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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CSTE

CSTE fundamentals

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