CABOT CORPCBT

CABOT CORP Earnings Per Share Disclosure

10-KFiled Nov 24, 20253 min read

Note P. Earnings Per Share

The following tables summarize the components of the basic and diluted earnings per common share (“EPS”) computations:

 

 

 

Years Ended September 30

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(In millions, except per share amounts)

 

Basic EPS:

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cabot Corporation

 

$

331

 

 

$

380

 

 

$

445

 

Less: Dividends and dividend equivalents to participating
   securities

 

 

1

 

 

 

1

 

 

 

1

 

Less: Undistributed earnings allocated to participating
   securities(1)

 

 

4

 

 

 

5

 

 

 

7

 

Earnings (loss) allocated to common shareholders (numerator)

 

$

326

 

 

$

374

 

 

$

437

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and participating
   securities outstanding

 

 

54.5

 

 

 

56.0

 

 

 

57.3

 

Less: Participating securities(1)

 

 

0.8

 

 

 

0.9

 

 

 

1.2

 

Adjusted weighted average common shares
   (denominator)

 

 

53.7

 

 

 

55.1

 

 

 

56.1

 

 

 

 

 

 

 

 

 

 

 

Per share amounts—basic:

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cabot Corporation

 

$

6.07

 

 

$

6.79

 

 

$

7.79

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS:

 

 

 

 

 

 

 

 

 

Earnings (loss) allocated to common shareholders

 

$

326

 

 

$

374

 

 

$

437

 

Plus: Earnings allocated to participating securities

 

 

5

 

 

 

6

 

 

 

8

 

Less: Adjusted earnings allocated to participating
   securities(2)

 

 

5

 

 

 

6

 

 

 

8

 

Earnings (loss) available to common shares (numerator)

 

$

326

 

 

$

374

 

 

$

437

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted average common shares outstanding

 

 

53.7

 

 

 

55.1

 

 

 

56.1

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Common shares issuable(3)

 

 

0.5

 

 

 

0.6

 

 

 

0.4

 

Adjusted weighted average common shares
   (denominator)

 

 

54.2

 

 

 

55.7

 

 

 

56.5

 

 

 

 

 

 

 

 

 

 

 

Per share amounts—diluted:

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cabot Corporation

 

$

6.02

 

 

$

6.72

 

 

$

7.73

 

 

(1)
Participating securities consist of shares underlying unvested time-based restricted stock units (the "TSUs"), earned and unvested performance-based restricted stock units (the "PSUs", and referred to in this note collectively with the TSUs as the "RSUs"), stock units accounted for under the Supplemental 401(k) Plan portion of the Company’s Deferred Compensation and Supplemental Retirement Plan, and stock units and phantom stock units accounted for under the Company’s Non-Employee Directors’ Deferral Plan. The holders of RSUs are entitled to receive dividend equivalents, payable in cash, to the extent dividends are paid on the outstanding shares of Common Stock, and equal in value to the dividends that would have been paid in respect of the Common Stock underlying the RSU. The accounts of holders of stock units and phantom stock units are credited with dividend equivalents, which are payable, in stock or cash, as the case may be, with the distribution of account balances.

Undistributed earnings are the earnings which remain after dividends declared during the period are assumed to be distributed to the common and participating shareholders. Undistributed earnings are allocated to common and participating shareholders on the same basis as dividend distributions. The calculation of undistributed earnings is as follows:

 

 

 

Years Ended September 30

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(In millions)

 

Calculation of undistributed earnings:

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cabot Corporation

 

$

331

 

 

$

380

 

 

$

445

 

Less: Dividends declared on common stock

 

 

95

 

 

 

92

 

 

 

87

 

Less: Dividends and dividend equivalents to participating
   securities

 

 

1

 

 

 

1

 

 

 

1

 

Undistributed earnings (loss)

 

$

235

 

 

$

287

 

 

$

357

 

Allocation of undistributed earnings:

 

 

 

 

 

 

 

 

 

Undistributed earnings (loss) allocated to common
   shareholders

 

$

231

 

 

$

282

 

 

$

350

 

Undistributed earnings allocated to participating
   securities

 

 

4

 

 

 

5

 

 

 

7

 

Undistributed earnings (loss)

 

$

235

 

 

$

287

 

 

$

357

 

 

(2)
Undistributed earnings (loss) are adjusted for the assumed conversion of dilutive securities, which are described in (3) below, to common shares and then reallocated to participating securities.
(3)
Represents incremental shares of common stock from the assumed exercise of stock options issued under Cabot’s equity incentive plans. For fiscal 2025, 2024 and 2023, 163,845, 152,917 and 138,966 incremental shares of common stock, respectively, were excluded from the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive.

Historical Timeline

Fiscal YearFiled
2025Nov 24, 2025Showing above
2024Nov 20, 2024
2023Nov 22, 2023
2022Nov 23, 2022
2021Nov 29, 2021
2020Nov 25, 2020
2019Nov 22, 2019
2018Nov 21, 2018
2017Nov 22, 2017
2016Nov 23, 2016
2015Nov 25, 2015

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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