Caesarstone Ltd. reported second quarter 2025 revenue of $101.1 million, a 15.6% decrease year-over-year on a constant currency basis, driven by lower volumes and competitive pressures. Gross margin for the quarter was 19.6%, down from 22.9% in the prior year quarter, primarily due to lower volumes and an unfavorable product mix. The company reported an Adjusted EBITDA loss of $6.4 million, compared to a loss of $0.1 million in the prior year quarter.
The company approved new cost reduction measures expected to generate an additional $10 million of annualized savings, commencing in the second half of 2025. This initiative aims to align the cost structure with current revenue levels and improve profitability. Caesarstone's business with Lowe's showed double-digit percentage growth compared to the prior year quarter, indicating strength in a key customer relationship amidst challenging market conditions.
In a significant legal development, a jury in California ruled in favor of Caesarstone in one silicosis claim, assigning no liability to the company. This verdict is pending post-trial motions and potential appeals. As of June 30, 2025, the company's net cash position was $72.4 million. The company was subject to lawsuits involving 423 individuals alleging injuries related to respirable crystalline silica dust, with a provision of $44.9 million recorded and insurance receivables totaling $25.6 million.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.