Note U. Financial Information by Segment & Geographic Area

Segment Information

The Company identifies a product line as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is Cabot’s President and Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information.

Operating segments are aggregated into a reportable segment if the operating segments are determined to have similar economic characteristics and if the operating segments are similar in the following areas: i) nature of products and services; ii) nature of production processes; iii) type or class of customer for their products and services; iv) methods used to distribute the products or provide services; and v) if applicable, the nature of the regulatory environment. The Company has two reportable segments: Reinforcement Materials and Performance Chemicals. The Performance Chemicals reporting segment aggregates the specialty carbons, specialty compounds, fumed metal oxides, battery materials, inkjet colorants and aerogel product lines.

The CODM reviews Segment earnings before interest and taxes (“Segment EBIT”) at the operating segment level to allocate resources and to assess operating results and financial performance. The CODM reviews the change in the actual results compared to the same period forecast, the same period year-ago, and the prior sequential period on a quarterly basis. Segment EBIT includes all items that are controlled by the business segment and those management considers are representative of the fundamental on-going segment results.

Details of Segment EBIT including segment revenue and significant segment expenses regularly reviewed by the CODM are as follows:


Years Ended September 30	Reinforcement Materials			Performance Chemicals			Segment Total
	(In millions)
2025
Segment revenues from external customers	$	2,341		$	1,250		$	3,591
Segment cost of sales(1)		(1,704	)		(921	)		(2,625	)
Segment operating expenses(1)(2)		(132	)		(139	)		(271	)
Other Segment Items(3)		3			4			7
Segment EBIT	$	508		$	194		$	702
2024
Segment revenues from external customers	$	2,610		$	1,250		$	3,860
Segment cost of sales(1)		(1,927	)		(947	)		(2,874	)
Segment operating expenses(1)(2)		(148	)		(143	)		(291	)
Other Segment Items(3)		2			4			6
Segment EBIT	$	537		$	164		$	701
2023
Segment revenues from external customers	$	2,563		$	1,225		$	3,788
Segment cost of sales(1)		(1,959	)		(974	)		(2,933	)
Segment operating expenses(1)(2)		(124	)		(129	)		(253	)
Other Segment Items(3)		2			3			5
Segment EBIT	$	482		$	125		$	607

(1)

Segment cost of sales and Segment operating expenses exclude the items described in the reconciliation of segment earnings before interest and income taxes to Income (loss) from operations before income taxes and equity in earnings of affiliated companies.

(2)

Segment operating expenses include Selling and administrative expenses and Research and technical expenses.

(3)

Other segment items include Equity in earnings of affiliated companies, net of tax.

Reconciliation of Segment earnings before interest and income taxes to Income (loss) from operations before income taxes and equity in earnings of affiliated companies is as follows:


	Years Ended September 30
	(In millions)
	2025			2024			2023
Segment EBIT	$	702		$	701		$	607
Interest Expense		(76	)		(81	)		(90	)
Certain items (1)		(30	)		(59	)		(29	)
Unallocated corporate costs (2)		(52	)		(68	)		(54	)
General unallocated income (expense) (3)		28			42			22
Less: Equity in earnings of affiliated companies, net of tax(4)		7			6			5
Income (loss) from operations before income taxes and equity in earnings of affiliated companies	$	565		$	529		$	451

(1)

Certain items are items of expense and income that management does not consider representative of the Company’s fundamental on-going segment results and they are, therefore, excluded from Segment EBIT.

Details of the certain items for fiscal 2025, 2024, and 2023 are as follows:


	Years Ended September 30
	2025			2024			2023
	(In millions)
Global restructuring activities (Note N)	$	(11	)	$	(13	)	$	(4	)
Indirect tax settlement charges (Note S)		(7	)		—			—
Legal and environmental matters and reserves		(7	)		(2	)		(10	)
Employee benefit plan settlement and other charges (Note L)		(3	)		—			—
Acquisition and integration-related charges		(1	)		—			(4	)
Argentina controlled currency devaluation and other losses (Note A)		—			(43	)		(7	)
Loss on sale of business		—			—			(3	)
Other certain items		(1	)		(1	)		(1	)
Total certain items	$	(30	)	$	(59	)	$	(29	)

(2)

Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.

(3)

General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue, and unrealized holding gains (losses) for investments. This does not include items of income or expense that are separately treated as Certain items.

(4)

Equity in earnings of affiliated companies, net of tax is included in Segment EBIT and is removed to reconcile to Income (loss) from operations before taxes and equity in earnings of affiliated companies.

Other Financial information by reportable segment is as follows:


Years Ended September 30	Reinforcement Materials		Performance Chemicals		Segment Total		Unallocated and Other(1)		Consolidated Total
	(In millions)
2025
Revenues from external customers(2)	$	2,341	$	1,250	$	3,591	$	122	$	3,713
Depreciation and amortization	$	70	$	84	$	154	$	—	$	154
Equity in earnings of affiliated companies, net of tax	$	3	$	4	$	7	$	—	$	7
Assets(3)	$	1,822	$	1,500	$	3,322	$	493	$	3,815
Total expenditures for additions to long-lived assets(4)	$	209	$	91	$	300	$	3	$	303
2024
Revenues from external customers(2)	$	2,610	$	1,250	$	3,860	$	134	$	3,994
Depreciation and amortization	$	66	$	78	$	144	$	7	$	151
Equity in earnings of affiliated companies, net of tax	$	2	$	4	$	6	$	—	$	6
Assets(3)	$	1,751	$	1,494	$	3,245	$	491	$	3,736
Total expenditures for additions to long-lived assets(4)	$	165	$	76	$	241	$	8	$	249
2023
Revenues from external customers(2)	$	2,563	$	1,225	$	3,788	$	143	$	3,931
Depreciation and amortization	$	70	$	72	$	142	$	2	$	144
Equity in earnings of affiliated companies, net of tax	$	2	$	3	$	5	$	—	$	5
Assets(3)	$	1,632	$	1,473	$	3,105	$	499	$	3,604
Total expenditures for additions to long-lived assets(4)	$	149	$	108	$	257	$	8	$	265

(1)

Unallocated and Other includes certain items and eliminations necessary to reflect management’s reporting of operating segment results.

(2)

Consolidated Total Revenues from external customers reconciles to Net sales and other operating revenues on the Consolidated Statements of Operations. Revenues from external customers that are categorized as Unallocated and Other are summarized as follows:


	Years Ended September 30
	2025		2024		2023
	(In millions)
Shipping and handling fees	$	112	$	123	$	132
Other		10		11		11
Total	$	122	$	134	$	143

(3)

Unallocated and Other assets include cash, marketable securities, cost investments, income taxes receivable, deferred taxes, and headquarters’ assets.

(4)

Expenditures for additions to long-lived assets include property, plant and equipment and intangible assets.

Geographic Information

Revenues from external customers attributable to an individual country, other than the U.S. and China, were not material for disclosure. Revenues from external customers by individual country are summarized as follows:


	Years Ended September 30
	2025		2024		2023
	(In millions)
United States	$	670	$	733	$	738
China		931		983		972
Other countries		2,112		2,278		2,221
Total	$	3,713	$	3,994	$	3,931

Each of the Company’s segments operates globally. Revenues from external customers are attributed to geographic region based on customer location. In addition to presenting Revenue from external customers by reportable segment, the following tables further disaggregate Revenue from external customers by geographic region.


	Year Ended September 30, 2025
	Reinforcement Materials		Performance Chemicals		Consolidated Total
	(In millions)
Americas	$	944	$	373	$	1,317
Asia Pacific		865		536		1,401
Europe, Middle East and Africa		532		341		873
Segment revenues from external customers		2,341		1,250		3,591
Unallocated and other						122
Net sales and other operating revenues					$	3,713


	Year Ended September 30, 2024
	Reinforcement Materials		Performance Chemicals		Consolidated Total
	(In millions)
Americas	$	1,056	$	378	$	1,434
Asia Pacific		1,015		506		1,521
Europe, Middle East and Africa		539		366		905
Segment revenues from external customers		2,610		1,250		3,860
Unallocated and other						134
Net sales and other operating revenues					$	3,994


	Year Ended September 30, 2023
	Reinforcement Materials		Performance Chemicals		Consolidated Total
	(In millions)
Americas	$	1,046	$	379	$	1,425
Asia Pacific		995		491	$	1,486
Europe, Middle East and Africa		522		355		877
Segment revenues from external customers		2,563		1,225	$	3,788
Unallocated and other						143
Net sales and other operating revenues					$	3,931

Property, plant and equipment, net of accumulated depreciation, attributable to an individual country, other than the U.S. and China, were not material for disclosure. Property, plant and equipment is attributed to an individual country based on asset location and is summarized as follows:


	Years Ended September 30
	2025		2024
	(In millions)
United States	$	748	$	643
China		360		371
Other countries		603		520
Total	$	1,711	$	1,534

Historical Timeline

Fiscal Year	Filed
2025	Nov 24, 2025	Showing above
2024	Nov 20, 2024

2023	Nov 22, 2023

2022	Nov 23, 2022

2021	Nov 29, 2021

2020	Nov 25, 2020

2019	Nov 22, 2019

2018	Nov 21, 2018

2017	Nov 22, 2017

2016	Nov 23, 2016

2015	Nov 25, 2015

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

CABOT CORP Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures