Caesarstone Ltd.

Global revenue was $88.7 million versus $99.6 million in the prior-year quarter; on a constant-currency basis, revenue declined about 14.9% year over year. Gross margin was 22.3% versus 21.3% last year, and adjusted gross margin was 23.9% versus 21.2%. Adjusted EBITDA was a loss of $7.5 million versus a loss of $7.1 million, and adjusted diluted net loss per share was $0.32 versus $0.29 on 34.6 million shares. Cash, cash equivalents and short-term bank deposits were $52.3 million, total debt to financial institutions was $1.8 million, and net cash was $50.4 million. For the rest of 2026, restructuring cash costs are expected to be approximately $3 million to $5 million, and management said it remains on track to achieve positive adjusted EBITDA in the third quarter of 2026.

Yos Shiran framed the quarter as evidence that Caesarstone’s restructuring is working, emphasizing that gross margin expanded even as revenue fell. He highlighted the completed quartz production transition to third-party manufacturing, the closure of Bar-Lev, and the expectation of roughly $22 million in annualized cash savings by 2027, with total savings since 2023 now above $100 million. His tone was constructive but cautious, noting macro headwinds, competitive pressure in North America, conflict-driven disruption in Israel, and higher product and freight costs later in 2026.

Nahum Trost focused on the financial benefits of the new production footprint, citing gross margin of 22.3%, adjusted gross margin of 23.9%, and adjusted EBITDA loss of $7.5 million. He said operating expenses were $39.2 million, or 44.1% of revenue, and that cash, cash equivalents and short-term bank deposits totaled $52.3 million with net cash of $50.4 million at March 31, 2026. He also detailed restructuring cash costs of $0.4 million in Q1 and expected additional 2026 restructuring cash costs of $3 million to $5 million, while noting the average U.S. tariff on imported products is about 15% and that the company has already raised U.S. prices to partially offset higher costs.

There was no analyst Q&A in the transcript, so the key management commentary centered on guidance and risk factors. Management said the company remains on track for positive adjusted EBITDA in Q3 2026, assuming no material deterioration in global economic and geopolitical conditions. They also addressed tariff exposure, the ITC investigation and silica-related litigation, including 711 lawsuits and a $48.8 million provision with $11.6 million in insurance receivables.