Caesarstone to Close Last Production Factory
MP MENASHE, Israel — Caesarstone Ltd. will outsource all of its quartz-surface manufacturing and close its last company-owned plant.
CEO Yos Shiran announced the move last week as part of the company’s third-quarter financial results, which showed worldwide revenue was down 5.7% year-over-year from 2024 mainly due to lower volume.
The plant closing, Shiran noted, is part of the company cutting costs with the goal of a profitable third quarter in 2026.
“We are investing in strengthening the Caesarstone brand, expanding our porcelain offering, and enhancing our R&D capabilities,” Shiran said. “As part of this strategic transformation, we are further optimizing our global manufacturing footprint with the announced closing of our Bar-Lev facility and the transfer of production to our global partners.
“This strategic action is intended to increase competitiveness, improve the Company’s profitability and cash flows, enhance service and drive additional cost efficiencies through an optimized manufacturing footprint.”
The cost of closing the Bar-Lev plant is estimated at $4 million – $8 million, with non-cash impairment of $40 million – $45 million, through the next 12 months. Other costs could come in dealing with a non-cancellable lease through 2032, which could be offset by subleasing the property.
“These initiatives are expected to generate annual savings of approximately $22 million and bring total savings since 2023 to over $85 million,” Shiran said, “representing necessary steps to strengthen our competitive position and support a return to positive adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the third quarter of next year.”
As for this year’s third quarter, Caesarstone reported $102.1 million in revenue, down 5.7% from the same time last year on a constant currency basis. Economic difficulties in the company’s main markets caused lower demand, along with greater competitive pressures.
In the United States, third quarter 2025 revenue of $46.6 million trailed the same time last year by 10.6%; in Canada, this year’s third-quarter revenue of $12.5 million showed an 11.7% drop.
Ironically, one of the bright spots for Caesarstone in the third quarter came with Australia posting revenues of $18.4 million for a 5.95% year-over-year boost. Australia banned quartz-surface importing and use in 2024, and producers like Caesarstone now offer alternative-mix surfaces.
Operating loss in third quarter 2025 was $16 million, compared to an operating loss of $4.1 million in 2024, primarily reflecting lower gross profit.
Caesarstone also reported its involvement lawsuits involving 514 individuals as of Sept. 30 worldwide alleging injuries related to exposure to respirable crystalline silica dust. These included 43 claims in Israel, 151 in Australia, and 320 in the United States. As of the same date, the company recorded a provision of $46.0 million, representing its best estimate of probable and reasonably estimable losses associated with pending claims. Insurance receivables related to these provided for silicosis claims totaled $24.3 million.
Caesarstone Ltd. stock is traded on the NASDAQ with the ticker symbol CSTE.