacturing sites have energy centers.
Examples of benefit programs we offer in the U.S. include a robust 401(k) plan that exceeds market standards in levels of employer matching, expansive health benefits (including medical, dental and/or vision), life and accident insurance, disability coverage, paid time off, tuition reimbursement and other voluntary benefits.
Examples of benefit programs we offer in the U.S. include a 401(k) plan that exceeds market standards in levels of employer matching contributions, health benefits (including medical, dental and vision), life and accident insurance, disability coverage, paid time off, tuition reimbursement, and other voluntary benefits.
We continue to be recognized as an American Chemistry Counsel Responsible Care® company and as part of our commitment to Responsible Care, we remain focused on continuously improving the health and safety of our processes and products.
We continue to be recognized as an American Chemistry Counsil Responsible Care® company, and, as part of our commitment to Responsible Care, we remain focused on continuously improving the health and safety of our people, processes, and products.
In our specialty carbons and specialty compounds product lines, sales are generally to a broad number of customers. In our fumed metal oxides product line, sales under contracts with five customers account for approximately one-third of the revenue. In our battery materials product line, sales to three customers account for approximately 50% of revenue.
In our specialty carbons and specialty compounds product lines, sales are generally to a broad number of customers. In our fumed metal oxides product line, sales under contracts with six customers account for approximately one-third of the revenue. In our battery materials product line, sales to four customers account for approximately 50% of revenue.
In addition, our electrically conductive compound products generally are used to help ensure uniform conductive performance and reduce risks associated with electrostatic discharge in plastics applications. Our battery materials products include our conductive additives and fumed alumina, which are used principally in advanced lead acid and lithium-ion batteries used in electric vehicles.
In addition, our electrically conductive compound products generally are used to help ensure uniform conductive performance and reduce risks associated with electrostatic discharge in plastics applications. Our battery materials products include our conductive additives and fumed alumina, which are used principally in lithium-ion batteries used in electric vehicles and energy storage systems, as well as advanced lead acid batteries.
Our plan assumes a potential investment in carbon capture, utilization and storage technology at the plant that would be installed and operational for these operations by 2050.
Our plan assumes a potential investment in carbon capture, utilization and storage technology at the plant that would be installed and operational by 2050.
The use of E2C®solutions enables our customers to produce better performing tires, including giant off-the-road tires and on-road commercial tires, as well as other rubber products used in high-wear applications such as mining.
The use of E2C® composites enable our customers to produce better performing tires, including giant off-the-road tires and on-road commercial tires, as well as other rubber products used in high-wear applications such as mining.
These arrangements typically provide for sales price adjustments to account for changes in relevant feedstock costs including natural gas and, in many cases, changes in other relevant costs (such as the cost of CO 2 credits in Europe, vendor financing and product delivery). In fiscal 2024, approximately two-thirds of our reinforcing carbons volume was sold under these supply arrangements.
These arrangements typically provide for sales price adjustments to account for changes in relevant feedstock costs including natural gas and, in many cases, changes in other relevant costs (such as the cost of CO 2 credits in Europe, vendor financing and product delivery). In fiscal 2025, approximately sixty percent of our reinforcing carbons volume was sold under these supply arrangements.
In addition to our reinforcing carbons, we manufacture engineered elastomer composites (“E2C®”) solutions that are composites of reinforcing carbons and rubber made using our patented elastomer composites manufacturing process.
In addition to our reinforcing carbons, we manufacture engineered elastomer composites (“E2C”) solutions that are composites of reinforcing carbons and rubber made using our patented elastomer composites manufacturing process.
In addition, we have a 98% ownership interest in an entity that manufactures our E2C® products in Port Dickson, Malaysia. 6 The following table shows our ownership interest as of September 30, 2024 in operations in which we own less than 100%: Location Percentage Interest Shanghai, China 70% (consolidated subsidiary) Tianjin, China 70% (consolidated subsidiary) Xingtai City, China 60% (consolidated subsidiary) Valasske Mezirici (Valmez), Czech Republic 52% (consolidated subsidiary) Cilegon, Indonesia 98% (consolidated subsidiary) Port Dickson, Malaysia 98% (consolidated subsidiary) Valencia, Venezuela 49% (equity affiliate) In 2024, we began an expansion project at our Cilegon, Indonesia plant to add approximately 80,000 metric tons of capacity for reinforcing carbons which we anticipate becoming available in fiscal 2025.
In addition, we have a 98% ownership interest in an entity that manufactures our E2C products in Port Dickson, Malaysia. 6 The following table shows our ownership interest as of September 30, 2025 in operations in which we own less than 100%: Location Percentage Interest Shanghai, China 70% (consolidated subsidiary) Tianjin, China 70% (consolidated subsidiary) Xingtai City, China 60% (consolidated subsidiary) Valasske Mezirici (Valmez), Czech Republic 52% (consolidated subsidiary) Cilegon, Indonesia 98% (consolidated subsidiary) Port Dickson, Malaysia 98% (consolidated subsidiary) Valencia, Venezuela 49% (equity affiliate) In 2025, we completed our expansion project at our Cilegon, Indonesia plant, which added approximately 80,000 metric tons of capacity for reinforcing carbons.
We have expended and will continue to expend considerable resources to construct, maintain, operate, and improve our facilities throughout the world for safety, health and environmental protection and to comply with SH&E Requirements. We spent $58 million in environmental-related capital expenditures in fiscal 2024. We anticipate spending approximately $78 million for such matters in fiscal 2025.
We have expended and will continue to expend considerable resources to construct, maintain, operate, and improve our facilities throughout the world for safety, health and environmental protection and to comply with SH&E Requirements. We spent $74 million in environmental-related capital expenditures in fiscal 2025. We anticipate spending approximately $60 million for such matters in fiscal 2026.
In addition, we are evaluating the future potential applicability of the new carbon border adjustment mechanism (“CBAM”) program in the EU as an alternative to free allowances under the EU ETS and as a system complementary to the EU ETS.
In addition, we will continue to evaluate the future potential applicability of the new carbon border adjustment mechanism (“CBAM”) program in the EU as an alternative to free allowances under the EU ETS and as a system complementary to the EU ETS.
Employee Health & Safety We believe that one of our primary responsibilities as an employer is to provide a safe work environment and promote wellness across the workforce. Our goal is for all employees, contractors, and visitors to return home in the same condition as when they arrived at work that day.
Employee Health & Safety We believe that our primary responsibilities as an employer include providing a safe work environment and promoting wellness across the workforce. Our goal is for all employees, contractors, and visitors to return home in the same condition as when they arrived at work that day.
In fiscal 2024, sales in China across our segments constituted approximately 25% of our revenues, and our property, plant and equipment located in China constituted approximately 25% of our total property, plant and equipment as of September 30, 2024, as disclosed in Note V to our Consolidated Financial Statements.
In fiscal 2025, sales in China across our segments constituted approximately 25% of our revenues, and our property, plant, and equipment located in China constituted approximately 21% of our total property, plant and equipment as of September 30, 2025, as disclosed in Note U to our Consolidated Financial Statements.
As a result of revisions to the EU ETS program following the ETS Directive reform adopted in May 2023 that increased the ambition of the EU ETS, the free allowances under the program will be phased out over time likely resulting in increased costs to the Company due to an increased need to purchase emission credits.
As a result of revisions to the EU ETS program following the ETS Directive reform adopted in May 2023 that increased the ambition of the EU ETS, the free allowances under the program will be phased out over time, and we anticipate increased costs to the Company beginning in 2026 due to an increased need to purchase emission credits.
Our drive to zero pillar is our goal of achieving zero injuries at all of our facilities worldwide. · One Cabot: We make decisions and act in Cabot's best interest in a collaborative manner. · Renewal mindset: We challenge ourselves to think differently, learn, adapt and continuously improve our way of working · Accountable: We take personal ownership and accountability for our actions, performance and results. · Inclusive: We strive to provide a diverse, equitable and inclusive environment where everyone feels accepted and valued with the opportunity to grow.
Our drive to zero pillar is our goal of achieving zero injuries at all of our facilities worldwide. · One Cabot: We make decisions and act in Cabot's best interest in a collaborative manner. · Renewal mindset: We challenge ourselves to think differently, learn, adapt, and continuously improve our way of working. · Accountable: We take personal ownership and accountability for our actions, performance, and results. · Inclusive: We strive to provide an environment where everyone feels accepted and valued with the opportunity to grow. 10 Our Employees As of September 30, 2025, we had 4,064 employees.
For fiscal 2024, our Total Recordable Incident Rate (TRIR) based upon the number of injuries per 200,000 work hours for both employees and contractors was 0.22 and our Lost Time Incident Rate (LTIR) was 0.16. For comparison, the US Bureau of Labor Statistics reports for chemical manufacturing an average TRIR of 1.8 and LTIR of 0.6 in calendar year 2023.
For fiscal 2025, our Total Recordable Incident Rate (TRIR) based upon the number of injuries per 200,000 work hours for both employees and contractors was 0.17 and our Lost Time Incident Rate (LTIR) was 0.05. For comparison, the U.S. Bureau of Labor Statistics reports for chemical manufacturing an average TRIR of 1.8 and LTIR of 0.6 in calendar year 2023.
The SH&E Requirements to which our operations are subject include requirements to obtain and comply with various environmental-related permits for constructing any new facilities and operating all of our existing facilities and for product registrations.
The SH&E Requirements regulating our operations include requirements to obtain and comply with various environmental-related permits for constructing any new facilities and operating all of our existing facilities, as well as for product registrations.
Raw materials are, in general, readily available and in adequate supply. Raw material costs generally are influenced by the availability of various types of our feedstocks, supply and demand of such raw materials and related transportation costs.
Raw material costs generally are influenced by the availability of various types of our feedstocks, supply and demand of such raw materials and related transportation costs.
As of September 30, 2024, we have incurred $201 million to install these controls in the U.S. Operating these controls increases our plant operating costs. All carbon black manufacturers in the U.S. have settled with the EPA and have installed similar controls.
As of September 30, 2025, we have incurred $241 million to install these controls in the U.S. In addition, operating these technology controls increases our on-going plant operating costs. All carbon black manufacturers in the U.S. have settled with the EPA and have installed similar controls.
Our Board of Directors provides oversight of our human capital management efforts, with a focus on employee engagement and development, executive succession and compensation, diversity, equity and inclusion (DE&I), and employee health and safety.
Our Board of Directors provides oversight of our human capital management efforts, with a focus on employee composition, engagement and development, executive succession and compensation, and employee health and safety.
We typically “make and sell” in region, which, among other advantages, provides our customers a regional supply chain and typically reduces transportation costs. Sales to five major tire customers represent a material portion of Reinforcement Materials’ total net sales and operating revenues.
We have a regional asset base, and while we typically “make and sell” in region, which, among other advantages, provides our customers a regional supply chain and typically reduces transportation costs; our asset base allows us to also support global demand. Sales to five major tire customers represent a material portion of Reinforcement Materials’ total net sales and operating revenues.
As of September 30, 2024, we had approximately 4,200 employees across our global network of office and manufacturing locations, with 41% of our employees located in the Americas (61% of whom are in the United States), 32% in Asia Pacific (75% of whom are in China), and 27% in Europe, Middle East and Africa (“EMEA”).
As of September 30, 2025, we had approximately 4,100 employees across our global network of office and manufacturing locations, with 40% of our employees located in the Americas (60% of whom are in the United States), 33% in Asia Pacific (75% of whom are in China), and 27% in Europe, Middle East and Africa (“EMEA”).
Demand for our conductive additives for use in batteries is largely driven by the trend in electrification of vehicles.
Demand for our conductive additives for use in batteries is largely driven by the trend in electrification of vehicles and the increase in energy storage systems.
We also aim to provide highly competitive benefits programs in all the locations where we operate, including meeting or exceeding local regulations and focusing on health and welfare, employee well-being, employee assistance program (EAP), and retirement savings.
We also provided workshops to help leaders effectively address employee questions related to pay. We also aim to provide competitive benefits programs in all the locations where we operate, including meeting or exceeding local regulations and focusing on health and welfare, employee well-being, employee assistance program (EAP), and retirement savings.
In this reporting segment we combine our specialty carbons, specialty compounds, battery materials, fumed metal oxides, aerogel and inkjet product lines. Our focus areas for growth include conductive additives and other materials for battery applications, and inkjet dispersions for post print corrugated packaging applications.
In this reporting segment we combine our specialty carbons, specialty compounds, battery materials, fumed metal oxides, aerogel and inkjet product lines. Our focus areas for growth include conductive additives and other materials for battery applications, and inkjet dispersions for high-speed industrial printing applications, including packaging and graphic arts.
We focus on creating particles, and formulations of those particles, with the composition, morphology and surface functionalities to deliver the requisite performance to support our customers’ existing and emerging applications. Our business is currently organized into two reportable segments: Reinforcement Materials and Performance Chemicals. Our business segments are discussed in more detail later in this section.
We focus on creating particles, and formulations of those particles, with the composition, morphology, and surface functionalities to deliver the requisite performance to support our customers’ existing and emerging applications. Our business is currently organized into two reportable segments: Reinforcement Materials and Performance Chemicals. Our internet address is www.cabotcorp.com.
We believe our product differentiation, technological leadership, global manufacturing presence, operations and logistics excellence, sustainability performance, and customer service provide us with a competitive advantage.
We believe our product differentiation, technological leadership, global manufacturing presence, operations and logistics excellence, sustainability performance, and customer service provide us with a competitive advantage. Raw Materials Raw materials are, in general, readily available and in adequate supply.
The principal raw material used in the manufacture of our specialty carbons and conductive additives is composed of residual heavy oils derived from petroleum refining operations, the distillation of coal tars, and the production of ethylene throughout the world. Natural gas is also used in the production of our specialty carbons.
Raw Materials Raw materials for our products are, in general, readily available and in adequate supply. The principal raw material used in the manufacture of our specialty carbons and conductive additives is composed of residual heavy oils derived from petroleum refining operations, the distillation of coal tars, and the production of ethylene throughout the world.
In addition, in the EU, the large volume inorganic chemicals BREF is currently under revision, and we expect that requirements to install technology controls for sulfur dioxide and/or nitrogen oxide at the Company’s four carbon black facilities in the EU may be initiated starting as early as 2028.
In addition, in the EU, the large volume inorganic chemicals Best Available Technique Reference (“BREF”) is currently under revision, and we expect that requirements to install technology controls for sulfur dioxide and/or nitrogen oxide at the Company’s four carbon black facilities in the EU may be finalized in 2028 with a four year compliance deadline.
For specialty compounds, we compete with many regional companies and a small number of global companies. Our inkjet colorants and inks are designed to replace traditional pigment dispersions and dyes used in inkjet printing applications. Competitive products for inkjet colorants are organic dyes and other dispersed pigments manufactured and marketed by large chemical companies and small independent producers.
We also compete with non-aerogel insulation products manufactured by regional companies throughout the world. For specialty compounds, we compete with many regional companies and a small number of global companies. Our inkjet colorants and inks are designed to replace traditional pigment dispersions and dyes used in inkjet printing applications.
Talent Attraction, Development and Retention We have numerous initiatives and programs to attract, develop and retain our talent tailored to specific employee populations and geographies, including leadership and executive development programs, technical training, and other skill-based training.
Globally, 25% of our employees self-identify as women. In addition, 25% of our U.S. based employees self-identify as People of Color. Talent Attraction, Development and Retention We have numerous initiatives and programs to attract, develop and retain our talent tailored to specific employee populations and geographies, including leadership and executive development programs, technical training, and other skill-based training.
In Mexico, our carbon black facility is participating in the national ETS program, a transition from the pilot program that was in effect for our plant in 2023.
In Mexico, our carbon black facility is participating in the national ETS program, a transition from the pilot program that was in effect for our plant in 2023. In Japan, we expect our two carbon black plants to be subject to a national ETS program beginning in April 2026.
The opinion has not yet been published in the Adaptation to Technical Progress (ATP), which would make the classification legally binding. Our carbon nanotubes are bound in a matrix or contained within conductive materials in batteries, molded parts, plastics, coatings, adhesives, and sealants, and we do not believe they present a health risk to end users under normal use conditions.
Our carbon nanotubes are bound in a matrix or contained within conductive materials in batteries, molded parts, plastics, coatings, adhesives, and sealants, and we do not believe they present a health risk to end users under normal use conditions. Exposure to carbon nanotubes could occur in the workplace.
We also purchase aluminum chloride as feedstock for the production of fumed alumina. We have long-term procurement contracts or arrangements in place for the purchase of fumed silica feedstock primarily from fence-line partners, which we believe will enable us to meet our raw material requirements for the foreseeable future.
We have long-term procurement contracts or arrangements in place for the purchase of fumed silica feedstock primarily from fence-line partners, which we believe will enable us to meet our raw material requirements for the foreseeable future. In addition, we buy some raw materials in the spot market to help ensure flexibility and minimize costs.
We are currently in discussions with the EPA and LDEQ to extend our compliance date at the Ville Platte facility to 2025 based upon force majeure events primarily related to the COVID-19 pandemic. We expect that the total capital costs to install these technology controls will be approximately $250 million and will be incurred through mid-calendar year 2025.
We are currently in discussions with the EPA and LDEQ to extend our compliance date at the Ville Platte facility. We expect that the total capital costs to install these technology controls will be approximately $270 million and will be incurred through early 2026.
For fumed silica, we compete with two companies with a global presence and several other companies that have a regional presence. For aerogel, we compete globally principally with one other company that produces aerogel products. We also compete with non-aerogel insulation products manufactured by regional companies throughout the world.
For fumed alumina, we compete primarily with one manufacturer of fumed alumina that operates globally. For fumed silica, we compete with two companies with a global presence and several other companies that have a regional presence. For aerogel, we compete globally principally with one other company that produces aerogel products.
Our manufacturing processes also require water and electricity. The primary raw materials for our carbon nanotubes are catalysts that we synthesize and propylene. Raw materials for the production of fumed silica are various chlorosilane feedstocks. We purchase feedstocks and for certain customers convert their feedstock to product on a fee-basis (so called “toll conversion”).
Raw materials for the production of fumed silica are various chlorosilane feedstocks. We purchase feedstocks and for certain customers convert their feedstock to product on a fee-basis (so called “toll conversion”). We also purchase aluminum chloride as feedstock for the production of fumed alumina.
Raw materials for inkjet inks include pigment dispersions, solvents and other additives. Operations We own, or have a controlling interest in, and operate plants that produce specialty carbons primarily in China, the Netherlands and the U.S. We produce our conductive additives in China, and at our specialty carbon plants in the U.S. and in the Netherlands.
Operations We own, or have a controlling interest in, and operate plants that produce specialty carbons and produce and/or treat conductive additives primarily in China, the Netherlands, and the U.S.
The silica substance evaluation was concluded in 2021, and following this, the Netherlands has proposed a STOT RE 1 classification for untreated silica which has not yet been finalized. Carbon black is scheduled for a substance review in 2026. Analogous regimes exist in other parts of the world, including the UK, Turkey, China, South Korea, and Taiwan.
The silica substance evaluation was concluded in 2021, and following this, the Netherlands has proposed a STOT RE 1 classification for untreated silica which was recently adopted by ECHA, but has not yet been finalized. Carbon black is scheduled for a substance review in 2026.
Our carbon black facility in The Netherlands is also subject to The Netherlands CO2 tax, which is a top-up tax to the EU ETS scheme. In China, a national emissions trading program is currently in place for the power sector and is expected to be expanded to apply to the cement, steel, and electrolytic aluminum sectors.
In China, a national emissions trading program is currently in place for the power, cement, steel, and electrolytic sectors and it is expected to be expanded to apply to the carbon black sector in the future.
The primary raw materials used for our specialty compounds include carbon black, primarily sourced from our carbon black plants, prime and recycled thermoplastic resins and mineral fillers supplied from various sources. Raw materials for inkjet colorants include carbon black sourced from our carbon black plants, organic pigments and other treating agents available from various sources.
The principal raw materials for the production of aerogel are silica sol and/or sodium silicate. The primary raw materials used for our specialty compounds include carbon black, primarily sourced from our carbon black plants, prime and recycled thermoplastic resins and mineral fillers supplied from various sources.
If our ability to operate in China were to be constrained by legal, regulatory and operational risks, it could have a material negative impact on our overall operations and the value of our securities.
If our ability to operate in China were to be constrained by legal, regulatory, or operational risks, it could have a material negative impact on our overall operations and the value of our securities. 9 Patents and Trademarks We own and are a licensee of various patents, which expire at different times, covering many of our products as well as processes and product uses.
We are out of compliance with this new air standard and are in discussions with the MECP on an abatement plan regarding this requirement that we expect, in its current form, would require the installation of air pollution controls at the plant by July 1, 2028.
We are out of compliance with this 12 new air standard, and under the terms of the current abatement plan we have in place with the MECP regarding this requirement, we are required to install air pollution controls at the plant by July 1, 2028, with specified milestones before that date.
This settlement is related to the EPA’s national enforcement initiative focused on the U.S. carbon black manufacturing sector alleging non-compliance with certain regulatory and permitting requirements under The Clean Air Act, including the New Source Review (“NSR”) construction permitting requirements. 13 Pursuant to this settlement, Cabot has installed technology controls for sulfur dioxide and/or nitrogen oxide at its carbon black plants in Pampa, Texas and Franklin, Louisiana, and is in the process of installing such technology controls at its plant in Ville Platte.
This settlement is related to the EPA’s national enforcement initiative focused on the U.S. carbon black manufacturing sector alleging non-compliance with certain regulatory and permitting requirements under The Clean Air Act, including the New Source Review (“NSR”) construction permitting requirements.
Competition for our Performance Chemicals products is based on product performance, quality, reliability, service, technical innovation and price. We believe our product differentiation, technological leadership, operations excellence and customer service provide us with a competitive advantage. 8 Raw Materials Raw materials for our products are, in general, readily available and in adequate supply.
Competitive products for inkjet colorants are organic dyes and other dispersed pigments manufactured and marketed by large chemical companies and small independent producers. Competition for our Performance Chemicals products is based on product performance, quality, reliability, service, technical innovation and price. We believe our product differentiation, technological leadership, operations excellence and customer service provide us with a competitive advantage.
We have well-established performance management and talent development processes in which managers provide regular feedback and coaching to develop employees. Throughout the year, managers and employees engage in annual objective setting, quarterly reviews of goal progress, performance feedback, career development discussions, and a year-end performance evaluation.
Throughout the year, managers and employees engage in annual objective setting, quarterly reviews of goal progress, performance feedback, career development discussions, and a year-end performance evaluation. In addition, we regularly review talent development and succession plans for each of our functions and business segments to identify and develop a pipeline of talent.
As product purity is one of the most critical requirements for conductive carbons, we obtain raw materials for those products from select key suppliers. Our raw material costs generally are influenced by the availability of various types of our feedstocks and natural gas, supply and demand of such raw materials and related transportation costs.
Natural gas is also used in the production of our specialty carbons. As product purity is one of the most critical requirements for conductive carbons, we obtain raw materials for those products from select key suppliers.
Compliance with such requirements is not expected to have a material adverse effect on our operations.
We closely monitor all security-related regulatory developments and believe we are in compliance with all existing requirements. Compliance with such requirements is not expected to have a material adverse effect on our operations.
The majority of the volumes sold under these arrangements are sold to customers in the Americas and Europe. Much of the reinforcing carbons we sell is used in tires and automotive products and, therefore, our financial results may be affected by the cyclical nature of the automotive industry.
Much of the reinforcing carbons we sell is used in tires and automotive products and, therefore, our financial results may be affected by the cyclical nature of the automotive industry. The majority of the market for our products is in replacement tires which historically has been less cyclical as demand for replacement tires is correlated to miles driven.
Competition We are a leading producer of the products we sell in this segment. We compete in the sale of carbon black with three companies that operate globally and numerous other companies that operate regionally, a number of which export product outside their region of manufacture.
Competition We are a leading producer of the products we sell in this segment. We compete in the sale of specialty carbons and products for battery materials applications with a mix of global and regional companies. In recent years, a number of these companies that operate regionally have increased the export of products outside their region of manufacture.
Country-specific nanomaterial reporting programs have been implemented in some countries and are being developed by others. In the European Union, application-specific safety evaluations are ongoing for nanomaterials.
Additional requirements for nanomaterials apply to many of our existing products including carbon black, fumed silica, inkjet pigments, fumed alumina, and advanced carbons such as carbon nano structures and carbon nanotubes. Country-specific nanomaterial reporting programs have been implemented in some countries and are being developed by others. In the European Union, application-specific safety evaluations are ongoing for nanomaterials.
Exposure to carbon nanotubes could occur in the workplace. However, we believe workplace exposures can be appropriately managed with engineering controls in place at our manufacturing facilities and the use of required personal protective equipment at our sites.
However, we believe workplace exposures can be appropriately managed with engineering controls in place at our manufacturing facilities and the use of required personal protective equipment at our sites. A number of organizations and regulatory agencies have become increasingly focused on the issue of water scarcity, water conservation, and water quality, particularly in certain geographic regions.
We regularly assess these practices to ensure we are market competitive in each of our geographic locations, offering what we believe is a compelling and attractive place to work. Cabot is committed to ensuring that employees are paid fairly and without discrimination while taking into account job-related factors such as responsibilities, location, work experience, education, performance, and contributions.
Our pay practices reward achieving individual and Company performance goals and are equitably differentiated based on role, experience, contributions, and performance. Cabot is committed to ensuring that employees are paid fairly and without discrimination while taking into account job-related factors such as responsibilities, location, work experience, education, performance, and contributions.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeInformation technology systems failures, including those associated with our managed service provider or related to maintaining or upgrading our systems or integrating information technology and other systems in connection with the integration of businesses we acquire, or network disruptions could disrupt our operations by impeding our processing of transactions and our financial reporting, and our operations, including by contributing to a process safety event, any of which could have a material adverse effect on our business or results of operations.
Biggest changeFailures in our information technology systems, including those involving our managed service provider, could disrupt our business. Challenges may also arise when maintaining or upgrading our systems, or when integrating information technology and other systems as part of business acquisitions. Such disruptions could impede our ability to process transactions and affect our financial reporting.
We have experienced disruptions in the supply of raw materials from certain of our fence-line partners in recent years, which have caused us to curtail our operations or incur higher operating costs.
We have experienced disruptions in the supply of raw materials from certain of our fence-line partners in recent years, which caused us to curtail our operations or incur higher operating costs.
In addition, the increased emphasis on environmental justice, which is the fair treatment and meaningful involvement of all individuals and communities in which we operate, regardless of race, color, national origin, or income, with respect to the development, implementation and enforcement of environmental laws, regulations, and policies, could result in increased compliance requirements and costs.
In addition, an increased emphasis on environmental justice, which is the fair treatment and meaningful involvement of all individuals and communities in which we operate, regardless of race, color, national origin, or income, with respect to the development, implementation and enforcement of environmental laws, regulations, and policies, could result in increased compliance requirements and costs.
In addition, we collect and store certain data, including proprietary business information, and may have access to confidential or personal information that is subject to privacy and security laws and regulations. The secure processing, maintenance and transmission of this data is critical to our operations and business strategy.
In addition, we collect and store certain data, including proprietary business information, and may have access to confidential or personal information that is subject to privacy and security laws and regulations. The secure processing, maintenance and transmission of this data are critical to our operations and business strategy.
Significant movements or volatility in our carbon black feedstock costs could have an adverse effect on our working capital and results of operations. In addition, regulatory changes or geopolitical conflict may impact the availability and prices of our raw materials.
Significant movements or volatility in our carbon black feedstock costs could have an adverse effect on our working capital and results of operations. In addition, regulatory changes, tariffs, or geopolitical conflict may impact the availability and prices of our raw materials.
Additionally, as we increase our use of artificial intelligence tools into our operations, the risk of unauthorized access to our data and of making compliance errors or erroneous decisions based on our reliance on the AI tool will increase.
Additionally, as we increase our use of artificial intelligence tools into our operations, the risk of unauthorized access to our data and of making errors or erroneous decisions based on our reliance on the AI tool will increase.
Further, any such curtailments on the operations at our customers’ facilities could reduce demand for our products and our volumes. 18 Operational Risks As a chemical manufacturing company, our operations are subject to operational risks and have the potential to cause environmental or other damage as well as personal injury, or disrupt our ability to supply our customers, any of which could adversely affect our business, results of operations and cash flows.
Further, any such curtailments on the operations at our customers’ facilities could reduce demand for our products and our volumes. 17 Operational Risks As a chemical manufacturing company, our operations are subject to operational risks and have the potential to cause environmental or other damage as well as personal injury, or disrupt our ability to supply our customers, any of which could adversely affect our business, results of operations and cash flows.
If any supplier of raw materials ceases supplying raw materials to us or is unable to meet its obligations under supply agreements with us on a timely basis or at an acceptable price, or at all, we may be forced to incur higher costs to obtain the necessary raw materials elsewhere. 17 In addition, our manufacturing processes require water in their operations.
If any supplier of raw materials ceases supplying raw materials to us or is unable to meet its obligations under supply agreements with us on a timely basis or at an acceptable price, or at all, we may be forced to incur higher costs to obtain the necessary raw materials elsewhere. 16 In addition, our manufacturing processes require water in their operations.
Further, we attempt to pace our strategic investments, including those we are making to develop our battery materials business in Europe and the U.S. to meet market expectations for the growth in demand for electric vehicles, but, as has been the case with the transition to electric vehicles, market demand for and acceptance of new products may not develop as we expect and we may not realize growth in line with our expectations at the time we made such investments.
Further, we attempt to pace our strategic investments, including those we are making to develop our battery materials business in Europe and the U.S. to meet market expectations for the growth in demand for electric vehicles, but, as has been the case with the transition to electric vehicles, market demand for and acceptance of new products may not develop as we expect and we may not realize growth in line with our expectations at the time we make such investments.
As more fully described in Note T in Item 8 below under the heading “Contingencies”, we are a party to or the subject of lawsuits, claims, and proceedings, including, but not limited to, those involving environmental, and health and safety matters as well as product liability and personal injury claims relating to asbestosis, silicosis, and coal worker’s pneumoconiosis.
As more fully described in Note S in Item 8 below under the heading “Contingencies”, we are a party to or the subject of lawsuits, claims, and proceedings, including, but not limited to, those involving environmental, and health and safety matters as well as product liability and personal injury claims relating to asbestosis, silicosis, and coal worker’s pneumoconiosis.
In fiscal 2024, we derived a majority of our revenues from sales outside the U.S. Because our consolidated financial statements are presented in U.S. dollars, we must translate revenues and expenses, as well as assets and liabilities, into U.S. dollars at exchange rates in effect during or at the end of each reporting period.
In fiscal 2025, we derived a majority of our revenues from sales outside the U.S. Because our consolidated financial statements are presented in U.S. dollars, we must translate revenues and expenses, as well as assets and liabilities, into U.S. dollars at exchange rates in effect during or at the end of each reporting period.
Obtaining and maintaining these approvals requires a significant amount of product testing and data, and there is no certainty these approvals will be obtained. 19 Certain national and international health organizations have classified carbon black as a possible or suspected human carcinogen.
Obtaining and maintaining these approvals requires a significant amount of product testing and data, and there is no certainty these approvals will be obtained. 18 Certain national and international health organizations have classified carbon black as a possible or suspected human carcinogen.
These risks include the risk that existing plant operations are disrupted as well as the risk associated with delays in the start-up of operations using new technologies, which disruptions could make it difficult for us to meet our customer needs.
These risks include the risk that existing plant operations are disrupted as well as the risk associated with delays in the start-up of operations using new technologies, which disruptions could make it difficult for us to meet our customers’ needs.
Further, the capital improvements needed to comply with environmental requirements frequently involves the development and installation of new technologies within existing plant operations and there is a risk that these new technologies will not operate as we expect.
Further, the capital improvements needed to comply with environmental requirements frequently involve the development and installation of new technologies within existing plant operations and there is a risk that these new technologies will not operate as we expect.
If the competitiveness of chemical manufacturing in the EU continues to deteriorate in light of factors such as increased environmental compliance costs, inconsistent economic policies and rigid labor practices, our customers may have difficulty maintaining the competitiveness of their operations in this region or lose meaningful market share to lower cost imports from other regions, particularly Asia.
If the competitiveness of chemical manufacturing in the EU continues to deteriorate in light of factors such as increased environmental compliance costs, prolonged high energy costs, inconsistent economic policies and rigid labor practices, our customers may have difficulty maintaining the competitiveness of their operations in this region or lose meaningful market share to lower cost imports from other regions, particularly Asia.
Compliance with greenhouse gas and climate change initiatives may result in additional costs to us, including, among other things, increased production costs, increased feedstock costs, additional taxes, reduced emission allowances 16 or additional restrictions on production or operations.
Compliance with greenhouse gas and climate change initiatives may result in additional costs to us, including, among other things, increased production costs, increased feedstock costs, additional taxes, reduced emission allowances 15 or additional restrictions on production or operations.
Breaches of our security measures, cyber incidents and disruptions, the theft or accidental loss, inadvertent disclosure, or unapproved dissemination of proprietary information or sensitive or confidential information about the Company, our employees, our vendors, or our customers, or failure to comply with laws and regulations related to information security or privacy, could harm our competitive position, reduce the value of our investment in research and development and other strategic initiatives or result in 20 legal claims or proceedings against us by governmental entities or individuals, significant fines, penalties and judgments, disruption of our operations, remediation requirements, changes to our business practices, and damage to our reputation, and could otherwise harm our business and our results of operations.
Breaches of our security measures, cyber incidents and disruptions, use of AI tools, the theft or accidental loss, inadvertent disclosure, or unapproved dissemination of proprietary information or sensitive or confidential information about the Company, our employees, our vendors, or our customers, or failure to comply with laws and regulations related to information security or privacy, could harm our competitive position, reduce the value of our investment in research and development and other strategic initiatives 19 or result in legal claims or proceedings against us by governmental entities or individuals, significant fines, penalties and judgments, disruption of our operations, remediation requirements, changes to our business practices, and damage to our reputation, and could otherwise harm our business and our results of operations.
For example, our investments to further develop our E2C® solutions, inkjet dispersions and inks, and battery materials applications may not result in the earnings growth expectations on which these investments are being made.
For example, our investments to further develop our E2C® composites, inkjet dispersions and inks, and battery materials applications may not result in the earnings growth expectations on which these investments are being made.
Additionally, our operations in some countries, including China, are subject to the following risks: changes in the rate of economic growth; unsettled political or economic conditions; non-renewal of operating permits or licenses; possible expropriation or other governmental actions; corruption by government officials and other third parties; social unrest, war, terrorist activities or other armed conflict; confiscatory taxation or other adverse tax policies; deprivation of contract rights; trade regulations affecting production, pricing and marketing of products; reduced protection of intellectual property rights; restrictions or additional costs associated with repatriating cash; exchange controls; inflation; currency fluctuations and devaluation; political tension that could result in sanctions being imposed against our customers or suppliers in countries where sanctions have not been imposed in the past; the effect of global health, safety and environmental matters on economic conditions and market opportunities; and changes in financial policy and availability of credit.
Additionally, our operations in some countries, including China, are subject to various risks, including changes in the rate of economic growth; unsettled political or economic conditions; abrupt changes in regulation; possible expropriation or other governmental actions; corruption by government officials and other third parties; social unrest, war, terrorist activities or other armed conflict; confiscatory taxation or other adverse tax policies; deprivation of contract rights; trade regulations affecting production, pricing and marketing of products; reduced protection of intellectual property rights; restrictions or additional costs associated with repatriating cash; exchange controls; inflation; currency fluctuations and devaluation; political tension that could result in sanctions being imposed against our customers or suppliers in countries where sanctions have not been imposed in the past; the effect of global health, safety and environmental matters on economic conditions and market opportunities; and changes in financial policy and availability of credit.
Our future tax rates may be adversely affected by a number of factors, including: changes in the jurisdictions in which our profits are determined to be earned and taxed; changes in the estimated realization of our net deferred tax assets; the repatriation of non-U.S. earnings for which we have not previously accrued for non-U.S. withholding taxes; adjustments to estimated taxes upon finalization of various tax returns; increases in expenses that are not deductible for tax purposes; changes in available tax credits; the resolution of issues arising from tax audits with various tax authorities; and changes in tax laws including Pillar Two legislation adopted as part of the OECD Inclusion Framework, which established a global minimum corporate tax rate of 15% for certain multinational enterprises, or the interpretation of such tax laws.
Our future tax rates may be adversely affected by a number of factors, including: changes in the jurisdictions in which our profits are determined to be earned and taxed; changes in the estimated realization of our net deferred tax assets; the repatriation of non-U.S. earnings for which we have not previously accrued for non-U.S. withholding taxes; adjustments to estimated taxes upon finalization of various tax returns; increases in expenses that are not deductible for tax purposes; changes in available tax credits; the resolution of issues arising from tax audits with various tax authorities; and changes in tax laws including Pillar Two legislation adopted as part of the OECD Inclusion Framework, which established a global minimum corporate tax rate of 15% for certain multinational enterprises and the U.S. federal government enacted One Big Beautiful Bill Act or the interpretation of such tax laws.
Any dispute as to the terms of these contractual arrangements or deterioration in the relationship between us and our joint venture partner could disrupt the operations of the joint venture, which could affect our financial results and harm our reputation.
Any dispute as to the terms of these contractual arrangements or deterioration in the relationship between us and our joint venture partner, or the disruption or curtailment of a joint venture partner’s operations, could disrupt the operations of the joint venture, which could affect our financial results and harm our reputation.
Further, in our Reinforcement Materials segment we enter into supply arrangements with a number of key customers that typically have a duration of one year, which account for approximately two-thirds of our total reinforcing carbons volumes. Our success in negotiating the price and volume terms under these arrangements could have a material effect on our results.
Further, in our Reinforcement Materials segment we enter into supply arrangements with a number of key customers that typically have a duration of one year, which account for approximately sixty percent of our total reinforcing carbons volumes. Our success in negotiating the price and volume terms under these arrangements has a material effect on our results.
A description of these matters is included in the discussion under the heading “Safety, Health, Environment, and Sustainability” in Item 1 above, and in Note T in Item 8 below under the heading “Contingencies”.
A description of the regulatory matters is included in the discussion under the heading “Safety, Health, Environment, and Sustainability” in Item 1 above, and in Note S in Item 8 below under the heading “Contingencies”.
As set forth in Note V to our Consolidated Financial Statements, sales in China constituted approximately 25% of our revenues in fiscal 2024 and our property, plant and equipment located in China constituted approximately 25% of our total property, plant and equipment as of September 30, 2024.
As set forth in Note U to our Consolidated Financial Statements, sales in China constituted approximately 25% of our revenues in fiscal 2025 and our property, plant and equipment located in China constituted approximately 21% of our total property, plant and equipment as of September 30, 2025.
Sales outside of the U.S. constituted the majority of our revenues in fiscal 2024. We conduct business in several countries, including China, that have less stable legal systems and financial markets, and potentially more corrupt, or less predictable, business environments than the U.S.
Sales outside of the U.S. constituted the majority of our revenues in fiscal 2025. We conduct business in several countries, including China, that have less developed legal systems and financial markets, and potentially less predictable business environments than the U.S.
For example, in both fiscal 2023 and 2024, we recorded foreign exchange losses related to the remeasurement of our net monetary assets denominated in Argentine pesos, as the official Argentine exchange rate weakened compared to the U.S. dollar throughout the year.
For example, in each of the last three fiscal years, we recorded foreign exchange losses related to the remeasurement of our net monetary assets denominated in Argentine pesos, as the official Argentine exchange rate weakened compared to the U.S. dollar throughout the year.
Our operations and performance are affected by worldwide and regional economic conditions. Uncertainty or a deterioration in the economic conditions affecting the businesses to which, or geographic areas in which, we sell products could reduce demand for our products, while inflationary pressures may increase our costs.
Uncertainty or a deterioration in the economic conditions affecting the businesses to which, or geographic areas in which, we sell products could reduce demand for our products, while inflationary pressures may increase our costs.
We may not be successful in achieving our growth expectations from developing new products or product applications. Moreover, we cannot be certain that the costs we incur investing in new product and technology development will result in an increase in revenues or profits commensurate with our investment or within the time period we expect.
Moreover, we cannot be certain that the costs we incur investing in new product and technology development will result in an increase in revenues or profits commensurate with our investment or within the time period we expect.
Adverse rulings, judgments or settlements in pending or future litigation (including liabilities associated with respirator claims) or in connection with environmental remediation activities could adversely affect our financial results or cause our results to differ materially from those expressed or forecasted in any forward-looking statements. 21 Our tax rate and other tax obligations are dependent upon a number of factors, a change in any of which could impact our future tax rates and financial results.
Adverse rulings, judgments or settlements in pending or future litigation (including liabilities associated with respirator claims) or in connection with environmental remediation activities could adversely affect our financial results or cause our results to differ materially from those expressed or forecasted in any forward-looking statements.
We may not be able to offset the effects of these new or more stringent laws and regulations and compliance costs through price increases, which could adversely affect our business and negatively impact our growth. Our ability to implement price increases is largely influenced by competitive and economic conditions and could vary significantly depending on the segment served.
We may not be able to offset the effects of these new or more stringent laws and regulations and compliance costs through price increases, which could adversely affect our business and negatively impact our profitability and our growth.
Volatility in the price and availability of raw materials and energy could impact our margins and working capital and our revenues from our energy center operations. Our manufacturing processes consume significant amounts of energy and raw materials, the costs of which are subject to worldwide supply and demand as well as other factors beyond our control.
Our manufacturing processes consume significant amounts of energy and raw materials, the costs of which are subject to worldwide supply and demand as well as other factors beyond our control.
The effectiveness of these contracts is dependent on the ability of these financial counterparties to perform their obligations, and their nonperformance could harm our financial condition. We have entered into forward foreign currency contracts and cross-currency swaps as part of our financial risk management strategy.
We have entered into a number of derivative contracts with financial counterparties. The effectiveness of these contracts is dependent on the ability of these financial counterparties to perform their obligations, and their nonperformance could harm our financial condition.
In addition, we may encounter unexpected operating difficulties in China, more restrictive investment opportunities in China, greater difficulty transferring funds, more restrictive travel in and out of China, or negative currency impacts.
In addition, we may encounter unexpected operating difficulties in China, more restrictive investment opportunities in China, customers switching to non-U.S.-source products, greater difficulty transferring funds, or negative currency impacts.
In implementing this strategy, we may not be successful in separating non-strategic assets. The gains or losses on the divestiture of, or lost operating income from, such assets may affect our earnings.
In implementing this strategy, we may not be successful in separating non-strategic assets. The gains or losses on the divestiture of, or lost operating income from, such assets may affect our earnings. Moreover, we have in the past, and may again in the future, incur asset impairment charges related to acquisitions or divestitures that reduce earnings.
In achieving our strategic plan objectives, we may pursue acquisitions, alliances or joint ventures intended to complement or expand our existing businesses globally or add product technology, or both. The success of acquisitions of businesses, new technologies and products, or arrangements with third parties is not always predictable and we may not be successful in realizing our objectives as anticipated.
The success of acquisitions of businesses, new 22 technologies and products, or arrangements with third parties is not always predictable and we may not be successful in realizing our objectives as anticipated.
In addition, new disclosure requirements related to GHG emissions and climate change, including the European Sustainability Reporting Standards, any final rules approved by the SEC and upheld by the courts, and state laws requiring climate disclosure, may negatively impact our business by diverting resources, increasing our compliance costs and harming our reputation.
In addition, new disclosure requirements related to GHG emissions and climate change, including the European Sustainability Reporting Standards and U.S. state laws requiring climate disclosure, may negatively impact our business by diverting resources, increasing our compliance costs and harming our reputation. Further, more frequent weather-related impacts on our operations and plant sites may impact the cost or availability of insurance.
In addition, actions by our competitors could impair our ability to maintain or raise prices, successfully enter new markets or maintain or grow our market position. Environmental laws and regulations that affect our industries impose constraints on our operations, and could threaten our competitive position and increase our operating costs, which may adversely impact our business and results of operations.
Environmental laws and regulations that affect our industries impose constraints on our operations, and could threaten our competitive position and increase our operating costs, which may adversely impact our business and results of operations.
If any of our counterparties are unable to perform their obligations in the future, we could be exposed to increased earnings and cash flow volatility due to an instrument’s failure to hedge or adequately address a financial risk. 22 Technology Risks We may not be successful achieving our growth expectations from new products, new applications and technology developments, and money we spend on these efforts may not result in an increase in revenues or profits commensurate with our investment.
If any of our counterparties are unable to perform their obligations in the future, we could be exposed to increased earnings and cash flow volatility due to an instrument’s failure to hedge or adequately address a financial risk.
Our ability to compete successfully depends in part upon our ability to maintain a superior technological capability and to continue to identify, develop and commercialize new and innovative, high value-added products for existing and future customers.
This increase in tire exports from Asia and other actions by our competitors could also impact our ability to maintain or raise prices, successfully enter into new markets or maintain or grow our market position. 14 Further, our ability to compete successfully depends in part upon our ability to maintain a superior technological capability and to continue to identify, develop and commercialize new and innovative, high value-added products for existing and future customers.
We also experienced severe weather events in fiscal 2024 that negatively impacted the results of our Reinforcement Materials segment. Specifically, drought conditions in Mexico affected our operations and flooding conditions in Brazil affected our customers. Financial and Other Risks Negative or uncertain worldwide or regional economic conditions or trade relations may adversely impact our business.
We also experienced severe weather events in fiscal 2024 that negatively impacted the results of our Reinforcement Materials segment. Specifically, drought conditions in Mexico affected our operations and flooding conditions in Brazil affected our customers. In 2025, the typhoon in China caused property damage to our plant in Zhuhai.
Such increases may not be accepted by our customers, may not be sufficient to compensate for increased regulatory costs or may decrease demand for our products and our volume of sales. Any adopted future climate change regulations could also negatively impact our ability to compete with companies situated in areas not subject to such limitations.
Any adopted future climate change regulations could also negatively impact our ability to compete with companies situated in areas not subject to such limitations.
In the past, our networks have been subject to an attack, potentially by suspected foreign nation-state attackers, who conducted reconnaissance and deployed malware.
Additionally, these issues may impact on our operations, potentially contributing to a process safety event. Any of these scenarios may have a material adverse effect on our business or results of operations. In the past, our networks have been subject to an attack, potentially by suspected foreign nation-state attackers, who conducted reconnaissance and deployed malware.
Further, increasing weather-related impacts on our operations and plant sites may impact the cost or availability of insurance. We cannot predict how legal, regulatory and social responses to concerns about climate change, as well as other sustainability and environmental matters, will impact our business.
We cannot predict how legal, regulatory and social responses to concerns about climate change, as well as other sustainability and environmental matters, will impact our business. Volatility in the price and availability of raw materials and energy could impact our margins and working capital and our revenues from our energy center operations.
Licensing agreements may not be available to us, or if available, may not be available on acceptable terms. Portfolio Management, Capacity Expansion and Integration Risks Any failure to realize benefits from acquisitions, alliances or joint ventures or to achieve our portfolio management objectives could adversely affect future financial results.
Portfolio Management, Capacity Expansion and Integration Risks Any failure to realize benefits from acquisitions, alliances or joint ventures or to achieve our portfolio management objectives could adversely affect future financial results. In achieving our strategic plan objectives, we may pursue acquisitions, alliances or joint ventures intended to complement or expand our existing businesses globally or add product technology, or both.
In addition, escalating tensions in the U.S.-China trade relationship and/or actual or potential additional restrictive policies by either country could require us to duplicate the technology or other resources and capabilities we have in China, in a geography outside China, thereby increasing our costs.
In addition, tensions in the U.S.-China trade relationship and/or actual or potential additional restrictive policies by either country could cause us to duplicate, to the extent permitted under applicable law, the technology or other resources and capabilities we have in China, in a geography outside China, thereby increasing our costs. 20 Our global operations also expose us to risks associated with public health crises and outbreaks of epidemics, pandemics, or contagious diseases that could have a serious adverse impact on the economy and on our business, results of operations and cash flows.
Moreover, we have in the past, and may again in the future, incur asset impairment charges related to acquisitions or divestitures that reduce earnings. 23 Plant capacity expansions and site development projects may impact existing plant operations, be delayed and/or not achieve the expected benefits.
Plant capacity expansions and site development projects may impact existing plant operations, be delayed and/or not achieve the expected benefits.
For example, we are currently in arbitration following an on-going dispute with our joint venture partner in the Czech Republic, which has, and continues to, negatively impact those operations and reduce our income from those joint venture operations.
For example, we were recently in arbitration following a dispute with our joint venture partner in the Czech Republic, and although we were successful on the merits of the arbitration, while the dispute was on-going, it negatively impacted those operations.
The devotion of additional resources to the security of our information technology systems in the future could significantly increase the cost of doing business or otherwise adversely impact our financial results. Natural disasters and severe weather events could affect our operations and financial results.
In the case of a catastrophic cyber event, dedicating considerable resources to the restoration and security of our information technology systems may result in increased operational expenses and significant interruptions to business continuity, with the potential for negative financial consequences. Natural disasters and severe weather events could affect our operations and financial results.
Industry Risks 15 Industry capacity utilization and competition from other specialty chemical companies may adversely impact our business. Our businesses are sensitive to industry capacity utilization, and pricing tends to fluctuate when capacity utilization changes occur, which could affect our financial performance. Further, we operate in a highly competitive marketplace.
Our businesses are sensitive to changes in industry capacity utilization, and pricing tends to decrease when industry capacity utilization decreases, which affects our financial performance.
There may be delays in the start-up of these capital improvements and our ability to comply with these requirements in a timely manner. In particular, it is possible we will experience these issues at our plant in Sarnia in light of the complexity of the new technology we expect to install at that plant.
In addition, as with construction projects generally, these projects may be delayed because of the availability of labor and materials or contractor performance issues and may have unexpected cost increases . There may be delays in the start-up of these capital improvements and we may not be able to comply with environmental regulatory requirements in a timely manner.
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Our operations in the EU are material to our business and important to our customers.
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Industry Risks Our industry is highly competitive and demand for our products and our financial results may be negatively impacted by changes in industry capacity utilization, a material shift in the geographic area of tire production (in particular, shifts away from higher margin regions), and competition from other specialty chemical companies. We operate in a highly competitive marketplace.
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For example, a shift in tire production from a higher cost region (such as the EU) to a lower cost region (such as Asia) could increase the export of tires made in Asia for sales into Europe and could result in a reduction in tire production in the EU and reduce our profitability.
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As a result, overcapacity in one region, such as China and India, that is exported to other geographies causing underutilization in those markets disrupts regional supply and demand dynamics and may reduce demand for our products. Our Reinforcement Materials business is also sensitive to shifts in the geographic areas where tire production occurs.
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Further, trade tariffs imposed by the U.S. on imports from China could increase the cost of our capital projects or have a negative impact on our customers and reduce demand for our products.
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In recent years, the export of tires produced in Asia to the Americas and Western Europe has increased compared to historic levels and reduced the production of tires by our tire customers in those regions.
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Any future outbreak of a widespread health epidemic could materially and adversely impact our business in the future. Our global operations expose us to risks associated with public health crises and outbreaks of epidemics, pandemics, or contagious diseases could have a serious adverse impact on the economy and on our business, results of operations and cash flows.
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In recent years, this shift in tire production has reduced, and may continue to reduce, demand for our Reinforcement Materials products in the Americas and Western Europe, and our capacity utilization, in those higher margin regions.
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Specifically, a pandemic or future global health crisis may disrupt operations at our customers and reduce demand for our products, require or cause us to cease operations or idle production lines at our facilities, could materially affect our ability to adequately staff and maintain our operations, and could disrupt our supply chain and materially and adversely impact our ability to secure supplies for our facilities.
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We have experienced these issues at our plant in Ville Platte. Further, following our termination of the construction contract for the design and installation of air pollution control equipment at Ville Platte as a result of the contractor’s poor performance, the contractor has filed a demand for arbitration against us in connection with our termination of the contract.
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A pandemic could also contribute to increased costs and decreased availability of labor and materials for construction projects, which could increase the costs of our capital improvement projects and delay our completion of such projects. We have entered into a number of derivative contracts with financial counterparties.
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Cabot has filed a counterclaim against the contractor seeking damages greater than the value of the contract on account of the contractor’s breaches of the contract.
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Our ability to implement price increases is largely influenced by competitive and economic conditions and could vary significantly depending on the segment served. Such increases may not be accepted by our customers, may not be sufficient to compensate for increased regulatory costs or may decrease demand for our products and our volume of sales.
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Recently, in July 2025, Dow, our fence-line partner at our fumed metal oxides facility in Barry, Wales, announced that it would be ceasing its polysiloxane operations at their site by mid-calendar year 2026. Dow currently supplies our operations with chlorosilane feedstock, which we convert into fumed silica, under an agreement with a term through the end of calendar year 2028.
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We are engaged in discussions with Dow as to how it will satisfy its performance obligations to us; however, when our agreement with Dow ceases we may be forced to limit our manufacturing operations at our Barry site, which could decrease the site’s profitability and increase our costs.
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Financial and Other Risks Negative or uncertain worldwide or regional economic conditions or trade relations may adversely impact our business. Our operations and performance are affected by worldwide and regional economic conditions and global trade relations.
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Further, uncertainty created by volatile global trade and tariff policies may reduce demand for our products, negatively impact supply chain arrangements and inventory planning, and reduce our volumes and profitability. Our operations in the EU are material to our business and important to our customers.
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Our tax rate and other tax obligations are dependent upon a number of factors, a change in any of which could impact our future tax rates and financial results.
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In addition, at maturity, settlement of the derivative contract may be a use of cash depending on the movement of foreign exchange rates, the amount of which is unpredictable. We have entered into forward foreign currency contracts and cross-currency swaps as part of our financial risk management strategy.
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In addition, the settlement of any derivative contracts could, depending on movements in the exchange rates, result in a cash outflow at maturity in an amount that is not predictable.
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Technology Risks 21 We may not be successful achieving our growth expectations from new products, new applications and technology developments, and money we spend on these efforts may not result in an increase in revenues or profits commensurate with our investment. We may not be successful in achieving our growth expectations from developing new products or product applications.
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Licensing agreements may not be available to us, or if available, may not be available on acceptable terms. We are exposed to risks related to the use of artificial intelligence tools by us and others.
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Our use of artificial intelligence tools may subject us to significant competitive, legal, regulatory and other risks and there can be no assurance that our use of artificial intelligence tools will enhance our business operations or result in a benefit to us.
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Our competitors may be more successful in their use of artificial intelligence tools, including by developing superior products or product applications or improving their operations with the assistance of artificial intelligence. Additionally, there could be adverse impacts from inaccurate or flawed algorithms, training or data sets.
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Our use of artificial intelligence tools could also result in the loss of confidential information or intellectual property or an inability to claim or enforce intellectual property rights, as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy, cybersecurity and the unauthorized use of company information.
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The jurisdictions in which we conduct business have and may adopt laws and regulations related to artificial intelligence that could cause us to incur greater compliance costs, limit our use of artificial intelligence tools, or subject us to legal liabilities.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe SDDS has held various positions within Cabot’s IT department over her approximately 30-year tenure with the Company, has an educational background in Information Systems and contributes technical expertise to the Company’s management team. 24 We have established a process to assess the nature, scope and timing of a cyber incident and, as appropriate, communicate the facts of an incident to management and the Board of Directors and, as appropriate, investors.
Biggest changeWe have established a process to assess the nature, scope and timing of a cyber incident and, as appropriate, communicate the facts of an incident to management and the Board of Directors and, as appropriate, investors.
A cybersecurity incident may materially affect our business, results of operations or financial condition, including where such an incident results in reputational, competitive or business harm or damage to our brand, lost sales, physical damage to facilities, physical harm to individuals, reduced demand, loss of intellectual property rights, significant costs or the Company being subject to government investigations, litigation, fines or damages.
A cybersecurity incident may materially affect our business, results of operations or financial condition, including where such an incident results in reputational, competitive or business harm; damage to our brand; lost sales; physical damage to facilities; physical harm to individuals; reduced demand; loss of intellectual property rights; significant costs; or the Company being subject to government investigations, litigation, fines or damages.
Relevant matters are also reviewed with the full Board on at least an annual basis. As of the date of this report, we have not experienced a cybersecurity incident that resulted in a material effect on our business strategy, results of operations, or financial condition.
Relevant matters are also reviewed with the full Board on at least an annual basis. As of the date of this report, we have not experienced a cybersecurity incident that has resulted in a material effect on our business strategy, results of operations or financial condition.
Despite our efforts, we cannot guarantee that our cybersecurity safeguards will prevent breaches or breakdowns of our or our third-party service providers’ information technology systems, particularly in the face of continually evolving cybersecurity threats and increasingly sophisticated threat actors.
Despite our efforts, we cannot guarantee that our cybersecurity safeguards will prevent breaches or breakdowns of the Company’s or our third-party service providers’ information technology systems, particularly in the face of continually evolving cybersecurity threats and increasingly sophisticated threat actors.
For additional information, see Part I, Item 1A, “Risk Factors—Operational Risks—Information technology systems failures, data security breaches, cybersecurity attacks or network disruptions have harmed us in the past and could compromise our information, disrupt our operations and expose us to liability, which may adversely impact our operations.” 25
For additional information, see Part I, Item 1A, “Risk Factors—Operational Risks—Information technology systems failures, data security breaches, cybersecurity attacks or network disruptions have harmed us in the past and could compromise our information, disrupt our operations and expose us to liability, which may adversely impact our operations.” 24
We periodically engage assessors, consultants, auditors and other third parties to assess our cybersecurity programs, including information security maturity assessments, audits and independent reviews of our information security control environment and operating effectiveness. These assessments provide insight for areas of future improvement in risk mitigation and further program development.
We periodically engage assessors, consultants, auditors, and other third parties to assess our cybersecurity programs, including information security maturity assessments, audits, and independent reviews of our information security control environment and operating effectiveness. These assessments provide insight into areas of future improvement in risk mitigation and further program development.
Our cybersecurity program includes information technology (“IT”) policies and standards and an IT risk management program. Our cybersecurity risk management program leverages standards established by the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, which provides guidance to organizations on how to identify, prevent, detect, respond and recover from cybersecurity threats.
Our cybersecurity program includes information technology (“IT”) policies and standards and an IT risk management program. Our cybersecurity risk management program leverages standards established by the National Institute of Standards and Technology Cybersecurity Framework ("NIST CSF”), which provides guidance to organizations on how to identify, prevent, detect, respond and recover from cybersecurity threats.
The SDDS is the member of the Company’s management principally responsible for overseeing the Company’s cybersecurity risk management programs in partnership with business and functional leaders across the Company as well as a managed security service provider that provides threat intelligence, global infrastructure monitoring and threat detection and response to cyber events.
Our Chief Digital Information Officer (the “CDIO”) is the member of the Company’s management principally responsible for overseeing the Company’s cybersecurity risk 23 management programs in partnership with business and functional leaders across the Company as well as a managed security service provider that provides threat intelligence, global infrastructure monitoring and threat detection and response to cyber events.
Cabot employees have access to formal IT policies that define and clarify expected behaviors with respect to IT resources in various areas.
All Cabot employees participate in monitored cyber security training and have access to formal IT policies that define and clarify expected behaviors with respect to IT resources in various areas.
Removed
Bart Kalkstein, an Executive Vice President of Cabot and a member of Cabot’s Management Executive Committee, is a member of the Steering Committee and has executive responsibility for Digital matters. He is supported by our Chief Digital Information Officer (the “CDIO”) and our Senior Director of Digital Security (the “SDDS”).
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The CDIO has held various positions within Cabot’s IT department over his 20-year tenure with the Company, and contributes technical expertise to the Company’s management team. The CDIO leverages extensive industry, IT and cybersecurity expertise to make strategic and operations decisions for Cabot’s information security program.
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The CDIO collaborates with Cabot’s Management Executive Committee to manage cyber risk and enhance the cyber program and reports directly to a member of our Management Executive Committee who has executive responsibility for Digital matters.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLocation by Region Reinforcement Materials Performance Chemicals Americas Region Alpharetta, Georgia* X X Tuscola, Illinois X Carrollton, Kentucky** X Franklin, Louisiana X X Ville Platte, Louisiana X Billerica, Massachusetts X X Haverhill, Massachusetts X Midland, Michigan X Pampa, Texas X X Campana, Argentina X Maua, Brazil X X Sao Paulo, Brazil* (1) X X Saint-Jean-sur-Richelieu, Québec, Canada X Sarnia, Ontario, Canada X X Cartagena, Colombia X Altamira, Mexico X Europe, Middle East and Africa Region Loncin, Belgium X Pepinster, Belgium X Valasske Mezirici (Valmez), Czech Republic** X Port Jerome, France** X Frankfurt, Germany* X Münster, Germany* X Rheinfelden, Germany X Ravenna, Italy X Riga, Latvia* (1) X X Schaffhausen, Switzerland* X X Botlek, Netherlands** X X Dubai, United Arab Emirates* X Barry, United Kingdom (Wales)** X 26 Location by Region Reinforcement Materials Performance Chemicals Asia Pacific Region Jiangsu Province, China** X Jiangxi Province, China** X Tianjin, China** (2 plants) X X Shanghai, China* (1) X X Shanghai, China** (plant) X Xingtai City, China** X Wuhai, China** X Shenzhen, China** X Zhuhai, China** X Mumbai, India* X X Cilegon, Indonesia** X X Jakarta, Indonesia* (1) X X Chiba, Japan X Shimonoseki, Japan** X Tokyo, Japan* (1) X X Port Dickson, Malaysia** X (1) Global Business Services center * Leased premises ** Building(s) owned by Cabot on leased land We conduct research and development for our various businesses primarily at facilities in Billerica, Massachusetts; Pampa, Texas; Pepinster, Belgium; Münster, Germany; Chiba, Japan, Port Dickson, Malaysia and Zhuhai and Shanghai, China.
Biggest changeLocation by Region Reinforcement Materials Performance Chemicals Americas Region Alpharetta, Georgia* X X Tuscola, Illinois X Carrollton, Kentucky** X Hopkinsville, Kentucky** X Franklin, Louisiana X X Ville Platte, Louisiana X Billerica, Massachusetts X X Haverhill, Massachusetts X Midland, Michigan X Pampa, Texas X X Campana, Argentina X Maua, Brazil X X Sao Paulo, Brazil* (1) X X Saint-Jean-sur-Richelieu, Québec, Canada X Sarnia, Ontario, Canada X X Cartagena, Colombia X Altamira, Mexico X Europe, Middle East and Africa Region Loncin, Belgium X Pepinster, Belgium X Valasske Mezirici (Valmez), Czech Republic** X Port Jerome, France** X Frankfurt, Germany* X Münster, Germany* X Rheinfelden, Germany X Ravenna, Italy X Riga, Latvia* (1) X X Schaffhausen, Switzerland* X X Botlek, Netherlands** X X Dubai, United Arab Emirates* X Barry, United Kingdom (Wales)** X 25 Location by Region Reinforcement Materials Performance Chemicals Asia Pacific Region Jiangsu Province, China** X Jiangxi Province, China** X Tianjin, China** (2 plants) X X Shanghai, China* (1) X X Shanghai, China** (plant) X Xingtai City, China** X Wuhai, China** X Shenzhen, China** X Zhuhai, China** X Mumbai, India* X X Cilegon, Indonesia** X X Jakarta, Indonesia* (1) X X Chiba, Japan X Shimonoseki, Japan** X Tokyo, Japan* (1) X X Port Dickson, Malaysia** X (1) Global Business Services center * Leased premises ** Building(s) owned by Cabot on leased land We conduct research and development for our various businesses primarily at facilities in Billerica, Massachusetts; Pampa, Texas; Pepinster, Belgium; Münster, Germany; Chiba, Japan, Port Dickson, Malaysia and Zhuhai and Shanghai, China.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings Cabot is a party in various lawsuits and environmental proceedings wherein substantial amounts are claimed. Additional information regarding legal proceedings involving Cabot is disclosed in Note T in Item 8 below, under the heading “Contingencies”, which disclosure is incorporated herein by reference.
Biggest changeItem 3. Legal Proceedings Cabot is a party in various lawsuits and environmental proceedings wherein substantial amounts are claimed. Additional information regarding legal proceedings involving Cabot is disclosed in Note S in Item 8 below, under the heading “Contingencies”, which disclosure is incorporated herein by reference.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeKalita was in private practice at WilmerHale LLP in Boston, MA. Hobart C. Kalkstein, age 54, is Executive Vice President and President, Reinforcement Materials Segment and President, Americas Region. Mr. Kalkstein also has executive responsibility for Cabot’s Digital function. Mr. Kalkstein joined Cabot in 2005.
Biggest changeKalita was in private practice at WilmerHale LLP in Boston, MA. William Masterson, age 51, is Senior Vice President and President of the Reinforcement Materials Segment. Mr. Masterson joined Cabot in 2011 and was elected to his current position effective November 21, 2025.
From June 2016 until May 2018, she was Vice President of Business Operations for Reinforcement Materials and General Manager of the tire business, and from July 2011 until June 2016, she was Vice President of Investor Relations and Corporate Communications. Prior to July 2011, she held a variety of leadership positions in Finance and Corporate Planning. 27 Karen A.
From June 2016 until May 2018, she was Vice President of Business Operations for Reinforcement Materials and General Manager of the tire business, and from July 2011 until June 2016, she was Vice President of Investor Relations and Corporate Communications. Prior to July 2011, she held a variety of leadership positions in Finance and Corporate Planning. 26 Karen A.
He was appointed Vice President in March 2005, Senior Vice President in March 2012 and Executive Vice President in November 2014. He was a member of the Interim Office of the Chief Executive Officer, which was in place from December 2015 until March 2016. Erica McLaughlin, age 48, is Executive Vice President, Chief Financial Officer and Head of Corporate Strategy.
He was appointed Vice President in March 2005, Senior Vice President in March 2012 and Executive Vice President in November 2014. He was a member of the Interim Office of the Chief Executive Officer, which was in place from December 2015 until March 2016. Erica McLaughlin, age 49, is Executive Vice President, Chief Financial Officer and Head of Corporate Strategy.
Item 4. Mine Sa fety Disclosures Not applicable. Information about our Executive Officers Set forth below is certain information about Cabot’s executive officers as of November 13, 2024. Sean D. Keohane, age 57, is President and Chief Executive Officer and a member of Cabot’s Board of Directors, positions he has held since March 2016. Mr. Keohane joined Cabot in 2002.
Item 4. Mine Sa fety Disclosures Not applicable. Information about our Executive Officers Set forth below is certain information about Cabot’s executive officers as of November 24, 2025. Sean D. Keohane, age 58, is President and Chief Executive Officer and a member of Cabot’s Board of Directors, positions he has held since March 2016. Mr. Keohane joined Cabot in 2002.
Kalita, age 45, is Senior Vice President and General Counsel. Ms. Kalita joined Cabot in 2008.
Kalita, age 46, is Senior Vice President and General Counsel. Ms. Kalita joined Cabot in 2008.
Prior to that, he served as General Manager of the Aerogel business from October 2007 to February 2010. Jeff Zhu, age 56, is Executive Vice President and President, Carbon and Silica Technologies, and Battery Materials businesses within Cabot’s Performance Chemicals Segment and President, Asia Pacific Region. Mr. Zhu joined Cabot in 2012.
Masterson was global market development manager for W.R. Grace. Jeff Zhu, age 57, is Executive Vice President and President, Carbon and Silica Technologies, and Battery Materials businesses within Cabot’s Performance Chemicals Segment and President, Asia Pacific Region. Mr. Zhu joined Cabot in 2012.
Removed
He was elected Executive Vice President effective December 2022, and Senior Vice President and President, Reinforcement Materials Segment and President, Americas Region in April 2016. Prior to this, he was Vice President of Corporate Strategy and Development from December 2015 to April 2016.
Added
Prior to this, from January 2024, he was Vice President, Business Operations, Performance Chemicals and, from January 2019 to January 2024, was Vice President and Regional Business Director, Americas Region, for the Performance Additives business. Prior to 2019, Mr. Masterson held numerous commercial, marketing, and technical service roles. Prior to joining Cabot, from 2007 to 2011, Mr.
Removed
From October 2013 to December 2015, he served as Vice President of Global Business Operations for Purification Solutions and from November 2012 to December 2015 as General Manager of Global Emission Control Solutions for Purification Solutions, and from January 2012 to November 2012 he served as Vice President of Business Operations and Executive Director of Marketing and Business Strategy for Performance Chemicals.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer Purchases of Equity Securities The table below sets forth information regarding Cabot’s purchases of its equity securities during the quarter ended September 30, 2024: Period Total Number of Shares Purchased (1)(2) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1) July 1, 2024 — July 31, 2024 — $ — — 1,938,177 August 1, 2024 — August 31, 2024 440,000 $ 102.62 440,000 1,498,177 September 1, 2024 — September 30, 2024 197,206 $ 100.70 197,206 1,300,971 Total 637,206 637,206 (1) On July 13, 2018, Cabot publicly announced that the Board of Directors authorized the Company to repurchase up to an additional ten million shares of its common stock on the open market or in privately negotiated transactions, increasing the amount of shares available for repurchase at that time to approximately eleven million shares.
Biggest changeIssuer Purchases of Equity Securities The table below sets forth information regarding Cabot’s purchases of its equity securities during the quarter ended September 30, 2025: Period Total Number of Shares Purchased (1)(2) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) July 1, 2025 — July 31, 2025 — $ — — 9,955,759 August 1, 2025 — August 31, 2025 212,471 $ 79.86 212,471 9,743,288 September 1, 2025 — September 30, 2025 287,132 $ 80.21 287,132 9,456,156 Total 499,603 499,603 (1) On December 3, 2024, Cabot publicly announced that the Board of Directors authorized the Company to repurchase up to an additional ten million shares of its common stock on the open market or in privately negotiated transactions, increasing the balance of shares available for repurchase at that time to approximately eleven million shares.
The information included under the heading comparative stock performance in Item 5 shall not be deemed to be “soliciting material” or subject to Regulation 14A, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise be subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act. 29
The information included under the heading comparative stock performance in Item 5 shall not be deemed to be “soliciting material” or subject to Regulation 14A, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise be subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act. 28
The comparisons assume the investment of $100 on October 1, 2019 in Cabot’s common stock and in each of the indices and the reinvestment of all dividends. The stock price performance on the graph below is not necessarily indicative of future price performance.
The comparisons assume the investment of $100 on October 1, 2020 in Cabot’s common stock and in each of the indices and the reinvestment of all dividends. The stock price performance on the graph below is not necessarily indicative of future price performance.
The current authorization does not have a set expiration date.
The authorization does not have a set expiration date.
(2) Total number of shares purchased does not include 4,038 shares withheld to pay taxes on the vesting of equity awards made under the Company's equity incentive plans or to pay the exercise price of options exercised during the period. 28 Comparative Stock Performance The graph compares the cumulative total stockholder return on Cabot common stock for the five-year period ended September 30, 2024 with the S&P 400 Chemical Index and the S&P Midcap 400 Index.
(2) Total number of shares purchased does not include 1,368 shares withheld to pay taxes on the vesting of equity awards made under the Company's equity incentive plans or to pay the exercise price of options exercised during the period. 27 Comparative Stock Performance The graph compares the cumulative total stockholder return on Cabot common stock for the five-year period ended September 30, 2025 with the S&P 400 Chemical Index and the S&P Midcap 400 Index.
Item 5. Market for Registrant’s Common Equity, Related Sto ckholder Matters and Issuer Purchases of Equity Securities Cabot’s common stock is listed for trading (symbol CBT) on the New York Stock Exchange. As of November 13, 2024, there were 530 holders of record of Cabot’s common stock.
Item 5. Market for Registrant’s Common Equity, Related Sto ckholder Matters and Issuer Purchases of Equity Securities Cabot’s common stock is listed for trading (symbol CBT) on the New York Stock Exchange. As of November 14, 2025, there were 519 holders of record of Cabot’s common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe items of income and expense that we have excluded from Total segment EBIT, as applicable, but that are included in our GAAP Income (loss) from operations before income taxes and equity in earnings of affiliated companies, as applicable, are described below. • Argentina controlled currency devaluation loss related to the foreign exchange loss from government-controlled currency devaluations on our net monetary assets denominated in the Argentine peso and investment losses related to the utilization of government bond programs established for the settlement of certain foreign payables. • Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations. • Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business. • Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes. • Asset impairment charges, which primarily include charges associated with an impairment of goodwill, other long-lived assets or assets held for sale. • Charges related to the divestiture of our Purification Solutions business, which include accelerated costs associated with the change in control and employee incentive compensation. • Benefit from the settlement of a royalty arrangement entered into in connection with the divestiture of our former Specialty Fluids business. • Gains (losses) on sale of a business. • Employee benefit plan settlements, which consist of either charges or benefits associated with the termination of a pension plan or the transfer of a pension plan to a multi-employer plan. • Gain associated with the bargain purchase of a business. 32 Drivers of Demand and Key Factors Affecting Profitability Drivers of demand and key factors affecting our profitability differ by segment.
Biggest changeThe items of income and expense that we have excluded from Total segment EBIT, as applicable, but that are included in our GAAP Income (loss) from operations before income taxes and equity in earnings of affiliated companies, as applicable, are described below. • Global restructuring activities, which include costs or benefits associated with cost reduction initiatives or plant closures and are primarily related to (i) employee termination costs, (ii) asset impairment charges associated with restructuring actions, (iii) costs to close facilities, including environmental costs and contract termination penalties, and (iv) gains realized on the sale of land or equipment associated with restructured plants or locations • Indirect tax settlement charges, which include unfavorable charges related to the settlement of indirect taxes • Legal and environmental matters and reserves, which consist of costs or benefits for matters typically related to former businesses or that are otherwise incurred outside of the ordinary course of business • Employee benefit plan settlements and other charges, which consist of either charges or benefits associated with the termination of a pension plan or the transfer of a pension plan to a multi-employer plan • Acquisition and integration-related charges, which include transaction costs, redundant costs incurred during the period of integration, and costs associated with transitioning certain management and business processes to Cabot’s processes • Argentina controlled currency devaluation loss related to the foreign exchange loss from government-controlled currency devaluations on our net monetary assets denominated in the Argentine peso and investment losses related to the utilization of government bond programs established for the settlement of certain foreign payables • Gains (losses) on sale of a business 31 Drivers of Demand and Key Factors Affecting Profitability Drivers of demand and key factors affecting our profitability differ by segment.
Over the past several years, operating results have been driven by a number of factors, including: i) increases or decreases in our sales volumes driven by changes in production levels for tires or industrial rubber products and the level at which we service that demand; ii) changes in raw material costs and our ability to adjust the sales price for our products commensurate with changes in raw material costs; iii) changes in pricing and product mix, which includes customer pricing as well as the mix of products sold or the region in which they are sold; iv) global and regional capacity utilization for carbon black; v) fixed cost savings achieved through restructuring and other cost saving activities; vi) the growth of our volumes and market position in emerging economies; vii) capacity management and technology investments, including the impact of energy utilization and yield improvement technologies at our manufacturing facilities; viii) royalties and technology payments related to our patented elastomer composites technology that is used in tire applications; and ix) changes in energy prices associated with our energy center sales and the cost of utilities.
Over the past several years, operating results have been driven by a number of factors, including: i) increases or decreases in our sales volumes driven by changes in production levels for tires or industrial rubber products, and the region in which the production occurs, and the level at which we service that demand; ii) changes in raw material costs and our ability to adjust the sales price for our products commensurate with changes in raw material costs; iii) changes in pricing and product mix, which includes customer pricing as well as the mix of products sold or the region in which they are sold; iv) global and regional capacity utilization for carbon black; v) fixed cost savings achieved through restructuring and other cost saving activities; vi) the growth of our volumes and market position in emerging economies; vii) capacity management and technology investments, including the impact of energy utilization and yield improvement technologies at our manufacturing facilities; viii) royalties and technology payments related to our patented elastomer composites technology that is used in tire applications; and ix) changes in energy prices associated with our energy center sales and the cost of utilities.
Consolidated net debt is defined as consolidated debt offset by the lesser of (i) unrestricted cash and cash equivalents and (ii) $150 million. A significant portion of our business occurs outside the U.S. and our cash generation does not always align geographically with our cash needs.
Consolidated net debt is defined as consolidated debt offset by the lesser of (i) unrestricted cash and cash equivalents and (ii) $150 million. 36 A significant portion of our business occurs outside the U.S. and our cash generation does not always align geographically with our cash needs.
In calculating Total segment EBIT, we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies (i) items of expense and income that management does not consider representative of our fundamental on-going segment results, which we refer to as “certain items”, and (ii) items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to special projects and initiatives, which we refer to as “other unallocated items”.
In calculating Total segment EBIT, we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies (i) items of expense and income that management does not consider representative of our fundamental on-going segment results, which we refer to as “certain items”, and (ii) items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses, such as certain corporate salaries and headquarters expenses, plus costs related to special projects and initiatives, which we refer to as “other unallocated items”.
With the exception of Argentina, which has currency controls that prevent the distribution of cash, we are generally able to move cash throughout the Company through our cash pooling structures, intercompany accounts and/or distributions, as needed.
With the exception of Argentina, which has some currency controls that prevent the distribution of cash, we are generally able to move cash throughout the Company through our cash pooling structures, intercompany accounts and/or distributions, as needed.
A reconciliation of Total segment EBIT to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is provided under the heading “Fiscal 2024 versus Fiscal 2023—By Business Segment”. Investors should consider the limitations associated with this non-GAAP measure, including the potential lack of comparability of this measure from one company to another.
A reconciliation of Total segment EBIT to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is provided under the heading “Fiscal 2025 versus Fiscal 2024—By Business Segment”. Investors should consider the limitations associated with this non-GAAP measure, including the potential lack of comparability of this measure from one company to another.
As of September 30, 2024, we were in compliance with the debt covenants under the Credit Agreements, which, with limited exceptions, require us to comply on a quarterly basis with a leverage test requiring the ratio of consolidated net debt to consolidated EBITDA not to exceed 3.50 to 1.00.
As of September 30, 2025, we were in compliance with the debt covenants under the Credit Agreements, which, with limited exceptions, require us to comply on a quarterly basis with a leverage test requiring the ratio of consolidated net debt to consolidated EBITDA not to exceed 3.50 to 1.00.
Assumptions, judgment, and estimates are required when estimating future income and scheduling the reversal of deferred tax assets and liabilities, and the exercise is inherently complex and subjective. Refer to Note A and Note R of our Notes to the Consolidated Financial Statements for description of our policies related to income taxes.
Assumptions, judgment, and estimates are required when estimating future income and scheduling the reversal of deferred tax assets and liabilities, and the exercise is inherently complex and subjective. Refer to Note A and Note Q of our Notes to the Consolidated Financial Statements for description of our policies related to income taxes.
Employee Benefit Plans As of September 30, 2024, we had a consolidated pension obligation, net of the fair value of plan assets, of $26 million, primarily associated with postretirement benefit plan liabilities. In fiscal 2024, we made cash contributions totaling $4 million to our defined benefit pension plans.
Employee Benefit Plans As of September 30, 2025, we had a consolidated pension obligation, net of the fair value of plan assets, of $26 million, primarily associated with postretirement benefit plan liabilities. In fiscal 2025, we made cash contributions totaling $4 million to our defined benefit pension plans.
Management believes that this non-GAAP financial measure 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. 31 Our discussion under the heading “Fiscal 2024 versus Fiscal 2023—By Business Segment” includes a discussion of Total segment EBIT, which is a non-GAAP financial measure defined as Income (loss) from operations before income taxes and equity in earnings from affiliated companies less certain items and other unallocated items.
Management believes that this non-GAAP financial measure 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. 30 Our discussion under the heading “Fiscal 2025 versus Fiscal 2024—By Business Segment” includes a discussion of Total segment EBIT, which is a non-GAAP financial measure defined as Income (loss) from operations before income taxes and equity in earnings from affiliated companies less certain items and other unallocated items.
We engage third-party valuation specialists as needed to develop the assumptions used in the calculation and the evaluation of goodwill balances. Refer to Note A and Note G of our Notes to the Consolidated Financial Statements for a description of our policies related to goodwill.
We engage third-party valuation specialists as needed to develop the assumptions used in the calculation and the evaluation of goodwill balances. Refer to Note A and Note F of our Notes to the Consolidated Financial Statements for a description of our policies related to goodwill.
Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate, and the presence of valuation allowances in certain tax jurisdictions. For fiscal 2025, we expect our Operating tax rate to be in the range of 27% to 29%.
Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate and the presence of valuation allowances in certain tax jurisdictions. For fiscal 2026, we expect our Operating tax rate to be in the range of 27% to 29%.
For the discussions of our fiscal 2022 results and year-to-year comparisons between fiscal 2023 and fiscal 2022, refer to our discussions under the headings “Results of Operations” and “Cash Flows and Liquidity” in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023, which was filed with the United States Securities and Exchange Commission on November 22, 2023.
For the discussions of our fiscal 2023 results and year-to-year comparisons between fiscal 2024 and fiscal 2023, refer to our discussions under the headings “Results of Operations” and “Cash Flows and Liquidity” in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which was filed with the United States Securities and Exchange Commission on November 20, 2024.
In fiscal 2023, we commenced the plan termination process for the Cabot Carbon Limited Pension Plan and Carbon Plastics Pension Plan and expect to complete this process in fiscal 2025. 39 Contractual Obligations The following table sets forth our long-term contractual obligations.
In fiscal 2023, we commenced the plan termination process for the Cabot Carbon Limited Pension Plan and Carbon Plastics Pension Plan and expect to complete this process in fiscal 2026. Contractual Obligations The following table sets forth our long-term contractual obligations.
The details of certain items and other unallocated items are shown below and in Note V of our Notes to the Consolidated Financial Statements.
The details of certain items and other unallocated items are shown below and in Note U of our Notes to the Consolidated Financial Statements.
Typical of such plans, our postretirement plans are unfunded and, therefore, have no plan assets. We fund these plans as claims or insurance premiums come due. In fiscal 2024, we paid postretirement benefits of $4 million. For fiscal 2025, our benefit payments for our postretirement plans are expected to be $3 million.
Typical of such plans, our postretirement plans are unfunded and, therefore, have no plan assets. We fund these plans as claims or insurance premiums come due. In fiscal 2025, we paid postretirement benefits of $3 million. For fiscal 2026, our benefit payments for our postretirement plans are expected to be $2 million.
Refer to Note A and Note T of our Notes to the Consolidated Financial Statements for description of our policies related to contingencies. 30 Goodwill Impairment Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired.
Refer to Note A and Note S of our Notes to the Consolidated Financial Statements for description of our policies related to contingencies. 29 Goodwill Impairment Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired.
Cash Flows from Operating Activities Cash provided by operating activities, which consists of net income adjusted for the various non-cash items included in income, changes in working capital and changes in certain other balance sheet accounts, totaled $692 million in fiscal 2024. Operating activities provided $595 million of cash in fiscal 2023.
Cash Flows from Operating Activities Cash provided by operating activities, which consists of net income adjusted for the various non-cash items included in income, changes in working capital, and changes in certain other balance sheet accounts, totaled $665 million in fiscal 2025. Operating activities provided $692 million of cash in fiscal 2024.
In fiscal 2025, we expect to make cash contributions of $5 million to our defined benefit pension plans. The $25 million of unfunded postretirement benefit plan liabilities is comprised of $13 million for our U.S. and $12 million for our foreign postretirement benefit plans. These postretirement benefit plans provide certain health care and life insurance benefits for retired employees.
In fiscal 2026, we expect to make cash contributions of $5 million to our defined benefit pension plans. The $23 million of unfunded postretirement benefit plan liabilities is comprised of $12 million for our U.S. and $11 million for our foreign postretirement benefit plans. These postretirement benefit plans provide certain health care and life insurance benefits for retired employees.
Equity in Earnings of Affiliated Companies and Net Income (Loss) Attributable to Noncontrolling Interest, Net of Tax Years Ended September 30 2024 2023 (In millions) Equity in earnings of affiliated companies, net of tax $ 6 $ 5 Net income (loss) attributable to noncontrolling interests, net of tax $ 44 $ 39 Equity in earnings of affiliated companies, net of tax, increased by $1 million in fiscal 2024 compared to fiscal 2023 primarily due to higher profitability at our equity affiliate in Venezuela.
Equity in Earnings of Affiliated Companies and Net Income (Loss) Attributable to Noncontrolling Interest, Net of Tax Years Ended September 30 2025 2024 (In millions) Equity in earnings of affiliated companies, net of tax $ 7 $ 6 Net income (loss) attributable to noncontrolling interests, net of tax $ 45 $ 44 Equity in earnings of affiliated companies, net of tax, increased by $1 million in fiscal 2025 compared to fiscal 2024 primarily due to higher profitability at our equity affiliate in Venezuela.
As of September 30, 2024, we had cash and cash equivalents of $223 million and borrowing availability under our revolving credit agreements of $1.2 billion. 37 We have access to borrowings under the following two credit agreements: • $1 billion unsecured revolving credit agreement (the “U.S.
As of September 30, 2025, we had cash and cash equivalents of $258 million and borrowing availability under our revolving credit agreements of $1.2 billion. We have access to borrowings under the following two credit agreements: • $1 billion unsecured revolving credit agreement (the “U.S.
In fiscal 2023, we repurchased approximately 1.3 million shares of common stock on the open market for $91 million. Additionally, during fiscal 2024 and 2023, we repurchased 0.2 million and 0.1 million, respectively, shares of our common stock associated with employee tax obligations on stock-based compensation awards for $13 million and $7 million, respectively.
In fiscal 2024, we repurchased approximately 1.7 million shares of common stock on the open market for $159 million. Additionally, during fiscal 2025 and 2024, we repurchased 0.1 million and 0.2 million, respectively, shares of our common stock associated with employee tax obligations on stock-based compensation awards for $12 million and $13 million, respectively.
As of September 30, 2024 and 2023, we had $113 million and $120 million, respectively, of borrowings outstanding under the Euro Credit Agreement and no outstanding borrowings under the U.S. Credit Agreement at either date. There was $45 million and $172 million of commercial paper outstanding at September 30, 2024 and 2023, respectively.
As of September 30, 2025 and 2024, we had $130 million and $113 million, respectively, of borrowings outstanding under the Euro Credit Agreement and no outstanding borrowings under the U.S. Credit Agreement at either date. There was $6 million and $45 million of commercial paper outstanding at September 30, 2025 and 2024, respectively.
The cash consumed by financing activities in fiscal 2024 primarily consisted of repurchases of common stock of $172 million, net repayments of commercial paper of $127 million, dividend payments to stockholders of $93 million, dividend payments to noncontrolling interests of $27 million, and net repayments of long-term debt of $12 million under our Euro Credit Agreement, which includes repayments of $26 million partially offset by proceeds of $14 million.
These payments were partially offset by net proceeds from short-term borrowings of $8 million, net proceeds from long-term debt of $8 million and proceeds from the sales of common stock of $8 million from stock option exercises. 37 The cash consumed by financing activities in fiscal 2024 primarily consisted of repurchases of common stock of $172 million, net repayments of commercial paper of $127 million, dividend payments to stockholders of $93 million, dividend payments to noncontrolling interests of $27 million, and net repayments of long-term debt of $12 million under our Euro Credit Agreement, which includes repayments of $26 million partially offset by proceeds of $14 million.
Other Unallocated Items: Years Ended September 30 2024 2023 (In millions) Interest expense $ (81 ) $ (90 ) Unallocated corporate costs (68 ) (54 ) General unallocated income (expense) 42 22 Less: Equity in earnings of affiliated companies, net of tax 6 5 Total other unallocated items $ (113 ) $ (127 ) A discussion of items that we refer to as “other unallocated items” can be found under the heading “Definition of Terms and Non-GAAP Financial Measures”.
Other Unallocated Items: Years Ended September 30 2025 2024 (In millions) Interest expense $ (76 ) $ (81 ) Unallocated corporate costs (52 ) (68 ) General unallocated income (expense) 28 42 Less: Equity in earnings of affiliated companies, net of tax 7 6 Total other unallocated items $ (107 ) $ (113 ) A discussion of items that we refer to as “other unallocated items” can be found under the heading “Definition of Terms and Non-GAAP Financial Measures”.
Cash provided by operating activities in fiscal 2023 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $144 million, plus a decrease in net working capital of $97 million.
Cash provided by operating activities in fiscal 2025 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $154 million, plus a decrease in net working capital of $56 million.
As of September 30, 2024, we had approximately 1.3 million shares available for repurchase under the Board of Directors’ share repurchase authorization. Dividend Payments In fiscal 2024 and 2023, we paid cash dividends on our common stock of $1.66 and $1.54 per share, respectively. These cash dividend payments totaled $93 million and $88 million in fiscal 2024 and 2023, respectively.
As of September 30, 2025, we had approximately 9.5 million shares available for repurchase under the Board of Directors’ share repurchase authorization. Dividend Payments In fiscal 2025 and 2024, we paid cash dividends on our common stock of $1.76 and $1.66 per share, respectively. These cash dividend payments totaled $96 million and $93 million in fiscal 2025 and 2024, respectively.
Interest Expense Years Ended September 30 2024 2023 (In millions) Interest expense $ 81 $ 90 Interest expense decreased by $9 million in fiscal 2024 as compared to fiscal 2023 primarily due to lower average short-term borrowings, partially offset by higher interest rates.
Interest Expense Years Ended September 30 2025 2024 (In millions) Interest expense $ 76 $ 81 Interest expense decreased by $5 million in fiscal 2025 as compared to fiscal 2024 primarily due to lower interest rates on short-term borrowings, partially offset by higher average short-term borrowings.
In fiscal 2024, the use of cash by investing activities primarily consisted of $241 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital, including capacity expansion projects.
In fiscal 2024, the use of cash by investing activities primarily consisted of $241 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital, including capacity expansion projects. Capital expenditures for fiscal 2026 are expected to be between $200 million and $250 million.
This does not include items of income or expense from the items that are separately treated as Certain items. 36 In fiscal 2024, Total other unallocated items expense decreased by $14 million as compared to fiscal 2023 primarily due to higher General unallocated income partially offset by higher Unallocated corporate costs.
This does not include items of income or expense from the items that are separately treated as Certain items. In fiscal 2025, Total other unallocated items expense decreased $6 million as compared to fiscal 2024 primarily due to lower Unallocated corporate costs and Interest expense partially offset by lower General unallocated income.
Net Income (Loss) Attributable to Cabot Corporation In fiscal 2024 and 2023, we reported net income attributable to Cabot Corporation of $380 million ($6.72 earnings per diluted common share) and $445 million ($7.73 earnings per diluted common share), respectively.
Net Income (Loss) Attributable to Cabot Corporation In fiscal 2025 and 2024, we reported net income attributable to Cabot Corporation of $331 million ($6.02 earnings per diluted common share) and $380 million ($6.72 earnings per diluted common share), respectively.
Liquidity and Capital Resources Overview Our liquidity position, as measured by cash and cash equivalents plus borrowing availability, increased by $137 million during fiscal 2024, primarily due to lower outstanding revolving credit and commercial paper balances at the end of the period.
Liquidity and Capital Resources Overview Our liquidity position, as measured by cash and cash equivalents plus borrowing availability, increased by $75 million during fiscal 2025, primarily due to a higher cash balance and lower outstanding commercial paper at the end of the period.
Fiscal 2024 compared to Fiscal 2023—Consolidated Net Sales and Other Operating Revenues and Gross Profit Years Ended September 30 2024 2023 (In millions) Net sales and other operating revenues $ 3,994 $ 3,931 Gross profit $ 960 $ 839 Net sales and other operating revenues increased by $63 million in fiscal 2024 as compared to fiscal 2023.
Fiscal 2025 compared to Fiscal 2024—Consolidated Net Sales and Other Operating Revenues and Gross Profit Years Ended September 30 2025 2024 (In millions) Net sales and other operating revenues $ 3,713 $ 3,994 Gross profit $ 940 $ 960 Net sales and other operating revenues decreased by $281 million in fiscal 2025 as compared to fiscal 2024.
Share Repurchases In fiscal 2018, our Board of Directors authorized us to repurchase up to an additional ten million shares of common stock. In fiscal 2024, we repurchased approximately 1.7 million shares of common stock on the open market for $159 million.
Share Repurchases In December 2024, our Board of Directors authorized us to repurchase up to an additional ten million shares of common stock, increasing the total shares authorized for repurchase at the time to approximately eleven million shares. In fiscal 2025, we repurchased approximately 1.8 million shares of common stock on the open market for $156 million.
Reinforcement Materials Sales and EBIT for Reinforcement Materials for fiscal 2024 and 2023 are as follows: Years Ended September 30 2024 2023 (In millions) Reinforcement Materials Sales $ 2,610 $ 2,563 Reinforcement Materials EBIT $ 537 $ 482 In fiscal 2024, sales in Reinforcement Materials increased by $47 million compared to fiscal 2023.
Reinforcement Materials Sales and EBIT for Reinforcement Materials for fiscal 2025 and 2024 are as follows: Years Ended September 30 2025 2024 (In millions) Reinforcement Materials Sales $ 2,341 $ 2,610 Reinforcement Materials EBIT $ 508 $ 537 In fiscal 2025, sales in Reinforcement Materials decreased by $269 million compared to fiscal 2024.
Performance Chemicals Sales and EBIT for Performance Chemicals for fiscal 2024 and 2023 are as follows: Years Ended September 30 2024 2023 (In millions) Performance Chemicals Sales $ 1,250 $ 1,225 Performance Chemicals EBIT $ 164 $ 125 In fiscal 2024, sales in Performance Chemicals increased by $25 million compared to the same period of fiscal 2023.
Performance Chemicals Sales and EBIT for Performance Chemicals for fiscal 2025 and 2024 are as follows: Years Ended September 30 2025 2024 (In millions) Performance Chemicals Sales $ 1,250 $ 1,250 Performance Chemicals EBIT $ 194 $ 164 In fiscal 2025, sales in Performance Chemicals remained flat compared to the same period of fiscal 2024.
Other Income (Expense) Years Ended September 30 2024 2023 (In millions) Other income (expense) $ (36 ) $ (16 ) Other expense increased during fiscal 2024 by $20 million as compared to fiscal 2023.
Other Income (Expense) Years Ended September 30 2025 2024 (In millions) Other income (expense) $ (7 ) $ (36 ) Other expense decreased during fiscal 2025 by $29 million as compared to fiscal 2024.
(2) Non-GAAP tax adjustments made to arrive at the operating tax provision include the income tax (expense) benefit on certain items and discrete tax items, as further described above under the heading “Definition of Terms and Non-GAAP Financial Measures”.
(2) Non-GAAP tax adjustments made to arrive at the operating tax provision include the income tax (expense) benefit on certain items and discrete tax items, as further described above under the heading “Definition of Terms and Non-GAAP Financial Measures”. 33 For the year ended September 30, 2025, the (Provision) benefit for income taxes was a $196 million expense compared to a $111 million expense for fiscal 2024.
Included in the (provision) benefit for income taxes for the year ended September 30, 2024 and 2023 is a tax benefit of $24 million and $152 million, respectively, related to a partial valuation allowance release on the Company’s U.S. net deferred tax assets.
Included in the (provision) benefit for income taxes for the year ended September 30, 2025 is a tax expense of $31 million compared to a tax benefit of $24 million for fiscal 2024, related to a valuation allowance adjustment on our U.S. net deferred tax assets in each year.
Overview of Results for Fiscal 2024 During fiscal 2024, Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased compared to fiscal 2023 primarily due to higher earnings in both our Reinforcement Materials and Performance Chemicals segments.
Overview of Results for Fiscal 2025 During fiscal 2025, Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased compared to fiscal 2024 primarily due to lower losses from government-controlled currency devaluations in Argentina and higher segment EBIT in our Performance Chemicals segment, partially offset by lower segment EBIT in our Reinforcement Materials segment.
Net income (loss) attributable to noncontrolling interests, net of tax, increased by $5 million in fiscal 2024 compared to fiscal 2023 primarily due to increase earnings of our joint ventures in China and the Czech Republic.
Net income (loss) attributable to noncontrolling interests, net of tax, increased by $1 million in fiscal 2025 compared to fiscal 2024 primarily due to higher profitability of our several joint ventures in China.
Interest and Dividend Income Years Ended September 30 2024 2023 (In millions) Interest and dividend income $ 32 $ 31 Interest and dividend income in fiscal 2024 increased by $1 million as compared to fiscal 2023 primarily due to higher interest rates and the currency mix of deposit balances.
Interest and Dividend Income Years Ended September 30 2025 2024 (In millions) Interest and dividend income $ 27 $ 32 Interest and dividend income in fiscal 2025 decreased by $5 million as compared to fiscal 2024 primarily due to lower interest rates, partially offset by higher average deposit balances.
Certain Items: Details of the certain items for fiscal 2024 and 2023 are as follows: Years Ended September 30 2024 2023 (In millions) Argentina controlled currency devaluation and other losses $ (43 ) $ (7 ) Global restructuring activities (Note O) (13 ) (4 ) Legal and environmental matters and reserves (Note T) (2 ) (10 ) Gain on sale of land — 1 Acquisition and integration-related charges — (4 ) Loss on sale of business (Note D) — (3 ) Other certain items (1 ) (2 ) Total certain items $ (59 ) $ (29 ) An explanation of these items of expense and income is included in our discussion under the heading “Definition of Terms and Non-GAAP Financial Measures”.
Years Ended September 30 2025 2024 (In millions) Income (loss) from operations before income taxes and equity in earnings of affiliated companies $ 565 $ 529 Less: Certain items, pre-tax (30 ) (59 ) Less: Other unallocated items (107 ) (113 ) Total segment EBIT $ 702 $ 701 34 Certain Items: Details of the certain items for fiscal 2025 and 2024 are as follows: Years Ended September 30 2025 2024 (In millions) Global restructuring activities (Note N) $ (11 ) $ (13 ) Indirect tax settlement charges (Note S) (7 ) — Legal and environmental matters and reserves (7 ) (2 ) Employee benefit plan settlement and other charges (Note L) (3 ) — Acquisition and integration-related charges (1 ) — Argentina controlled currency devaluation and other losses (Note A) — (43 ) Other certain items (1 ) (1 ) Total certain items $ (30 ) $ (59 ) An explanation of these items of expense and income is included in our discussion under the heading “Definition of Terms and Non-GAAP Financial Measures”.
The increase was primarily due to higher foreign currency losses in Argentina, including the impact of the government devaluation of the currency that occurred during the first quarter of fiscal 2024. 34 (Provision) Benefit for Income Taxes and Reconciliation of Effective Tax Rate to Operating Tax Rate Years Ended September 30 2024 2023 (Provision) / Benefit for Income Taxes Rate (Provision) / Benefit for Income Taxes Rate (Dollars in millions) Effective tax rate (1) $ (111 ) 21 % $ 28 -6 % Less: Non-GAAP tax adjustments (2) 40 161 Operating tax rate $ (151 ) 26 % $ (133 ) 28 % (1) Refer to the reconciliation of computed tax expense at the federal statutory rate to the Provision (benefit) for income taxes in Note R of our Notes to the Consolidated Financial Statements.
(Provision) Benefit for Income Taxes and Reconciliation of Effective Tax Rate to Operating Tax Rate Years Ended September 30 2025 2024 (Provision) / Benefit for Income Taxes Rate (Provision) / Benefit for Income Taxes Rate (Dollars in millions) Effective tax rate (1) $ (196 ) 35 % $ (111 ) 21 % Less: Non-GAAP tax adjustments (2) (36 ) 40 Operating tax rate $ (160 ) 27 % $ (151 ) 26 % (1) Refer to the reconciliation of computed tax expense at the federal statutory rate to the Provision (benefit) for income taxes in Note Q of our Notes to the Consolidated Financial Statements.
Research and Technical Expenses Years Ended September 30 2024 2023 (In millions) Research and technical expenses $ 63 $ 57 Research and technical expenses increased by $6 million in fiscal 2024 as compared to fiscal 2023. The increase was primarily due to an increase in the incentive compensation expense.
Research and Technical Expenses Years Ended September 30 2025 2024 (In millions) Research and technical expenses $ 59 $ 63 Research and technical expenses decreased by $4 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to cost management efforts.
Selling and Administrative Expenses Years Ended September 30 2024 2023 (In millions) Selling and administrative expenses $ 283 $ 253 33 Selling and administrative expenses increased by $30 million in fiscal 2024 as compared to fiscal 2023. The increase was primarily due to an increase in the incentive compensation expense.
Selling and Administrative Expenses Years Ended September 30 2025 2024 (In millions) Selling and administrative expenses $ 260 $ 283 32 Selling and administrative expenses decreased by $23 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to cost management efforts.
Recently Issued Accounting Pronouncements Refer to the discussion in Note B of our Notes to the Consolidated Financial Statements. Results of Operations Cabot is organized into two reportable segments: Reinforcement Materials and Performance Chemicals. The Company’s former Purification Solutions business was a separate reportable segment prior to divestiture in the second quarter of fiscal 2022.
Recently Issued Accounting Pronouncements Refer to the discussion in Note B of our Notes to the Consolidated Financial Statements. Results of Operations Cabot is organized into two reportable segments: Reinforcement Materials and Performance Chemicals. Cabot is also organized for operational purposes into three geographic regions: the Americas; EMEA; and Asia Pacific.
In Reinforcement Materials, longer term demand is driven primarily by: i) the number of vehicle miles driven globally; ii) the number of original equipment and replacement tires produced; iii) the number of automotive builds; and iv) changes in supply chain inventory levels to adapt to end-market demand and other market dynamics.
In Reinforcement Materials, longer term demand is driven primarily by: i) the number of vehicle miles driven globally; ii) the number of original equipment and replacement tires produced; iii) the number of automotive builds; iv) changes in supply chain inventory levels to adapt to end-market demand and other market dynamics; v) demand for high-performance tires; vi) demand for larger tires and larger vehicles, such as trucks, buses, off-road vehicles used in agriculture, mining and similar vehicles; vii) demand for electric and hybrid vehicles; viii) consumer and industrial spending on new vehicles; and ix) changes in regulatory requirements impacting vehicle fuel efficiency and tire regulations.
Leases We have entered into various leases as the lessee, primarily related to certain transportation vehicles, warehouse facilities, office space, and machinery and equipment. These leases have remaining lease terms between one and fifteen years, some of which may include options to extend the leases for up to fifteen years or options to terminate the leases.
These leases have remaining lease terms between one and fifteen years, some of which may include options to extend the leases for up to fifteen years or options to terminate the leases. Our land leases have remaining lease terms up to seventy-seven years.
Gross profit increased by $121 million in fiscal 2024 as compared to fiscal 2023. The increase was primarily due to higher earnings in both our Reinforcement Materials and Performance Chemicals segments as volumes and unit margins, net of costs, in both segments improved.
Gross profit decreased by $20 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to lower volumes in our Reinforcement Materials segment, partially offset by higher volumes in our Performance Chemicals segment and lower selling and administrative expenses in both our Reinforcement Materials and Performance Chemicals segments.
The cash consumed by financing activities in fiscal 2023 primarily consisted of net repayments of long-term debt of $6 million, which consisted of repayments of $90 million partially offset by proceeds of $84 million, net repayments of commercial paper of $149 million, net repayments of credit facility borrowings of $24 million, dividend payments to stockholders of $88 million, repurchases of common stock of $98 million and dividend payments to noncontrolling interests of $42 million.
The cash consumed by financing activities in fiscal 2025 primarily consisted of repurchases of common stock of $168 million, net repayments of commercial paper of $39 million, dividend payments to stockholders of $96 million and dividend payments to noncontrolling interests of $57 million.
The increase in net sales and other operating revenues was driven by higher volumes in both the Reinforcement Materials and Performance Chemicals segments ($148 million combined), partially offset by unfavorable pricing and product mix in both segments ($48 million combined), the unfavorable impact from foreign currency translation in both segments ($22 million combined) and lower by-product revenue in both segments ($5 million combined).
The decrease in net sales and other operating revenues was driven by lower volumes in our Reinforcement Materials segment ($125 million) and less favorable pricing and product mix in both our Reinforcement Materials and Performance Chemicals segment ($160 million combined).
Higher costs were primarily driven by higher maintenance and turnaround costs. Fiscal 2025 Outlook Looking forward to fiscal 2025, we remain focused on our strategy of Creating for Tomorrow, advancing several strategic initiatives, generating strong cash flows, continuing our disciplined approach to capital allocation, and remain committed to our investment grade credit rating.
The lower selling and administrative expenses were primarily due to cost management and optimization efforts. Fiscal 2026 Outlook Looking forward to fiscal 2026, we remain focused on executing our strategy of Creating for Tomorrow, generating strong cash flows, and continuing our disciplined approach to capital allocation.
The decrease in net working capital was largely driven by a decrease in accounts receivable due to lower customer prices from lower cost of raw materials and decreased sales volumes and a decrease in inventories, partially offset by a decrease in accounts payable and accrued expenses driven by lower cost of raw materials. 38 Cash Flows from Investing Activities Investing activities consumed $235 million of cash in fiscal 2024 compared to $214 million in fiscal 2023.
The decrease in net working capital was driven by a decrease in inventories from lower cost of raw materials and accounts receivable from lower sales volume in our Reinforcement Materials segment partially offset by lower accounts payable and accrued liabilities.
The decrease in fiscal 2024 was primarily due to a lower partial release of the valuation allowance on our U.S. deferred tax assets ($128 million) and higher losses from government-controlled currency devaluations in Argentina ($26 million), partially offset by higher earnings in both our Reinforcement Material and Performance Chemicals segments ($94 million combined). 35 Fiscal 2024 compared to Fiscal 2023—By Business Segment Income (loss) from operations before income taxes and equity in earnings of affiliated companies, pre-tax certain items, other unallocated items and Total segment EBIT for fiscal 2024 and 2023 are set forth in the table below.
The decrease in fiscal 2025 was primarily due to a higher provision for income taxes ($85 million) driven by an increase in the partial valuation allowance recorded on our U.S. deferred tax assets, and lower segment EBIT in Reinforcement Materials ($29 million), partially offset by lower losses from government-controlled currency devaluations in Argentina ($43 million) and higher segment EBIT in Performance Chemicals ($30 million).
In fiscal 2023, the use of cash by investing activities primarily consisted of $244 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital, including a capacity expansion project in Performance Chemicals, partially offset by proceeds from insurance settlements of $12 million, proceeds from the sale of land of $7 million, and proceeds from the sale of our Purification Solutions business of $6 million.
Cash Flows from Investing Activities Investing activities consumed $298 million of cash in fiscal 2025 compared to $235 million in fiscal 2024. In fiscal 2025, the use of cash by investing activities primarily consisted of $274 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital.
Unless a calendar year is specified, all references to years in this discussion are to our fiscal years ended September 30. This section discusses our fiscal 2024 and 2023 results of operations and year-to-year comparisons between fiscal 2024 and 2023.
This section discusses our fiscal 2025 and 2024 results of operations and year-to-year comparisons between fiscal 2025 and 2024.
Years Ended September 30 2024 2023 (In millions) Income (loss) from operations before income taxes and equity in earnings of affiliated companies $ 529 $ 451 Less: Certain items, pre-tax (59 ) (29 ) Less: Other unallocated items (113 ) (127 ) Total segment EBIT $ 701 $ 607 In fiscal 2024, Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased by $78 million.
Fiscal 2025 compared to Fiscal 2024—By Business Segment Income (loss) from operations before income taxes and equity in earnings of affiliated companies, pre-tax certain items, other unallocated items and Total segment EBIT for fiscal 2025 and 2024 are set forth in the table below.
For purposes of the table above, current purchase prices have been used to quantify total commitments.
Under certain of these agreements the quantity of material being purchased is fixed, but the price we pay changes as market prices change. For purposes of the table above, current purchase prices have been used to quantify those total commitments.
Cabot is also organized for operational purposes into three geographic regions: the Americas; EMEA; and Asia Pacific. The discussions of our results of operations for the periods presented reflect these structures. Our analysis of financial condition and operating results should be read with our consolidated financial statements and accompanying notes.
The discussions of our results of operations for the periods presented reflect these structures. Our analysis of financial condition and operating results should be read together with our consolidated financial statements and accompanying notes. Unless a calendar year is specified, all references to years in this discussion are to our fiscal years ended September 30.
Capital expenditures for fiscal 2025 are expected to be between $250 million and $300 million. Our planned capital spending program for fiscal 2025 is primarily for sustaining, compliance and improvement capital projects at our operating facilities as well as capacity expansion capital expenditures.
Our planned capital spending program for fiscal 2026 is primarily for sustaining, compliance, and improvement capital projects at our operating facilities. Cash Flows from Financing Activities Financing activities consumed $336 million of cash in fiscal 2025 compared to $415 million consumed in fiscal 2024.
Our long-term total debt, of which $8 million is current, matures at various times as presented in Note I of our Notes to the Consolidated Financial Statements. The weighted-average interest rate on our fixed rate long-term debt was 4.29% as of September 30, 2024.
Our current plan is to refinance the $250 million in registered notes with a coupon of 3.4% that mature in September of 2026 prior to its maturity. The weighted-average interest rate on our fixed rate long-term debt was 4.29% as of September 30, 2025.
We have also entered into long-term purchase agreements primarily for services related to information technology, which are not included in the table above, that total $31 million as of September 30, 2024, the majority of which is expected to be paid within the next 5 years.
We have also entered into long-term purchase agreements primarily for services related to information technology, which are included in the table above. Leases We have entered into various leases as the lessee, primarily related to certain transportation vehicles, warehouse facilities, office space, and machinery and equipment.
These payments were partially offset by proceeds from the sales of common stock of $20 million from stock option exercises.
These payments were partially offset by proceeds from the sales of common stock of $20 million from stock option exercises. Our long-term total debt, of which $260 million is current, matures at various times as presented in Note H of our Notes to the Consolidated Financial Statements.
EBIT in Performance Chemicals increased by $39 million compared to fiscal 2023 due to higher volumes ($35 million) and higher unit margins, net of higher costs ($11 million), partially offset by the unfavorable impact of foreign currency translation ($6 million).
EBIT in Performance Chemicals increased by $30 million compared to fiscal 2024 primarily due to higher volumes ($20 million), lower selling and administrative expenses ($3 million) and the favorable impact from foreign currency translation ($3 million). The higher volumes were primarily in our fumed metal oxides and battery materials product lines.
The higher volumes were due to higher volumes in Asia Pacific and EMEA in Reinforcement Materials and higher volumes in Performance Chemicals as volumes reconnected to underlying demand drivers in key end markets. The unfavorable pricing in both segments was primarily due to lower raw material costs that are generally passed through to our customers.
The lower volumes in our Reinforcement Materials segment were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The less favorable pricing and product mix in both segments were primarily driven by lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments.
General unallocated income (expense) was increased by $20 million of income primarily due to less foreign currency operating losses in Argentina in fiscal 2024 as compared to fiscal 2023. The foreign currency losses from government devaluations in Argentina are treated as a certain item and are not included in General unallocated income (expense).
General unallocated income (expense) was lower in fiscal 2025 by $14 million primarily due to lower investment income in Argentina from lower investment balances and lower interest rates in the country.
Payments Due by Fiscal Year 2025 2026 2027 2028 2029 Thereafter Total (In millions) Purchase commitments $ 251 $ 210 $ 184 $ 132 $ 116 $ 1,349 $ 2,242 Long-term debt 4 250 113 8 300 400 1,075 Fixed interest on long-term debt 41 41 33 32 32 60 239 Variable interest on long-term debt 5 5 4 — — — 14 Finance leases (1) 5 5 3 3 3 13 32 Operating leases (1) 17 14 12 10 10 69 132 Total $ 323 $ 525 $ 349 $ 185 $ 461 $ 1,891 $ 3,734 (1) Lease liabilities include interest.
Payments Due by Fiscal Year 2026 2027 2028 2029 2030 Thereafter Total (In millions) Purchase commitments $ 216 $ 170 $ 120 $ 102 $ 100 $ 1,037 $ 1,745 Long-term debt 254 129 9 300 — 400 1,092 Fixed interest on long-term debt 41 33 32 32 20 40 198 Variable interest on long-term debt 4 4 — — — — 8 Finance leases (1) 7 5 5 3 3 11 34 Operating leases (1) 17 14 11 10 10 65 127 Total $ 539 $ 355 $ 177 $ 447 $ 133 $ 1,553 $ 3,204 (1) Lease liabilities include interest. 38 Purchase Commitments We have entered into long-term, volume-based purchase agreements primarily for the purchase of raw materials and natural gas with various key suppliers for all of our business segments.
Removed
Loss on Sale of Business Years Ended September 30 2024 2023 (In millions) Loss on sale of business $ — $ 3 The loss on sale of business associated with the sale of the Purification Solutions business is described in Note D of our Notes to the Consolidated Financial Statements.
Added
The decrease was primarily due to lower foreign currency losses in Argentina, including the impact of the government devaluation of the currency that occurred during the first quarter of fiscal 2024.
Removed
For the year ended September 30, 2024, the (Provision) benefit for income taxes was a $111 million expense compared to a $28 million benefit for fiscal 2023.
Added
Interest expense declined $5 million due to lower overall debt balances and lower borrowing rates. Unallocated corporate costs were lower year-over-year by $16 million primarily due to a lower mark to market on deferred equity compensation payable to certain of our directors and lower incentive compensation expense.
Removed
The increase was primarily driven by higher earnings in both our Reinforcement Materials and Performance Chemicals segment ($94 combined) and higher General unallocated income ($20 million), partially offset by higher expenses from Argentina controlled currency devaluation and other losses ($36 million).
Added
The decrease was primarily due to lower volumes ($125 million) and less favorable pricing and product mix ($127 million). The lower volumes were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment.
Removed
Unallocated corporate costs increased by $14 million primarily due to an increase in incentive compensation expense.
Added
The less favorable pricing and product mix were primarily driven by lower raw material costs which, in most instances, are passed through to our customers through formulas and other market-based adjustments. 35 EBIT in Reinforcement Materials decreased by $29 million compared to fiscal 2024.
Removed
The increase was primarily due to higher volumes ($79 million), partially offset by the unfavorable impact from foreign currency translation ($17 million) and unfavorable pricing and product mix ($13 million). The higher volumes were primarily in Asia Pacific and EMEA. The unfavorable pricing was primarily due to lower raw material costs that are generally passed through to our customers.
Added
The decrease was driven by lower volumes ($51 million), partially offset by lower selling and administrative expenses ($15 million) and the favorable impact from foreign currency translation ($7 million). The lower volumes were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment.
Removed
EBIT in Reinforcement Materials increased by $55 million compared to fiscal 2023. The increase was driven by higher volumes ($28 million) and higher unit margins, net of higher costs ($25 million). The higher volumes were primarily in Asia Pacific and EMEA.
Added
The lower selling and administrative expenses were primarily due to cost management and optimization efforts.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

8 edited+2 added−0 removed3 unchanged
Biggest changeOur exposure to market risk is not hedged in a manner that completely eliminates the effects of changing market conditions on earnings or cash flow. Foreign Currency Risk Our international operations are subject to certain risks, including currency exchange rate fluctuations and government actions. We have cross-currency swaps designated as hedges of our net investments in certain Euro denominated subsidiaries.
Biggest changeOur exposure to market risk is not hedged in a manner that completely eliminates the effects of changing market conditions on earnings or cash flow. Foreign Currency Risk Our international operations are subject to certain risks, including currency exchange rate fluctuations from financial markets and government actions.
The derivative instruments are booked in our balance sheet at fair value and reflect the asset or liability position as of September 30, 2024. If a counterparty fails to fulfill its performance obligations under a derivative contract, our exposure will equal the fair value of the derivative.
The derivative instruments are booked in our balance sheet at fair value and reflect the asset or liability position as of September 30, 2025. If a counterparty fails to fulfill its performance obligations under a derivative contract, our exposure will equal the fair value of the derivative.
Description Notional Amount Interest Rate Received Interest Rate Paid Fiscal Year Entered Into Maturity Year Fair Value at September 30, 2024 Fair Value at September 30, 2023 Cross Currency Swaps USD 250 million swapped to EUR 223 million 3.40% 1.94% 2016 2026 $1 million $12 million 40 We also have foreign currency exposures arising from the denomination of monetary assets and liabilities in foreign currencies other than the functional currency of a given subsidiary as well as the risk that currency fluctuations could affect the dollar value of future cash flows generated in foreign currencies.
Description Notional Amount Interest Rate Received Interest Rate Paid Fiscal Year Entered Into Maturity Year Fair Value at September 30, 2025 Fair Value at September 30, 2024 Cross Currency Swaps USD 250 million swapped to EUR 223 million 3.40% 1.94% 2016 2026 $(12 million) $1 million We also have foreign currency exposures arising from monetary assets and liabilities denominated in foreign currencies other than the functional currency of a given subsidiary, as well as the risk that currency fluctuations could affect the dollar value of future cash flows generated in foreign currencies.
In fiscal 2024 and 2023, due to the weakening of most foreign currencies against the U.S. dollar, foreign currency translations in the aggregate decreased our business segment EBIT by $5 million and $16 million, respectively, which affected the results of the Reinforcement Materials and Performance Materials segments.
In fiscal 2024, due to the weakening of most foreign currencies against the U.S. dollar, foreign currency translations in the aggregate decreased our segment EBIT $5 million, which affected the results of the Reinforcement Materials and Performance Chemicals segments.
Accordingly, we use short-term forward contracts to minimize the exposure to foreign currency risk. At September 30, 2024 and 2023, we had $138 million and $82 million, respectively, in notional foreign currency contracts, which were denominated in Indonesian rupiah, Czech koruna, and Colombian peso.
Accordingly, we use short-term forward contracts to minimize the exposure to foreign currency risk. At September 30, 2025, we had $184 million in notional foreign currency contracts, which were denominated in Euro, Indonesian rupiah, Czech koruna, and Colombian peso.
In fiscal 2024 and 2023, we recognized a net foreign exchange loss of $46 million and $35 million, respectively, in Other income (expense) from the revaluation of monetary assets and liabilities from transactional currencies to functional currency, largely attributable to changes in the value of the Argentine peso in both periods. 41
In fiscal 2025 and 2024, we recognized net foreign exchange losses of $8 million and $46 million, 39 respectively, in Other income (expense) from the revaluation of monetary assets and liabilities from transactional currencies to functional currency, largely attributable to changes in the value of the Argentine peso in both periods. 40
The following table summarizes the principal terms of our cross-currency swaps, including the aggregate notional amount of the swaps, the interest rate payment we receive from and pay to our swap counterparties, the term and fair value at September 30, 2024 and 2023.
We have cross-currency swaps designated as hedges of our net investments in certain Euro-denominated subsidiaries. The following table summarizes the principal terms of our cross-currency swaps, including the aggregate notional amount of the swaps, the interest rate payment we receive from and pay to our swap counterparties, the term and fair value at September 30, 2025 and 2024.
These forwards had a fair value of less than $1 million as of both September 30, 2024 and 2023. In certain situations where we have forecasted purchases under a long-term commitment or forecasted sales denominated in a foreign currency, we may enter into appropriate financial instruments in accordance with our risk management policy to hedge future cash flow exposures.
In certain situations where we have forecasted purchases under a long-term commitment or forecasted sales denominated in a foreign currency, we may enter into appropriate financial instruments in accordance with our risk management policy to hedge future cash flow exposures.
Added
At September 30, 2024, we had $138 million in notional foreign currency contracts, which were denominated in Indonesian rupiah, Czech koruna, and Colombian peso. These forwards had a fair value of less than $1 million as of both September 30, 2025 and 2024.
Added
In fiscal 2025, due to the strengthening of most foreign currencies against the U.S. dollar, foreign currency translations in the aggregate increased our segment EBIT by $10 million, which affected the results of the Reinforcement Materials and Performance Chemicals segments.

Other CBT 10-K year-over-year comparisons