On this page of StockholderLetter.com we present the latest annual shareholder letter from CABOT CORP — ticker symbol CBT. Reading current and past CBT letters to shareholders can bring important insights into the investment thesis.

 •  1/27/2026 Letter Continued (Full PDF)
 •  1/26/2023 CBT Stockholder Letter
 •  1/26/2024 CBT Stockholder Letter
 •  1/24/2025 CBT Stockholder Letter
 •  More "Specialty Chemicals" Category Stockholder Letters
 •  CBT Benford's Law Stock Score = 94

CBT Shareholder/Stockholder Letter Transcript:

CABOT CORPORATION
ANNUAL
REPORT
2025

CABOT CORPORATION:
A COMPELLING INVESTMENT THESIS
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STRONG OPERATOR
FINANCIAL STRENGTH
Expected strong liquidity
and cash flow to fund
strategic initiatives
Proven track record
of excellence in
manufacturing and
commercial platforms
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LEADER WITH
GLOBAL SCALE
CAPITAL ALLOCATION
DISCIPLINE
Positioned to deploy growth
capital while maintaining cash
return to shareholders
Global network of competitive assets with
leading technology enables optimization to
best serve customers and maximize returns
HIGHLIGHTS 2025
$6.02
Diluted EPS
$7.25
$804M
Adjusted EBITDA
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Adjusted EPS
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2
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18%
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Adjusted ROIC
$665M $264M
Operating cash flow
$447M
Discretionary free
cash flow1
Returned to
shareholders through
dividends and share
repurchases
Non-GAAP measures. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information for Non-GAAP Reconciliations located at
cabotcorp.com/investors under Financials.
CABOT CORPORATION ANNUAL REPORT 2025

Sean D. Keohane
President and Chief Executive Officer
A MESSAGE TO OUR SHAREHOLDERS
Fiscal year 2025 unfolded against a backdrop of persistent macroeconomic turbulence, geopolitical
tensions, and an unprecedented global trade conflict. It was a year that tested the resilience and
agility of companies across all sectors. Yet it was also a year that highlighted Cabot   s ability to adapt,
perform, and advance even amid challenging global headwinds.
Across nearly every industry, including ours, disruption and uncertainty were defining themes of the year.
Yet, we continued to build on the enduring strength of our business model and the agility of our global teams.
Our performance in this environment demonstrates not just resilience, but the power of disciplined execution
and strategic clarity. We focused on what we could control, including operational excellence, cost discipline,
innovation, and customer value, strengthening our foundation for long-term sustainable growth.
I am proud to report that Cabot delivered record adjusted earnings per share1 (EPS) of $7.25, a 3% increase year
over year. Adjusted earnings before interest, taxes, depreciation and amortization1 (EBITDA) increased 3% to $804
million, representing a 22% margin. This level of performance reflects our commitment to operational excellence,
strong cost discipline, and our ability to pivot resources to drive progress in key end-market applications where
macro-trends were favorable. The quality of our earnings remained strong, with adjusted return on invested capital1
(ROIC) reaching 18%. We ended the year with a net debt to EBITDA ratio of 1.2x and liquidity of approximately $1.5
billion, giving us the financial flexibility to invest in targeted growth initiatives, drive innovation, advance strategic
M&A, and return significant capital to shareholders.
Cash generation continues to be an important characteristic of our company. In fiscal 2025, we delivered $665
million in operating cash flow and $391 million in free cash flow1, enabling a balanced approach to capital
allocation where we:
Invested to enhance the reliability,
efficiency, and sustainability of our
asset base.
Funded growth, both organic and inorganic,
aligned with high-confidence opportunities.
Returned capital to shareholders through
$96 million in dividends (including a 5%
increase announced in May) and $168
million in share repurchases, totaling
$264 million.
We are proud to have maintained a growing dividend since 1968, and we remain committed to a competitive dividend
as part of our capital allocation framework to drive strong total shareholder returns.
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Non-GAAP measures. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information for Non-GAAP Reconciliations located at
cabotcorp.com/investors under Financials.
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STRATEGIC PROGRESS
Beyond our strong financial performance,
fiscal 2025 was a year of meaningful progress
on our Creating for Tomorrow strategy, as
we advanced key initiatives to expand our
leadership positions, strengthen our portfolio,
and deepen our commitment to sustainability.
Our Performance Chemicals segment achieved
strong earnings growth even amid softness in the
automotive and construction sectors. We focused our
efforts on applications aligned with powerful longterm megatrends where our materials play a critical
enabling role such as infrastructure development, the
energy transition, and digitalization. Demand remained
especially strong in high-value applications such as
conductive carbons for power distribution cables and
fumed silica for both semiconductor manufacturing and
the production of wind turbine blades, highlighting the
strength and differentiation of our specialty portfolio.
The Reinforcement Materials segment was impacted
by weak demand in the tire market and rising levels of
Asian tire imports into the western regions. While our
focus in the year was on countermeasures to navigate
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CABOT CORPORATION ANNUAL REPORT 2025
a weak volume environment, we also made progress on
strengthening the long-term positioning of the business.
During the year, we announced a definitive agreement
to acquire Bridgestone Corporation   s reinforcing carbons
plant in Mexico. We expect this investment will enhance
our regional presence, deepen our long-standing
partnership with Bridgestone, and support our
strategy to serve customers with reliable, locally
produced materials.
Our commitment to sustainability leadership remains
foundational to our strategy and culture.
In 2025, Cabot earned a Platinum rating
from EcoVadis for the fifth consecutive year,
placing us among the top 1% of companies
assessed globally.
We also launched our new 2030 sustainability goals,
which focus on six priority topics identified as most
material to our business and stakeholders. These goals
represent a strategic framework that guides how we
innovate, operate, and create long-term value across
our global enterprise.

DRIVING STRATEGIC
GROWTH IN BATTERY
MATERIALS
Our strategy combines organic innovation
with targeted acquisitions to broaden our
technology base and market reach. In fiscal
2025, this approach drove a 20% increase in
total contribution margin.
The lithium-ion battery industry is expected to grow
significantly over the next decade driven by needs
for energy storage tied to artificial intelligence and
datacenters, as well as the continued electrification of
mobility. For several years now, we have been building
our strategic position in this space through organic
innovation coupled with targeted acquisitions to
broaden our technology base and application reach.
Cabot produces a broad range of advanced conductive
additives and formulations designed to meet the
specific performance requirements of our battery
customers. These solutions play a critical role in enabling
higher energy density, faster charging, and longer
battery life. While China remains the largest geography
for battery production today, battery production is rapidly
expanding in the western hemisphere. Our strategy is to
compete in China through technology and innovation,
while establishing incumbency in the western regions
as gigafactories come online. Fiscal year 2025 marked
another year of progress on this strategy as we
increased total contribution margin for this product line
by 20% in the year and expanded our position with key
strategic customers.
Product innovation remains important to our success.
This year, we launched LITX   95F conductive carbon,
a next-generation conductive additive for lithiumion batteries used in energy storage systems (ESS).
This product enhances conductivity, cycle life, and
processability which are key performance factors driving
rapid ESS adoption in applications for renewable energy,
grid flexibility, and data centers.
Our conductive additive blends, enabled by our
conductive carbons, carbon nanotubes, and carbon
nanostructures, also achieved strong volume growth
with leading global battery producers. Looking ahead, we
expect lithium-ion battery demand to expand at a 20%
compound annual growth rate (CAGR) through the end
of the decade, and we believe we are well-positioned
to capture this growth. Given the strategic progress we
have made over the years in this application and our
expectations for the future, we continue to believe we
can build a business that is material to Cabot.
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 1/27/2026 Letter Continued (Full PDF)