Caesarstone 1Q 2026: Turning the Corner?
MP MENASHE, Israel – Caesarstone is aiming to regain profitability later this year, but the first three months of 2026 made for a rocky ride by the surfaces producer.
Worldwide revenue for this year’s first quarter totaled $88.7 million, down from $99.6 million for the same period in 2025, due mainly to lower sales in nearly every market.
The company also experienced several major financial charges as it continues to streamline operations by using third-party sources for quartz-surface manufacturing, and also deal with possible claims from silicosis cases.
“First quarter results reflect meaningful structural progress in our ongoing transformation,” said Yos Shiran, Caesarstone CEO. “Gross margin expanded driven by the increasing contribution of our transition to a third-party manufacturing model despite continued revenue pressure.”
First-quarter revenues in the United States, Caesarstone’s largest market, dropped 18.6% year-over-year, from $49.1 million in 2025 to $39.9 million this year. Canadian 1Q revenue also dropped 20.3% to $10.9 million.
On a May 13 earnings call, Shiran said the company is “taking targeted commercial actions to improve channel productivity and strengthen key customer relationships” in North America.
The sole bright spot came once again from Australia, where sales of the company’s ICON zero-silica surfaces sparked a 23.4% year-over-year increase to $17 million.
The company also took financial charges against earnings as part of the closing of its quartz-surface production in Israel. Shiran said the company expects these action to generate cash savings of approximately $22 million by next year.
Caesarstone CFO Nahum Trost said the restructuring would realize cash savings of $100 million total from 2023.
“Based on our current operating plan and assuming no material deterioration in global economic or geopolitical conditions,” Shiran added, “we remain on track to achieve positive Adjusted EBITDA in the third quarter of 2026 and are committed to building a stronger, more resilient, and more profitable Caesarstone.”
Trost also noted Caesarstone is included in 711 lawsuits involving “alleged silica-related injuries,” including 509 claims in the United States. The company recorded a $48.8 million provision, representing our best estimate of probable losses with $11.6 million in insurance receivables.