Caesarstone Ltd. (CSTE) Q2 2026 Earnings Call Prepared Remarks Transcript
Caesarstone Ltd. (CSTE) Q2 2026 Earnings Call Prepared Remarks Transcript

Caesarstone Ltd., headquartered in Menashe, Israel, since its founding in 1987, is a global developer, manufacturer, and marketer of engineered quartz and ...
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Est. EPS $-0.16 · Revenue $105.20M · 1 analysts
Est. EPS $-0.22 · Revenue $97.30M · 1 analysts
Est. EPS $-1.00 · Revenue $402.80M · 1 analysts
Est. EPS $-0.75 · Revenue $414.20M · 1 analysts
EPS $-0.45 · Revenue $96.55M
EPS $-0.61 · Revenue $88.71M
EPS $-3.98 · Revenue $397.23M
EPS $-0.52 · Revenue $102.11M
EPS $-0.54 · Revenue $101.12M
EPS $-0.37 · Revenue $99.56M
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $397.2M | -10.4% | +8.8% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $-137.5M | -220.9% | +26.2% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +18.4% | -15.4% | +7.6% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | -12.9% | -36.9% | +54.0% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | -34.6% | -258.1% | +32.2% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $-45.1M | -310.3% | +121.8% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | -11.4% | -334.6% | +120.1% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 94.0% | +90.4% | +5.2% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 1.83x | -20.3% | -6.7% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $398.4M | -27.4% | -4.6% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | -3.98 vs -1.40 | -184.3% | -0.45 vs -0.26 | -73.1% |
| Revenue Surprise | $397.2M vs $396.5M | +0.2% | $96.6M vs $102.5M | -5.8% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| May 19, 2026 | Cullen David Vincent | officer: Managing Director, APAC | Ordinary Shares | D | 7,025 | $1.57 |
| Mar 18, 2026 | Halperin Ariel | director | Ordinary Shares | — | 0 | — |
| Mar 18, 2026 | Halperin Ariel | director | Stock Option | — | 3,750 | $11.16 |
| Mar 18, 2026 | Halperin Ariel | director | Stock Option | — | 3,750 | $4.02 |
| Mar 18, 2026 | COHEN ERAN (EC) | director: | — | — | 0 | — |
Operator: Greetings, and welcome to the Caesarstone First Quarter 2026 Earnings Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brad Cray of ICR. Thank you. You may begin. Brad Cray: Thank you, operator, and good morning to everyone on the line. I am joined by Yos Shiran, Caesarstone's Chief Executive Officer; and Nahum Trost, Caesarstone's Chief Financial Officer. Certain statements in today's conference call and responses to various questions may constitute forward-looking statements. We caution you that such statements reflect only the company's current expectations and that actual events or results may differ materially. For more information, please refer to the risk factors contained in the company's most recent annual report on Form 20-F and subsequent filings with the SEC. In addition, on this call, the company will make reference to certain non-GAAP financial measures, including adjusted net loss income, adjusted net loss income per share, adjusted gross profit, adjusted EBITDA and constant currency. The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's first quarter 2026 earnings release, which is posted on the company's Investor Relations website. On today's call, Yos will discuss our business activity and Nahum will then cover additional details regarding financial results. Thank you, and I would now like to turn the call over to Yos. Please go ahead. Yosef Shiran: Thank you, Brad, and good morning, everyone. Our first quarter results reflected meaningful structural progress in our transformation. Gross margin expanded by 100 basis points despite lower revenue, supported by our transition to a third-party manufacturing model and a more optimized production footprint. This provides further evidence that our restructuring actions are reshaping the company's earnings profile. With the closure of Bar-Lev, quartz production is now fully transitioned to our global manufacturing partner network, excluding porcelain, which continues to be produced at our Lioli facility in India. We continue to expect these actions to generate annualized cash savings of approximately $22 million by 2027, bringing total savings since 2023 to more than $100 million. Global revenues were approximately $89 million, down 15% year-over-year on a constant currency basis, reflecting macroeconomic headwinds and competitive pressures, particularly in North America. In North America, we are taking targeted commercial actions to improve channel productivity and strengthen key customer relationships. Australia continued to be a strong performing region, delivering solid revenue growth as we recapture our leading market position following the introduction of our zero silica ICON products. This reinforces that our brand and innovation can drive renewed commercial momentum when aligned with market needs. The regional conflict in the Middle East, …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Yosef Shiran | Chief Executive Officer | USD 877,798 | Male | 1962 | Active |
Jose Louis Ramon | Executive Officer | USD 748,365 | — | — | Active |
David Cullen | Managing Director of APAC | USD 489,666 | Male | 1959 | Active |
Ron Mosberg | General Counsel & Corporate Secretary | USD 467,320 | Male | 1979 | Active |
Israel Sandler | Vice President & Chief Commercial Officer | USD 461,696 | Male | 1957 | Active |
Kenneth Williams | President of Canada | USD 425,192 | Male | 1961 | Active |
Nahum Trost | Chief Financial Officer | USD 381,208 | Male | 1978 | Active |
Chen Livne | Chief Information Officer & VP of Global Operations | — | Male | 1974 | Active |
Idit Maayan Zohar | Chief Marketing Officer | — | Female | 1972 | Active |
Lilach Gilboa | Vice President of Human Resources | — | Female | 1972 | Active |
Caesarstone Ltd. (CSTE) Q2 2026 Earnings Call Prepared Remarks Transcript

Caesarstone NASDAQ: CSTE reported improved profitability metrics in the second quarter of 2026 despite lower revenue, as cost reductions tied to its manufacturing restructuring helped expand margins and narrow its adjusted EBITDA loss.

MP MENASHE, Israel--(BUSINESS WIRE)--Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its second quarter ended June 30, 2026. Yos Shiran, Caesarstone's Chief Executive Officer commented, “Our second quarter performance marks another step forward in our efforts to restore profitability. Gross margin improved both year-over-year and sequentially, and our Adjusted EBITDA loss narrowed significantly, prim.

MP MENASHE, Israel--(BUSINESS WIRE)--Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today announced that it will release its earnings results for the second quarter ended June 30, 2026 on Wednesday, August 5, 2026 before the market opens. The Company will host a webcast and conference call on the same day at 8:30 a.m. ET to discuss the results. The live webcast can be accessed through the Investor Relations section of the Company's web.
