Caesarstone Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Caesarstone (NASDAQ: CSTE) reported its Q4 and full year 2024 financial results, with Q4 revenue at $97.9 million and full-year revenue of $443.2 million. The company faced persistent global market headwinds, resulting in lower volumes across main regions.

Key financial highlights include:

• Full-year gross margin improved 550 basis points to 21.8%
• Q4 gross margin increased to 19.4% from 18.1% year-over-year
• Operating loss of $23.0 million in Q4
• Q4 net loss of $24.3 million ($0.60 per share)
• Strong balance sheet with net cash position of $101.8 million

The company made progress on its transformation strategy, focusing on R&D capabilities, expanding zero crystalline silica and porcelain products, and optimizing operations. Legal proceedings update reveals 296 pending lawsuits related to silica exposure, with a $50.0 million provision recorded for claims in Israel, US, and Australia.

Positive

• Gross margin improved 550 basis points to 21.8%
• Strong net cash position of $101.8 million, up from $83.5 million YoY
• Operating cash flow of $31.9 million for full year
• Successful execution of strategic restructuring plan

Negative

• Q4 revenue declined 23.8% YoY to $97.9 million
• Full year revenue dropped to $443.2 million from $565.2 million
• Q4 operating loss of $23.0 million
• 296 pending silicosis-related lawsuits with $50.0 million provision
• Q4 Adjusted EBITDA loss of $8.0 million vs. gain of $1.4 million prior year

Insights

Financial Analyst

Caesarstone's Q4 and full-year 2024 results reveal a company navigating significant headwinds while executing operational improvements. The 23.8% year-over-year revenue decline to $97.9 million in Q4 (and $443.2 million for full-year, down 21.5%) reflects persistent global market challenges in the engineered surfaces sector. Most concerning is the company's shift from positive to negative Adjusted EBITDA in Q4, posting a $8.0 million loss versus a $1.4 million gain in the prior year period.

However, amid these challenges, Caesarstone has made notable operational improvements. The 550 basis point improvement in full-year gross margin to 21.8% demonstrates effectiveness of their production footprint optimization. The company's cash position remains strong with $101.8 million in net cash (up from $83.5 million YoY) and $31.9 million in operating cash flow, providing important financial flexibility.

The legal situation requires monitoring, with 296 silicosis-related lawsuits outstanding and a $50 million provision recorded. This represents a significant contingent liability that could impact future financial performance depending on case outcomes.

Management's transformation strategy focuses on product innovation (zero crystalline silica and porcelain products) and operational efficiencies, but the guidance for only "modest improvement" in 2025 adjusted EBITDA suggests a challenging road ahead. The company's ability to maintain financial stability while navigating industrywide demand weakness positions it for potential recovery, but meaningful revenue growth remains elusive in the near term.

Legal Expert

The legal challenges facing Caesarstone represent a material risk that deserves investor attention. The company currently faces 296 lawsuits across three jurisdictions alleging injuries from exposure to respirable crystalline silica dust—52 in Israel, 122 in Australia, and 122 in the United States. This litigation pattern shows the global nature of the company's potential liability.

The $50 million provision recorded for these claims indicates management's assessment of probable exposure, while the $32.2 million in insurance receivables provides some mitigation. However, the company explicitly notes the remaining 120 U.S. claims could still represent a "material and adverse impact" should the assessment of outcomes change.

Particularly concerning is the disclosure of an adverse jury decision in August 2024 (currently under appeal) and a recent settlement. These developments could establish precedent for remaining cases and potentially increase settlement pressure. While the company is investing in zero crystalline silica products, the historical exposure liability remains.

The dual-sided financial impact is significant—immediate cash requirements for settlements and legal defense costs, plus potential long-term reputational damage in the fabrication industry. This legal overhang introduces substantial uncertainty into financial projections, as adverse outcomes could significantly impact the cash position that currently serves as the company's financial buffer during operational challenges.

Operations Analyst

Caesarstone's operational transformation strategy is yielding measurable results despite challenging market conditions. The 550 basis point improvement in gross margin to 21.8% demonstrates that facility optimization efforts are effectively reducing production costs. This margin expansion occurred despite lower production volumes, which typically creates adverse fixed cost absorption.

The company's strategic manufacturing consolidation—closing facilities at Sdot Yam and Richmond Hill—reflects decisive action to align production capacity with current demand realities. The $7.8 million non-cash restructuring charges in Q4 represent the short-term cost of these efficiency improvements.

Working capital management has been particularly impressive, contributing to a $101.8 million net cash position—an 18.3% increase from year-end 2023. This cash generation occurred despite revenue contraction, indicating successful inventory management and collection practices.

R&D investments in zero crystalline silica and porcelain product offerings address both market opportunities and legal exposure risks. However, the operating expense ratio increased to 33.3% of revenue (excluding special items) from 24.3%, indicating the company has not fully rightscaled its overhead structure to match revenue contraction.

Management's assertion that the company is positioned for "substantially higher profitability as revenues recover" appears plausible given the margin improvements, though the timeline for market recovery remains uncertain. The operational foundation for improved performance exists, but execution will depend on market stabilization and continued cost discipline.

- Fourth Quarter Revenue of $97.9 Million and Full Year Revenue of $443.2 Million -

- Full Year Gross Margin Improved 550 Basis Points to 21.8% -

- Full Year Cash Flow from Operations of $31.9 Million -

- Strong Balance Sheet with Net Cash Position of $101.8 Million -

MP MENASHE, Israel--(BUSINESS WIRE)-- Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today reported financial results for its fourth quarter and full year ended December 31, 2024.

Yos Shiran, Caesarstone’s Chief Executive Officer commented, “Caesarstone delivered resilient adjusted EBITDA performance for the full year, even as our revenue reflects the persistent global market headwinds affecting our industry. Throughout 2024, we made meaningful progress on our transformation strategy, focusing on strengthening our R&D capabilities, expanding our zero crystalline silica and porcelain product offerings globally, and optimizing our operational framework. The operational enhancements implemented across our business have significantly improved our cash flow generation and working capital efficiency, while positioning us to achieve substantially higher profitability as revenues recover. We have successfully executed upon our strategic restructuring plan exemplified by our improved gross margin. While market conditions remain challenging, we are confident that our strategic initiatives and disciplined execution have created a more agile and efficient organization ready to capitalize on market opportunities in 2025.”

Fourth Quarter 2024 Results

Revenue in the fourth quarter of 2024 was $97.9 million compared to $128.5 million in the prior year quarter. On a constant currency basis, fourth quarter revenue was down 23.8% year-over-year primarily due to lower volumes. Volumes were primarily impacted by global economic headwinds across the Company’s main regions resulting in lower demand accompanied by greater competitive pressures.

Gross margin in the fourth quarter of 2024 improved to 19.4% compared to 18.1% in the prior year quarter. Adjusted gross margin in the fourth quarter improved to 19.7%, compared to 18.9% in the prior year quarter. The improvement in gross margin was mainly due to the benefits of an improved production footprint, partially offset by unfavorable product mix and lower production, which resulted in lower fixed costs absorption.

Operating expenses in the fourth quarter of 2024 were $41.9 million, or 42.9% of revenue, compared to $56.5 million, or 43.9% of revenue in the prior year quarter. During the quarter, the Company recorded a $7.8 million non-cash pre-tax impairment and restructuring charges related to intangible assets and the Sdot Yam and Richmond Hill manufacturing facility closures. Excluding legal settlements and loss contingencies, restructuring and impairment expenses, operating expenses were 33.3% of revenue compared to 24.3% in the prior year quarter, primarily due to lower revenues.

Operating loss in the fourth quarter of 2024 was $23.0 million compared to $33.2 million in the prior year quarter, with the difference primarily reflecting lower impairment charges recorded partially offset by lower gross profit.

Adjusted EBITDA in the fourth quarter of 2024, which excludes expenses for non-cash share-based compensation, legal settlements and loss contingencies, impairment and restructuring charges and other non-recurring items, was a loss of $8.0 million, compared to a gain of $1.4 million in the prior year quarter.

Finance (income) expenses in the fourth quarter of 2024 was $2.9 million compared to $3.7 million in the prior year quarter. The difference primarily reflects foreign currency exchange rate fluctuations.

Net loss attributable to controlling interest for the fourth quarter of 2024 was $24.3 million compared to a net loss of $50.5 million in the prior year quarter. Net loss per share for the fourth quarter was $0.60 compared to a net loss per share of $1.47 in the prior year quarter. Adjusted diluted net loss per share for the fourth quarter was $0.35 on 34.7 million shares, compared to Adjusted diluted net loss per share of $0.28 in the prior year quarter on 34.5 million shares.

Full Year 2024 Results

Revenue in the full year 2024 was $443.2 million compared to $565.2 million in the prior year. On a constant currency basis, 2024 revenue was lower by 21.5% year-over-year, primarily due to lower volume.

Gross margin in 2024 improved to 21.8% compared to 16.3% in the prior year. Adjusted gross margin in 2024 was 22.1% compared to 17.0% in the prior year. The improvement in gross margin was primarily attributable to the benefits of an improved production footprint, partially offset by unfavorable product mix and lower production, which resulted in lower fixed cost absorption.

Operating expenses in 2024 were $138.6 million compared to $180.0 million in the prior year. During 2024, the Company recorded a $1.0 million restructuring and impairment charge related to intangible assets and to the Sdot Yam and Richmond Hill manufacturing facility closures. Excluding legal settlements, loss contingencies, impairment and restructuring charges, adjusted operating expenses were 29.4% of revenue, compared to 24.2% in the prior year, with the difference primarily attributable to lower revenues.

Operating loss in 2024 was $41.9 million compared to an operating loss of $88.0 million in the prior year. The year-over-year difference mainly reflects lower restructuring and impairment expenses recorded during 2024.

Adjusted EBITDA, which excludes non-cash impairment and restructuring charges, expenses for share-based compensation, legal settlements and loss contingencies and non-recurring items, was a loss of $11.5 million in 2024 compared to a loss of $9.4 million in the prior year.

Finance (income) expense in 2024 was breakeven compared to finance income of $1.1 million in the prior year. The difference was primarily a result of foreign currency exchange rate fluctuations.

Net loss attributable to controlling interest in 2024 was $42.8 million compared to net loss of $107.7 million in the prior year. Net loss per share for 2024 was $1.13 compared to a diluted net loss per share of $3.13 in the prior year. Adjusted diluted net loss per share for 2024 was $0.86 on 34.7 million shares compared to adjusted diluted net loss per share of $1.34 in the prior year on 34.6 million shares.

Balance Sheet & Liquidity

As of December 31, 2024, the Company’s balance sheet included cash, cash equivalents and short-term bank deposits of $106.3 million and total debt to financial institutions of $4.5 million. The Company’s net cash position as of December 31, 2024, was $101.8 million compared to $83.5 million as of December 31, 2023.

US Legal Proceedings Update

As of December 31, 2024, the Company was subject to lawsuits with respect to 296 injured persons alleging injuries associated with exposure of fabricators and their employees to respirable crystalline silica dust. Of these, 52 were in Israel, 122 in Australia and 122 in the United States. In the U.S. Company was subject to an adverse jury decision in August 2024 which it is appealing and it settled another claim recently. As of December 31, 2024, the Company has recorded a provision of $50.0 million representing its assessment of exposure that is probable and estimable with respect to pending claims in Israel, the United States and Australia. As of December 31, 2024, the Company’s insurance receivables for silicosis-related claims totaled $32.2 million. The Company has assessed the remaining 120 claims in the U.S. and determined that a loss is only reasonably possible or that the claims are still in an early stage. As a result, no accrual has been recorded in its financial results as of December 31, 2024.

If there is a change in the assessment for the outcome of the claims or the insurance coverage through the course of the trial processes, such changes could lead to a material and adverse impact on our business, financial position, results of operations or cash flows.

For more information, please reference the full disclosure provided in the Company’s 2024 annual report on Form 20-F.

Outlook

“Looking ahead, while market conditions remain dynamic, we expect to see modest improvement in full year 2025 adjusted EBITDA compared to full year 2024 as we realize the full benefits of our cost optimization initiatives and strategic investments. We remain focused on the disciplined execution of our transformation while continuing to invest strategically in innovation and marketing to drive long-term profitable growth,” concluded Nahum Trost, Caesarstone’s Chief Financial Officer.

Webcast and Conference Call Details

The Company will host a webcast and conference call today, March 5, 2025, at 8:30 a.m. ET to discuss the results, followed by a question and answer session for the investment community. The live webcast can be accessed through the Investor Relations section of the Company’s website at ir.caesarstone.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-833-816-1463 and 1-412-542-4167, respectively. The toll-free Israeli number is 1 80 921 3284. Upon dialing in, please request to join the Caesarstone Fourth Quarter 2024 Earnings Conference Call.

To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 or +1-412-317-6671 (international) and enter pass code 10196433. The replay will be available beginning at 12:30 p.m. ET on Wednesday, March 5, 2025 and will last through 11:59 p.m. ET on Wednesday, March 12, 2025.

About Caesarstone

Caesarstone is a global leader of premium surfaces, specializing in countertops that create dynamic spaces of inspiration in the heart of the home. Established in 1987, its multi-material portfolio of over 100 colors combines the company’s innovative technology with its powerful design passion. Spearheading high-quality, sustainable surfaces, Caesarstone delivers functional resilience with timeless beauty, for a vast range of applications, including kitchen countertops, bathroom vanities, and more, for indoor and outdoor spaces.

Since it pioneered quartz countertops over thirty years ago, the brand has expanded into porcelain and natural stone and is on the ground in more than 50 countries worldwide while enhancing customer experience through the expansion of groundbreaking digital platforms & services. More information on Caesarstone: caesarstoneus.com, Facebook, LinkedIn and Instagram

The Company has filed its annual report on Form 20-F for the year ended December 31, 2023 with the U.S. securities and exchange commission (“SEC”) and can be accessed on its website.

Non-GAAP Financial Measures

The non-GAAP measures presented by the Company should be considered in addition to, and not as a substitute for, comparable GAAP measures. Reconciliations of GAAP gross profit to Adjusted gross profit, GAAP net income (loss) to Adjusted net income (loss) and net income (loss) to Adjusted EBITDA are provided in the schedules to this release. To calculate revenues growth rates that exclude the impact of changes in foreign currency exchange rates, the Company converts actual reported results from local currency to U.S. dollars using constant foreign currency exchange rates in the current and comparable period. The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Company's core business and management uses the non-GAAP measures internally to evaluate the Company's ongoing performance. Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Company's operating performance.

Forward-Looking Statements

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “goals," “intend,” “seek,” “anticipate,” “believe,” “could,” “continue,” “expect,” “estimate,” “may,” “plan,” “outlook,” “future” and “project” and other similar expressions that predict, project or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements regarding the Company’s goals and plans, intentions, expectations, assumptions, goals and beliefs regarding the Company’s business. Actual results may differ materially from those projections and estimates due to various risks and uncertainties, both known or unknown. These factors include, but are not limited to: the effects of global and regional economy and geo-politics on the Company’s business and operations including the length, duration and impact of the war in Israel, the Houthi’s disruption to the movement of goods in the Red Sea and trade disruptions such as Turkey’s decision not to trade with Israel; the outcome of silicosis and other bodily injury claims, and the availability relevant insurance; regulatory changes and requirements relating to the manufacturing and fabrication of our products; the outcome of our restructuring efforts, of the closure of the Sdot Yam and Richmond Hill Facilities, the estimated closure costs and the estimated potential savings relating to said closures, the ability to sell or sublease all or part of these facilities; our ability to effectively collaborate with production business partners; our R&D and product introduction efforts, managing constraints in the global supply chain and effectively procuring raw materials and goods as well as fluctuations in their price; our ability to protect our brand, technology and intellectual property, as well as our freedom to operate; competitive pressures; disruptions to our information technology systems, fluctuations in currency exchange rates against the U.S. dollar; our ability to successfully integrate our acquisitions; our ability to meet ESG goals and targets; and other risks and uncertainties discussed under the sections "Risk Factors" and “Special Note Regarding Forward-Looking Statements and Risk Factor Summary” in our most recent annual report on Form 20-F filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2024, and in other documents filed by Caesarstone with the SEC, which are available free of charge at www.sec.gov. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Caesarstone Ltd. and its subsidiaries
Condensed consolidated balance sheets
		As of
U.S. dollars in thousands		December 31, 2024			December 31, 2023
		(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents and short-term bank deposits		$	106,336		$	91,123
Trade receivables, net			46,880			66,888
Other accounts receivable and prepaid expenses (*)			82,651			25,489
Inventories			112,609			136,446
Total current assets			348,476			319,946
LONG-TERM ASSETS:
Severance pay fund			1,526			1,994
Deferred tax assets, net			2,910			3,061
Long-term deposits and prepaid expenses			4,750			4,961
Operating lease right-of-use assets			115,392			120,156
Property, plant and equipment, net (*)			75,724			123,480
Intangible assets, net			263			6,257
Total long-term assets			200,565			259,909
Total assets		$	549,041		$	579,855
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term bank credit		$	4,555		$	5,118
Trade payables			52,838			42,848
Related parties			206			257
Short term legal settlements and loss contingencies			42,706			16,106
Accrued expenses and other liabilities			51,383			56,894
Total current liabilities			151,688			121,223
LONG-TERM LIABILITIES:
Long-term bank and other loans			444			2,549
Legal settlements and loss contingencies long-term and other liabilities			9,492			11,814
Deferred tax liabilities, net			2,439			3,006
Long-term lease liabilities			107,313			114,146
Accrued severance pay			2,978			3,065
Long-term warranty provision			902			1,204
Total long-term liabilities			123,568			135,784
REDEEMABLE NON-CONTROLLING INTEREST			2,200			7,789
EQUITY:
Ordinary shares			371			371
Treasury shares - at cost			(39,430)			(39,430)
Additional paid-in capital			166,500			164,456
Capital fund related to non-controlling interest			(5,587)			(5,587)
Accumulated other comprehensive income (loss), net			(14,870)			(8,402)
Retained earnings			164,601			203,651
Total equity			271,585			315,059
Total liabilities and equity		$	549,041		$	579,855
(*) During the first half of 2024, we reclassified approximately $41.3M from fixed assets to held for sale assets in accordance with ASC360.

Caesarstone Ltd. and its subsidiaries Condensed consolidated statements of income (loss)
			Three months ended December 31,						Twelve months December 31,
U.S. dollars in thousands (except per share data)			2024			2023			2024			2023
			(Unaudited)						(Unaudited)
Revenues			$	97,863		$	128,525		$	443,221		$	565,231
Cost of revenues				78,875			105,245			346,546			473,292
Gross profit				18,988			23,280			96,675			91,939
Operating expenses:
Research and development				1,446			1,249			4,950			5,086
Sales and Marketing				20,191			19,764			86,239			82,222
General and administrative				10,915			10,168			39,123			49,490
Restructuring and Impairment expenses related to long lived assets (*)				7,763			27,715			1,007			47,939
Legal settlements and loss contingencies, net				1,629			(2,424)			7,242			(4,770)
Total operating expenses				41,944			56,472			138,561			179,967
Operating loss				(22,956)			(33,192)			(41,886)			(88,028)
Finance loss (income), net				2,860			3,747			9			(1,069)
Loss before taxes				(25,816)			(36,939)			(41,895)			(86,959)
Tax expenses (income), net				(1,361)			13,949			1,081			21,281
Net loss			$	(24,455)		$	(50,888)		$	(42,976)		$	(108,240)
Net loss attributable to non-controlling interest				111			367			144			584
Net loss attributable to controlling interest			$	(24,344)		$	(50,521)		$	(42,832)		$	(107,656)
Basic net loss per ordinary share (**)			$	(0.60)		$	(1.47)		$	(1.13)		$	(3.13)
Diluted net loss per ordinary share (**)			$	(0.60)		$	(1.47)		$	(1.13)		$	(3.13)
Weighted average number of ordinary shares used in computing basic loss per ordinary share				34,547,633			34,522,015			34,539,378			34,519,126
Weighted average number of ordinary shares used in computing diluted loss per ordinary share				34,547,633			34,522,015			34,539,378			34,519,126
(*) Including long-lived assets impairment and restructuring expenses related to plants closure. Also includes capital gain related to sale of undeveloped land and certain equipment in the Richmond Hill plant.
(**) The numerator for the calculation of net loss per share for the three and twelve months ended December 31, 2024 and 2023, has been increased (decreased) by approximately $3.8 and $3.8 million and ($0.1) and ($0.5) million, respectively, to reflect the adjustment to redemption value associated with the redeemable non-controlling interest.

Caesarstone Ltd. and its subsidiaries
Selected Condensed consolidated statements of cash flows
		Twelve months December 31,
U.S. dollars in thousands		2024			2023
		(Unaudited)			(Unaudited)
Cash flows from operating activities:
Net loss		$	(42,976)		$	(108,240)
Adjustments required to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			17,134			30,007
Share-based compensation expense			2,043			1,025
Accrued severance pay, net			392			(268)
Changes in deferred tax, net			(621)			11,905
Capital loss			980			18
Legal settlements and loss contingencies, net			7,242			(4,771)
Decrease in trade receivables			18,748			11,760
Decrease in other accounts receivable and prepaid expenses			6,858			8,145
Decrease in inventories			20,128			101,549
Increase (decrease) in trade payables			8,952			(29,464)
Decrease in warranty provision			(579)			(165)
Changes in right of use assets			3,371			7,865
Changes in lease liabilities			(5,006)			(9,516)
Amortization of premium and accretion of discount on marketable securities, net			-			63
Changes in Accrued interest related to Marketable Securities			-			39
Decrease in accrued expenses and other liabilities including related parties			(5,799)			(1,362)
Restructuring expenses and Impairment related to long lived assets			1,007			47,939
Net cash provided by operating activities			31,874			66,529
Cash flows from investing activities:
Net cash paid for acquisitions			(1,556)			-
Purchase of property, plant and equipment			(10,421)			(11,168)
Proceeds from sale of property, plant and equipment			67			177
Maturity of marketable securities			-			7,100
Decrease (increase) in long term deposits			51			(135)
Net cash used in investing activities			(11,859)			(4,026)
Cash flows from financing activities:
Changes in short-term bank credits and long-term loans, including related parties			(2,545)			(23,268)
Contingent consideration related to acquisition			(500)			(511)
Net cash used in financing activities			(3,045)			(23,779)
Effect of exchange rate differences on cash and cash equivalents			(1,757)			318
Increase (decrease) in cash and cash equivalents and short-term bank deposits			15,213			39,042
Cash and cash equivalents and short-term bank deposits at beginning of the period			91,123			52,081
Cash and cash equivalents and short-term bank deposits at end of the period		$	106,336		$	91,123
Non - cash investing:
Changes in trade payables balances related to purchase of fixed assets			106			188

	Caesarstone Ltd. and its subsidiaries
			Three months ended December 31,						Twelve months December 31,
	U.S. dollars in thousands		2024			2023			2024			2023
			(Unaudited)						(Unaudited)
	Reconciliation of Gross profit to Adjusted Gross profit:
	Gross profit		$	18,988		$	23,280		$	96,675		$	91,939
	Share-based compensation expense (a)			11			(59)			89			94
	Amortization of assets related to acquisitions			70			71			282			286
	Residual operating expenses (income) related to closed plants after closing			96			1,129			672			3,924
	Other non recurring items			141			(152)			182			(304)
	Adjusted Gross profit (Non-GAAP)		$	19,306		$	24,269		$	97,900		$	95,939
(a)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.

	Caesarstone Ltd. and its subsidiaries
			Three months ended December 31,						Twelve months December 31,
	U.S. dollars in thousands		2024			2023			2024			2023
			(Unaudited)						(Unaudited)
	Reconciliation of Net Loss to Adjusted EBITDA:
	Net loss		$	(24,455)		$	(50,888)		$	(42,976)		$	(108,240)
	Finance loss (income), net			2,860			3,747			9			(1,069)
	Taxes on income			(1,361)			13,949			1,081			21,281
	Depreciation and amortization			4,363			7,296			17,742			30,007
	Legal settlements and loss contingencies, net (a)			1,629			(2,425)			7,242			(4,771)
	Contingent consideration adjustment related to acquisition			-			24			(53)			264
	Share-based compensation expense (b)			434			469			2,044			1,025
	Restructuring expenses (income) and Impairment related to long lived assets (c)			7,827			27,715			1,005			47,939
	Residual operating expenses related to closed plants after closing			450			1,643			2,056			4,438
	Other non recurring items			284			(152)			325			(304)
	Adjusted EBITDA (Non-GAAP)		$	(7,969)		$	1,378		$	(11,525)		$	(9,430)
(a)	Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims.
(b)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.
(c)	Including long-lived assets impairment and restructuring expenses related to plants closure. Also includes capital gain related to sale of undeveloped land and certain equipment in the Richmond Hill plant.

	Caesarstone Ltd. and its subsidiaries
			Three months ended December 31,						Twelve months December 31,
	U.S. dollars in thousands (except per share data)		2024			2023			2024			2023
			(Unaudited)						(Unaudited)
	Reconciliation of net loss attributable to controlling interest to adjusted net loss attributable to controlling interest:
	Net loss attributable to controlling interest		$	(24,344)		$	(50,521)		$	(42,832)		$	(107,656)
	Legal settlements and loss contingencies, net (a)			1,629			(2,425)			7,242			(4,771)
	Contingent consideration adjustment related to acquisition			-			24			(53)			264
	Amortization of assets related to acquisitions, net of tax			532			534			2,135			2,142
	Share-based compensation expense (b)			434			469			2,044			1,025
	Non cash revaluation of lease liabilities (c)			977			3,538			(2,039)			(1,556)
	Restructuring expenses (income) and Impairment related to long lived assets (d)			7,827			27,715			1,005			47,939.00
	Residual operating expenses related to closed plants after closing			450			1,643			2,056			4,438
	Other non recurring items			284			(152)			325			(304)
	Total adjustments			12,133			31,346			12,715			49,177
	Less tax on non-tax adjustments (e)			(240)			(9,421)			(328)			(12,035)
	Total adjustments after tax			12,372			40,767			13,043			61,212
	Adjusted net loss attributable to controlling interest (Non-GAAP)		$	(11,972)		$	(9,754)		$	(29,789)		$	(46,444)
	Adjusted loss per share (f)		$	(0.35)		$	(0.28)		$	(0.86)		$	(1.34)
(a)	Consists primarily of legal settlements expenses and loss contingencies, net, related to product liability claims.
(b)	Share-based compensation includes expenses related to stock options and restricted stock units granted to employees and directors of the Company.
(c)	Exchange rate differences deriving from revaluation of lease contracts in accordance with FASB ASC 842.
(d)	Including long-lived assets impairment and restructuring expenses related to plants closure. Also includes capital gain related to sale of undeveloped land and certain equipment in the Richmond Hill plant.
(e)	Tax adjustments for the three and twelve months ended December 31, 2024 and 2023, based on the effective tax rates.
(f)	In calculating adjusted (Non-GAAP) loss per share, the diluted weighted average number of shares outstanding excludes the effects of share-based compensation expense in accordance with FASB ASC 718.

Caesarstone Ltd. and its subsidiaries
Geographic breakdown of revenues by region
		Three months ended December 31,						Twelve months December 31,						Three months ended December 31,				Twelve months December 31,
U.S. dollars in thousands		2024			2023			2024			2023
		(Unaudited)						(Unaudited)			(Audited)			YoY % change		YoY % change CCB		YoY % change		YoY % change CCB
USA		$	46,353		$	60,286		$	219,559		$	271,647		-23.1%		-23.1%		-19.2%		-19.2%
Canada			14,106			17,750			61,749			75,462		-20.5%		-18.5%		-18.2%		-17.0%
Latin America			244			817			1,392			3,285		-70.1%		-70.4%		-57.6%		-57.7%
America's			60,703			78,853			282,700			350,394		-23.0%		-22.6%		-19.3%		-19.1%
Australia			16,870			26,684			75,388			106,223		-36.8%		-37.5%		-29.0%		-28.8%
Asia			4,317			5,890			20,577			25,959		-26.7%		-26.8%		-20.7%		-21.1%
APAC			21,187			32,574			95,965			132,182		-35.0%		-35.5%		-27.4%		-27.2%
EMEA			11,858			14,513			47,121			59,908		-18.3%		-18.2%		-21.3%		-22.1%
Israel			4,115			2,585			17,435			22,747		59.2%		53.6%		-23.4%		-23.0%
Total Revenues		$	97,863		$	128,525		$	443,221		$	565,231		-23.9%		-23.8%		-21.6%		-21.5%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250305044642/en/

Investor Relations:

ICR, Inc. - Rodny Nacier

CSTE@icrinc.com

+1 (646) 200-8870

Source: Caesarstone Ltd.

FAQ

What was Caesarstone's (CSTE) revenue performance in Q4 2024?

CSTE reported Q4 2024 revenue of $97.9 million, down from $128.5 million in the prior year quarter, representing a 23.8% decrease on constant currency basis.

How much did Caesarstone's gross margin improve in full year 2024?

Caesarstone's gross margin improved by 550 basis points to 21.8% in 2024, compared to 16.3% in the previous year.

What is the current status of silicosis-related lawsuits against CSTE?

As of December 31, 2024, CSTE faces 296 lawsuits: 52 in Israel, 122 in Australia, and 122 in the United States, with a $50.0 million provision recorded for probable claims.

What is Caesarstone's net cash position as of December 2024?

CSTE reported a net cash position of $101.8 million as of December 31, 2024, improved from $83.5 million at the end of 2023.

What is CSTE's outlook for 2025?

The company expects modest improvement in full year 2025 adjusted EBITDA compared to 2024, driven by cost optimization initiatives and strategic investments.