Caesarstone (CSTE) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $96.3m, down 7.2% YoY on a constant-currency basis; adjusted EBITDA loss narrowed to $0.1m from $7.9m.

• GAAP gross margin rose to 25.4% from 17.3%; adjusted gross margin was 26.9%.

• GAAP net loss was $56.1m, including $46.8m related to the California jury verdict.

Financial highlights

• Revenue was $96.3m vs. $102.1m in Q3 2025; decline reflected soft demand and competitive pressure, particularly in the U.S.

• GAAP gross margin was 25.4%, up 810 bps YoY and 140 bps QoQ; adjusted gross margin was 26.9% vs. 17.3%.

• Operating expenses were $81.4m, or 84.6% of revenue, including higher legal settlements and loss contingencies.

• GAAP net loss attributable to controlling interest was $56.1m, or $1.62/share, vs. $18.1m, or $0.52/share; adjusted net loss was $1.6m, or $0.05 per diluted share, vs. $13.8m and $0.40/share.

• Operating loss was $56.9m vs. $16.0m; finance income was $1.2m vs. $1.8m of finance expense, primarily due to currency fluctuations.

Outlook and guidance

• Target remains sustained positive adjusted EBITDA, supported by cost actions and operational discipline.

• Annualized savings are expected to exceed $100m by 2027 vs. FY 2023; Bar-Lev closure savings are projected at ~$22m annually once fully implemented.

• U.S. price increases began in September 2026; additional sourcing and supply-chain measures are under review to mitigate tariff costs.

• U.S. demand remains soft; Canada stabilized and Australia continued to grow, while the California verdict’s effects on operations, liquidity and financial condition remain under review.

• The vast majority of remaining Bar-Lev inventory held by subsidiaries is expected to be sold by year-end.