Caesarstone Ltd. reported first quarter 2025 revenue of $99.6 million, representing a 14.5% decrease year-over-year on a constant currency basis. This decline was primarily due to lower volumes and increased competitive pressures across the company's main regions. Gross margin for the quarter was 21.3%, a decrease from 24.5% in the prior year quarter, mainly due to an unfavorable product mix and lower volumes leading to reduced fixed cost absorption.
The company reported an Adjusted EBITDA loss of $7.1 million for the first quarter of 2025, compared to a gain of $0.6 million in the prior year quarter. A significant development impacting the company is the recent announcement by the U.S. government of new tariffs, including a 10% tariff for the majority of imported products. Approximately 49% of Caesarstone's revenues are generated in the U.S. market, and the company is evaluating potential pricing actions and supply chain optimization to mitigate this impact.
Due to persistent macroeconomic pressures across its global footprint and the recently imposed U.S. tariffs, Caesarstone withdrew its full-year outlook for 2025 that was provided on March 5, 2025. This withdrawal indicates the company's need to assess the potential direct and indirect impacts on its financial results for the year. As of March 31, 2025, the company's net cash position was $85.3 million, and it was subject to lawsuits involving 357 injured persons related to silica dust exposure.
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