Caesarstone (CSTE) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined to $101.1 million, reflecting ongoing softness in repair and remodel activity and global economic headwinds.

• Gross margin decreased to 19.6% from 22.9% year-over-year, mainly due to lower volumes and unfavorable product mix.

• Over $55 million in annualized cost savings achieved since 2022, with an additional $10 million in annualized savings expected to begin in the second half of 2025.

• Strategic transformation initiatives continue, including expanded global manufacturing, product innovation, and improved production footprint.

• Cost reduction and restructuring measures are underway to improve profitability and align the cost structure with market conditions.

Financial highlights

• Global revenue for Q2 2025 was $101.1 million, down from $119.4 million in the prior year quarter; constant currency revenue declined 15.6% year-over-year.

• Adjusted EBITDA loss was $6.4 million (vs. $0.1 million loss prior year); adjusted diluted net loss per share was $0.33 (vs. $0.14 prior year); net loss attributable to controlling interest was $18.6 million (vs. $9.2 million prior year).

• Gross margin was 19.6% (22.9% prior year); adjusted gross margin 19.7% (23.8% prior year).

• Operating expenses were $32.5 million (32.1% of revenue), up as a percentage of revenue due to lower sales.

• Ended quarter with $75.6 million in cash, $3.2 million in debt, and a net cash position of $72.4 million.

Outlook and guidance

• Additional $10 million in annualized cost savings expected to impact results in the second half of 2025.

• Management expects cost reduction initiatives and restructuring to help navigate near-term headwinds and drive long-term value.

• Ongoing evaluation of U.S. tariff impacts, with estimated 15%-25% effect on products sold in the U.S. as inventory turns over.

• Pricing actions under consideration to balance competitiveness and margin protection.

• Continued investment in strategic transformation and operational efficiency to position for future growth.