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CABOT CORPORATION
ANNUAL REPORT
2024
CABOT CORPORATION: A COMPELLING INVESTMENT THESIS
1
Right Strategy
"Creating for
Tomorrow"

Grow

Innovate

Optimize
2
3
Growth Objectives
Technology
Aligned with Key
Macrotrends
Targeting 3-year
Adj. EPS1 CAGR
of 7   10%

Changing Mobility
Landscape

Growth driven by
expectation of
strong results in
both segments

Global
Infrastructure
Build-out

The Sustainability
Transition
Management team
with a proven
track record
of execution


4
Capital Allocation
Strong cash flow
generation

Balanced capital
allocation focused
on funding
advantaged
growth and
returning capital
to shareholders

HIGHLIGHTS 2024
Operating cash flow of
Adjusted EPS1 of $7.06
Discretionary free cash flow1
of $479M
Adjusted EBITDA1
Returned $265M to
shareholders through dividends
and share repurchases
of $777M
Record Reinforcement
Materials EBIT1 of $537M
2
$692M
Diluted EPS of $6.72
CABOT CORPORATION ANNUAL REPORT 2024
1
Non-GAAP measures. For definitions and reconciliation to the most directly comparable
U.S. GAAP measure, see supplemental information for Non-GAAP Reconciliations located
at cabotcorp.com/investors under Financials.
A MESSAGE TO
OUR SHAREHOLDERS
Sean D. Keohane
President and Chief Executive Officer
Fiscal year 2024 was a year marked by significant strategic accomplishments and strong delivery for our
shareholders. In December of 2021, we introduced our    Creating for Tomorrow    strategy, which is built on three
pillars; Grow, Innovate and Optimize. To grow, we focus on investing for advantaged growth in applications and
geographies where we have a leadership position. Our innovation pillar aims to develop innovative products and
processes that enable a more sustainable future and where we believe we have a strong    right to win.    Finally,
to optimize, we incorporate a continuous improvement mindset into everything we do. At the same time of this
strategy launch, we also outlined a set of 3-year corporate goals for adjusted earnings per share1 (EPS) growth
and discretionary free cash flow1 generation. Specifically, we targeted to grow adjusted EPS1 at a compound
annual growth rate (CAGR) of between 8%-12% and to generate cumulative discretionary free cash flow1 (DFCF)
in excess of $1 billion from fiscal years 2022 through 2024. I am very pleased to report that we delivered at the
top end of the adjusted EPS1 goal range, achieving a CAGR of 12%, and generated cumulative DFCF1 of $1.2 billion
through fiscal year 2024.
This level of performance was delivered despite a very challenging macroeconomic and geopolitical landscape.
The continued war in Ukraine, heightened instability in the Middle East, and rising trade tensions with China
created a very challenging backdrop. Additionally, the European economy remained very weak, and China   s
growth was muted as it has struggled to shift its growth model from one driven by real estate and supplyside capacity investment to an economy fueled by consumption. Finally, we had to combat sharp inflationary
pressures over the last few years and the ensuing interest rate increases, which negatively impacted rate
sensitive end-markets such as real estate and construction, and constrained consumer spending.
Our ability to achieve our financial goals in the face of these headwinds is a testament to the resilience and
agility of the Cabot team, the strength of our portfolio and leadership positions, and our collective commitment
to execute against our goals. This high level of execution has been recognized in our strong total shareholder
return (TSR) performance, where we exceeded the S&P 400 chemicals index and our chemical peer group by a
wide margin over the one-year and three-year time periods ending September 30, 2024.
In addition to strong operational execution, we also advanced important strategic priorities in the fiscal
year, including the continued development of our Battery Materials product line and notable progress in our
sustainability journey. As I look to the future, I believe we are well positioned to drive long-term growth and
deliver top-tier shareholder returns. Our achievements this year have set a strong foundation for future
success, underscoring our ability to navigate complexity, capitalize on emerging opportunities, and deliver
value through innovation.
1
Non-GAAP measures. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information for Non-GAAP
Reconciliations located at cabotcorp.com/investors under Financials.
3
STRONG FINANCIAL RESULTS
We generated very strong financial results in fiscal
year 2024, with adjusted EPS1 reaching $7.06, marking
a 31% increase from the prior year. These gains
were driven by growth in both our Reinforcement
Materials and Performance Chemicals segments.
Reinforcement Materials EBIT1 increased by 11% to
$537 million, propelled by higher volumes, favorable
pricing, improved product mix, and strong operational
execution. The Performance Chemicals segment
rebounded significantly over fiscal year 2023, with
EBIT1 up 31% to $164 million as volumes reconnected
with underlying demand in the second half of the year,
resulting in higher volumes and a somewhat more
normalized product mix.
The cash flow characteristics of the Cabot portfolio
remain very strong, and in fiscal year 2024 we
generated operating cash flow of $692 million
and discretionary free cash flow1 (DFCF) of $479
million. This strong level of cash generation enabled
the continuation of a balanced capital allocation
framework, comprised of investments to grow in
advantaged areas and return capital to shareholders.
continue strengthening our portfolio. Our strategic
focus remains on capitalizing on attractive growth
opportunities, while adhering to a disciplined
capital allocation framework to drive long-term
shareholder value.
ADVANCING THE ENERGY TRANSITION AND
BATTERY DOMESTIC SUPPLY CHAIN
Battery Materials remains a strategic growth area
for Cabot and in fiscal year 2024, we achieved an
important milestone in support of our strategic
objectives. While close to 75% of the world   s lithiumion batteries are produced in China today, we believe
the market for battery production will bifurcate, with
significant production capacity expected to be built
in the U.S. and Europe by the end of the decade.
As a result, both regions are providing substantial
government funding and support to build-out the
domestic supply chain and infrastructure needed to
support lithium-ion battery production and the broader
transition to electric vehicles.
In fiscal year 2024, we returned $265 million to
shareholders through dividends and share repurchases,
representing approximately 55% of DFCF1. We increased
our dividend by 8% in May, underscoring our confidence
in our robust cash flow outlook. Our long-standing
commitment to the dividend, which dates back to 1968,
reflects our dedication to delivering reliable returns to
shareholders as we continue to grow earnings over time.
Aligned with this direction, Cabot was recently selected
as a recipient to negotiate a $50 million grant from
the U.S. Department of Energy (DOE) to support a
state-of-the-art conductive additive manufacturing
facility in Wayne County, Michigan. This facility will
be an important part of the domestic U.S. supply
chain for lithium-ion batteries, with capabilities to
produce battery-grade carbon nanotubes (CNTs) and
conductive additive dispersions that are essential to
electric vehicle (EV) batteries.
Looking ahead, we believe we are well positioned with
a flexible balance sheet and ample cash generation
capacity to support further growth investments and
I believe our battery materials product portfolio
represents a significant long-term growth opportunity
for Cabot, and this strategic investment in the U.S. and
1
Non-GAAP measures. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information for Non-GAAP
Reconciliations located at cabotcorp.com/investors under Financials.
"Our achievements this year have set a strong foundation for future
success, underscoring our ability to navigate complexity, capitalize
on emerging opportunities, and deliver value through innovation."
4
CABOT CORPORATION ANNUAL REPORT 2024
our partnership with the DOE are important milestones
in our journey to support the energy transition with
critical chemistries. With our extensive portfolio of
conductive additives for the battery industry and
established commercial relationships with leading
battery manufacturers globally, Cabot is well-positioned
to play a vital role in the growing demand for battery
materials in the U.S.
COMMITMENT TO SUSTAINABILITY
AND INNOVATION
Fiscal year 2024 was a dynamic year of progress,
underscoring our commitment to sustainability as a
cornerstone of our    Creating for Tomorrow    strategy.
We view sustainability through two critical lenses:
operating responsibly and enabling solutions for our
customers to achieve their sustainability goals.
In June, we published our 2024 Sustainability Report,
which highlighted our latest achievements and
progress toward our 2025 sustainability goals. To date,
we have achieved nine of our fourteen sustainability
goals ahead of schedule, including an impressive
milestone: exporting 200% of the energy we import.
This was made possible by leveraging the waste
energy from our manufacturing processes to produce
CO2-free cogeneration power, a tangible example of
circularity that contributes to both our sustainability
goals and our bottom line.
Our customers are increasingly focused on sustainable
growth strategies, which presents opportunities for us
to innovate and create new sustainable materials. This
year, we launched several new products, including our
REPLASBLAK   universal circular black masterbatches
with certified sustainable material. These new
innovations are powered by EVOLVE   Sustainable
Solutions and we expect will enable us to continue
to deliver the high performance, quality and reliability
that the plastics industry requires at scale for certified
circular solutions. In addition, we introduced PROPEL  
E8     an engineered reinforcing carbon that enhances
durability and efficiency in EV and high-performance
tire formulations, addressing the demand for more
sustainable, high-performance materials.
Our sustainability achievements have continued to
earn external recognition. We received our fourth
consecutive EcoVadis platinum rating, placing us in
the top 1% of the basic chemical sector. Additionally,
our E2C   DX9660 solution was awarded the Tire
Technology International 2024 Award for Innovation
and Excellence, underscoring our commitment to
advancing sustainable tire technology.
Together, these accomplishments reflect our
deep commitment to sustainability leadership and
our determination to create shareholder value by
integrating sustainability into our corporate strategy.
We look forward to building on this progress in the
years to come.
5
 • shareholder letter icon 1/24/2025 Letter Continued (Full PDF)
 • stockholder letter icon 1/26/2023 CBT Stockholder Letter
 • stockholder letter icon 1/26/2024 CBT Stockholder Letter
 • stockholder letter icon More "Specialty Chemicals" Category Stockholder Letters
 • Benford's Law Stocks icon CBT Benford's Law Stock Score = 77


CBT Shareholder/Stockholder Letter Transcript:

CABOT CORPORATION
ANNUAL REPORT
2024

CABOT CORPORATION: A COMPELLING INVESTMENT THESIS
1
Right Strategy
"Creating for
Tomorrow"

Grow

Innovate

Optimize
2
3
Growth Objectives
Technology
Aligned with Key
Macrotrends
Targeting 3-year
Adj. EPS1 CAGR
of 7   10%

Changing Mobility
Landscape

Growth driven by
expectation of
strong results in
both segments

Global
Infrastructure
Build-out

The Sustainability
Transition
Management team
with a proven
track record
of execution


4
Capital Allocation
Strong cash flow
generation

Balanced capital
allocation focused
on funding
advantaged
growth and
returning capital
to shareholders

HIGHLIGHTS 2024
Operating cash flow of
Adjusted EPS1 of $7.06
Discretionary free cash flow1
of $479M
Adjusted EBITDA1
Returned $265M to
shareholders through dividends
and share repurchases
of $777M
Record Reinforcement
Materials EBIT1 of $537M
2
$692M
Diluted EPS of $6.72
CABOT CORPORATION ANNUAL REPORT 2024
1
Non-GAAP measures. For definitions and reconciliation to the most directly comparable
U.S. GAAP measure, see supplemental information for Non-GAAP Reconciliations located
at cabotcorp.com/investors under Financials.

A MESSAGE TO
OUR SHAREHOLDERS
Sean D. Keohane
President and Chief Executive Officer
Fiscal year 2024 was a year marked by significant strategic accomplishments and strong delivery for our
shareholders. In December of 2021, we introduced our    Creating for Tomorrow    strategy, which is built on three
pillars; Grow, Innovate and Optimize. To grow, we focus on investing for advantaged growth in applications and
geographies where we have a leadership position. Our innovation pillar aims to develop innovative products and
processes that enable a more sustainable future and where we believe we have a strong    right to win.    Finally,
to optimize, we incorporate a continuous improvement mindset into everything we do. At the same time of this
strategy launch, we also outlined a set of 3-year corporate goals for adjusted earnings per share1 (EPS) growth
and discretionary free cash flow1 generation. Specifically, we targeted to grow adjusted EPS1 at a compound
annual growth rate (CAGR) of between 8%-12% and to generate cumulative discretionary free cash flow1 (DFCF)
in excess of $1 billion from fiscal years 2022 through 2024. I am very pleased to report that we delivered at the
top end of the adjusted EPS1 goal range, achieving a CAGR of 12%, and generated cumulative DFCF1 of $1.2 billion
through fiscal year 2024.
This level of performance was delivered despite a very challenging macroeconomic and geopolitical landscape.
The continued war in Ukraine, heightened instability in the Middle East, and rising trade tensions with China
created a very challenging backdrop. Additionally, the European economy remained very weak, and China   s
growth was muted as it has struggled to shift its growth model from one driven by real estate and supplyside capacity investment to an economy fueled by consumption. Finally, we had to combat sharp inflationary
pressures over the last few years and the ensuing interest rate increases, which negatively impacted rate
sensitive end-markets such as real estate and construction, and constrained consumer spending.
Our ability to achieve our financial goals in the face of these headwinds is a testament to the resilience and
agility of the Cabot team, the strength of our portfolio and leadership positions, and our collective commitment
to execute against our goals. This high level of execution has been recognized in our strong total shareholder
return (TSR) performance, where we exceeded the S&P 400 chemicals index and our chemical peer group by a
wide margin over the one-year and three-year time periods ending September 30, 2024.
In addition to strong operational execution, we also advanced important strategic priorities in the fiscal
year, including the continued development of our Battery Materials product line and notable progress in our
sustainability journey. As I look to the future, I believe we are well positioned to drive long-term growth and
deliver top-tier shareholder returns. Our achievements this year have set a strong foundation for future
success, underscoring our ability to navigate complexity, capitalize on emerging opportunities, and deliver
value through innovation.
1
Non-GAAP measures. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information for Non-GAAP
Reconciliations located at cabotcorp.com/investors under Financials.
3

STRONG FINANCIAL RESULTS
We generated very strong financial results in fiscal
year 2024, with adjusted EPS1 reaching $7.06, marking
a 31% increase from the prior year. These gains
were driven by growth in both our Reinforcement
Materials and Performance Chemicals segments.
Reinforcement Materials EBIT1 increased by 11% to
$537 million, propelled by higher volumes, favorable
pricing, improved product mix, and strong operational
execution. The Performance Chemicals segment
rebounded significantly over fiscal year 2023, with
EBIT1 up 31% to $164 million as volumes reconnected
with underlying demand in the second half of the year,
resulting in higher volumes and a somewhat more
normalized product mix.
The cash flow characteristics of the Cabot portfolio
remain very strong, and in fiscal year 2024 we
generated operating cash flow of $692 million
and discretionary free cash flow1 (DFCF) of $479
million. This strong level of cash generation enabled
the continuation of a balanced capital allocation
framework, comprised of investments to grow in
advantaged areas and return capital to shareholders.
continue strengthening our portfolio. Our strategic
focus remains on capitalizing on attractive growth
opportunities, while adhering to a disciplined
capital allocation framework to drive long-term
shareholder value.
ADVANCING THE ENERGY TRANSITION AND
BATTERY DOMESTIC SUPPLY CHAIN
Battery Materials remains a strategic growth area
for Cabot and in fiscal year 2024, we achieved an
important milestone in support of our strategic
objectives. While close to 75% of the world   s lithiumion batteries are produced in China today, we believe
the market for battery production will bifurcate, with
significant production capacity expected to be built
in the U.S. and Europe by the end of the decade.
As a result, both regions are providing substantial
government funding and support to build-out the
domestic supply chain and infrastructure needed to
support lithium-ion battery production and the broader
transition to electric vehicles.
In fiscal year 2024, we returned $265 million to
shareholders through dividends and share repurchases,
representing approximately 55% of DFCF1. We increased
our dividend by 8% in May, underscoring our confidence
in our robust cash flow outlook. Our long-standing
commitment to the dividend, which dates back to 1968,
reflects our dedication to delivering reliable returns to
shareholders as we continue to grow earnings over time.
Aligned with this direction, Cabot was recently selected
as a recipient to negotiate a $50 million grant from
the U.S. Department of Energy (DOE) to support a
state-of-the-art conductive additive manufacturing
facility in Wayne County, Michigan. This facility will
be an important part of the domestic U.S. supply
chain for lithium-ion batteries, with capabilities to
produce battery-grade carbon nanotubes (CNTs) and
conductive additive dispersions that are essential to
electric vehicle (EV) batteries.
Looking ahead, we believe we are well positioned with
a flexible balance sheet and ample cash generation
capacity to support further growth investments and
I believe our battery materials product portfolio
represents a significant long-term growth opportunity
for Cabot, and this strategic investment in the U.S. and
1
Non-GAAP measures. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information for Non-GAAP
Reconciliations located at cabotcorp.com/investors under Financials.
"Our achievements this year have set a strong foundation for future
success, underscoring our ability to navigate complexity, capitalize
on emerging opportunities, and deliver value through innovation."
4
CABOT CORPORATION ANNUAL REPORT 2024

our partnership with the DOE are important milestones
in our journey to support the energy transition with
critical chemistries. With our extensive portfolio of
conductive additives for the battery industry and
established commercial relationships with leading
battery manufacturers globally, Cabot is well-positioned
to play a vital role in the growing demand for battery
materials in the U.S.
COMMITMENT TO SUSTAINABILITY
AND INNOVATION
Fiscal year 2024 was a dynamic year of progress,
underscoring our commitment to sustainability as a
cornerstone of our    Creating for Tomorrow    strategy.
We view sustainability through two critical lenses:
operating responsibly and enabling solutions for our
customers to achieve their sustainability goals.
In June, we published our 2024 Sustainability Report,
which highlighted our latest achievements and
progress toward our 2025 sustainability goals. To date,
we have achieved nine of our fourteen sustainability
goals ahead of schedule, including an impressive
milestone: exporting 200% of the energy we import.
This was made possible by leveraging the waste
energy from our manufacturing processes to produce
CO2-free cogeneration power, a tangible example of
circularity that contributes to both our sustainability
goals and our bottom line.
Our customers are increasingly focused on sustainable
growth strategies, which presents opportunities for us
to innovate and create new sustainable materials. This
year, we launched several new products, including our
REPLASBLAK   universal circular black masterbatches
with certified sustainable material. These new
innovations are powered by EVOLVE   Sustainable
Solutions and we expect will enable us to continue
to deliver the high performance, quality and reliability
that the plastics industry requires at scale for certified
circular solutions. In addition, we introduced PROPEL  
E8     an engineered reinforcing carbon that enhances
durability and efficiency in EV and high-performance
tire formulations, addressing the demand for more
sustainable, high-performance materials.
Our sustainability achievements have continued to
earn external recognition. We received our fourth
consecutive EcoVadis platinum rating, placing us in
the top 1% of the basic chemical sector. Additionally,
our E2C   DX9660 solution was awarded the Tire
Technology International 2024 Award for Innovation
and Excellence, underscoring our commitment to
advancing sustainable tire technology.
Together, these accomplishments reflect our
deep commitment to sustainability leadership and
our determination to create shareholder value by
integrating sustainability into our corporate strategy.
We look forward to building on this progress in the
years to come.
5



shareholder letter icon 1/24/2025 Letter Continued (Full PDF)
 

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