Cabot reinforcement materials reports decline in sales, earnings on lower volumes

Boston, Massachusetts – Cabot Corp has reported lower earnings and sales within its Reinforcement Materials segment for the fiscal year 2025, which ended 30 Sept.

The segment, which includes rubber carbon blacks and wet elastomer composites, reported sales of $2.3 billion (€2 billion) for the full year, down 11% compared the previous fiscal year.

Earnings (EBITDA) declined 4% year-on-year to $578 million, as volumes fell 5% year-over-year, due to lower demand in Americas and Asia, said Cabot 4 Nov.

The segment’s fourth quarter earnings dropped 2% year-on-year to $137 million on 12.5% lower sales of $563 million.

Cabot linked fourth quarter earnings decrease to an overall 5% year-on-year drop in volumes, partially offset by lower costs from overall cost management and optimisation efforts.

Volumes in the Americas fell 7% compared to the fourth quarter of 2024, impacted by lower production levels at tire plants due to higher levels of imports from Asia.

Demand in Asia-Pacific also fell 6% year-on-year, while EMEA posted a 5% growth.

Commenting on the outlook, president and CEO Sean Keohane said Cabot did “not yet see signs of improvement in the external environment.”

In particular, Keohane said he did not see a change in regional demand trends in Reinforcement Materials due to the impact of elevated Asian tire imports into western regions.

For the first quarter, the segment is expected to report lower earnings, driven by lower volumes in the Americas and Europe and increased “competitive intensity” in Asia.