Wed, May 7, 4:39 PM (12 days ago)
### Cabot Corporation (CBT) Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Q1 2025 Revenue:** $936 million, down from $1,019 million in Q1 2024. - **Gross Profit:** $241 million, slightly down from $246 million in Q1 2024. - **Net Income:** $94 million, up from $84 million in Q1 2024. - **Earnings per Share (EPS):** $1.69 (diluted), up from $1.49 in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $197 million, down from $281 million in Q1 2024. - **Investing Activities:** $174 million outflow, higher than $95 million in Q1 2024 due to asset acquisitions. - **Financing Activities:** $7 million outflow, significantly improved from $195 million outflow in Q1 2024. **Segment Performance:** - **Reinforcement Materials:** Revenue down 12% due to lower volumes and unfavorable pricing. - **Performance Chemicals:** Revenue flat, with higher volumes offset by pricing and currency impacts. **Trends and Uncertainties:** - **Macroeconomic Factors:** Lower tire demand and contract outcomes in South America impacted Reinforcement Materials. - **Currency Fluctuations:** Significant foreign exchange losses in Argentina, though improved from Q1 2024. - **Tariffs:** Potential impact from tariffs, though Cabot expects to pass on increased costs through pricing. **Future Operations:** - **Capital Expenditures:** Expected to be between $250 million and $275 million for fiscal 2025. - **Liquidity:** Strong liquidity position with $213 million in cash and $1.0 billion in borrowing availability. - **Segment Outlook:** Reinforcement Materials EBIT expected to decline modestly, while Performance Chemicals EBIT is expected to remain flat. **Management Discussion:** - **Cost Management:** Effective cost management efforts reduced selling and administrative expenses. - **Research and Development:** Flat research and technical expenses, indicating sustained investment in innovation. - **Taxes:** Effective tax rate of 32% for Q1 2025, with an expected range of 27-29% for fiscal 2025. **Forward-Looking Information:** - **Earnings and EBIT:** Expectations for future earnings and EBIT are positive, with a focus on managing costs and improving operational efficiency. - **Regulatory and Market Risks:** Continued monitoring of regulatory developments and market conditions, including potential impacts from trade tariffs and economic conditions. **Conclusion:** Cabot Corporation demonstrated resilience in Q1 2025, with improved net income and EPS despite revenue challenges. The company's strong liquidity position and strategic cost management efforts position it well for future growth, though it faces uncertainties from macroeconomic factors and regulatory environments.