Caesarstone Ltd. reported third quarter 2024 revenue of $107.6 million, marking a 24.8% decrease year-over-year on a constant currency basis. This decline was primarily attributed to lower volumes resulting from global economic headwinds affecting renovation and remodeling activity. Despite the revenue pressure, the company's gross margin improved to 19.9% from 19.1% in the prior year quarter, a benefit of an improved production footprint.
The company generated positive cash flow from operations of $16.3 million during the third quarter of 2024, mainly due to working capital improvements and a significant asset monetization. Caesarstone completed the sale of 69 acres of undeveloped land at its Richmond Hill Facility for approximately $10.0 million. This transaction contributed to a stronger net cash position of $108.9 million as of September 30, 2024, an increase from $83.5 million at the end of 2023.
Caesarstone reaffirmed its expectation to deliver positive operating cash flow for the full year 2024 and reiterated restructuring-related cost savings of approximately $20.0 million in 2024. However, due to persistent macroeconomic pressures and increased shipping and material costs, the company moderated its full-year Adjusted EBITDA expectations to a loss in the range of $10 million to $11 million. The company also noted 79 pending lawsuits in the U.S. related to silica dust exposure, with provisions and insurance receivables recorded for an adverse jury decision in August 2024.
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.