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Cabot (CBT) Launches Universal Circular Black Masterbatches

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Cabot Corporation (CBT - Free Report) has launched its new REPLASBLAK universal circular black masterbatches made with certified sustainable materials. With this, it has unveiled two new products, which will be sold as the industry's first universal circular black masterbatches with International Sustainability & Carbon Certification (ISCC) PLUS-certified content.

The new REPLASBLAK universal circular black masterbatches, powered by EVOLVE Sustainable Solutions, will allow Cabot to continue providing the high performance, quality and dependability that the plastics industry demands at scale for certified circular solutions.

The global shift to a reduced carbon future necessitates improved sustainable solutions that promote a circular economy while lowering greenhouse gas emissions. Automotive plastic compounders and converters are looking for third-party certified black masterbatch products that use circular value chains and recycled feedstocks in the manufacturing process.

Cabot is well-positioned to create a more sustainable future with its new universal circular black masterbatch solutions made from mechanically recovered polymers. These solutions provide customers with an ISCC PLUS-certified single masterbatch for coloring polyolefins and other engineering plastics in a wide range of automotive applications.

The two new products, REPLASBLAK reUN5285 universal circular black masterbatch and REPLASBLAK reUN5290 universal circular black masterbatch, are driven by EVOLVE Sustainable Solutions and fall into the recovered category. These solutions add to Cabot's well-known line of universal black masterbatches, which are used to color a wide range of polymers while also being environmentally friendly. The solutions provide exceptional adaptability by allowing the use of a single masterbatch at a low addition rate, which improves material management efficiency in the product manufacturing process.

Moreover, both grades allow high gloss and high jetness pigmentation, resulting in exceptional color performance and mechanical qualities comparable to a standard universal black masterbatch. This allows the solutions to be used in a variety of automobile applications, such as interiors, exterior parts and under the hood.

Shares of Cabot have gained 49.5% over the past year compared with 2.6% rise of its industry.

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The company, on its fiscal second-quarter call, said that it anticipates Reinforcement Materials to continue generating strong results. Further, it is witnessing some positive demand signals in Performance Chemicals. The company expects adjusted earnings per share for fiscal 2024 in the range of $6.65-$6.85.

Zacks Rank & Other Key Picks

Cabot currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include ATI Inc. (ATI - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Ecolab Inc. (ECL - Free Report) .

ATI sports a Zacks Rank #1 (Strong Buy), at present. ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company’s shares have soared 65.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently sports a Zacks Rank of 1, at present. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared 111.3% in the past year.

The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. ECL, which currently carries a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company’s shares have rallied roughly 33.5% in the past year.

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