Cabot Corp reports strong jump in Q2, increases dividend

Boston, MA — Cabot Corp. reported a sharp increase in second-quarter fiscal 2026 profit and margins on Tuesday, driven by stronger performance in its Performance Chemicals segment and improved pricing and volume trends in key businesses. Additionally, the company declared a quarterly dividend of $0.4725
 per share, an increase of 5% compared to the current quarterly dividend of $0.45
 per share, payable on all outstanding shares of the Corporation’s common stock. The dividend is payable on June 12, 2026 , to stockholders of record of such common stock at the close of business on May 29, 2026.

The specialty chemicals company said diluted earnings per share rose to $1.27 for the quarter ended March 31, 2026, compared with $1.69 a year earlier. Adjusted earnings per share were $1.61.

Net sales totaled $904 million, down from $936 million in the prior-year period, as gains in certain segments were offset by weaker conditions in Reinforcement Materials.

Net income attributable to Cabot fell to $68 million from $94 million a year earlier.

The company said Performance Chemicals results improved, supported by higher gross profit per ton, a favorable product mix and growth in battery materials. Segment earnings rose compared with the same period last year.

Reinforcement Materials results declined, with lower margins and pricing pressure weighing on earnings, particularly in Asia Pacific. Segment earnings fell year over year.

Cabot said global Reinforcement Materials volumes increased 3%, with growth across Asia Pacific, Europe, the Middle East and Africa, and the Americas.

The company also reported adjustments tied to restructuring and operational items, which affected reported earnings.

Cabot announced a quarterly dividend increase of 5%, raising the annualized payout to $1.89 per share, according to the company.

Executives said the company continued to benefit from cost controls, portfolio optimization and growth in battery materials, while acknowledging ongoing pressure in tire and rubber-related markets.

The company will discuss results and outlook in a scheduled earnings conference call with investors and analysts.