Cabot (CBT) Investor Day 2024 summary

Strategic vision and market positioning

• Focused on the 'Creating for Tomorrow' strategy, emphasizing growth, innovation, and optimization to drive long-term shareholder value and sustainability leadership.

• Holds global leadership positions in reinforcement materials, specialty carbons, and fumed metal oxides, with a balanced global manufacturing footprint and strong customer relationships.

• Strategy leverages key macro trends: mobility transition to EVs, global infrastructure build-out, and increasing demand for sustainable solutions.

• Maintains a disciplined capital allocation framework, prioritizing high-confidence growth investments, operational excellence, and significant capital returns to shareholders.

• Board oversight includes a dedicated Safety, Health, Environment, and Sustainability Committee, embedding sustainability into corporate governance.

Financial performance and guidance

• Achieved $4 billion in sales and $777 million adjusted EBITDA in FY2024, with a 19% margin and 19% ROIC.

• Adjusted EPS guidance for fiscal 2024 raised to $7.00–$7.10, up 31% year-over-year at the midpoint.

• Q3 2024 adjusted EPS was $1.92; GAAP EPS was $1.94.

• Outperformed the S&P 400 Chemicals Index with a 137% total shareholder return over the last three years.

• Targets 7%-10% adjusted EPS CAGR and $900 million–$1 billion EBITDA by FY2027, with $80–$100 million EBIT growth expected from both major business segments.

Segment performance and outlook

• Reinforcement Materials segment EBIT grew 3% year-over-year to $136 million; global volumes up 4%.

• Performance Chemicals segment EBIT surged 72% year-over-year to $55 million; volumes up 9%.

• Q4 2024 outlook expects modest sequential EBIT improvement in Reinforcement Materials and higher year-over-year EBIT in Performance Chemicals.

• Both segments anticipate higher volumes and improved product mix over the prior year.

• Key growth drivers include battery materials, E2C, and inkjet, with double-digit growth expected in battery and inkjet segments.