At a glance
Cabot Corporation is worth $3.81B, about 12 times its fiscal 2025 earnings. Revenue fell 7.0% to $3.71B in fiscal 2025, with 8.9% kept as profit; over 5 years it has grown 7.3% a year. It pays a 2.49% dividend yield, raised every year for at least 4 years, and returned $935.0M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +6.4% over the past year with dividends reinvested and +8.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 50.9% in the 2020 crash (S&P 500: 33.7%) and 22.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 2 months after the lows.
The business in plain English
Cabot Corporation is a Boston-based specialty chemicals company founded in 1882. It makes materials built from extremely fine particles. The main one is carbon black, a powdery form of carbon made mostly from leftover heavy oils from refining and other industrial processes. Its other products include specialty compounds, battery materials such as conductive additives and carbon nanotubes, fumed metal oxides, inkjet colorants and aerogel. It runs plants in the US and more than 20 other countries.
Reinforcement Materials, the larger of Cabot's two segments, brought in $2.34 billion, or 63%, of revenue of $3.71 billion in fiscal 2025 (the year ended September 30, 2025). It sells reinforcing carbons that make tires and rubber goods such as hoses and belts tougher and longer-lasting. Most of this market is replacement tires, where demand tracks miles driven. Five major tire makers account for a large share of the segment's sales. About 60% of volume is sold under contracts, usually one year long, that adjust prices for raw material costs.
Performance Chemicals brought in $1.25 billion, about 34%. Plastics are the largest use for its specialty carbons. Its other products serve the auto industry, construction, electronics, inkjet printing and batteries. China supplied 25% of fiscal 2025 revenue, the US 18% and other countries 57%. Many plants also turn waste gas into steam or electricity that Cabot uses or sells.
Price history
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CBT +6.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Reinforcement Materials | $2.34B | 63% |
| Performance Chemicals | $1.25B | 33.7% |
By geography
| Other Foreign Countries | $2.11B | 56.9% |
| CN | $931.0M | 25.1% |
| US | $670.0M | 18% |
Latest results
- In Q3 FY2026 (ended Jun 30, 2026), revenue was $982.0M, up 6.4% from a year earlier, and net income was $6.0M (-94.1%).
- For fiscal 2025, revenue was $3.71B (-7.0% year over year; +7.3% a year from FY2020 to FY2025) with a 8.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.3% good |
|---|---|
| Operating margin | 16.7% good |
| Free cash flow margin | 10.5% good |
| Return on equity (FY2025) | 21.4% good |
| Return on assets (FY2025) | 8.7% good |
| Net cash (cash minus debt) | $-1.02B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.61B | $-238.0M | $177.0M |
| FY2021 | $3.41B | $250.0M | $62.0M |
| FY2022 | $4.32B | $209.0M | $-111.0M |
| FY2023 | $3.93B | $445.0M | $351.0M |
| FY2024 | $3.99B | $380.0M | $451.0M |
| FY2025 | $3.71B | $331.0M | $391.0M |
Valuation snapshot
| Market value | $3.81B |
|---|---|
| P/E ratio | 12.3 |
| Dividend yield | 2.49% |
Rank among 1514 US companies
Market value at each year end
Cabot’s market value went from $3.15B at the end of 2016 to $3.81B on Oct 28, 2026, up 21%; since the end of 2025 it is up 9%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.81B | +8.6% |
| 2025 | $3.51B | -29.4% |
| 2024 | $4.97B | +7.5% |
| 2023 | $4.62B | +22.7% |
| 2022 | $3.77B | +17.9% |
| 2021 | $3.19B | +25.7% |
| 2020 | $2.54B | -6.2% |
| 2019 | $2.71B | +5.0% |
| 2018 | $2.58B | -32.4% |
| 2017 | $3.82B | +21.1% |
| 2016 | $3.15B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CBT price data to Oct 28, 2026 | +13.2% | +6.4% | +6.2% | +8.9% | +6.1% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +13.2% |
| 2025 | -25.7% |
| 2024 | +11.2% |
| 2023 | +27.6% |
| 2022 | +21.3% |
| 2021 | +28.4% |
| 2020 | -2.1% |
| 2019 | +14.2% |
| 2018 | -28.7% |
| 2017 | +24.6% |
| 2016 | +26.6% |
| 2015 | -4.3% |
| 2014 | -13.3% |
| 2013 | +31.7% |
| 2012 | +26.4% |
| 2011 | -12.9% |
| 2010 | +47.1% |
| 2009 | +79.1% |
| 2008 | -52.8% |
| 2007 | -22.1% |
| 2006 | +24.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 77.7% over that stretch · deepest drop along the way 77.8%, back to its old high 19.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 48% over that stretch · deepest drop along the way 50.9%, back to its old high 2.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 10.9% over that stretch · deepest drop along the way 22.4%, back to its old high 1.8 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 3 sales ($19.6M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 28, 2026 | Sean D Keohane President and CEO, Director | sell | $11.5M |
| Aug 7, 2026 | Sean D Keohane President and CEO, Director | sell | $7.9M |
| Aug 24, 2026 | Sean D Keohane President and CEO, Director | sell | $238K |
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 6.08% | Mar 31, 2026 |
| Vanguard Capital Management | 5.22% | Mar 31, 2026 |
| Wellington Management Group LLP | 4.7% | Jun 30, 2026 |
ETFs with the most weight in CBT
| TINT ProShares Smart Materials ETF | 4.05% |
| FCPI Fidelity Stocks for Inflation ETF | 3.66% |
| FDIV MarketDesk Focused U.S. Dividend ETF | 2.04% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 1.14% |
| PEXL Pacer US Export Leaders ETF | 1.08% |
| MGMT Ballast Small/Mid Cap ETF | 1.05% |
| FSGS First Trust SMID Growth Strength ETF | 1.02% |
| FSCS First Trust SMID Capital Strength ETF | 0.97% |
What could go wrong
- Tire production shifting to Asia. More tires made in Asia are shipped to the Americas and Western Europe, cutting output at Cabot's customers there. That reduces demand and plant use in Cabot's higher-margin regions and pressures prices.
- Reliance on five big tire customers. Five major tire makers account for a large share of Reinforcement Materials sales, the segment behind 63% of fiscal 2025 revenue. Losing one, or selling them much less, could hurt results until replaced.
- Costly air-pollution rules and plant upgrades. Tighter limits on air emissions require expensive equipment, and Cabot may not recover the cost through prices. At its Ville Platte, Louisiana plant, such a project ran into problems and Cabot ended the construction contract.
- Exposure to China and trade tensions. China provided about 25% of fiscal 2025 revenue, and Cabot holds 60–70% stakes in operations in Shanghai, Tianjin and Xingtai City. The 10-K flags political and country risk there; strained trade relations could also hurt.
- Swings in feedstock and energy prices. Cabot's main raw material is leftover heavy oil from refining and other industries, along with natural gas. Sharp price moves can squeeze margins, tie up cash and change income from energy it sells.
- Climate policy and greener substitutes. Net-zero and carbon-neutral policies could add costs for a maker of oil-derived carbon and harm its reputation. Substitutes, including precipitated silica and recycled recovered carbon black, could also win business.
Recent events
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Other company announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change
For income and retirement investors
Cabot kept paying dividends in fiscal 2020, when it lost money. The dividend per share held at $1.40 in fiscal 2020 and 2021, then rose four years running to $1.76 in fiscal 2025, averaging 4.7% annual growth since fiscal 2020. The dividend used 29% of fiscal 2025 earnings and 25% of free cash flow (cash left over after plant and equipment spending). The yield was 2.49% as of October 28, 2026. Buybacks of $494 million over fiscal 2021–2025 exceeded the $441 million paid in dividends, and the share count fell 9% from August 2021 to July 2026.
The stock has dropped sharply in downturns: 78% in the 2008 financial crisis, recovering by October 2010, and 51% in the 2020 COVID crash, recovering by June 2020. In 2022 it rose 11% while the broad market fell. Quarterly profit fell 94% to $6 million in the three months to June 30, 2026. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Cabot Corporation make money?
Cabot makes money by selling carbon black and other ultra-fine particle materials to manufacturers. Its Reinforcement Materials segment, 63% of fiscal 2025 revenue of $3.71 billion, sells reinforcing carbons that strengthen tires and rubber goods, mostly for replacement tires. Performance Chemicals, about 34%, sells specialty carbons, battery materials, fumed metal oxides, aerogel and inkjet colorants for plastics, electronics, construction, printing and batteries. Cabot also sells some energy made from waste gas at its plants. Net profit in fiscal 2025 was $331 million, about 8.9% of sales.
Does Cabot raise its dividend every year?
No, not every year, but it has raised the dividend four fiscal years in a row. Dividends per share were $1.40 in both fiscal 2020 and 2021, then rose to $1.48, $1.54, $1.66 and finally $1.76 in fiscal 2025. That fiscal 2025 total used about 29% of earnings, a modest share. The dividend yield (annual dividends divided by the share price) was 2.49% as of October 28, 2026.
How much of Cabot's revenue comes from China?
About a quarter. In fiscal 2025, China accounted for $931 million, or 25%, of Cabot's $3.71 billion revenue. That was more than the US at $670 million, or 18%. Other foreign countries made up the remaining 57%. Cabot holds majority stakes in operations in Shanghai, Tianjin and Xingtai City. Its 10-K lists political and country risk in China, along with uncertain trade relations, among the factors that could hurt results.
How much debt does Cabot have?
About $1.27 billion as of June 30, 2026. Against that, it held $250 million in cash and investments, leaving net debt (debt minus cash) of about $1.02 billion. Shareholders' equity was about $1.61 billion. For scale, Cabot produced $391 million of free cash flow in fiscal 2025, meaning the cash left after plant and equipment spending. Its stock market value was about $3.8 billion as of October 28, 2026.
How has Cabot stock performed over the long term?
Its gains have been modest, with big swings. As of October 28, 2026, the share price had risen about 6.1% a year over 10 years, 8.9% a year over five years and 6.4% over one year. Single years vary widely: the stock fell 52.8% in 2008, rose 79.1% in 2009 and fell 25.7% in 2025. For 2026 through October 28 it was up 13.2%. At that date its price-to-earnings ratio was 12.3, based on fiscal 2025 earnings.