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Restructuring | 9 Months Ended
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Jun. 30, 2026
Restructuring and Related Activities [Abstract] |
Restructuring | I. Restructuring 2026 Restructuring During the first quarter of fiscal 2026, the Company initiated restructuring activities in its Performance Chemicals segment ("2026 PC Plan") primarily associated with the fumed metal oxides product line. As part of the plan, the Company ceased production of fumed silica at its manufacturing plant in Barry, Wales in the third quarter of fiscal 2026. Cabot continues operations to post-treat fumed silica at the site. During the three and nine months ended June 30, 2026, the Company recorded charges of $6 million and $19 million, respectively, primarily related to estimated severance costs, asset impairments, and accelerated depreciation. The Company expects to record additional restructuring charges of $7 million related to the 2026 PC Plan during the remainder of fiscal 2026 and in fiscal 2027. The Company has made cash payments related to the PC Plan of $1 million in the three and nine months ended June 30, 2026, and expects an additional $3 million of cash payments during remainder of fiscal 2026, $6 million during fiscal 2027 and $1 million thereafter. During fiscal 2026, the Company initiated restructuring actions in its Reinforcement Materials segment, along with associated support functions, to better align resources and production to demand conditions and enable a more efficient manufacturing network to meet customer supply needs. During the third quarter of fiscal 2026, the Company ceased carbon black production at its facility in Campana, Argentina and announced its intention to close multiple manufacturing units at its facility in Botlek, The Netherlands in fiscal 2027, subject to the completion of local consultation processes. During the three and nine months ended June 30, 2026, the Company recorded charges of $36 million and $38 million, respectively, primarily related to estimated severance costs, asset impairments, and accelerated depreciation. The Company expects to record additional restructuring charges of $8 million during the remainder of fiscal 2026 and $14 million during fiscal 2027. The estimated future charges of $22 million are primarily for accelerated depreciation, site demolition and other related costs. The Company has made cash payments related to these actions of $6 million in the three and nine months ended June 30, 2026, and expects additional $2 million of cash payments during the remainder of fiscal 2026 and $9 million during fiscal 2027. 2025 Reorganizations In fiscal 2025, the Company undertook various actions to enable the more efficient operation of the Company and reduce ongoing operational costs. These restructuring actions have resulted in reductions in workforce across business and functional teams. Cumulative expense recorded under the 2025 Reorganizations was $9 million through December 31, 2025, primarily related to severance costs. No additional charges have been or are expected to be recorded under this plan. The Company expects to make cash payments of $7 million related to this plan throughout fiscal 2026. Details of all restructuring activities and related reserves during the three and nine months ended June 30, 2026 were as follows:
|  | Severance and Employee Benefits |  |  | Non-Cash Asset Impairment and Accelerated Depreciation |  |  | Other |  |  | Total |
|  | (In millions) |
Reserve at September 30, 2025 |  | $ | 7 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 8 |
Charges |  |  | 4 |  |  |  | 3 |  |  |  | — |  |  |  | 7 |
Cost charged against assets |  |  | — |  |  |  | (3 | ) |  |  | — |  |  |  | (3 | )
Cash paid |  |  | (3 | ) |  |  | — |  |  |  | (1 | ) |  |  | (4 | )
Reserve at December 31, 2025 |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | 8 |
Charges |  |  | 3 |  |  |  | 5 |  |  |  | — |  |  |  | 8 |
Cost charged against assets |  |  | — |  |  |  | (5 | ) |  |  | — |  |  |  | (5 | )
Cash paid |  |  | (2 | ) |  |  | — |  |  |  | — |  |  |  | (2 | )
Reserve at March 31, 2026 |  | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |
Charges |  |  | 10 |  |  |  | 31 |  |  |  | 1 |  |  |  | 42 |
Cost charged against assets |  |  | — |  |  |  | (31 | ) |  |  | — |  |  |  | (31 | )
Cash paid |  |  | (8 | ) |  |  | — |  |  |  | (1 | ) |  |  | (9 | )
Reserve at June 30, 2026 |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |
Cabot’s severance and employee benefits reserves are reflected in Accounts payable and accrued liabilities on the Company’s Consolidated Balance Sheets. Cabot’s restructuring expense was recorded in the Consolidated Statement of Operations for the three and nine months ended June 30, 2026 and 2025 as follows:
|  | Three Months Ended June 30 |  |  | Nine Months Ended June 30 |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
|  | (In millions) |
Cost of sales |  | $ | 40 |  |  | $ | 2 |  |  | $ | 53 |  |  | $ | 4 |
Selling and administrative expenses |  |  | 2 |  |  |  | 1 |  |  |  | 4 |  |  |  | 1 |
Research and technical expenses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Total |  | $ | 42 |  |  | $ | 3 |  |  | $ | 57 |  |  | $ | 6 |
Restructuring expense is considered a Certain item, which is further discussed in Note L.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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