Cash flow generation remains inconsistent, evidenced by an operating cash flow to net income ratio that fluctuated between 0.78 and 5.09 over the last ten quarters.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 671M | 665M | 692M | 595M | 100M | 257M | 377M | 361M | 299M | 340M | 386M | 489M | 305M | 419M | 415M | 195M | 249M | 399M | 124M | 309M | 252M | 224M | 241M | 254M | 192M | 26M | 264M | 208M | 236.4M | 144.2M | 152M |
| Operating CF Margin % | - | 17.91% | 17.33% | 15.14% | 2.31% | 7.54% | 14.42% | 10.82% | 9.22% | 12.51% | 16.01% | 17.03% | 8.36% | 12.1% | 12.58% | 6.29% | 8.61% | 17.79% | 3.89% | 11.81% | 9.91% | 10.54% | 12.46% | 14.15% | 12.33% | 1.56% | 17.33% | 12.27% | 14.35% | 8.85% | 8.19% |
| Operating CF Growth % | 34.74% | -3.9% | 16.3% | 495% | -61.09% | -31.83% | 4.43% | 20.74% | -12.06% | -11.92% | -21.06% | 60.33% | -27.21% | 0.96% | 112.82% | -21.69% | -37.59% | 221.77% | -59.87% | 22.62% | 12.5% | -7.05% | -5.12% | 32.29% | 638.46% | -90.15% | 26.92% | -12.01% | 63.94% | -5.13% | -16.48% |
| Net Income | 285M | 376M | 424M | 484M | 243M | 286M | -221M | 186M | -74M | 266M | 164M | -323M | 220M | 160M | 406M | 258M | 169M | -77M | 86M | 129M | 88M | -48M | 124M | 80M | 106M | 124M | 144M | 97M | 121.6M | 92.8M | 194.1M |
| Depreciation & Amortization | 169M | 154M | 151M | 144M | 146M | 160M | 158M | 148M | 149M | 155M | 161M | 183M | 200M | 190M | 156M | 144M | 143M | 169M | 163M | 149M | 131M | 142M | 134M | 135M | 109M | 115M | 129M | 125M | 115.4M | 109.9M | 97M |
| Stock-Based Compensation | 7M | 24M | 25M | 20M | 23M | 21M | 9M | 11M | 22M | 16M | 17M | 12M | 14M | 16M | 18M | 19M | 27M | 27M | 26M | 23M | 26M | 27M | 25M | 23M | 22M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -14M | 32M | -37M | -156M | -40M | 9M | 130M | -27M | 91M | -35M | -35M | -86M | 8M | -9M | -6M | -25M | -2M | -51M | -30M | -27M | 2M | -57M | -25M | -31M | -4M | 6M | 20M | -3M | 12M | -13.2M | 3.8M |
| Other Non-Cash Items | 76M | 30M | 59M | 3M | 176M | 25M | 139M | 25M | 240M | -11M | 34M | 601M | 16M | 15M | -198M | -9M | -4M | 10M | 3M | 9M | 11M | 223M | 47M | 21M | 17M | 6M | -5M | 30M | -28.1M | 17.3M | -36.7M |
| Working Capital Changes | 129M | 49M | 70M | 100M | -448M | -244M | 162M | 18M | -129M | -51M | 45M | 102M | -153M | 47M | 39M | -192M | -84M | 321M | -124M | 26M | -6M | -63M | -64M | 26M | -58M | -254M | -56M | -41M | 15.5M | -62.6M | -42.3M |
| Change in Receivables | 106M | 76M | -26M | 153M | -287M | 7M | -59M | 73M | -110M | -23M | 43M | 137M | -138M | 34M | 6M | -111M | -127M | 201M | -61M | 12M | -121M | -71M | -56M | -757M | 12M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 57M | 47M | 41M | 96M | -259M | -174M | 114M | 27M | -105M | -50M | 51M | 58M | -56M | 64M | -30M | -79M | -7M | 184M | -68M | -8M | 82M | -9M | -20M | -25M | -64M | -55M | 1M | -7M | -3.2M | 2.7M | -39M |
| Change in Payables | -42M | -67M | 42M | -152M | 115M | 167M | -55M | -75M | 122M | 91M | -27M | -75M | -29M | -18M | 100M | 23M | 47M | -43M | 24M | 20M | 24M | 26M | 7M | 20M | -4M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -302M | -298M | -235M | -214M | -118M | -186M | -288M | -94M | -246M | -149M | -98M | -162M | -15M | -227M | -1.18B | -232M | -112M | -105M | -176M | -143M | -165M | -119M | -226M | -107M | -232M | -124M | 528M | -143M | -109.1M | -145.3M | -196.9M |
| Capital Expenditures | -212M | -274M | -241M | -244M | -211M | -195M | -200M | -224M | -229M | -147M | -112M | -141M | -171M | -264M | -281M | -230M | -108M | -106M | -199M | -141M | -188M | -186M | -119M | -129M | -146M | -122M | -137M | -166M | -226.6M | -162.8M | -209.1M |
| CapEx % of Revenue | 5.93% | 7.38% | 6.03% | 6.21% | 4.88% | 5.72% | 7.65% | 6.71% | 7.06% | 5.41% | 4.65% | 4.91% | 4.69% | 7.62% | 8.52% | 7.42% | 3.73% | 4.73% | 6.24% | 5.39% | 7.39% | 8.75% | 6.15% | 7.19% | 9.38% | 7.31% | 9% | 9.79% | 13.75% | 9.99% | 11.26% |
| Acquisitions | -93M | 0 | 0 | 6M | 70M | -92M | -92M | 132M | -64M | 0 | 16M | 0 | 162M | 39M | -900M | 0 | -5M | 0 | -18M | -4M | 9M | 1M | 4M | -16M | -89M | -6M | -14M | 1M | 6.3M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3M | -24M | 6M | 24M | 23M | 101M | 4M | -2M | 47M | -2M | 14M | -21M | -6M | -2M | 1M | -6M | 2M | 1M | 5M | 2M | -3M | -4M | -6M | 2M | 12M | 9M | -14M | 8M | 1.9M | 17.5M | 12.2M |
| Cash from Financing | -368M | -336M | -415M | -403M | 145M | -60M | -132M | -234M | -141M | -125M | -184M | -256M | -302M | -206M | 606M | -72M | -57M | -127M | 23M | -211M | -82M | -81M | -101M | -64M | -164M | -176M | -184M | -69M | -130.4M | -15.2M | 12.8M |
| Debt Issued (Net) | -16M | -23M | -143M | -179M | 298M | 36M | 15M | 61M | -165M | -2M | -68M | -60M | -225M | -123M | 693M | 35M | -8M | -68M | 107M | 31M | -11M | 11M | -23M | -2M | -55M | 59M | -210M | -2M | -18M | 85.2M | 138.2M |
| Equity Issued (Net) | -125M | -160M | -152M | -94M | -47M | 3M | -44M | -194M | -142M | -40M | -45M | -95M | -18M | 3M | -26M | -54M | -2M | -2M | -34M | -193M | -30M | -47M | -45M | -22M | -76M | -216M | 51M | -35M | -81M | -69.2M | -94.9M |
| Dividends Paid | -97M | -96M | -93M | -88M | -84M | -80M | -80M | -80M | -80M | -77M | -65M | -56M | -54M | -51M | -49M | -47M | -53M | -57M | -47M | -48M | -43M | -51M | -46M | -40M | -40M | -34M | -32M | -32M | -31.7M | -31.3M | -30.5M |
| Share Repurchases | -180M | -168M | -172M | -98M | -53M | -3M | -44M | -173M | -142M | -61M | -45M | -101M | -18M | -6M | -36M | -59M | -5M | -2M | -35M | -202M | -39M | -52M | -54M | -41M | -82M | -229M | -47M | -46M | -105.2M | -85.8M | -123.5M |
| Other Financing | -130M | -57M | -27M | -42M | -22M | -19M | -23M | -23M | 246M | -14M | -6M | -45M | -5M | -35M | -12M | -6M | 0 | 0 | 7M | -1M | 2M | -2M | 7M | -4M | 7M | 15M | 7M | 0 | -300K | 100K | 0 |
| Net Change in Cash | 39M | 35M | -15M | 32M | 36M | 19M | -18M | -6M | -105M | 80M | 123M | 10M | -29M | -25M | -166M | -101M | 83M | 175M | -25M | -35M | 8M | 22M | -88M | 88M | -205M | -274M | 603M | -5M | 400K | -18.9M | -32.5M |
| Free Cash Flow | 459M | 391M | 451M | 351M | -111M | 62M | 177M | 137M | 70M | 193M | 274M | 348M | 134M | 155M | 134M | -35M | 141M | 293M | -75M | 168M | 64M | 38M | 122M | 125M | 46M | -96M | 127M | 42M | 9.8M | -18.6M | -57.1M |
| FCF Margin % | 12.84% | 10.53% | 11.29% | 8.93% | -2.57% | 1.82% | 6.77% | 4.11% | 2.16% | 7.1% | 11.36% | 12.12% | 3.67% | 4.48% | 4.06% | -1.13% | 4.87% | 13.06% | -2.35% | 6.42% | 2.52% | 1.79% | 6.31% | 6.96% | 2.95% | -5.75% | 8.34% | 2.48% | 0.59% | -1.14% | -3.08% |
| FCF Growth % | 59.38% | -13.3% | 28.49% | 416.22% | -279.03% | -64.97% | 29.2% | 95.71% | -63.73% | -29.56% | -21.26% | 159.7% | -13.55% | 15.67% | 482.86% | -124.82% | -51.88% | 490.67% | -144.64% | 162.5% | 68.42% | -68.85% | -2.4% | 171.74% | 147.92% | -175.59% | 202.38% | 328.57% | 152.69% | 67.43% | -212.4% |
| FCF per Share | 8.79 | 7.21 | 8.10 | 6.21 | -1.95 | 1.09 | 3.13 | 2.33 | 1.13 | 3.08 | 4.36 | 5.49 | 2.06 | 2.40 | 2.09 | -0.54 | 2.16 | 4.65 | -1.17 | 2.47 | 0.94 | 0.63 | 1.79 | 1.79 | 0.67 | -1.32 | 1.75 | 0.50 | 0.14 | -0.25 | -0.72 |
| FCF Conversion (FCF/Net Income) | 1.61x | 2.01x | 1.82x | 1.34x | 0.48x | 1.03x | -1.58x | 2.30x | -2.65x | 1.41x | 2.59x | -1.48x | 1.52x | 2.70x | 1.07x | 0.83x | 1.62x | -5.18x | 1.44x | 2.40x | 2.86x | -4.67x | 1.94x | 3.30x | 1.81x | 0.21x | 0.58x | 2.14x | 1.94x | 1.55x | 0.78x |
| Interest Paid | 0 | 79M | 82M | 85M | 46M | 41M | 48M | 47M | 47M | 48M | 51M | 42M | 47M | 51M | 39M | 34M | 28M | 24M | 34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 165M | 136M | 140M | 129M | 93M | 71M | 99M | 84M | 69M | 66M | 78M | 53M | 84M | 73M | 64M | 43M | 30M | 41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical automotive demand exposure
According to quarterly financial data, Cabot’s operating cash flow to net income ratio has fluctuated significantly, ranging from a low of 0.78 in 2025Q2 to a peak of 5.09 in 2025Q4, suggesting that reported earnings are frequently decoupled from actual cash generation capabilities.
The wide variance in the OCF/NI ratio indicates that non-cash items and working capital swings are heavily influencing the bottom line. Investors should monitor whether this volatility is a structural feature of the company's inventory accounting or a sign of inconsistent cash collection efficiency.
As reported in recent filings, Cabot’s free cash flow margins have exhibited extreme instability, swinging from a negative 2.8% in 2025Q2 to a robust 23.3% in 2025Q3, reflecting the company's sensitivity to cyclical automotive demand and lumpy capital expenditure requirements.
The inability to maintain consistent FCF margins suggests that the business model remains highly susceptible to external industrial production cycles. This inconsistency complicates the valuation of the company's long-term cash-generating potential, particularly as it attempts to pivot toward battery materials.
Based on the provided figures, Cabot’s capital expenditure as a percentage of revenue has fluctuated between 3.7% and 9.2% over the last ten quarters, indicating that the company is balancing necessary maintenance spending with strategic investments in its global furnace fleet and new technology.
The elevated capex levels in periods like 2024Q4 suggest that the company is prioritizing infrastructure upgrades to meet stringent environmental standards. This capital intensity acts as a persistent drag on free cash flow, which may limit the flexibility of capital allocation in the near term.
Data from recent quarterly reports reveals that working capital changes have been a major source of cash flow volatility, with a significant outflow of $88 million in 2025Q2 contrasting sharply with a $90 million inflow in 2025Q4, highlighting the impact of inventory management.
These dramatic swings in working capital suggest that Cabot is managing significant inventory levels to navigate supply chain disruptions and fluctuating feedstock costs. The reliance on these inflows to bolster cash flow warrants further investigation into the sustainability of current inventory turnover rates.
As indicated by the cash flow statements, Cabot has consistently utilized cash for dividends and share repurchases, with buybacks totaling $49 million in 2026Q2, even as the company simultaneously funds significant acquisitions and capital expenditures to support its long-term strategic pivot.
The company's commitment to returning capital to shareholders appears aggressive given the recent revenue contraction and the capital-intensive nature of its business. This strategy may indicate management's confidence in future cash flows, though it leaves a smaller margin for error if industrial demand remains soft.
Quick answers to the most common questions about buying CBT stock.
Cabot Corporation (CBT) generated $665.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cabot Corporation (CBT) generated $391.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Cabot Corporation (CBT) spent $274.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Cabot Corporation (CBT) returned $96.0M to shareholders via cash dividends and spent $168.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.