CABOT CORP
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
CBT$71.05-2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000950170-25-065336
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000950170-25-102921
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 96 current paragraphs.
48 unchanged; 42 reworded; 6 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Third quarter of Fiscal 2025 versus Third quarter of Fiscal 2024—Consolidated
Current report
EBIT in Reinforcement Materials in the third quarter of fiscal 2025 decreased by $8 million compared to the same period of fiscal 2024. The decrease in EBIT was primarily driven by lower volumes ($21 million), partially offset by lower selling and administrative expenses ($6 million) and higher gross profit per ton ($5 million). The lower volumes were primarily due to lower customer demand in the Americas and Asia Pacific driven by uncertainty from tariffs and a weaker global macroeconomic environment. The lower selling and administrative expenses and higher gross profit per ton were primarily due to cost management efforts.
Current report
In the first nine months of fiscal 2025, EBIT in Reinforcement Materials decreased by $25 million compared to the same period of fiscal 2024. The decrease was primarily driven by lower volumes ($39 million), partially offset by lower selling and administrative expenses ($8 million) and the favorable impact from foreign currency translation ($5 million). The lower volumes were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The lower selling and administrative expenses were primarily due to cost management efforts.
Current report
Sales in Performance Chemicals decreased by $12 million in the third quarter of fiscal 2025 as compared to the same period of fiscal 2024 as lower volumes ($15 million) were partially offset by the favorable impact from foreign currency translation ($3 million). The lower volumes were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment, particularly in auto-related applications.
Current report
EBIT in Performance Chemicals increased by $2 million in the third quarter of fiscal 2025 as compared to the same period of fiscal 2024 primarily due to higher gross profit per ton ($4 million). The higher gross profit per ton was primarily driven by lower spending from overall cost management efforts, targeted price increases and optimization measures across the segment.
Current report
In July 2025, Dow, our fence-line partner at our fumed metal oxides facility in Barry, Wales, announced that it would be ceasing its polysiloxane operations at their site by mid-calendar year 2026. Dow currently supplies our operations with chlorosilane feedstock, which we convert into fumed silica, under an agreement with a term through the end of calendar year 2028. We are in discussions with Dow about how they will satisfy performance under the terms of our contract.
Removed paragraphs (8)
Previous report
Second quarter of Fiscal 2025 versus Second quarter of Fiscal 2024—Consolidated
Previous report
The increase in Gross profit in the first six months of fiscal 2025 as compared to the same period in the prior year was primarily driven by higher volumes in Performance Chemicals ($29 million) which were partially offset by lower volumes in Reinforcement Materials ($18 million). The higher volumes in Performance Chemicals were driven by higher volumes across all product lines as volumes have reconnected to underlying demand drivers in key end markets. The lower volumes in Reinforcement Materials were primarily due to lower tire demand.
Previous report
EBIT in Reinforcement Materials in the second quarter of fiscal 2025 decreased by $18 million compared to the same period of fiscal 2024. The decrease in EBIT was primarily driven by lower volumes from lower tire demand and contract outcomes in South America ($20 million).
Previous report
In the first six months of fiscal 2025, EBIT in Reinforcement Materials decreased by $17 million compared to the same period of fiscal 2024. The decrease was primarily driven by lower volumes from lower tire demand ($18 million).
Previous report
Sales in Performance Chemicals remained flat in the second quarter of fiscal 2025 as compared to the same period of fiscal 2024 as higher volumes ($16 million) were offset by less favorable pricing and product mix ($12 million) and the unfavorable impact from foreign currency translation ($6 million). The higher volumes were primarily in our Fumed Metal Oxides product line as volumes related to construction and semiconductor applications reconnected to underlying demand drivers. The less favorable pricing and product mix was primarily from lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments.
Previous report
In the first six months of fiscal 2025, EBIT in Performance Chemicals increased by $30 million as compared to the same period of fiscal 2024. The increase was driven primarily by higher volumes ($29 million). The higher volumes were driven by higher demand in all product lines as volumes have reconnected to underlying demand drivers in key end markets.
Previous report
Tariffs
Previous report
Given the dynamic nature of the tariff announcements, related delays and ongoing negotiations between countries, we are assessing the potential impact. In most cases, Cabot manufactures products in the countries or regions in which they are sold which reduces our direct exposure to tariffs. There are small amounts of cross-border sales, where we are directly exposed to tariff increases, but we expect in those cases to be able to pass on changes in pricing through contractual formulas and increases in spot pricing that will limit the impact. The varying levels of implemented, proposed and paused tariffs around the world are causing some of our customers to be cautious in the short-term as they reduce inventory levels until the tariff guidelines are clear.
Reworded paragraphs (42)
Previous wording
Our discussion under the heading “Second Quarter of Fiscal 2025 versus Second Quarter of Fiscal 2024—By Business Segment” includes a discussion of Total segment EBIT, which is a non-GAAP financial measure defined as Income (loss) from operations before income taxes and equity in earnings from affiliated companies less certain items and other unallocated items. Our Chief Operating Decision Maker, who is our President and Chief Executive Officer, uses segment EBIT to evaluate the operating results of each segment and to allocate resources to the segments. We believe Total segment EBIT, which reflects the sum of EBIT from our reportable segments, provides useful supplemental information for our investors as it is an important indicator of our operational strength and performance, allows investors to see our results through the eyes of management, and provides context for our discussion of individual business segment performance. Total segment EBIT should not be considered an alternative for Income (loss) from operations before income taxes and equity in earnings of affiliated companies, which is the most directly comparable U.S. GAAP financial measure. A reconciliation of Total segment EBIT to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is provided under the heading “Second quarter of Fiscal 2025 versus Second quarter of Fiscal 2024—By Business Segment”. Investors should consider the limitations associated with this non-GAAP measure, including the potential lack of comparability of this measure from one company to another.
Current wording
Our discussion under the heading “Third Quarter of Fiscal 2025 versus Third Quarter of Fiscal 2024—By Business Segment” includes a discussion of Total segment EBIT, which is a non-GAAP financial measure defined as Income (loss) from operations before income taxes and equity in earnings from affiliated companies less certain items and other unallocated items. Our Chief Operating Decision Maker, who is our President and Chief Executive Officer, uses segment EBIT to evaluate the operating results of each segment and to allocate resources to the segments. We believe Total segment EBIT, which reflects the sum of EBIT from our reportable segments, provides useful supplemental information for our investors as it is an important indicator of our operational strength and performance, allows investors to see our results through the eyes of management, and provides context for our discussion of individual business segment performance. Total segment EBIT should not be considered an alternative for Income (loss) from operations before income taxes and equity in earnings of affiliated companies, which is the most directly comparable U.S. GAAP financial measure. A reconciliation of Total segment EBIT to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is provided under the heading “Third quarter of Fiscal 2025 versus Third quarter of Fiscal 2024—By Business Segment”. Investors should consider the limitations associated with this non-GAAP measure, including the potential lack of comparability of this measure from one company to another.
Previous wording
During the second quarter of fiscal 2025, Income (loss) before income taxes and equity in earnings of affiliated companies increased as compared to the second quarter of fiscal 2024. The increase was primarily due to lower Argentina controlled currency devaluation and other losses and higher Segment EBIT in Performance Chemicals.
Current wording
During the third quarter of fiscal 2025, Income (loss) before income taxes and equity in earnings of affiliated companies decreased as compared to the third quarter of fiscal 2024. The decrease was primarily due to lower segment EBIT in Reinforcement Materials, partially offset by lower Unallocated corporate costs and higher segment EBIT in Performance Chemicals.
Previous wording
For the three and six months ended March 31, 2025, Net sales and other operating revenue decreased by $83 million and $86 million, respectively, compared to the same periods of fiscal 2024.
Current wording
For the three and nine months ended June 30, 2025, Net sales and other operating revenue decreased by $93 million and $179 million, respectively, compared to the same periods of fiscal 2024.
Previous wording
The decrease in Net sales and other operating revenues in the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024 was driven by lower volumes in Reinforcement Materials ($48 million), less favorable pricing and product mix in both Reinforcement Materials and Performance Chemicals ($24 million combined), and the unfavorable impact from foreign currency translations in both Reinforcement Materials and Performance Chemicals ($28 million combined), all of which were partially offset by higher volumes in Performance Chemicals ($16 million). The lower volumes in Reinforcement Materials were primarily due to lower tire demand. The less favorable pricing and product mix in both Reinforcement Materials and Performance Chemicals was driven by lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments. The higher volumes in Performance Chemicals were primarily in our Fumed Metal Oxides product line as volumes related to construction and semiconductor applications reconnected to underlying demand drivers in key end markets.
Current wording
The decrease in Net sales and other operating revenues in the third quarter of fiscal 2025 compared to the third quarter of fiscal 2024 was driven by lower volumes in both our Reinforcement Materials and Performance Chemicals segments ($66 million combined) and less favorable pricing and product mix in Reinforcement Materials ($27 million). The lower volumes in both Reinforcement Materials and Performance Chemicals were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The less favorable pricing and product mix in Reinforcement Materials was driven by lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments.
Previous wording
The decrease in Net sales and other operating revenues in the first six months of fiscal 2025 compared to the first six months of fiscal 2024 was driven by less favorable pricing and product mix in both Reinforcement Materials and Performance Chemicals ($64 million combined), lower volumes in Reinforcement Materials ($44 million), the unfavorable impact from foreign currency translations in both Reinforcement Materials and Performance Chemicals ($27 million combined), partially offset by higher volumes in Performance Chemicals ($50 million). The less favorable pricing and product mix was driven by lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments. The lower volumes in Reinforcement Materials were primarily due to lower tire demand. The higher volumes in Performance Chemicals were across all product lines as volumes have reconnected to underlying demand drivers in key end markets.
Current wording
The decrease in Net sales and other operating revenues in the first nine months of fiscal 2025 compared to the first nine months of fiscal 2024 was driven by lower volumes in Reinforcement Materials ($94 million), less favorable pricing and product mix in both our Reinforcement Materials and Performance Chemicals segments ($92 million combined), and the unfavorable impact from foreign currency translation in Reinforcement Materials ($23 million), partially offset by higher volumes in Performance Chemicals ($35 million). The lower volumes in Reinforcement Materials were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The less favorable pricing and product mix was driven by lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments. The higher volumes in Performance Chemicals were primarily in our Fumed Metal Oxides, Inkjet Colorants and Battery Materials product lines from higher demand.
Previous wording
For the three and six months ended March 31, 2025, gross profit decreased by $5 million and increased by $12 million, respectively, compared to the same periods of fiscal 2024.
Current wording
For the three and nine months ended June 30, 2025, gross profit decreased by $12 million and remained flat, respectively, compared to the same periods of fiscal 2024.
Previous wording
The decrease in Gross profit in the second quarter of fiscal 2025 as compared to the second quarter of fiscal 2024 was driven primarily by lower volumes in Reinforcement Materials ($20 million) which were partially offset by higher volumes in Performance Chemicals ($9 million) and higher gross profit per ton in Performance Chemicals ($9 million). The lower volumes in Reinforcement Materials were primarily due to lower tire demand. The higher volumes in Performance Chemicals were primarily in our Fumed Metal Oxides product line as volumes related to construction and semiconductor applications reconnected to underlying demand drivers in key end markets. The higher gross profit per ton in our Performance Chemicals segment was primarily from targeted price increases, cost savings and optimization measures across the segment.
Current wording
The decrease in Gross profit in the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024 was driven primarily by lower volumes in both our Reinforcement Materials and Performance Chemical segments ($25 million combined) which were partially offset by higher gross profit per ton in both our Reinforcement Materials and Performance Chemicals segments ($9 million combined). The lower volumes in both our Reinforcement Materials and Performance Chemicals segments were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The higher gross profit per ton in both our Reinforcement Materials and Performance Chemicals segments was primarily driven by optimization actions and lower spending from cost management efforts.
Previous wording
Selling and administrative expenses decreased by $11 million and $12 million for the three and six months ended March 31, 2025, respectively, compared to the same periods of fiscal 2024 primarily from overall cost management efforts and expenses related to our board of directors.
Current wording
Selling and administrative expenses decreased by $6 million and $18 million for the three and nine months ended June 30, 2025, respectively, compared to the same periods of fiscal 2024, primarily from cost management efforts.
Previous wording
Research and technical expenses remained flat in the second quarter of fiscal 2025 and decreased by $1 million for the six months ended March 31, 2025, respectively, compared to the same periods of fiscal 2024.
Current wording
Research and technical expenses decreased by $1 million in the third quarter of fiscal 2025 and decreased by $2 million for the nine months ended June 30, 2025, respectively, compared to the same periods of fiscal 2024.
Previous wording
Interest and dividend income decreased by $1 million and $4 million in the three and six months ended March 31, 2025, respectively, compared to the same periods of fiscal 2024, primarily due to lower average interest rates, partially offset by higher average cash balances.
Current wording
Interest and dividend income decreased by $1 million and $5 million in the three and nine months ended June 30, 2025, respectively, compared to the same periods of fiscal 2024, primarily due to lower average interest rates, partially offset by higher average cash balances.
Previous wording
Interest expense decreased by $2 million and $6 million in the three and six months ended March 31, 2025, respectively, compared to the same periods of fiscal 2024, due to lower average interest rates on short term borrowings.
Current wording
Interest expense remained flat and decreased by $6 million in the three and nine months ended June 30, 2025, respectively, compared to the same periods of fiscal 2024, due to lower average interest rates on short term borrowings.
Previous wording
Other income (expense) increased by $2 million in the second quarter of fiscal 2025 compared to the same period of fiscal 2024, primarily due to lower foreign exchange losses primarily in Argentina. Other income (expense) increased by $32 million for the six months ended March 31, 2025, as compared to the same period of fiscal 2024, primarily due to lower foreign exchange losses primarily in Argentina.
Current wording
Other income (expense) was $3 million in the third quarter of fiscal 2024, with no such amounts in the third quarter of fiscal 2025, and $35 million less expense for the nine months ended June 30, 2025. The change in both periods was primarily due to lower foreign exchange losses primarily in Argentina.
Previous wording
For the three months ended March 31, 2025, the (Provision) benefit for income taxes was a provision of $49 million compared to a provision of $47 million for the same period in fiscal 2024, with the change primarily due to higher earnings in the current period. Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate, and by the presence of valuation allowances in certain tax jurisdictions.
Current wording
For the three months ended June 30, 2025, the (Provision) benefit for income taxes was a provision of $43 million compared to a provision of $40 million for the same period in fiscal 2024, with the change primarily due to the mix of earnings. Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate, and by the presence of valuation allowances in certain tax jurisdictions.
Previous wording
For the six months ended March 31, 2025, the (Provision) benefit for income taxes was a provision of $90 million compared to a $81 million provision for the same period in fiscal 2024, primarily due to higher earnings in the current period.
Current wording
For the nine months ended June 30, 2025, the (Provision) benefit for income taxes was a provision of $133 million compared to a $121 million provision for the same period in fiscal 2024, primarily due to higher earnings in the current period.
Previous wording
Equity in earnings of affiliated companies, net of tax, increased by $1 million in each of the three and six months ended March 31, 2025, compared to the same period of fiscal 2024 primarily due to higher profitability of our equity affiliate in Venezuela.
Current wording
Equity in earnings of affiliated companies, net of tax, decreased by $1 million and remained flat during the three and nine months ended June 30, 2025, respectively, compared to the same periods of fiscal 2024 primarily due to lower profitability of our equity affiliate in Venezuela.
Previous wording
Net income (loss) attributable to noncontrolling interests, net of tax, decreased by $2 million in the second quarter of fiscal 2025 compared to the same period of fiscal 2024 primarily due to lower earnings of our joint ventures in China and the Czech Republic. Net income (loss) attributable to noncontrolling interests, net of tax, decreased by $2 million in the first six months of fiscal 2025 compared to the same period of fiscal 2024 primarily due to lower earnings of our joint venture in the Czech Republic.
Current wording
Net income (loss) attributable to noncontrolling interests, net of tax, increased by $1 million in the three months ended June 30, 2025, compared to the same period of fiscal 2024 primarily due to higher earnings of our joint ventures in the Czech Republic and China. Net income (loss) attributable to noncontrolling interests, net of tax, decreased by $1 million in the first nine months of fiscal 2025 compared to the same period of fiscal 2024 primarily due to lower earnings of our joint venture in the Czech Republic.
Previous wording
In the second quarter of fiscal 2025 and fiscal 2024, we reported Net income (loss) attributable to Cabot Corporation of $94 million ($1.69 per diluted common share) and $84 million ($1.49 per dilution common share), respectively. The higher Net income in the second quarter of fiscal 2025 compared with the same period in fiscal 2024 was primarily due to higher Segment EBIT in Performance Chemicals ($19 million) and lower Argentina controlled currency devaluation and other losses ($8 million), partially offset with lower Segment EBIT in Reinforcement Materials ($18 million).
Current wording
In the third quarter of fiscal 2025 and fiscal 2024, we reported Net income (loss) attributable to Cabot Corporation of $101 million ($1.86 per diluted common share) and $109 million ($1.94 per diluted common share), respectively. The lower Net income in the third quarter of fiscal 2025 compared with the same period in fiscal 2024 was primarily due to lower Segment EBIT in Reinforcement Materials ($8 million).
Previous wording
In the first six months of fiscal 2025 and fiscal 2024, we reported Net income (loss) attributable to Cabot Corporation of $187 million ($3.36 per diluted common share) and $134 million ($2.37 per dilution common share), respectively. The higher Net income in the first six months of fiscal 2025 compared with the same period in fiscal 2024 was primarily due to lower Argentina controlled currency devaluation and other losses ($41 million) and higher Segment EBIT ($13 million).
Current wording
In the first nine months of fiscal 2025 and fiscal 2024, we reported Net income (loss) attributable to Cabot Corporation of $288 million ($5.22 per diluted common share) and $243 million ($4.30 per diluted common share), respectively. The higher Net income in the first nine months of fiscal 2025 compared with the same period in fiscal 2024 was primarily due to lower Argentina controlled currency devaluation and other losses ($43 million).
Previous wording
Second quarter of Fiscal 2025 versus Second quarter of Fiscal 2024—By Business Segment
Current wording
Third quarter of Fiscal 2025 versus Third quarter of Fiscal 2024—By Business Segment
Previous wording
Income (loss) before income taxes and equity in earnings of affiliated companies, Certain items, Other unallocated items and Total segment EBIT for the three and six months ended March 31, 2025 and 2024 are included in the following table, and details of each item is set forth in the sections below.
Current wording
Income (loss) before income taxes and equity in earnings of affiliated companies, Certain items, Other unallocated items and Total segment EBIT for the three and nine months ended June 30, 2025 and 2024 are included in the following table, and details of each item is set forth in the sections below.
Previous wording
Details of the certain items for the three and six months ended March 31, 2025 and 2024 are as follows:
Current wording
Details of the certain items for the three and nine months ended June 30, 2025 and 2024 are as follows:
Previous wording
Total other unallocated items remained flat and decreased by $2 million for each of the three and six months ended March 31, 2025, respectively, when compared to the same periods in fiscal 2024.
Current wording
Total other unallocated items decreased by $4 million and $6 million for the three and nine months ended June 30, 2025, respectively, when compared to the same periods in fiscal 2024.
Previous wording
Sales and EBIT for Reinforcement Materials for the second quarter of fiscal 2025 and 2024 were as follows:
Current wording
Sales and EBIT for Reinforcement Materials for the third quarter of fiscal 2025 and 2024 were as follows:
Previous wording
Sales in Reinforcement Materials decreased by $82 million in the second quarter of fiscal 2025 compared to the same period of fiscal 2024 primarily due to lower volumes ($48 million), the less favorable impact of foreign currency translation ($22 million) and less favorable pricing and product mix ($12 million). The lower volumes were primarily due to lower tire demand and contract outcomes in South America. The less favorable pricing and product mix was primarily due to lower raw materials costs that are generally passed through to our customers.
Current wording
Sales in Reinforcement Materials decreased by $76 million in the third quarter of fiscal 2025 compared to the same period of fiscal 2024 primarily due to lower volumes ($51 million) and less favorable pricing and product mix ($27 million). The lower volumes were primarily due to lower customer demand in the Americas and Asia Pacific driven by uncertainty from tariffs and a weaker global macroeconomic environment. The less favorable pricing and product mix was primarily due to lower raw materials costs that are generally passed through to our customers.
Previous wording
In the first six months of fiscal 2025, sales in Reinforcement Materials decreased by $112 million as compared to the first six months of fiscal 2024 primarily due to lower volumes ($44 million), less favorable pricing and product mix ($39 million) and the less favorable impact from foreign currency translation ($24 million). The lower volumes were primarily due to lower tire demand. The less favorable pricing and product mix was primarily due to lower raw materials costs that are generally passed through to our customers.
Current wording
In the first nine months of fiscal 2025, sales in Reinforcement Materials decreased by $188 million as compared to the first nine months of fiscal 2024 primarily due to lower volumes ($94 million), less favorable pricing and product mix ($66 million) and the less favorable impact from foreign currency translation ($23 million). The lower volumes were primarily due to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment. The less favorable pricing and product mix was primarily due to lower raw materials costs that are generally passed through to our customers.
Previous wording
As we look to the third quarter of the fiscal year, we expect the Reinforcement Materials segment EBIT to decline modestly from the second quarter of fiscal 2025 as we anticipate lower volumes in reaction to the uncertain macroeconomic backdrop.
Current wording
As we look to the fourth quarter of the fiscal year, we expect the Reinforcement Materials segment EBIT to modestly decline from the third quarter of fiscal 2025 primarily due to expected higher costs sequentially, partially offset by expected higher volumes in Asia Pacific.
Previous wording
Sales and EBIT for Performance Chemicals for the second quarter of fiscal 2025 and 2024 were as follows:
Current wording
Sales and EBIT for Performance Chemicals for the third quarter of fiscal 2025 and 2024 were as follows:
Previous wording
In the first six months of fiscal 2025, sales in Performance Chemicals increased by $26 million as compared to the first six months of fiscal 2024 primarily due to higher volumes ($50 million), partially offset by less favorable pricing and product mix ($25 million). The higher volumes were primarily due to higher demand in all product lines as volumes have reconnected to underlying demand drivers in key end markets. The less favorable pricing and product mix was primarily due to lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments.
Current wording
In the first nine months of fiscal 2025, sales in Performance Chemicals increased by $14 million as compared to the first nine months of fiscal 2024 primarily due to higher volumes ($35 million), partially offset by less favorable pricing and product mix ($25 million). The higher volumes were primarily in our fumed metal oxides product line and the less favorable pricing and product mix were primarily due to lower raw material costs which, in certain instances, are passed through to our customers through formulas and other market-based adjustments.
Previous wording
EBIT in Performance Chemicals increased by $19 million in the second quarter of fiscal 2025 as compared to the same period of fiscal 2024 primarily due to higher gross profit per ton ($9 million), and higher volumes ($9 million). The higher gross profit per ton was primarily from targeted price increases, cost savings and optimization measures across the segment. The higher volumes were primarily in our Fumed Metal Oxides product line as volumes related to construction and semiconductor applications reconnected to underlying demand drivers.
Current wording
In the first nine months of fiscal 2025, EBIT in Performance Chemicals increased by $32 million as compared to the same period of fiscal 2024. The increase was driven primarily by higher volumes ($25 million) and higher gross profit per ton ($5 million). The higher volumes were driven by higher demand primarily in our fumed metal oxides product line. The higher gross profit per ton was primarily from overall cost management efforts, targeted price increases and optimization measures across the segment.
Previous wording
As we look to the third quarter of the fiscal year, we expect the Performance Chemicals segment EBIT to be flat sequentially to the second quarter of fiscal 2025 as expected seasonal volume increases are expected to be offset by customer destocking in China.
Current wording
As we look to the fourth quarter of the fiscal year, we expect the Performance Chemicals segment EBIT to decline from the third quarter of fiscal 2025 primarily due to expected lower seasonal volumes and expected higher costs sequentially.
Previous wording
Our liquidity position, as measured by cash and cash equivalents plus borrowing availability, decreased by $168 million during the first six months of fiscal 2025, which was largely due to a higher outstanding commercial paper balance at the end of the period. As of March 31, 2025, we had cash and cash equivalents of $213 million and borrowing availability under our revolving credit agreements of $1.0 billion. We have access to borrowings under the following two credit agreements:
Current wording
Our liquidity position, as measured by cash and cash equivalents plus borrowing availability, decreased by $36 million during the first nine months of fiscal 2025, which was largely due to a higher outstanding commercial paper balance partially offset by a higher cash balance at the end of the period. As of June 30, 2025, we had cash and cash equivalents of $239 million and borrowing availability under our revolving credit agreements of $1.1 billion. We have access to borrowings under the following two credit agreements:
Previous wording
As of each of March 31, 2025 and September 30, 2024, we had $114 million and $113 million, respectively, of borrowings under the Euro Credit Agreement and no outstanding borrowings under the U.S. Credit Agreement at either date. There was $190 million and $45 million of commercial paper outstanding as of March 31, 2025 and September 30, 2024, respectively.
Current wording
As of each of June 30, 2025 and September 30, 2024, we had $130 million and $113 million, respectively, of borrowings under the Euro Credit Agreement and no outstanding borrowings under the U.S. Credit Agreement at either date. There was $98 million and $45 million of commercial paper outstanding as of June 30, 2025 and September 30, 2024, respectively.
Previous wording
Cash provided by operating activities, which consists of net income adjusted for the various non-cash items included in income, changes in working capital and changes in certain other balance sheet accounts, totaled $197 million in the first six months of fiscal 2025 compared to $281 million of cash provided by operating activities during the same period of fiscal 2024.
Current wording
Cash provided by operating activities, which consists of net income adjusted for the various non-cash items included in income, changes in working capital and changes in certain other balance sheet accounts, totaled $446 million in the first nine months of fiscal 2025 compared to $488 million of cash provided by operating activities during the same period of fiscal 2024.
Previous wording
Cash provided by operating activities in the first six months of fiscal 2025 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $75 million and cash dividends received from one of our equity investments of $12 million, which was offset by an increase in net working capital of $114 million. The increase in net working capital was largely driven by a decrease in Accounts Payable and accrued liabilities, and an increase in Accounts and notes receivable.
Current wording
Cash provided by operating activities in the first nine months of fiscal 2025 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $114 million and cash dividends received from our equity investments of $13 million, which was offset by an increase in net working capital of $13 million. The increase in net working capital was largely driven by a decrease in Accounts Payable and accrued liabilities offset by a decrease in Accounts and notes receivable and Inventories.
Previous wording
Cash provided by operating activities in the first six months of fiscal 2024 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $78 million and foreign exchange losses of $36 million, primarily related to devaluation of the Argentine peso, which was partially offset by an increase in net working capital of $25 million. The increase in net working capital was largely driven by a decrease in Accounts payable and accrued expenses and an increase in Inventories and Accounts and notes receivable.
Current wording
Cash provided by operating activities in the first nine months of fiscal 2024 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $114 million, foreign exchange losses of $38 million, and a decrease in net working capital of $18 million. The decrease in net working capital was largely driven by an increase in Accounts Payable and accrued liabilities and a decrease in inventories, partially offset by an increase in Accounts and notes receivable.
Previous wording
Investing activities consumed $174 million of cash in the first six months of fiscal 2025 compared to $95 million of cash consumed in the first six months of fiscal 2024.
Current wording
Investing activities consumed $239 million of cash in the first nine months of fiscal 2025 compared to $146 million of cash consumed in the first nine months of fiscal 2024.
Previous wording
In the first six months of fiscal 2025 and 2024, investing activities included $149 million and $97 million, respectively, of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital. In addition, in the first six months of fiscal 2025, investing activities included $27 million for cash paid for the asset acquisition described in Note C of our Notes to the Consolidated Financial Statements.
Current wording
In the first nine months of fiscal 2025 and 2024, investing activities included $210 million and $149 million, respectively, of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital. In addition, in the first nine months of fiscal 2025, investing activities included $27 million for cash paid for the asset acquisition described in Note C of our Notes to the Consolidated Financial Statements.
Previous wording
Financing activities consumed $7 million of cash in the first six months of fiscal 2025 compared to $195 million of cash consumed during the same period of fiscal 2024.
Current wording
Financing activities consumed $190 million of cash in the first nine months of fiscal 2025 compared to $326 million of cash consumed during the same period of fiscal 2024.
Previous wording
In the first six months of fiscal 2025, financing activities primarily consisted of share repurchases of $89 million, dividend payments to stockholders of $47 million, and cash dividends paid to noncontrolling interests of $20 million. There were also net proceeds from the issuance of commercial paper of $145 million.
Current wording
In the first nine months of fiscal 2025, financing activities primarily consisted of share repurchases of $129 million, dividend payments to stockholders of $71 million, and cash dividends paid to noncontrolling interests of $57 million. There were also net proceeds from the issuance of commercial paper of $52 million and net proceeds from short-term borrowings of $3 million, which includes proceeds of $14 million partially offset by repayments of $11 million.
Previous wording
In the first six months of fiscal 2024, financing activities primarily consisted of net repayment of commercial paper of $85 million, share repurchases of $57 million, dividend payments to stockholders of $45 million, cash dividends paid to noncontrolling interests of $12 million, and repayments of long-term debt of $9 million. These payments were partially offset by proceeds from sales of common stock of $13 million from stock option exercises.
Current wording
In the first nine months of fiscal 2024, financing activities primarily consisted of net repayment of commercial paper of $123 million, share repurchases of $106 million, dividend payments to stockholders of $69 million, cash dividends paid to noncontrolling interests of $27 million, and net repayment of $12 million under our Euro Credit Agreement, which includes repayments of $26 million partially offset by proceeds of $14 million. These payments were partially offset by proceeds from sales of common stock of $15 million from stock option exercises.
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