v3.26.1
Financial Information by Segment
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Financial Information by Segment

L. Financial Information by Segment

Segment Information

The Company identifies a product line as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is Cabot’s President and Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information.

Operating segments are aggregated into a reportable segment if the operating segments are determined to have similar economic characteristics and if the operating segments are similar in the following areas: i) nature of products and services; ii) nature of production processes; iii) type or class of customer for their products and services; iv) methods used to distribute the products or provide services; and v) if applicable, the nature of the regulatory environment. The Company has two reportable segments: Reinforcement Materials and Performance Chemicals. The Performance Chemicals reporting segment aggregates the specialty carbons, specialty compounds, fumed metal oxides, battery materials, inkjet colorants and aerogel product lines.

The CODM reviews Segment earnings before interest and taxes (“Segment EBIT”) at the operating segment level to allocate resources and to assess operating results and financial performance. The CODM reviews the change in the actual results compared to the same period forecast, the same period year-ago, and the preceding period on a quarterly basis. Segment EBIT includes all items that are controlled by the business segment and those management considers are representative of the fundamental on-going segment results.

Details of Segment EBIT including segment revenue and significant segment expenses regularly reviewed by the CODM are as follows:

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Segment
Total

 

 

 

(In millions)

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

Segment revenues from external customers

 

$

599

 

 

$

351

 

 

$

950

 

Segment cost of sales(1)

 

 

(468

)

 

 

(248

)

 

 

(716

)

Segment operating expenses(1)(2)

 

 

(35

)

 

 

(36

)

 

 

(71

)

Other Segment Items(3)

 

 

1

 

 

 

1

 

 

 

2

 

Segment EBIT

 

$

97

 

 

$

68

 

 

$

165

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Segment
Total

 

 

 

(In millions)

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

Segment revenues from external customers

 

$

573

 

 

$

320

 

 

$

893

 

Segment cost of sales(1)

 

 

(415

)

 

 

(229

)

 

 

(644

)

Segment operating expenses(1)(2)

 

 

(31

)

 

 

(34

)

 

 

(65

)

Other Segment Items(3)

 

 

1

 

 

 

—

 

 

 

1

 

Segment EBIT

 

$

128

 

 

$

57

 

 

$

185

 

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Segment
Total

 

 

 

(In millions)

 

Nine Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

Segment revenues from external customers

 

$

1,663

 

 

$

979

 

 

$

2,642

 

Segment cost of sales(1)

 

 

(1,271

)

 

 

(699

)

 

 

(1,970

)

Segment operating expenses(1)(2)

 

 

(102

)

 

 

(108

)

 

 

(210

)

Other Segment Items(3)

 

 

2

 

 

 

3

 

 

 

5

 

Segment EBIT

 

$

292

 

 

$

175

 

 

$

467

 

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Segment
Total

 

 

 

(In millions)

 

Nine Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

Segment revenues from external customers

 

$

1,778

 

 

$

942

 

 

$

2,720

 

Segment cost of sales(1)

 

 

(1,292

)

 

 

(689

)

 

 

(1,981

)

Segment operating expenses(1)(2)

 

 

(99

)

 

 

(104

)

 

 

(203

)

Other Segment Items(3)

 

 

2

 

 

 

3

 

 

 

5

 

Segment EBIT

 

$

389

 

 

$

152

 

 

$

541

 

 

(1)
Segment cost of sales and Segment operating expenses exclude the items described in the reconciliation of segment earnings before interest and income taxes to Income (loss) from operations before income taxes and equity in earnings of affiliated companies.
(2)
Segment operating expenses include Selling and administrative expenses and Research and technical expenses.
(3)
Other segment items include Equity in earnings of affiliated companies, net of tax.

 

 

 

 

 

Reconciliation of Segment earnings before interest and income taxes to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is as follows:

 

 

 

Three Months Ended June 30

 

 

Nine Months Ended June 30

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(In millions)

 

Segment EBIT

 

$

165

 

 

$

185

 

 

$

467

 

 

$

541

 

Interest Expense

 

 

(18

)

 

 

(19

)

 

 

(54

)

 

 

(56

)

Certain items (1)

 

 

(78

)

 

 

(3

)

 

 

(94

)

 

 

(13

)

Unallocated corporate costs (2)

 

 

(14

)

 

 

(13

)

 

 

(41

)

 

 

(39

)

General unallocated income (expense) (3)

 

 

5

 

 

 

6

 

 

 

23

 

 

 

22

 

Less: Equity in earnings of affiliated companies, net of tax(4)

 

 

2

 

 

 

1

 

 

 

5

 

 

 

5

 

Income (loss) from operations before income taxes and
equity in earnings of affiliated companies

 

$

58

 

 

$

155

 

 

$

296

 

 

$

450

 

 

 

 

(1)
Certain items are items of expense and income that management does not consider representative of the Company’s fundamental on-going segment results and they are, therefore, excluded from Segment EBIT.

Details of certain items for the three and nine months ended June 30, 2026 and 2025 are as follows:

 

 

 

Three Months Ended June 30

 

 

Nine Months Ended June 30

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(In millions)

 

 

(In millions)

 

Global restructuring activities (Note I)

 

$

(42

)

 

$

(3

)

 

$

(57

)

 

$

(6

)

Employee benefit plan settlement and other charges (Note E)

 

 

(30

)

 

 

—

 

 

 

(30

)

 

 

—

 

Legal and environmental matters and reserves (Note F)

 

 

(5

)

 

 

—

 

 

 

(5

)

 

 

(6

)

Acquisition and integration-related charges (Note C)

 

 

(1

)

 

 

—

 

 

 

(2

)

 

 

—

 

Other certain items

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

Total certain items

 

$

(78

)

 

$

(3

)

 

$

(94

)

 

$

(13

)
(2)
Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.
(3)
General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue, and unrealized holding gains (losses) for investments. This does not include items of income or expense that are separately treated as Certain items.
(4)
Equity in earnings of affiliated companies, net of tax is included in Segment EBIT and is removed to reconcile to Income (loss) from operations before taxes and equity in earnings of affiliated companies.

Financial information by reportable segment is as follows:

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Segment
Total

 

 

Unallocated
and Other

 

 

Consolidated
Total

 

 

 

(In millions)

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(1)

 

$

599

 

 

$

351

 

 

$

950

 

 

$

32

 

 

$

982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(1)

 

$

573

 

 

$

320

 

 

$

893

 

 

$

30

 

 

$

923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

1,663

 

 

$

979

 

 

$

2,642

 

 

$

93

 

 

$

2,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

1,778

 

 

$

942

 

 

$

2,720

 

 

$

94

 

 

$

2,814

 

 

(1)
Consolidated Total Revenues from external customers reconciles to Net sales and other operating revenues on the Consolidated Statements of Operations. Revenues from external customers that are categorized as Unallocated and Other are summarized as follows:

 

 

 

Three Months Ended June 30

 

 

Nine Months Ended June 30

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(In millions)

 

Shipping and handling fees

 

$

34

 

 

$

28

 

 

$

91

 

 

$

85

 

Other

 

 

(2

)

 

 

2

 

 

 

2

 

 

 

9

 

Total

 

$

32

 

 

$

30

 

 

$

93

 

 

$

94

 

 

Geographic Information

The Company’s segments operate globally. In addition to presenting Revenue from external customers by reportable segment, the following tables further disaggregate Revenues from external customers by geographic region.

 

 

 

Three Months Ended June 30, 2026

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

245

 

 

$

106

 

 

$

351

 

Asia Pacific

 

 

219

 

 

 

153

 

 

 

372

 

Europe, Middle East and Africa

 

 

135

 

 

 

92

 

 

 

227

 

Segment revenues from external customers

 

 

599

 

 

 

351

 

 

 

950

 

Unallocated and other

 

 

 

 

 

 

 

 

32

 

Net sales and other operating revenues

 

 

 

 

 

 

 

$

982

 

 

 

 

Three Months Ended June 30, 2025

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

230

 

 

$

98

 

 

$

328

 

Asia Pacific

 

 

199

 

 

 

132

 

 

 

331

 

Europe, Middle East and Africa

 

 

144

 

 

 

90

 

 

 

234

 

Segment revenues from external customers

 

 

573

 

 

 

320

 

 

 

893

 

Unallocated and other

 

 

 

 

 

 

 

 

30

 

Net sales and other operating revenues

 

 

 

 

 

 

 

$

923

 

 

 

 

Nine Months Ended June 30, 2026

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

661

 

 

$

282

 

 

$

943

 

Asia Pacific

 

 

617

 

 

 

445

 

 

 

1,062

 

Europe, Middle East and Africa

 

 

385

 

 

 

252

 

 

 

637

 

Segment revenues from external customers

 

 

1,663

 

 

 

979

 

 

 

2,642

 

Unallocated and other

 

 

 

 

 

 

 

 

93

 

Net sales and other operating revenues

 

 

 

 

 

 

 

$

2,735

 

 

 

 

Nine Months Ended June 30, 2025

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

714

 

 

$

283

 

 

$

997

 

Asia Pacific

 

 

659

 

 

 

400

 

 

 

1,059

 

Europe, Middle East and Africa

 

 

405

 

 

 

259

 

 

 

664

 

Segment revenues from external customers

 

 

1,778

 

 

 

942

 

 

 

2,720

 

Unallocated and other

 

 

 

 

 

 

 

 

94

 

Net sales and other operating revenues

 

 

 

 

 

 

 

$

2,814