Cabot Corporation — May 5, 2025 release

Additional uses of cash during the second quarter included $23 million for the payment of dividends and $47 million for share repurchases.   Taxes – During the second quarter of fiscal 2025, the Company recorded a tax expense of $49 million with an effective tax rate of 32%. Our operating tax rate for fiscal 2025 is expected to be in the range of 27% to 29%.   Outlook Commenting on the outlook for the Company, Keohane said, “The first half of the year developed in line with our expectations when we first set our outlook for the year. Given the uncertain impact of recent tariff policies on customer demand in the second half of the fiscal year, we are revising our Adjusted EPS guidance for fiscal 2025 to be in the range of $7.15 to $7.50. While the direct impact from tariffs is expected to be limited, this outlook reflects our expectations for lower demand as customers adopt a more cautious posture around inventory levels. Our outlook also assumes an expectation that we will maintain margins similar to our second fiscal quarter. We are confident in our ability to successfully adapt and execute in this dynamic environment.”   Keohane continued, “Our outlook for operating cash flow remains strong, which would allow us to continue investing in strategic growth projects and to return robust levels of cash to shareholders while still maintaining liquidity in excess of $1 billion. We announced today an increase in our dividend of 5% and we expect to continue to repurchase shares. I believe Cabot is executing well against our Creating for Tom