What does Caesarstone do and what are its main business segments?

What is the market's earnings forecast for Caesarstone next quarter?

What were the key takeaways from Caesarstone's earnings call?

What is Caesarstone's gross profit margin?

What is the revenue and EPS growth rate for Caesarstone year over year?

What guidance did Caesarstone's management provide for the next earnings period?

Did Caesarstone beat or miss consensus estimates last quarter?

What is Caesarstone's latest dividend and current dividend yield?

- **Strategic Restructuring**: $85M+ cost savings through 100% outsourced production, targeting Q3 2026 EBITDA positivity.
- **Revenue Challenges**: Q3 2025 revenue down 5.7% YoY, U.S. and Canada sales down double digits.
- **Margin Pressure**: Gross margin 17.1% (-280bps YoY), operating expenses rising as % of revenue.
- **Legal Risks**: 514 silica lawsuits with $46M provision, potential 50% U.S. tariffs on imports.
- **Growth Catalyst**: 100% Lioli ownership to capitalize on porcelain expansion.

**【CEO Summary Section】**
- Announced strategic production shift: Closing Bar-Lev manufacturing to outsource 100% of production (excluding porcelain), generating $22M annualized savings and total $85M+ cost reductions since 2023.
- Acquired full ownership of Lioli porcelain business to capitalize on growth opportunities.
- Targeting positive adjusted EBITDA by Q3 2026 through operational efficiency and reduced capital intensity.
- Emphasized innovation focus: R&D investments, brand strengthening, and customer value creation.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $102.1M (-5.7% YoY) due to volume declines and economic headwinds.
- Regional performance: U.S. (-10.9%), Canada (-10.8%), Australia (+8.1%), EMEA (+12.4%).
- Gross margin: 17.1% (-280bps YoY) due to lower volume absorption and new product costs.
- Operating expenses: $33.7M (33% of revenue) vs. $25.4M (23.6% YoY), driven by lower revenue base.
- Adjusted EBITDA: -$7.9M (wider loss vs. -$4.1M YoY).
- Cash position: $69.3M (net cash $66.7M) despite $40-45M noncash Bar-Lev impairment charges.
- Key risks: U.S. tariffs on 48% of U.S. revenue, 514 silica-related lawsuits with $46M provision, and legislative uncertainty.

Caesarstone Ltd. (CSTE) Q3 2025 Earnings Call Transcript

- **Revenue decline**: -15.6% YoY on const. curr., driven by U.S. (-17%), Australia (-18.2%), Canada (-12.5%)
- **Cost savings**: $55M annualized since 2022, with $10M+ incremental in 2025
- **Gross margin pressure**: 19.6% (-330bps YoY) from volume, mix, and tariffs
- **Cash strength**: $75.6M cash, $72.4M net cash
- **Tariff risk**: 15-25% on U.S. products, ~$10M+ annualized impact
- **Legal exposure**: $44.9M provision for silica claims, 423 lawsuits pending

**【CEO Summary Section】**
- Q2 revenue reflects softness in repair/remodel activity, with incremental cost reductions of $10 million annualized (total $55 million since 2022). 
- 70%+ production shifted to global network; expanding partnerships to enhance competitiveness.
- Accelerating porcelain product development; Australia compliant with silica regulations.
- Launched full zero crystalline silica collection; additional innovations planned for 2025+.

**【CFO Financial Commentary】**
- Global revenue $101.1M (-15.6% YoY on const. curr.), driven by:
  - U.S.: -17% vs. 2024Q2, despite Lowe's double-digit growth
  - Australia: -18.2% due to silica ban, high rates, and housing slowdown
  - Canada: -12.5% from market softness
  - EMEA: +0.7% on direct Germany expansion
- Gross margin 19.6% (-330bps YoY) due to lower volumes, unfavorable mix, offset by production efficiency
- Adjusted EBITDA loss $6.4M vs. $0.1M YoY
- Strong cash position: $75.6M cash, $72.4M net cash
- U.S. tariffs (15-25% on products) expected to impact 2025H2; evaluating price adjustments
- Silica claims provision $44.9M; 423 lawsuits pending, including 1 U.S. case ruled in favor

**【Q&A Key Highlights】**
- U.S. demand not impacted by Australian silica cases; softness due to broader market trends
- Gross margin decline: 650bps from price erosion, 250bps from lower production utilization
- SG&A efficiency: 30.1% of rev vs. 28.2% YoY due to cost controls and prior savings
- 2025 cost savings: $10M incremental (Q3+), adding to $10M already realized
- Tariff impact: ~$10M+ annualized; pricing actions under evaluation

Caesarstone (CSTE)-6 Aug 25-2025 Q2 Earnings call transcript

- **Revenue decline persists**: Q1 2025 revenue down 16% YoY to $99.6M, with U.S., Canada, and Australia markets under pressure.
- **Gross margin squeezed**: 21.3% gross margin vs. 24.5% YoY due to lower volume absorption and unfavorable product mix.
- **Tariff risk materializes**: 10% U.S. import tariffs on ~50% of revenue; evaluating pricing adjustments and supply chain shifts.
- **Litigation uncertainty**: $50M provision for silicosis claims (net $19M after insurance); 174 unresolved U.S. cases add risk.
- **Financial resilience**: $88.8M cash on hand supports strategic initiatives despite macroeconomic headwinds.

**【CEO Business Overview】**
- Q1 2025 revenue stabilized at $99.6M, down 16% YoY, driven by global economic headwinds and competitive pressures.
- 70%+ production shifted to global manufacturing network to enhance operational flexibility and maintain gross margins under pressure.
- $10M+ annual savings from plant closures and restructuring initiatives, with full benefits expected in 2025.
- Australia launch of zero crystalline silica products to meet regulatory requirements and strengthen market position.
- U.S. tariffs on imports will impact ~50% of revenue; evaluating supply chain optimization and strategic pricing adjustments.
- Strong balance sheet with $85.3M net cash, providing flexibility for strategic investments.

**【CFO Financial Details】**
- Global revenue decline: U.S. (-19.4%), Canada (-11.5%), Australia (-28.2%), offset by EMEA growth (+16.4%).
- Gross margin contraction to 21.3% (vs. 24.5% YoY) due to lower volume absorption and unfavorable product mix.
- Operating expenses rose to 36.1% of revenue (vs. 29.2% YoY) due to fixed cost base and lower revenue.
- Adjusted EBITDA loss of $7.1M vs. $0.6M gain YoY; adjusted net loss per share $0.29 vs. $0.13 YoY.
- $15.1M cash used in operations, but $88.8M cash on hand provides financial resilience.
- U.S. tariffs and macroeconomic uncertainty lead to withdrawal of 2025 full-year guidance.

**【Q&A Key Takeaways】**
- Gross margin improvement in Q1 driven by restructuring savings and modest revenue growth.
- Tariffs expected to impact U.S. pricing; no immediate plans to reopen U.S. manufacturing.
- China production focuses on non-U.S. markets to mitigate tariff exposure.
- Litigation provision of $50M (net $19M after insurance) reflects probable losses; 174 U.S. claims remain unresolved.

Caesarstone (CSTE)-7 May 25-2025 Q1 Earnings call transcript

- **Operational Resilience**: 70% outsourced production drove 19.4% Q4 gross margin, up 130bps YoY.
- **Growth Catalysts**: Full silica-free product launch in Australia by Q1 2025; 100% Lioli acquisition to boost porcelain growth.
- **Cost Efficiency**: $10M+ incremental savings in 2025, with cumulative savings >$45M since 2022.
- **Financial Health**: $101.8M net cash at year-end, +22% YoY, and 2 straight years of positive free cash flow.
- **Market Outlook**: Q1 2025 revenue decline to persist, with recovery expected in H2 2025.

**【CEO Strategic Overview】**
- **Operational Restructuring Success**: 70% of production now sourced from global manufacturing partners (vs. 22% in 2023), driving EBITDA resilience and 19.4% gross margin in Q4 2024.
- **Innovation Focus**: Expanded crystalline silica-free product line for Australia, with full collection launch by Q1 2025.
- **Growth Driver**: 100% acquisition of Lioli Ceramica in H1 2025 to accelerate porcelain market expansion.
- **Financial Strength**: Ended 2024 with $101.8M net cash, up 22% YoY, and $31.9M operating cash flow.

**【CFO Financial Highlights】**
- **Q4 2024 Results**: 
  - Revenue: $97.9M (-23.8% YoY on constant currency)
  - Gross Margin: 19.4% (up 130bps YoY)
  - Adjusted EBITDA: -$8M (vs. +$1.4M YoY)
- **Full Year 2024**: 
  - Sales: $443.2M (-21.5% YoY)
  - Gross Margin: 21.8% (vs. 16.3% YoY)
  - Adjusted EBITDA: -$11.5M (vs. -$9.4M YoY)
- **2025 Outlook**: 
  - EBITDA improvement vs. 2024, with $10M incremental cost savings from restructuring.

**【Q&A Key Takeaways】**
- **Market Dynamics**: Q1 2025 revenue expected to mirror Q4 2024 decline, with gradual recovery in H2 2025.
- **Cost Savings**: Cumulative savings of $45M+ since 2022, with $10M+ incremental in 2025 from plant closures.
- **Risk Management**: $50M provision for silicosis claims, offset by $32.2M insurance receivables.


Caesarstone (CSTE)-5 Mar 25-2024 Q4 Earnings call transcript

Caesarstone (CSTE)-13 Nov 24-2024 Q3 Earnings call transcript

Caesarstone (CSTE)-7 Aug 24-2024 Q2 Earnings call transcript

Caesarstone (CSTE)-8 May 24-2024 Q1 Earnings call transcript

- **$30M Cost Savings**: Achieve $20M savings in 2024 and $30M by 2025 through plant closures and production outsourcing.
- **Positive Cash Flow**: Generated $66.5M in 2023, with plans for another year of positive cash flow in 2024.
- **Australia Risk Mitigation**: Launching compliant porcelain products by Q2 2024 to counter regulatory ban.
- **Revenue Stabilization**: Q1 2024 similar to Q4 2023, with gradual improvement expected in later quarters.

**【CEO Summary Section】**
- **Restructuring Success**: Closed Sdot-Yam and Richmond Hill plants, transitioning 40% of production to third-party partners, with savings of $20M in 2024 and $30M by 2025.
- **Cash Flow Stability**: Generated $66.5M in operating cash flow for 2023, ending with a net cash position of $83.5M.
- **Australian Market Risk**: Faced a ban on quartz-based products in Australia (effective July 2024), but plans to launch compliant porcelain products by Q2 2024 to maintain market share.

**【CFO Financial Commentary】**
- **Q4 2023 Results**: Global revenue $128.5M (-19.6% YoY on constant currency), gross margin 18.1%, adjusted EBITDA $1.4M.
- **Full Year 2023**: Sales down 17% on constant currency, adjusted EBITDA loss of $9.4M, but positive cash flow from operations ($66.5M).
- **2024 Outlook**: Expects Q1 to be lowest revenue quarter, with gradual improvement in subsequent quarters. Anticipates positive full-year adjusted EBITDA, driven by restructuring savings and reduced CapEx.

**【Q&A Key Highlights】**
- **North America Stabilization**: Q1 2024 revenue trends similar to Q4 2023, with hopes for improvement in Q2+ as macroeconomic conditions ease.
- **Inventory Management**: Reduced inventory days from 170 to 120 in 2023; further reductions expected in 2024.
- **Australia Compliance**: Developing alternative products to comply with regulations, with potential to maintain leadership in the market post-ban.
- **Free Cash Flow**: Anticipates positive free cash flow in 2024, supported by lower CapEx and improved profitability.

CSTE

CSTE fundamentals

Earnings Call

You can ask Aime