CABOT CORP
For the period ended Sep 30, 2025. Filed Nov 24, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Nov 24, 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-K
Period ended 2024-09-30; filed 2024-11-20.
0000950170-24-129210
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-09-30; filed 2025-11-24.
0001193125-25-292412
Item 7. 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 119 previous paragraphs and 116 current paragraphs.
75 unchanged; 30 reworded; 10 added; 14 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 previous and 14 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 (10)
Current report
Indirect tax settlement charges, which include unfavorable charges related to the settlement of indirect taxes
Current report
Gross profit decreased by $20 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to lower volumes in our Reinforcement Materials segment, partially offset by higher volumes in our Performance Chemicals segment and lower selling and administrative expenses in both our Reinforcement Materials and Performance Chemicals segments.
Current report
Selling and administrative expenses decreased by $23 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to cost management efforts.
Current report
In fiscal 2025, Total other unallocated items expense decreased $6 million as compared to fiscal 2024 primarily due to lower Unallocated corporate costs and Interest expense partially offset by lower General unallocated income. Interest expense declined $5 million due to lower overall debt balances and lower borrowing rates. Unallocated corporate costs were lower year-over-year by $16 million primarily due to a lower mark to market on deferred equity compensation payable to certain of our directors and lower incentive compensation expense. General unallocated income (expense) was lower in fiscal 2025 by $14 million primarily due to lower investment income in Argentina from lower investment balances and lower interest rates in the country.
Current report
Reinforcement Materials
Current report
In fiscal 2025, sales in Reinforcement Materials decreased by $269 million compared to fiscal 2024. The decrease was primarily due to lower volumes ($125 million) and less favorable pricing and product mix ($127 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 were primarily driven by lower raw material costs which, in most instances, are passed through to our customers through formulas and other market-based adjustments.
Current report
EBIT in Reinforcement Materials decreased by $29 million compared to fiscal 2024. The decrease was driven by lower volumes ($51 million), partially offset by lower selling and administrative expenses ($15 million) and the favorable impact from foreign currency translation ($7 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 and optimization efforts.
Current report
Performance Chemicals
Current report
EBITin Performance Chemicals increased by $30 million compared to fiscal 2024 primarily due to higher volumes ($20 million), lower selling and administrative expenses ($3 million) and the favorable impact from foreign currency translation ($3 million). The higher volumes were primarily in our fumed metal oxides and battery materials product lines. The lower sellingand administrative expenses were primarily due to cost management and optimization efforts.
Current report
Looking forward to fiscal 2026, we remain focused on executing our strategy of Creating for Tomorrow, generating strong cash flows, and continuing our disciplined approach to capital allocation. We expect EBIT in our Reinforcement Materials segment to decline driven by our expectation for the outcomes of our annual tire customer agreements to be lower in calendar 2026 as compared to calendar 2025 given the impact of tire trade flows on the regional demand for our product and a challenging macroeconomic backdrop. We expect an increase in EBIT in our Performance Chemicals segment driven by continued growth in areas such as battery materials and alternative energy applications.
Removed paragraphs (14)
Previous report
Asset impairment charges, which primarily include charges associated with an impairment of goodwill, other long-lived assets or assets held for sale.
Previous report
Charges related to the divestiture of our Purification Solutions business, which include accelerated costs associated with the change in control and employee incentive compensation.
Previous report
Benefit from the settlement of a royalty arrangement entered into in connection with the divestiture of our former Specialty Fluids business.
Previous report
Gain associated with the bargain purchase of a business.
Previous report
Gross profit increased by $121 million in fiscal 2024 as compared to fiscal 2023. The increase was primarily due to higher earnings in both our Reinforcement Materials and Performance Chemicals segments as volumes and unit margins, net of costs, in both segments improved.
Previous report
Selling and administrative expenses increased by $30 million in fiscal 2024 as compared to fiscal 2023. The increase was primarily due to an increase in the incentive compensation expense.
Previous report
Loss on Sale of Business
Previous report
The loss on sale of business associated with the sale of the Purification Solutions business is described in Note D of our Notes to the Consolidated Financial Statements.
Previous report
In fiscal 2024, Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased by $78 million. The increase was primarily driven by higher earnings in both our Reinforcement Materials and Performance Chemicals segment ($94 combined) and higher General unallocated income ($20 million), partially offset by higher expenses from Argentina controlled currency devaluation and other losses ($36 million).
Previous report
In fiscal 2024, Total other unallocated items expense decreased by $14 million as compared to fiscal 2023 primarily due to higher General unallocated income partially offset by higher Unallocated corporate costs. General unallocated income (expense) was increased by $20 million of income primarily due to less foreign currency operating losses in Argentina in fiscal 2024 as compared to fiscal 2023. The foreign currency losses from government devaluations in Argentina are treated as a certain item and are not included in General unallocated income (expense). Unallocated corporate costs increased by $14 million primarily due to an increase in incentive compensation expense.
Previous report
In fiscal 2024, sales in Reinforcement Materials increased by $47 million compared to fiscal 2023. The increase was primarily due to higher volumes ($79 million), partially offset by the unfavorable impact from foreign currency translation ($17 million) and unfavorable pricing and product mix ($13 million). The higher volumes were primarily in Asia Pacific and EMEA. The unfavorable pricing was primarily due to lower raw material costs that are generally passed through to our customers. EBIT in Reinforcement Materials increased by $55 million compared to fiscal 2023. The increase was driven by higher volumes ($28 million) and higher unit margins, net of higher costs ($25 million). The higher volumes were primarily in Asia Pacific and EMEA. The higher unit margins, net of higher costs, were primarily driven by favorable pricing and product mix in our 2023 and 2024 calendar year customer agreements, and higher costs were primarily driven by higher selling and administrative costs.
Previous report
EBIT in Performance Chemicals increased by $39 million compared to fiscal 2023 due to higher volumes ($35 million) and higher unit margins, net of higher costs ($11 million), partially offset by the unfavorable impact of foreign currency translation ($6 million). The higher volumes were primarily due to demand recovery in key end markets as the customer destocking that occurred in fiscal 2023 did not reoccur in fiscal 2024. The higher unit margins, net of higher costs, were primarily due to higher unit margins from a more favorable product mix with higher sales into the automotive and electronics end markets. Higher costs were primarily driven by higher maintenance and turnaround costs.
Previous report
Looking forward to fiscal 2025, we remain focused on our strategy of Creating for Tomorrow, advancing several strategic initiatives, generating strong cash flows, continuing our disciplined approach to capital allocation, and remain committed to our investment grade credit rating. We expect continued EBIT growth in Reinforcement Materials and Performance Chemicals with higher volumes in both segments and higher margins in Reinforcement Materials.
Previous report
In fiscal 2023, the use of cash by investing activities primarily consisted of $244 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital, including a capacity expansion project in Performance Chemicals, partially offset by proceeds from insurance settlements of $12 million, proceeds from the sale of land of $7 million, and proceeds from the sale of our Purification Solutions business of $6 million.
Reworded paragraphs (30)
Previous wording
Cabot is organized into two reportable segments: Reinforcement Materials and Performance Chemicals. The Company’s former Purification Solutions business was a separate reportable segment prior to divestiture in the second quarter of fiscal 2022. Cabot is also organized for operational purposes into three geographic regions: the Americas; EMEA; and Asia Pacific. The discussions of our results of operations for the periods presented reflect these structures.
Current wording
Cabot is organized into two reportable segments: Reinforcement Materials and Performance Chemicals. Cabot is also organized for operational purposes into three geographic regions: the Americas; EMEA; and Asia Pacific. The discussions of our results of operations for the periods presented reflect these structures.
Previous wording
Our analysis of financial condition and operating results should be read with our consolidated financial statements and accompanying notes. Unless a calendar year is specified, all references to years in this discussion are to our fiscal years ended September 30.
Current wording
Our analysis of financial condition and operating results should be read together with our consolidated financial statements and accompanying notes. Unless a calendar year is specified, all references to years in this discussion are to our fiscal years ended September 30.
Previous wording
In calculating Total segment EBIT, we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies (i) items of expense and income that management does not consider representative of our fundamental on-going segment results, which we refer to as “certain items”, and (ii) items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses such as certain corporate salaries and headquarter expenses, plus costs related to special projects and initiatives, which we refer to as “other unallocated items”. Management believes excluding the items identified as certain items facilitates operating performance comparisons from period to period by eliminating differences that would not otherwise be apparent on a GAAP basis and also facilitates an evaluation of our operating performance without the impact of these costs or benefits. The items of income and expense that we have excluded from Total segment EBIT, as applicable, but that are included in our GAAP Income (loss) from operations before income taxes and equity in earnings of affiliated companies, as applicable, are described below.
Current wording
In calculating Total segment EBIT, we exclude from our Income (loss) from operations before income taxes and equity in earnings of affiliated companies (i) items of expense and income that management does not consider representative of our fundamental on-going segment results, which we refer to as “certain items”, and (ii) items that, because they are not controlled by the business segments and primarily benefit corporate objectives, are not allocated to our business segments, such as interest expense and other corporate costs, which include unallocated corporate overhead expenses, such as certain corporate salaries and headquarters expenses, plus costs related to special projects and initiatives, which we refer to as “other unallocated items”. Management believes excluding the items identified as certain items facilitates operating performance comparisons from period to period by eliminating differences that would not otherwise be apparent on a GAAP basis and also facilitates an evaluation of our operating performance without the impact of these costs or benefits. The items of income and expense that we have excluded from Total segment EBIT, as applicable, but that are included in our GAAP Income (loss) from operations before income taxes and equity in earnings of affiliated companies, as applicable, are described below.
Previous wording
Employee benefit plan settlements, which consist of either charges or benefits associated with the termination of a pension plan or the transfer of a pension plan to a multi-employer plan.
Current wording
Employee benefit plan settlements and other charges, which consist of either charges or benefits associated with the termination of a pension plan or the transfer of a pension plan to a multi-employer plan
Previous wording
Drivers of demand and key factors affecting our profitability differ by segment. In Reinforcement Materials, longer term demand is driven primarily by: i) the number of vehicle miles driven globally; ii) the number of original equipment and replacement tires produced; iii) the number of automotive builds; and iv) changes in supply chain inventory levels to adapt to end-market demand and other market dynamics. Over the past several years, operating results have been driven by a number of factors, including: i) increases or decreases in our sales volumes driven by changes in production levels for tires or industrial rubber products and the level at which we service that demand; ii) changes in raw material costs and our ability to adjust the sales price for our products commensurate with changes in raw material costs; iii) changes in pricing and product mix, which includes customer pricing as well as the mix of products sold or the region in which they are sold; iv) global and regional capacity utilization for carbon black; v) fixed cost savings achieved through restructuring and other cost saving activities; vi) the growth of our volumes and market position in emerging economies; vii) capacity management and technology investments, including the impact of energy utilization and yield improvement technologies at our manufacturing facilities; viii) royalties and technology payments related to our patented elastomer composites technology that is used in tire applications; and ix) changes in energy prices associated with our energy center sales and the cost of utilities.
Current wording
Drivers of demand and key factors affecting our profitability differ by segment. In Reinforcement Materials, longer term demand is driven primarily by: i) the number of vehicle miles driven globally; ii) the number of original equipment and replacement tires produced; iii) the number of automotive builds; iv) changes in supply chain inventory levels to adapt to end-market demand and other market dynamics; v) demand for high-performance tires; vi) demand for larger tires and larger vehicles, such as trucks, buses, off-road vehicles used in agriculture, mining and similar vehicles; vii) demand for electric and hybrid vehicles; viii) consumer and industrial spending on new vehicles; and ix) changes in regulatory requirements impacting vehicle fuel efficiency and tire regulations. Over the past several years, operating results have been driven by a number of factors, including: i) increases or decreases in our sales volumes driven by changes in production levels for tires or industrial rubber products, and the region in which the production occurs, and the level at which we service that demand; ii) changes in raw material costs and our ability to adjust the sales price for our products commensurate with changes in raw material costs; iii) changes in pricing and product mix, which includes customer pricing as well as the mix of products sold or the region in which they are sold; iv) global and regional capacity utilization for carbon black; v) fixed cost savings achieved through restructuring and other cost saving activities; vi) the growth of our volumes and market position in emerging economies; vii) capacity management and technology investments, including the impact of energy utilization and yield improvement technologies at our manufacturing facilities; viii) royalties and technology payments related to our patented elastomer composites technology that is used in tire applications; and ix) changes in energy prices associated with our energy center sales and the cost of utilities.
Previous wording
During fiscal 2024, Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased compared to fiscal 2023 primarily due to higher earnings in both our Reinforcement Materials and Performance Chemicals segments.
Current wording
During fiscal 2025, Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased compared to fiscal 2024 primarily due to lower losses from government-controlled currency devaluations in Argentina and higher segment EBIT in our Performance Chemicals segment, partially offset by lower segment EBIT in our Reinforcement Materials segment.
Previous wording
Net sales and other operating revenues increased by $63 million in fiscal 2024 as compared to fiscal 2023. The increase in net sales and other operating revenues was driven by higher volumes in both the Reinforcement Materials and Performance Chemicals segments ($148 million combined), partially offset by unfavorable pricing and product mix in both segments ($48 million combined), the unfavorable impact from foreign currency translation in both segments ($22 million combined) and lower by-product revenue in both segments ($5 million combined). The higher volumes were due to higher volumes in Asia Pacific and EMEA in Reinforcement Materials and higher volumes in Performance Chemicals as volumes reconnected to underlying demand drivers in key end markets. The unfavorable pricing in both segments was primarily due to lower raw material costs that are generally passed through to our customers.
Current wording
Net sales and other operating revenues decreased by $281 million in fiscal 2025 as compared to fiscal 2024. The decrease in net sales and other operating revenues was driven by lower volumes in our Reinforcement Materials segment ($125 million) and less favorable pricing and product mix in both our Reinforcement Materials and Performance Chemicals segment ($160 million combined). The lower volumes in our Reinforcement Materials segment 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 both segments were primarily 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
Research and technical expenses increased by $6 million in fiscal 2024 as compared to fiscal 2023. The increase was primarily due to an increase in the incentive compensation expense.
Current wording
Research and technical expenses decreased by $4 million in fiscal 2025 as compared to fiscal 2024. The decrease was primarily due to cost management efforts.
Previous wording
Interest and dividend income in fiscal 2024 increased by $1 million as compared to fiscal 2023 primarily due to higher interest rates and the currency mix of deposit balances.
Current wording
Interest and dividend income in fiscal 2025 decreased by $5 million as compared to fiscal 2024 primarily due to lower interest rates, partially offset by higher average deposit balances.
Previous wording
Interest expense decreased by $9 million in fiscal 2024 as compared to fiscal 2023 primarily due to lower average short-term borrowings, partially offset by higher interest rates.
Current wording
Interest expense decreased by $5 million in fiscal 2025 as compared to fiscal 2024 primarily due to lower interest rates on short-term borrowings, partially offset by higher average short-term borrowings.
Previous wording
Other expense increased during fiscal 2024 by $20 million as compared to fiscal 2023. The increase was primarily due to higher foreign currency losses in Argentina, including the impact of the government devaluation of the currency that occurred during the first quarter of fiscal 2024.
Current wording
Other expense decreased during fiscal 2025 by $29 million as compared to fiscal 2024. The decrease was primarily due to lower foreign currency losses in Argentina, including the impact of the government devaluation of the currency that occurred during the first quarter of fiscal 2024.
Previous wording
For the year ended September 30, 2024, the (Provision) benefit for income taxes was a $111 million expense compared to a $28 million benefit for fiscal 2023. Included in the (provision) benefit for income taxes for the year ended September 30, 2024 and 2023 is a tax benefit of $24 million and $152 million, respectively, related to a partial valuation allowance release on the Company’s U.S. net deferred tax assets. Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate, and the presence of valuation allowances in certain tax jurisdictions.
Current wording
For the year ended September 30, 2025, the (Provision) benefit for income taxes was a $196 million expense compared to a $111 million expense for fiscal 2024. Included in the (provision) benefit for income taxes for the year ended September 30, 2025 is a tax expense of $31 million compared to a tax benefit of $24 million for fiscal 2024, related to a valuation allowance adjustment on our U.S. net deferred tax assets in each year. Our income taxes are affected by the mix of earnings in the tax jurisdictions in which we operate and the presence of valuation allowances in certain tax jurisdictions.
Previous wording
Net income (loss) attributable to noncontrolling interests, net of tax, increased by $5 million in fiscal 2024 compared to fiscal 2023 primarily due to increase earnings of our joint ventures in China and the Czech Republic.
Current wording
Net income (loss) attributable to noncontrolling interests, net of tax, increased by $1 million in fiscal 2025 compared to fiscal 2024 primarily due to higher profitability of our several joint ventures in China.
Previous wording
In fiscal 2024 and 2023, we reported net income attributable to Cabot Corporation of $380 million ($6.72 earnings per diluted common share) and $445 million ($7.73 earnings per diluted common share), respectively. The decrease in fiscal 2024 was primarily due to a lower partial release of the valuation allowance on our U.S. deferred tax assets ($128 million) and higher losses from government-controlled currency devaluations in Argentina ($26 million), partially offset by higher earnings in both our Reinforcement Material and Performance Chemicals segments ($94 million combined).
Current wording
In fiscal 2025 and 2024, we reported net income attributable to Cabot Corporation of $331 million ($6.02 earnings per diluted common share) and $380 million ($6.72 earnings per diluted common share), respectively. The decrease in fiscal 2025 was primarily due to a higher provision for income taxes ($85 million) driven by an increase in the partial valuation allowance recorded on our U.S. deferred tax assets, and lower segment EBIT in Reinforcement Materials ($29 million), partially offset by lower losses from government-controlled currency devaluations in Argentina ($43 million) and higher segment EBIT in Performance Chemicals ($30 million).
Previous wording
In fiscal 2024, sales in Performance Chemicals increased by $25 million compared to the same period of fiscal 2023. The increase was driven by higher volumes ($69 million), partially offset by unfavorable pricing and product mix ($36 million) and the unfavorable impact from foreign currency translation ($5 million). The higher volumes were primarily due to demand recovery in key end markets as the customer destocking that occurred in fiscal 2023 did not reoccur in fiscal 2024.The less favorable pricing was primarily due to lower raw material costs that are generally passed through to our customers.
Current wording
In fiscal 2025, sales in Performance Chemicals remained flat compared to the same period of fiscal 2024.
Previous wording
Our liquidity position, as measured by cash and cash equivalents plus borrowing availability, increased by $137 million during fiscal 2024, primarily due to lower outstanding revolving credit and commercial paper balances at the end of the period. As of September 30, 2024, we had cash and cash equivalents of $223 million and borrowing availability under our revolving credit agreements of $1.2 billion.
Current wording
Our liquidity position, as measured by cash and cash equivalents plus borrowing availability, increased by $75 million during fiscal 2025, primarily due to a higher cash balance and lower outstanding commercial paper at the end of the period. As of September 30, 2025, we had cash and cash equivalents of $258 million and borrowing availability under our revolving credit agreements of $1.2 billion.
Previous wording
A significant portion of our business occurs outside the U.S. and our cash generation does not always align geographically with our cash needs. The vast majority of our cash and cash equivalent holdings tend to be held outside the U.S. We generally use a combination of U.S. earnings, repatriation of certain foreign earnings, commercial paper issuances and borrowings under our U.S. Credit Agreement to meet our U.S. cash needs. With the exception of Argentina, which has currency controls that prevent the distribution of cash, we are generally able to move cash throughout the Company through our cash pooling structures, intercompany accounts and/or distributions, as needed. Although we repatriate certain foreign earnings, cash held by foreign subsidiaries is generally considered permanently reinvested and is used to finance the subsidiaries’ operational activities and future investments. We usually reduce our commercial paper balance and, if applicable, borrowings under our Credit Agreements, at quarter-end using cash derived from customer collections, including the utilization of customer supply chain financing programs, settlement of intercompany balances and short-term intercompany loans. If additional funds are needed in the U.S., we expect to be able to repatriate cash, including cash from China, while paying any withholding or other taxes. Changes in regulations and tax laws in the U.S. or foreign countries could restrict our ability to transfer funds or impose material costs on such transfers.
Current wording
A significant portion of our business occurs outside the U.S. and our cash generation does not always align geographically with our cash needs. The vast majority of our cash and cash equivalent holdings tend to be held outside the U.S. We generally use a combination of U.S. earnings, repatriation of certain foreign earnings, commercial paper issuances and borrowings under our U.S. Credit Agreement to meet our U.S. cash needs. With the exception of Argentina, which has some currency controls that prevent the distribution of cash, we are generally able to move cash throughout the Company through our cash pooling structures, intercompany accounts and/or distributions, as needed. Although we repatriate certain foreign earnings, cash held by foreign subsidiaries is generally considered permanently reinvested and is used to finance the subsidiaries’ operational activities and future investments. We usually reduce our commercial paper balance and, if applicable, borrowings under our Credit Agreements, at quarter-end using cash derived from customer collections, including the utilization of customer supply chain financing programs, settlement of intercompany balances and short-term intercompany loans. If additional funds are needed in the U.S., we expect to be able to repatriate cash, including cash from China, while paying any withholding or other taxes. Changes in regulations and tax laws in the U.S. or foreign countries could restrict our ability to transfer funds or impose material costs on such transfers.
Previous wording
As of September 30, 2024 and 2023, we had $113 million and $120 million, respectively, of borrowings outstanding under the Euro Credit Agreement and no outstanding borrowings under the U.S. Credit Agreement at either date. There was $45 million and $172 million of commercial paper outstanding at September 30, 2024 and 2023, respectively.
Current wording
As of September 30, 2025 and 2024, we had $130 million and $113 million, respectively, of borrowings outstanding under the Euro Credit Agreement and no outstanding borrowings under the U.S. Credit Agreement at either date. There was $6 million and $45 million of commercial paper outstanding at September 30, 2025 and 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 $692 million in fiscal 2024. Operating activities provided $595 million of cash in fiscal 2023.
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 $665 million in fiscal 2025. Operating activities provided $692 million of cash in fiscal 2024.
Previous wording
Cash provided by operating activities in fiscal 2023 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $144 million, plus a decrease in net working capital of $97 million. The decrease in net working capital was largely driven by a decrease in accounts receivable due to lower customer prices from lower cost of raw materials and decreased sales volumes and a decrease in inventories, partially offset by a decrease in accounts payable and accrued expenses driven by lower cost of raw materials.
Current wording
Cash provided by operating activities in fiscal 2025 was driven by business earnings excluding the non-cash impacts of depreciation and amortization of $154 million, plus a decrease in net working capital of $56 million. The decrease in net working capital was driven by a decrease in inventories from lower cost of raw materials and accounts receivable from lower sales volume in our Reinforcement Materials segment partially offset by lower accounts payable and accrued liabilities.
Previous wording
Investing activities consumed $235 million of cash in fiscal 2024 compared to $214 million in fiscal 2023. In fiscal 2024, the use of cash by investing activities primarily consisted of $241 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital, including capacity expansion projects.
Current wording
In fiscal 2024, the use of cash by investing activities primarily consisted of $241 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital, including capacity expansion projects.
Previous wording
Capital expenditures for fiscal 2025 are expected to be between $250 million and $300 million. Our planned capital spending program for fiscal 2025 is primarily for sustaining, compliance and improvement capital projects at our operating facilities as well as capacity expansion capital expenditures.
Current wording
Capital expenditures for fiscal 2026 are expected to be between $200 million and $250 million. Our planned capital spending program for fiscal 2026 is primarily for sustaining, compliance, and improvement capital projects at our operating facilities.
Previous wording
The cash consumed by financing activities in fiscal 2023 primarily consisted of net repayments of long-term debt of $6 million, which consisted of repayments of $90 million partially offset by proceeds of $84 million, net repayments of commercial paper of $149 million, net repayments of credit facility borrowings of $24 million, dividend payments to stockholders of $88 million, repurchases of common stock of $98 million and dividend payments to noncontrolling interests of $42 million.
Current wording
Financing activities consumed $336 million of cash in fiscal 2025 compared to $415 million consumed in fiscal 2024. The cash consumed by financing activities in fiscal 2025 primarily consisted of repurchases of common stock of $168 million, net repayments of commercial paper of $39 million, dividend payments to stockholders of $96 million and dividend payments to noncontrolling interests of $57 million. These payments were partially offset by net proceeds from short-term borrowings of $8 million, net proceeds from long-term debt of $8 million and proceeds from the sales of common stock of $8 million from stock option exercises.
Previous wording
Financing activities consumed $415 million of cash in fiscal 2024 compared to $403 million consumed in fiscal 2023. The cash consumed by financing activities in fiscal 2024 primarily consisted of repurchases of common stock of $172 million, net repayments of commercial paper of $127 million, dividend payments to stockholders of $93 million, dividend payments to noncontrolling interests of $27 million, and net repayments of long-term debt 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 the sales of common stock of $20 million from stock option exercises.
Current wording
The cash consumed by financing activities in fiscal 2024 primarily consisted of repurchases of common stock of $172 million, net repayments of commercial paper of $127 million, dividend payments to stockholders of $93 million, dividend payments to noncontrolling interests of $27 million, and net repayments of long-term debt 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 the sales of common stock of $20 million from stock option exercises.
Previous wording
Our long-term total debt, of which $8 million is current, matures at various times as presented in Note I of our Notes to the Consolidated Financial Statements. The weighted-average interest rate on our fixed rate long-term debt was 4.29% as of September 30, 2024.
Current wording
Our long-term total debt, of which $260 million is current, matures at various times as presented in Note H of our Notes to the Consolidated Financial Statements. Our current plan is to refinance the $250 million in registered notes with a coupon of 3.4% that mature in September of 2026 prior to its maturity. The weighted-average interest rate on our fixed rate long-term debt was 4.29% as of September 30, 2025.
Previous wording
In fiscal 2018, our Board of Directors authorized us to repurchase up to an additional ten million shares of common stock. In fiscal 2024, we repurchased approximately 1.7 million shares of common stock on the open market for $159 million. In fiscal 2023, we repurchased approximately 1.3 million shares of common stock on the open market for $91 million. Additionally, during fiscal 2024 and 2023, we repurchased 0.2 million and 0.1 million, respectively, shares of our common stock associated with employee tax obligations on stock-based compensation awards for $13 million and $7 million, respectively. As of September 30, 2024, we had approximately 1.3 million shares available for repurchase under the Board of Directors’ share repurchase authorization.
Current wording
In December 2024, our Board of Directors authorized us to repurchase up to an additional ten million shares of common stock, increasing the total shares authorized for repurchase at the time to approximately eleven million shares. In fiscal 2025, we repurchased approximately 1.8 million shares of common stock on the open market for $156 million. In fiscal 2024, we repurchased approximately 1.7 million shares of common stock on the open market for $159 million. Additionally, during fiscal 2025 and 2024, we repurchased 0.1 million and 0.2 million, respectively, shares of our common stock associated with employee tax obligations on stock-based compensation awards for $12 million and $13 million, respectively. As of September 30, 2025, we had approximately 9.5 million shares available for repurchase under the Board of Directors’ share repurchase authorization.
Previous wording
In fiscal 2024 and 2023, we paid cash dividends on our common stock of $1.66 and $1.54 per share, respectively. These cash dividend payments totaled $93 million and $88 million in fiscal 2024 and 2023, respectively.
Current wording
In fiscal 2025 and 2024, we paid cash dividends on our common stock of $1.76 and $1.66 per share, respectively. These cash dividend payments totaled $96 million and $93 million in fiscal 2025 and 2024, respectively.
Previous wording
The $25 million of unfunded postretirement benefit plan liabilities is comprised of $13 million for our U.S. and $12 million for our foreign postretirement benefit plans. These postretirement benefit plans provide certain health care and life insurance benefits for retired employees. Typical of such plans, our postretirement plans are unfunded and, therefore, have no plan assets. We fund these plans as claims or insurance premiums come due. In fiscal 2024, we paid postretirement benefits of $4 million. For fiscal 2025, our benefit payments for our postretirement plans are expected to be $3 million.
Current wording
The $23 million of unfunded postretirement benefit plan liabilities is comprised of $12 million for our U.S. and $11 million for our foreign postretirement benefit plans. These postretirement benefit plans provide certain health care and life insurance benefits for retired employees. Typical of such plans, our postretirement plans are unfunded and, therefore, have no plan assets. We fund these plans as claims or insurance premiums come due. In fiscal 2025, we paid postretirement benefits of $3 million. For fiscal 2026, our benefit payments for our postretirement plans are expected to be $2 million.
Previous wording
We have entered into long-term, volume-based purchase agreements primarily for the purchase of raw materials and natural gas with various key suppliers for all of our business segments. Under certain of these agreements the quantity of material being purchased is fixed, but the price we pay changes as market prices change. For purposes of the table above, current purchase prices have been used to quantify total commitments. We have also entered into long-term purchase agreements primarily for services related to information technology, which are not included in the table above, that total $31 million as of September 30, 2024, the majority of which is expected to be paid within the next 5 years.
Current wording
We have entered into long-term, volume-based purchase agreements primarily for the purchase of raw materials and natural gas with various key suppliers for all of our business segments. Under certain of these agreements the quantity of material being purchased is fixed, but the price we pay changes as market prices change. For purposes of the table above, current purchase prices have been used to quantify those total commitments. We have also entered into long-term purchase agreements primarily for services related to information technology, which are included in the table above.
Previous wording
We have entered into various leases as the lessee, primarily related to certain transportation vehicles, warehouse facilities, office space, and machinery and equipment. These leases have remaining lease terms between one and fifteen years, some of which may include options to extend the leases for up to fifteen years or options to terminate the leases. Our land leases have remaining lease terms up to seventy-eight years.
Current wording
We have entered into various leases as the lessee, primarily related to certain transportation vehicles, warehouse facilities, office space, and machinery and equipment. These leases have remaining lease terms between one and fifteen years, some of which may include options to extend the leases for up to fifteen years or options to terminate the leases. Our land leases have remaining lease terms up to seventy-seven years.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Investing activities consumed $298 million of cash in fiscal 2025 compared to $235 million in fiscal 2024. In fiscal 2025, the use of cash by investing activities primarily consisted of $274 million of capital expenditures for sustaining and compliance capital projects at our operating facilities as well as growth-related capital. In addition, in 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.