Caesarstone (CSTE) investor relations material

Executive summary

• Fourth quarter 2025 revenue was $94.4 million, with full year revenue at $397.2 million, reflecting a year-over-year decline due to global economic headwinds and competitive pressures.

• Strategic restructuring included the closure of the Bar-Lev facility and transition to third-party production partners, expected to yield $100 million in annualized savings since 2023.

• Launched zero crystalline silica collection in Australia and expanded porcelain capabilities, supporting regulatory compliance and market leadership.

Financial highlights

• Q4 2025 revenue declined 3.5% year-over-year (5.0% on constant currency basis); full year revenue down 10.4% (10.5% constant currency).

• Q4 gross margin was 15.5% (adjusted: 18.0%), down from 19.4% (adjusted: 19.7%) in prior year; full year gross margin was 18.4% (adjusted: 19.0%), down from 21.8% (adjusted: 22.1%).

• Q4 operating loss was $82.3 million (prior year: $23.0 million); full year operating loss was $125.7 million (prior year: $41.9 million), mainly due to $45.7 million in non-cash impairment from Bar-Lev closure.

• Q4 adjusted EBITDA loss was $11.1 million (prior year: $8.0 million loss); full year adjusted EBITDA loss was $32.6 million (prior year: $11.5 million loss).

• Q4 net loss attributable to controlling interest was $87.9 million ($2.55/share); full year net loss was $137.5 million ($3.98/share). Adjusted diluted net loss per share for the year was $1.50.

• Cash and equivalents at year-end were $59.9 million, with net cash position of $57.5 million, down from $101.4 million at prior year-end.

Outlook and guidance

• Expects to deliver positive adjusted EBITDA in the third quarter of 2026, driven by cost savings and operational restructuring.

• Strategic measures and cost optimization are anticipated to support a return to profitability and improved cash flow.