Caesarstone: Facing Future Challenges
MP MENASHE, Israel – Caesarstone Ltd. still aims to streamline operations to put black ink on the bottom line, but outside factors keep clouding the path to renewed profitability.
The surfaces manufacturer’s second quarter 2026 showed a year-over-year increased gross margin, and a reduced net loss from second-quarter 2025, according to figures released Aug. 5.
However, two factors outside the company’s control – increased U.S. tariffs and continued growth of silicosis-related lawsuits – may have a greater effect on the company than its streamlining strategy.
“While revenue continues to be impacted by competitive dynamics and soft market conditions, most notably in North America, the structural changes we have implemented have created a leaner, more-flexible operating model to improve our offering to customers,” said Caesarstone CEO Yos Shiran. “Despite recent tariff developments, we remain confident that our operating model positions us well to deliver long-term value.”
Net revenue for Caesarstone worldwide in 2Q 2026 came to $96.6 million, down 4.4% from the same time last year. However, net loss also declined year-over-year, from $18.6 million in 2Q 2025 to $15.6 million this year.
In the United States – Caesarstone’s largest market, 2Q 2026 revenue of $42.6 million represented a 14.1% year-over-year drop; Canada’s $12 million for this April-June showed a 17.4% decline from last year.
Australia, the company’s second largest market, continued its strong growth with 2Q 2026 revenue of $20.3 million, a 22.1% rise from last year with increased acceptance of Caesarstone’s crystalline-silica-free ICON™ engineered stone. Caesarstone’s home market of Israel, at $5 million in quarterly revenues, recorded a 60.8% gain from 2025.
The ever-changing status of U.S. tariffs influenced Caesarstone’s presentation of second-quarter financials. Company officials noted the likely impact of the “Safeguard” rate/quota tariffs on non-U.S.-manufactured engineered stone, announced only days before release of Casecond-quarter information.
“We are still assessing the potential impact on our business,” Shiran said. “However, these developments do not change our strategic priorities, and we remain confident that our operating model positions us well to deliver long-term value.”
Caesarstone CFO Nahum Trost added that the company is evaluating impact on global production “and intend to implement appropriate supply-chain sourcing and pricing actions to mitigate its effects.”
Trost also said the company “reassessing the timing of achieving positive adjected EBITDA” while evaluating the impacts of the safeguard tariffs.
The elimination of the International Emergency Economic Powers Act (IEEPA) levies imposed by President Donald Trump last year brought some good news to second-quarter results. Trost noted that the company received a $2 million refund of previously paid IEEPA tariffs.
Trost also reported that Caesarstone is named in legal actions involving 800 individuals on claims of silicosis-related injuries, with 600 cases in the United States alone. The company recorded a $51.2 million provision against “probable and reasonably estimable losses,” and also added $12 million of insurance receivables.
Trost noted that Caesarstone resolved four claims in California during the second quarter, bore no liability in a Colorado claim, and was dismissed from “several cases in various states.” The company is appealing prior verdicts, he added.
