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Caesarstone's Q3 revenue falls 6%, net loss widens, hurt by US market weakness

By Reuters News


Overview

  • Israel engineered surfaces maker's Q3 revenue fell 6% yr/yr amid global demand softness

  • Q3 net loss widened, mainly due to $46.8 mln charge for California jury verdict

  • Gross margin improved to 25.4% from 17.3%, helped by cost savings and restructuring


Outlook

  • Company estimates annualized impact of new US tariffs at $10 mln to $15 mln

  • Caesarstone is evaluating further supply-chain and sourcing actions to mitigate US tariffs

  • Company says California jury verdict creates significant uncertainty about its financial condition and prospects


Result Drivers

  • COST SAVINGS AND RESTRUCTURING - Co said gross margin improvement was mainly due to cost savings from its transition to a global production network and restructuring plan

  • US MARKET WEAKNESS - Co said continued softness in global demand and competitive pressures, particularly in the US, weighed on revenue

  • AUSTRALIA GROWTH - Co said revenue in Australia grew as it rebuilt its position in that market


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$96.27 mln

Q3 Net Loss

$56.06 mln

Q3 Gross Profit

$24.49 mln

Q3 Operating Income

-$56.94 mln

Q3 Pretax Loss

$55.69 mln


Reuters Recommended Reads

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  • Nov 10 - Israel's Wix slightly beats Q3 revenue estimates, maintains 2026 forecast

  • Nov 9 - Israel's Kamada Q3 revenue up 11%, raises forecast


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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