Caesarstone (CSTE) Q2 2026 earnings summary

Executive summary

• Gross margin improved to 24%, up 440 basis points year-over-year and 170 basis points sequentially, driven by cost-saving initiatives and a refund of previously paid U.S. tariffs.

• Adjusted EBITDA loss narrowed to $1 million from $6.4 million a year ago and $7.5 million in the prior quarter, reflecting operational improvement despite revenue decline.

• Global revenue was $96.6 million, down 4.5% year-over-year (7.7% on a constant currency basis), mainly due to competitive pressures and soft demand in North America, partially offset by growth in Australia.

• Net loss attributable to controlling interest was $15.6 million, compared to $18.6 million in Q2 2025; adjusted diluted net loss per share was $0.10, improved from $0.33.

• Australia delivered its fourth consecutive quarter of year-over-year growth, driven by the silica-free ICON collection and new product innovation.

Financial highlights

• U.S. revenue declined 14.1% year-over-year to $42.7 million, with growth in the big box channel offset by softness in commercial and stone supplier channels.

• Canada revenue decreased 17.5% on a constant currency basis due to fewer housing completions and slow market conditions.

• Australia revenue rose 10.1% year-over-year to $20.3 million, marking continued recovery.

• EMEA sales fell 9.8% on a constant currency basis; Israel revenue increased 32.4% due to favorable comparison with a conflict-impacted prior year.

• Gross profit for Q2 2026 was $23.2 million, up from $19.9 million in Q2 2025.

Outlook and guidance

• Focus remains on restoring revenue growth, especially in North America, while maintaining profitability improvements.

• New U.S. tariff-rate quota on quartz imports effective August 15, 2026, may impact future results; mitigation strategies are being evaluated.

• The timing of achieving positive adjusted EBITDA is being reassessed due to new tariffs.

• Plans to implement supply-chain, sourcing, and pricing actions to mitigate tariff impacts.