Lydia Wong

Lydia Wong questioned how selling a higher mix of lower-tier tires impacts margins versus higher-tier tires, and if there have been changes to Cabot's customer mix. She also asked about Reinforcement Materials volume trends quarter-to-date in the Americas compared to the December quarter, differentiating between South and North America.

Answer

CEO Sean Keohane stated no major changes to the customer mix for 2026. He explained that tire segmentation is crucial, with reinforcing grades for treads typically offering higher performance-related profitability. For Americas volumes, Mr. Keohane reported January volumes are up year-over-year and sequentially (approximately 15%) compared to a seasonally weaker December quarter, which saw significant customer inventory management, indicating development as expected.