CBT

Cabot is a global specialty-chemicals company (reinforcement materials/carbon black, performance chemicals, and battery/energy materials) with a resilient, cash-generative franchise. FY2025 revenue fell 7.0% to $3.71B and net income declined 12.9% to $331M (EPS -10.4% to $6.02), but the more telling number is operating income, which actually rose 1.1% to $621M — meaning the revenue drop was largely lower raw-material/feedstock prices passed through, not volume or margin collapse. Operating margin expanded to 16.7% and ROE is an impressive 21.4%, well above typical commodity chemicals.

Cash generation and capital discipline are strengths. Operating cash flow was $665M (down only 3.9%), comfortably funding $274M of capex (up 13.7% as Cabot invests in growth, including battery materials), $168M of buybacks, and $96.0M of dividends. The balance sheet improved — long-term debt fell 21.3% to $856M — though current debt rose as maturities shifted near-term, and equity grew 8.8% to $1.55B. The share count declined 2.7% to 52.9M, supporting EPS.