Cabot Corporation (CBT) stock is soaring 8.53% in Tuesday's trading session following the release of its third-quarter fiscal 2025 earnings report. The specialty chemicals maker delivered a notable earnings beat, despite facing challenges in key markets.

Cabot reported adjusted earnings per share of $1.90 for the quarter ended June 30, 2025, surpassing analyst estimates of $1.82. This performance demonstrates the company's ability to maintain profitability in a challenging environment. However, revenue came in at $923 million, missing the consensus estimate of $954.95 million and representing a 9.2% year-over-year decline from $1,016 million in Q3 fiscal 2024.

The company's resilience is evident in its segment performance. While Reinforcement Materials volumes declined 8% and revenue fell to $573 million, the segment's EBIT only decreased slightly to $128 million from $136 million in the previous year. The Performance Chemicals segment showed improvement, with EBIT increasing to $57 million from $55 million, despite an 8% volume decline. Cabot's focus on cost discipline and ongoing savings programs has helped maintain margins in the face of softer demand, particularly in tire and automotive applications. Looking ahead, management reaffirmed its guidance for fiscal 2025 adjusted earnings per share at $7.15 to $7.50, albeit noting that results may trend towards the middle or lower end of this range given current market conditions.