Caesarstone (CSTE) investor relations material

Executive summary

• Gross margin expanded by 100 basis points year-over-year despite a 15% revenue decline, reflecting benefits from restructuring and transition to a third-party manufacturing model.

• Restructuring actions, including the closure of Bar-Lev and transition of quartz production, are expected to generate $22 million in annualized cash savings by 2027, totaling over $100 million since 2023.

• Net loss attributable to controlling interest widened to $21.1 million from $12.9 million in Q1 2025; net loss per share was $0.61 versus $0.37.

• Australia delivered strong revenue growth, while North America and EMEA faced continued demand softness and competitive pressures.

• Geopolitical conflict in the Middle East impacted demand in Israel and increased product and freight costs.

Financial highlights

• Global revenue was $88.7 million, down 14.9% year-over-year on a constant currency basis and 10.9% on a reported basis.

• Gross margin improved to 22.3% from 21.3% year-over-year; adjusted gross margin rose to 23.9%.

• Adjusted EBITDA loss was $7.5 million, relatively stable compared to a $7.1 million loss in the prior year quarter.

• Adjusted diluted net loss per share was $0.32 versus $0.29 in the prior year quarter.

• Net cash position was $50.4 million as of March 31, 2026, down from $57.5 million at year-end 2025.

Outlook and guidance

• On track to achieve positive adjusted EBITDA in Q3 2026, assuming no material deterioration in global conditions.

• Expecting annualized cash savings of over $100 million by 2027 from restructuring actions.

• Ongoing restructuring to focus on further fixed cost reductions and distribution center consolidation.

• Strategic focus remains on restructuring, cost control, and strengthening global production partnerships.