Caesarstone Ltd. (NASDAQ:CSTE) shares edged 1.9% higher in pre-market trading on Wednesday, as investors looked past weaker-than-expected third-quarter results and focused instead on the company’s strategic restructuring plan aimed at restoring profitability.
The engineered surfaces manufacturer reported revenue of $102.1 million, below the analyst consensus of $108 million and down 5.1% year-over-year. Adjusted earnings per share came in at -$0.40, missing expectations of – $0.19.
As part of a major restructuring effort, Caesarstone announced the closure of its Bar-Lev manufacturing plant in Israel and a workforce reduction of around 200 employees. These measures are expected to yield annual savings of approximately $22 million, contributing to total savings exceeding $85 million since 2023.
“We are rapidly advancing the transformation of our business model to focus on innovation, product development, and marketing,” said CEO Yos Shiran. “These initiatives are expected to generate annual savings of approximately $22 million and bring total savings since 2023 to over $85 million, representing necessary steps to strengthen our competitive position and support a return to positive adjusted EBITDA in the third quarter of next year.”
The company’s gross margin fell to 17.3% from 19.9% a year earlier, mainly due to lower production volumes and weaker fixed-cost absorption.
Despite the operational headwinds, Caesarstone ended the quarter with a solid balance sheet, holding $69.3 million in cash, cash equivalents, and short-term bank deposits, against just $2.6 million in total debt.
The company also continues to monitor the impact of U.S. import tariffs on its global operations, as roughly 48% of its revenue during the first nine months of 2025 came from the U.S. market.