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Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company specializes in producing advanced materials that enhance the performance of customer formulations. Its offerings include reinforcing carbons, specialty carbons, battery materials, and other innovative chemical products used across various industries.
- Reinforcement Materials - Produces reinforcing carbons for the tire and rubber industry, including innovative products like Engineered Elastomer Composites (E2C).
- Performance Chemicals - Offers specialty carbons, specialty compounds for plastics, fumed silica for silicones, CMP, adhesives, coatings, and battery materials.
- Purification Solutions - Previously focused on activated carbons for purification applications; this segment was divested on March 1, 2022.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Erica McLaughlin ExecutiveBoard | Executive Vice President, Chief Financial Officer, and Head of Corporate Strategy | Board of Directors of Azenta Life Sciences; Advisory Board of FM Global | Erica McLaughlin serves as the Executive Vice President, Chief Financial Officer, and Head of Corporate Strategy at CBT since December 2022. She has been a key leader in financial strategy, serving as CFO since May 2018 and expanding her role in corporate strategy in October 2018, while also holding external board roles at Azenta Life Sciences and FM Global. | |
Sean D. Keohane ExecutiveBoard | President and Chief Executive Officer | Director at The Chemours Company; Director at American Chemistry Council | Sean D. Keohane has served as the President and Chief Executive Officer of Cabot Corporation since March 2016 and has been a board member since 2016. He joined Cabot in 2002 and held several executive roles prior to his current position. | View Report → |
Hobart C. Kalkstein Executive | Executive Vice President and President of the Reinforcement Materials Segment and President of the Americas Region | Hobart C. Kalkstein is the Executive Vice President and President of the Reinforcement Materials Segment and President of the Americas Region at Cabot Corporation, where he joined in 2005. He was elevated to Executive Vice President in December 2022 and previously served in roles such as Vice President of Corporate Strategy and Development and Vice President of Global Business Operations for Purification Solutions. | ||
Jeff Zhu Executive | Executive Vice President and President of Carbon and Silica Technologies, and Battery Materials businesses within Cabot's Performance Chemicals Segment | Jeff Zhu is the Executive Vice President and President of Carbon and Silica Technologies, and Battery Materials businesses at CBT, and also serves as President of the Asia Pacific Region. He was elected Executive Vice President effective December 2022 and has been with CBT since 2012. | ||
Karen A. Kalita Executive | Senior Vice President and General Counsel | Karen A. Kalita has been the Senior Vice President and General Counsel at CBT since June 2019. She joined CBT in 2008 and has held multiple key legal roles including Chief Counsel to the Reinforcement Materials and Purification Solutions segments. | ||
Christine Y. Yan Board | Director | Director, Modine Manufacturing Company ; Director, onsemi ; Director, Ansell Limited ; Operating Director, Ammega Group, B.V. | Christine Y. Yan has been a Director at CBT since 2019 and serves as an independent director on the Compensation Committee, bringing extensive experience in global manufacturing, engineering, and international business. | |
Cynthia A. Arnold Board | Director | Director at Fluence; Director at Milliken & Company; Director at Citrine Informatics | Cynthia A. Arnold has served as a Director at Cabot Corporation since 2018 and is a member of the SHE&S Committee, with her term expiring in 2027. She brings over a decade of global expertise in the specialty chemicals industry and holds additional board positions at Fluence, Milliken & Company, and Citrine Informatics. | |
Douglas G. Del Grosso Board | Director | Director at Pangea Corporation ; Trustee at The Committee for Economic Development of the Conference Board | Douglas G. Del Grosso has been a Director at CBT since 2020, serving on the Compensation and Safety, Health, Environment & Sustainability Committees. He brings extensive leadership experience from previous roles, including serving as CEO at Adient, plc and other senior positions. | |
Frank A. Wilson Board | Director | Director at Alkermes (since September 2019); Director at Novanta, Inc. (since May 2021); Senior Advisor at Astor Place Holdings (since 2018) | Frank A. Wilson has been a Director at Cabot Corporation since 2018 and serves as the Chair of the Audit Committee while also being a member of the Governance Committee. He has a distinguished background with previous senior roles at PerkinElmer, Inc. and Danaher Corporation. | |
Matthias L. Wolfgruber Board | Director | Chairman of Lanxess AG; Chairman of Altana AG | Matthias L. Wolfgruber has been a Director at Cabot Corporation since 2014 and serves as the Chair of the Compensation Committee and a member of the Governance Committee, with his term expiring in 2025. | |
Michael M. Morrow Board | Non-Executive Chair of the Board | Chair, Financial Accounting Standards Advisory Committee (FASAC) | Michael M. Morrow has served as Non-Executive Chair of the Board at CBT since October 1, 2023 and has been a Director since 2017. He previously served as a partner at PwC from 1986 until June 2016 and as a consultant from June 2016 to June 2017. | |
Raffiq Nathoo Board | Director | Managing Partner at Tx3 Sage Rock; Director at IREX; Trustee at The Nightingale-Bamford School | Raffiq Nathoo is a Director at Cabot Corporation since 2022 and a member of its Audit Committee, bringing leadership, international financial expertise, and strategic risk management experience. | |
Thierry Vanlancker Board | Director | Director, Chairman of the Board, Managing Director at Aliaxis SA; Director, Chairman of the Board at SIKA AG | Thierry Vanlancker serves as a Director and Audit Committee member at CBT since July 12, 2024. He brings over 30 years’ experience in the chemical industry, having held key leadership roles at companies including Aliaxis SA and SIKA AG. | |
William C. Kirby Board | Director | Spangler Family Professor of Business Administration, Harvard Business School (since 2008); T.M. Chang Professor of China Studies, Harvard University (since 2008); Harvard University Distinguished Service Professor and Chairman of the Harvard China Fund (since 2006); Director, The Taiwan Fund, Inc. (since 2013); Director, Harvard University Press; Director, Harvard Magazine; Director, The American Council of Learned Societies (since 2018) | William C. Kirby has served as a Director at CBT since 2012, where he also sits on the Compensation Committee with his term set to expire in 2026. He is a seasoned academic and corporate leader with extensive experience at Harvard and various investment and scholarly organizations. |
- Based on the reported $5 million EBIT headwind from energy center revenue, can you elaborate on which regional factors—especially in Europe versus China—are most at fault, and what strategic measures will you take to mitigate this impact going forward?
- With the new Indonesia capacity expected to yield only a modest back-half EBIT benefit in 2025, what specific start-up challenges and customer qualification hurdles do you foresee, and how will these issues affect near-term capital efficiency?
- Noting the $4 million reduction in allocated corporate costs this quarter, can you clarify whether this was a one-off timing issue or if you expect sustained operational cost improvements that will positively affect future margins?
- Given the rising oil prices impacting Specialty Blacks and the need to adjust pricing on a spot basis, what detailed pricing strategies will you deploy to protect margins without sacrificing market share in this competitive sector?
- With Reinforcement Materials maintaining flat base pricing and facing pressures from increased Asian tire imports, how do you plan to leverage your contract negotiations and operational adjustments to drive growth despite these ongoing market challenges?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Acquired assets and licensed related technology | 2024 | Cabot Corporation entered into agreements on July 19, 2024 to purchase certain assets and license related technology for its Battery Materials product line, paying $27 million at closing in October 2024. |
Tokai Carbon (Tianjin) Co. | 2022 | Cabot Corporation acquired 100% of the registered capital of Tokai Carbon (Tianjin) Co., a carbon black manufacturing facility in China, on February 28, 2022, involving a net purchase price structure with a bargain purchase gain of $24 million and cash consideration paid in the third quarter of fiscal 2022. |
Shenzhen Sanshun Nano New Materials Co., Ltd | 2020 | The acquisition of SUSN on April 1, 2020 was executed for a total purchase price of approximately $100–$115 million (including cash, contingent consideration, and assumed debt), strengthening Cabot's battery formulations capabilities and integrating SUSN’s operations into its Performance Chemicals segment. |
Recent press releases and 8-K filings for CBT.
- Adjusted EPS reached $1.76 (up 13% YoY) and GAAP EPS was $1.67, supported by robust operating cash flow of $124M .
- Fiscal 2025 Guidance & Capital Allocation: Full-year adjusted EPS guidance of $7.40 to $7.80, with expected capital expenditures of $250M-$300M; Q1 capital investments of $77M and $66M returned to shareholders via dividends and share repurchases .
- Reinforcement Materials: Delivered EBIT of $130M with modest volume gains, demonstrating solid segment performance .
- Performance Chemicals: Achieved EBIT of $45M (up 32% YoY) with an additional $11M increase driven by strong volume growth .