Operating margins have compressed from 18.1% in 2025Q3 to 14.3% in 2026Q2, reflecting the impact of fixed cost absorption during a period of sustained revenue contraction.
| 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 |
|---|
| Sales/Revenue | 3.58B | 3.71B | 3.99B | 3.93B | 4.32B | 3.41B | 2.61B | 3.34B | 3.24B | 2.72B | 2.41B | 2.87B | 3.65B | 3.46B | 3.3B | 3.1B | 2.89B | 2.24B | 3.19B | 2.62B | 2.54B | 2.13B | 1.93B | 1.79B | 1.56B | 1.67B | 1.52B | 1.7B | 1.65B | 1.63B | 1.86B |
| Revenue Growth % | -8.52% | -7.04% | 1.6% | -9.03% | 26.75% | 30.41% | -21.67% | 2.93% | 19.32% | 12.69% | -16.05% | -21.25% | 5.31% | 4.94% | 6.42% | 7.19% | 28.98% | -29.71% | 21.98% | 2.87% | 19.67% | 9.88% | 7.74% | 15.29% | -6.77% | 9.65% | -10.15% | 2.86% | 1.09% | -12.19% | 1.42% |
| Cost of Goods Sold | 2.69B | 2.77B | 3.03B | 3.09B | 3.44B | 2.61B | 2.11B | 2.65B | 2.46B | 2.06B | 1.83B | 2.29B | 2.93B | 2.83B | 2.65B | 2.54B | 2.33B | 2.02B | 2.71B | 2.11B | 2.12B | 1.69B | 1.46B | 1.37B | 1.13B | 1.24B | 973M | 1.09B | 1.01B | 1.03B | 1.21B |
| COGS % of Revenue | - | 74.68% | 75.96% | 78.66% | 79.52% | 76.56% | 80.87% | 79.47% | 75.91% | 76% | 76.03% | 79.56% | 80.23% | 81.63% | 80.33% | 82.01% | 80.5% | 89.88% | 84.8% | 80.7% | 83.52% | 79.62% | 75.34% | 76.55% | 72.45% | 74.07% | 63.89% | 64.6% | 61.02% | 63.47% | 65.34% |
| Gross Profit | 885M | 940M | 960M | 839M | 885M | 799M | 500M | 685M | 781M | 652M | 578M | 587M | 721M | 636M | 649M | 558M | 564M | 227M | 485M | 505M | 419M | 433M | 477M | 421M | 429M | 433M | 550M | 600M | 642.3M | 595.5M | 643.4M |
| Gross Margin % | 24.76% | 25.32% | 24.04% | 21.34% | 20.48% | 23.44% | 19.13% | 20.53% | 24.09% | 24% | 23.97% | 20.44% | 19.77% | 18.37% | 19.67% | 17.99% | 19.5% | 10.12% | 15.2% | 19.3% | 16.48% | 20.38% | 24.66% | 23.45% | 27.55% | 25.93% | 36.11% | 35.4% | 38.98% | 36.53% | 34.66% |
| Gross Profit Growth % | - | -2.08% | 14.42% | -5.2% | 10.76% | 59.8% | -27.01% | -12.29% | 19.79% | 12.8% | -1.53% | -18.59% | 13.36% | -2% | 16.31% | -1.06% | 148.46% | -53.2% | -3.96% | 20.53% | -3.23% | -9.22% | 13.3% | -1.86% | -0.92% | -21.27% | -8.33% | -6.59% | 7.86% | -7.44% | -3.34% |
| Operating Expenses | 309M | 319M | 346M | 313M | 496M | 345M | 479M | 379M | 628M | 319M | 328M | 902M | 386M | 365M | 353M | 315M | 306M | 282M | 320M | 318M | 293M | 510M | 270M | 315M | 281M | 256M | 216M | 369M | 372M | 394M | 383.5M |
| OpEx % of Revenue | - | 8.59% | 8.66% | 7.96% | 11.48% | 10.12% | 18.32% | 11.36% | 19.37% | 11.74% | 13.6% | 31.41% | 10.58% | 10.54% | 10.7% | 10.16% | 10.58% | 12.57% | 10.03% | 12.16% | 11.52% | 24% | 13.96% | 17.55% | 18.05% | 15.33% | 14.18% | 21.77% | 22.58% | 24.17% | 20.66% |
| Selling, General & Admin | 266M | 260M | 283M | 253M | 258M | 289M | 292M | 290M | 305M | 260M | 275M | 282M | 326M | 299M | 286M | 249M | 246M | 210M | 246M | 249M | 235M | 240M | 217M | 251M | 219M | 208M | 178M | 208M | 229.7M | 216.5M | 286.5M |
| SG&A % of Revenue | - | 7% | 7.09% | 6.44% | 5.97% | 8.48% | 11.17% | 8.69% | 9.41% | 9.57% | 11.41% | 9.82% | 8.94% | 8.63% | 8.67% | 8.03% | 8.5% | 9.36% | 7.71% | 9.52% | 9.24% | 11.29% | 11.22% | 13.98% | 14.07% | 12.46% | 11.69% | 12.27% | 13.94% | 13.28% | 15.43% |
| Research & Development | 57M | 59M | 63M | 57M | 55M | 56M | 57M | 60M | 66M | 56M | 53M | 58M | 60M | 74M | 73M | 66M | 70M | 71M | 74M | 69M | 58M | 59M | 53M | 64M | 48M | 48M | 43M | 73M | 82.7M | 82.7M | 0 |
| R&D % of Revenue | - | 1.59% | 1.58% | 1.45% | 1.27% | 1.64% | 2.18% | 1.8% | 2.04% | 2.06% | 2.2% | 2.02% | 1.65% | 2.14% | 2.21% | 2.13% | 2.42% | 3.17% | 2.32% | 2.64% | 2.28% | 2.78% | 2.74% | 3.57% | 3.08% | 2.87% | 2.82% | 4.31% | 5.02% | 5.07% | - |
| Other Operating Expenses | -1000K | 0 | 0 | 3M | 183M | 0 | 130M | 29M | 254M | 0 | 0 | 562M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 211M | 0 | 0 | 14M | 0 | 0 | 125M | 115M | 110M | 97M |
| Operating Income | 562M | 621M | 614M | 526M | 389M | 454M | 21M | 306M | 156M | 336M | 250M | 38M | 335M | 263M | 290M | 243M | 248M | -54M | 164M | 187M | 126M | -77M | 207M | 106M | 148M | 177M | 200M | 194M | 214.5M | 186.4M | 259.9M |
| Operating Margin % | 15.72% | 16.73% | 15.37% | 13.38% | 9% | 13.32% | 0.8% | 9.17% | 4.81% | 12.37% | 10.37% | 1.32% | 9.19% | 7.59% | 8.79% | 7.84% | 8.57% | -2.41% | 5.14% | 7.15% | 4.95% | -3.62% | 10.7% | 5.91% | 9.51% | 10.6% | 13.13% | 11.45% | 13.02% | 11.44% | 14% |
| Operating Income Growth % | - | 1.14% | 16.73% | 35.22% | -14.32% | 2061.9% | -93.14% | 96.15% | -53.57% | 34.4% | 557.89% | -88.66% | 27.38% | -9.31% | 19.34% | -2.02% | 559.26% | -132.93% | -12.3% | 48.41% | 263.64% | -137.2% | 95.28% | -28.38% | -16.38% | -11.5% | 3.09% | -9.56% | 15.08% | -28.28% | -6.34% |
| EBITDA | 731M | 775M | 765M | 670M | 535M | 614M | 179M | 454M | 305M | 491M | 411M | 221M | 535M | 453M | 446M | 387M | 391M | 115M | 327M | 336M | 257M | 65M | 341M | 241M | 257M | 292M | 329M | 319M | 329.9M | 296.3M | 356.9M |
| EBITDA Margin % | 20.45% | 20.87% | 19.15% | 17.04% | 12.38% | 18.01% | 6.85% | 13.61% | 9.41% | 18.07% | 17.05% | 7.7% | 14.67% | 13.08% | 13.52% | 12.48% | 13.52% | 5.13% | 10.25% | 12.84% | 10.11% | 3.06% | 17.63% | 13.43% | 16.51% | 17.48% | 21.6% | 18.82% | 20.02% | 18.18% | 19.23% |
| EBITDA Growth % | -7.12% | 1.31% | 14.18% | 25.23% | -12.87% | 243.02% | -60.57% | 48.85% | -37.88% | 19.46% | 85.97% | -58.69% | 18.1% | 1.57% | 15.25% | -1.02% | 240% | -64.83% | -2.68% | 30.74% | 295.38% | -80.94% | 41.49% | -6.23% | -11.99% | -11.25% | 3.13% | -3.3% | 11.34% | -16.98% | -3.98% |
| D&A (Non-Cash Add-back) | 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 |
| EBIT | 574M | 640M | 610M | 541M | 391M | 455M | 20M | 314M | 171M | 344M | 245M | -324M | 364M | 272M | 291M | 242M | 206M | -72M | 150M | 187M | 126M | -77M | 207M | 106M | 148M | 177M | 194M | 170M | 201M | 171M | 259.8M |
| Net Interest Income | -29M | -49M | -49M | -59M | -45M | -41M | -45M | -50M | -44M | -44M | -49M | -49M | -52M | -57M | -42M | -37M | -38M | -27M | -34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 28M | 27M | 32M | 31M | 11M | 8M | 8M | 9M | 10M | 9M | 5M | 4M | 3M | 5M | 4M | 2M | 2M | 2M | 4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 39M | 76M | 81M | 90M | 56M | 49M | 53M | 59M | 54M | 53M | 54M | 53M | 55M | 62M | 46M | 39M | 40M | 30M | 38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -48M | -49M | -79M | -70M | -44M | -45M | -51M | -50M | -27M | -32M | -56M | -60M | -27M | -58M | -34M | -40M | 4M | -47M | -52M | -19M | -29M | -16M | -43M | -14M | -13M | -14M | -29M | -24M | -28M | -36M | 32.4M |
| Pretax Income | 514M | 572M | 535M | 456M | 345M | 409M | -30M | 256M | 117M | 288M | 194M | -374M | 308M | 205M | 246M | 201M | 208M | -102M | 112M | 168M | 97M | -93M | 164M | 89M | 135M | 163M | 165M | 146M | 182.1M | 134.9M | 292.3M |
| Pretax Margin % | 14.38% | 15.41% | 13.4% | 11.6% | 7.98% | 12% | -1.15% | 7.67% | 3.61% | 10.6% | 8.05% | -13.02% | 8.45% | 5.92% | 7.45% | 6.48% | 7.19% | -4.55% | 3.51% | 6.42% | 3.81% | -4.38% | 8.48% | 4.96% | 8.67% | 9.76% | 10.83% | 8.61% | 11.05% | 8.28% | 15.75% |
| Income Tax | 187M | 196M | 111M | -28M | 102M | 123M | 191M | 70M | 193M | 29M | 34M | -45M | 91M | 58M | 55M | 6M | 46M | -22M | 14M | 38M | 9M | -45M | 39M | 17M | 30M | 42M | 57M | 49M | 60.5M | 42.1M | 98.2M |
| Effective Tax Rate % | 36.38% | 34.27% | 20.75% | -6.14% | 29.57% | 30.07% | -636.67% | 27.34% | 164.96% | 10.07% | 17.53% | 12.03% | 29.55% | 28.29% | 22.36% | 2.99% | 22.12% | 21.57% | 12.5% | 22.62% | 9.28% | 48.39% | 23.78% | 19.1% | 22.22% | 25.77% | 34.55% | 33.56% | 33.22% | 31.21% | 33.6% |
| Net Income | 285M | 331M | 380M | 445M | 209M | 250M | -238M | 157M | -113M | 241M | 149M | -331M | 201M | 155M | 389M | 235M | 154M | -77M | 86M | 129M | 88M | -48M | 124M | 77M | 106M | 124M | 453M | 97M | 121.6M | 92.8M | 194.1M |
| Net Margin % | 7.97% | 8.91% | 9.51% | 11.32% | 4.84% | 7.33% | -9.1% | 4.7% | -3.49% | 8.87% | 6.18% | -11.53% | 5.51% | 4.48% | 11.79% | 7.58% | 5.32% | -3.43% | 2.7% | 4.93% | 3.46% | -2.26% | 6.41% | 4.29% | 6.81% | 7.43% | 29.74% | 5.72% | 7.38% | 5.69% | 10.46% |
| Net Income Growth % | -34.18% | -12.89% | -14.61% | 112.92% | -16.4% | 205.04% | -251.59% | 238.94% | -146.89% | 61.75% | 145.02% | -264.68% | 29.68% | -60.15% | 65.53% | 52.6% | 300% | -189.53% | -33.33% | 46.59% | 283.33% | -138.71% | 61.04% | -27.36% | -14.52% | -72.63% | 367.01% | -20.23% | 31.03% | -52.19% | 12.91% |
| Net Income (Continuing) | 327M | 376M | 424M | 484M | 243M | 286M | -221M | 186M | -74M | 273M | 160M | -328M | 216M | 161M | 202M | 197M | 162M | -80M | 98M | 130M | 88M | -48M | 122M | 75M | 105M | 121M | 108M | 82M | 116M | 93M | 194.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2M | 2M | 0 | 0 | 8M | -19M | 0 | 0 | 2M | 0 | 0 | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 119M | 155M | 165M | 143M | 134M | 143M | 123M | 136M | 125M | 121M | 98M | 104M | 122M | 132M | 126M | 129M | 115M | 103M | 110M | 76M | 68M | 57M | 45M | 40M | 35M | 27M | 31M | 32M | 25.1M | 22.8M | 27.1M |
| EPS (Diluted) | 5.46 | 6.02 | 6.72 | 7.73 | 3.62 | 4.34 | -3.96 | 2.67 | -1.83 | 3.81 | 2.36 | -5.22 | 3.06 | 2.38 | 6.01 | 3.57 | 2.35 | -1.22 | 1.34 | 1.90 | 1.28 | -0.80 | 1.82 | 1.14 | 1.50 | 1.66 | 6.20 | 1.11 | 1.76 | 1.19 | 2.42 |
| EPS Growth % | -31.05% | -10.42% | -13.07% | 113.54% | -16.59% | 209.6% | -248.31% | 245.9% | -148.03% | 61.44% | 145.21% | -270.59% | 28.57% | -60.4% | 68.35% | 51.91% | 292.62% | -191.04% | -29.47% | 48.44% | 260% | -143.96% | 59.65% | -24% | -9.64% | -73.23% | 458.56% | -36.93% | 47.9% | -50.83% | 19.8% |
| EPS (Basic) | - | 6.07 | 6.79 | 7.79 | 3.65 | 4.36 | -3.96 | 2.67 | -1.87 | 3.89 | 2.40 | -5.30 | 3.12 | 2.42 | 6.14 | 3.68 | 2.36 | -1.22 | 1.37 | 2.06 | 1.42 | -0.80 | 2.07 | 1.32 | 1.67 | 1.93 | 6.65 | 1.24 | 1.86 | 1.33 | 2.74 |
| Diluted Shares Outstanding | 52.2M | 54.2M | 55.7M | 56.5M | 56.9M | 56.8M | 56.6M | 58.8M | 61.7M | 62.7M | 62.9M | 63.4M | 65.1M | 64.5M | 64.2M | 65.4M | 65.37M | 63M | 64M | 68M | 68M | 60M | 68M | 70M | 68.67M | 72.89M | 72.58M | 84.68M | 69.22M | 75.63M | 78.84M |
| Basic Shares Outstanding | 52M | 53.7M | 54.3M | 55.24M | 56.25M | 56.73M | 56.53M | 58.7M | 60.37M | 61.88M | 62.21M | 62.46M | 64.38M | 63.97M | 63.35M | 63.86M | 65.37M | 63M | 63M | 62M | 60M | 60M | 59M | 59M | 59M | 63M | 65M | 75.81M | 65.45M | 67.67M | 69.64M |
| Dividend Payout Ratio | - | 29% | 24.47% | 19.78% | 40.19% | 32% | - | 50.96% | - | 31.95% | 43.62% | - | 26.87% | 32.9% | 12.6% | 20% | 30.52% | - | 54.65% | 37.21% | 46.59% | - | 29.84% | 46.75% | 37.74% | 27.42% | 7.06% | 32.99% | 26.07% | 33.73% | 15.71% |
Cyclical automotive demand exposure
As reported in recent financial statements, Cabot Corporation has experienced a consistent downward trajectory in top-line performance, with revenue declining by 7.04% year-over-year, reflecting broader industrial destocking and a challenging macroeconomic environment that continues to weigh on global specialty chemical demand across key automotive end-markets.
The persistent revenue decline suggests that the company is struggling to offset volume weakness with pricing actions in its core segments. Investors should monitor whether this trend represents a structural shift in demand or merely a cyclical trough tied to automotive production volatility.
Based on the company's reported figures, gross margins have remained relatively stable, hovering around 23% to 26% despite the recent revenue contraction, which suggests that Cabot maintains a degree of pricing power through its formula-based supply agreements with global tire manufacturers.
The ability to preserve gross margins during a period of declining sales indicates that the company's cost-plus pricing model is effectively insulating it from raw material volatility. However, the sustainability of these margins may be tested if capacity utilization rates continue to decline across its global furnace fleet.
According to the provided income statement data, operating income has shown sensitivity to revenue fluctuations, with operating margins compressing from 18.1% in 2025Q3 to 14.3% in 2026Q2, indicating that fixed costs are becoming a larger burden as the company scales down its production volumes.
The lack of significant operating leverage suggests that the company's cost structure remains heavily tied to fixed furnace operations. This implies that any future recovery in profitability will be highly dependent on a rebound in volume rather than just internal cost-cutting measures.
As indicated by the quarterly data, net income has exhibited significant volatility, with EPS dropping from $1.86 in 2025Q3 to $1.30 in 2026Q2, a trend that appears influenced by non-operating items and periodic stock-based compensation charges that complicate the assessment of underlying operational profitability.
The lumpy nature of net income suggests that investors should focus on operating income as a more reliable proxy for core business health. The intermittent nature of stock-based compensation warrants further investigation to determine if these charges represent a recurring drag on shareholder value.
While the company maintains a competitive moat, the recent -7.04% revenue decline suggests that short-sellers may focus on the risk of permanent margin compression if environmental compliance costs continue to rise and the transition to battery materials fails to offset legacy segment declines.
The reliance on high-variable-cost furnace technology creates a vulnerability to energy price spikes and tightening emission regulations. If the company cannot successfully pivot its product mix toward higher-margin specialty carbons, the current valuation may be difficult to justify in a decarbonizing industrial landscape.
Quick answers to the most common questions about buying CBT stock.
For fiscal year 2025, Cabot Corporation (CBT) reported total revenue of $3.71B. This represents a 100.0% increase compared to $1.86B in 1996.
Cabot Corporation (CBT) is profitable, generating $331.0M in net income for the fiscal year ending 2025 with a net profit margin of 8.9%.
Cabot Corporation (CBT) reported an operating income of $621.0M, resulting in an operating profit margin of 16.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Cabot Corporation (CBT) generated $940.0M in gross profit for the year, representing a gross profit margin of 25.3%. This demonstrates the company's core pricing power and production efficiency.