Caesarstone Ltd. (CSTE) Q2 2025 Earnings Call Transcript
Global Revenue $101.1 million, down 15.6% year-over-year on a constant currency basis due to lower volumes resulting from continued global economic headwinds and competitive pressures.
U.S. Sales $49.6 million, declined by 17% year-over-year, mainly reflecting softer market conditions in the residential channel and challenges in the commercial segment. However, business with Lowe's increased in double-digit percentages compared to the second quarter of 2024.
Australia Sales Declined by 18.2% on a constant currency basis, reflecting shifts following the government silica ban effective July 1, 2024, combined with slower demand due to high interest rates and fewer new home completions.
Canada Sales Decreased by 12.5% on a constant currency basis, mainly due to market conditions, partially offset by higher levels of big box activity.
EMEA Sales Increased by 0.7% on a constant currency basis, driven by stronger volumes, favorable order timing, and expanded direct presence in Germany.
Israel Sales Declined by 21.6% on a constant currency basis, mainly due to the impact of the regional conflict during the quarter.
Gross Margin 19.6%, down from 22.9% in the prior year quarter. Adjusted gross margin was 19.7%, down from 23.8%. The decline was mainly driven by lower volumes and production, resulting in lower fixed cost absorption and unfavorable product mix, partially offset by benefits from improved production footprint and cost optimization initiatives.
Operating Expenses $32.5 million or 32.1% of revenue, compared to $36.6 million or 30.6% of revenue in the prior year quarter. Excluding certain expenses, operating expenses were 30.1% of revenue compared to 28.2% in the prior year quarter. The increase as a percentage of revenue reflects lower revenues against a relatively fixed cost base, despite progress in absolute cost reduction.
Adjusted EBITDA Loss of $6.4 million, compared to a loss of $0.1 million in the prior year quarter. The decline primarily reflects lower revenues and gross margins.
Adjusted Diluted Net Loss Per Share $0.33 on 34.7 million shares, compared to $0.14 in the prior year quarter on 35 million shares.
Net Cash Position $72.4 million as of June 30, 2025, with total cash of $75.6 million and total debt to financial institutions of $3.2 million.
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Caesarstone Ltd. (CSTE) Q3 2024 Earnings Call Transcript
Earnings Conference Call Overview: Caesarstone Ltd. held its Q3 2024 earnings conference call on November 13, 2024, featuring key participants including CEO Yos Shiran and CFO Nahum Trost, discussing the company's financial performance and future expectations.
Forward-Looking Statements and Financial Measures: The call included caution regarding forward-looking statements and referenced non-GAAP financial measures, with details available in the company's earnings release on their Investor Relations website.
Caesarstone Reports Third Quarter 2024 Financial Results
Financial Performance: Caesarstone Ltd. reported a significant decline in revenue for Q3 2024, totaling $107.6 million, down from $142.4 million in the previous year, attributed to lower demand and competitive pressures amid global economic challenges. Despite this, the company achieved a gross margin improvement to 19.9% and maintained positive cash flow from operations.
Outlook and Restructuring: The company is focused on restructuring efforts aimed at achieving approximately $20 million in cost savings for 2024, while also investing in product innovation and marketing to stimulate demand. However, it anticipates an Adjusted EBITDA loss of $10 to $11 million for the full year due to ongoing macroeconomic pressures.
