The new U.S. quartz tariff (25-50%) introduces significant cost headwinds for Caesarstone's key market. Monitor management's mitigation plans (supply-chain shifts, pricing actions) and any revised guidance on Adjusted EBITDA breakeven timing, likely on the upcoming earnings call. The $51.2M silica provision dwarfs current cash, so any negative litigation development would be severe.
Price Chart
Executive Summary
Caesarstone reported Q2 2026 revenue of $96.6M, down 4.5% YoY (7.7% constant currency decline), with gross margin improving to 24.0% from 19.6%. Adjusted EBITDA loss narrowed to $1.0M from $6.4M, but the company is now reassessing its positive-Adjusted-EBITDA timeline due to a new U.S. quartz tariff-rate quota effective Aug 15, 2026, which adds 25-50% duties on imports. Despite operational improvements, the revenue decline, ongoing net loss of $15.6M, and a $51.2M silica-litigation provision keep the outlook pressured.
Key Facts
- Q2 2026 revenue $96.6M vs $101.1M YoY, down 4.5% (-7.7% constant currency)
- Gross margin improved to 24.0% from 19.6% YoY; adjusted gross margin 26.5% vs 19.7%
- Adjusted EBITDA loss narrowed to $1.0M from $6.4M YoY
- Net loss attributable to controlling interest $15.6M vs $18.6M YoY; EPS -$0.45 vs -$0.54
- Cash and equivalents $51.8M, no debt to financial institutions
- U.S. tariff-rate quota on quartz surfaces effective Aug 15, 2026: 25% tariff within quota (~13M sq m/year), 50% above quota; 4-year declining structure
- Americas revenue fell 14.7% YoY to $55.0M (44% of total revenue)
- Silica litigation provision $51.2M; ~800 claims including ~600 in U.S.; $12.0M insurance receivables recognized
- H1 2026 operating cash outflow $4.9M vs $25.0M in H1 2025
Financial Impact
Revenue decline of $4.6M YoY in Q2; new U.S. tariffs could substantially raise costs on ~44% of revenue (Americas $55M in Q2) starting Aug 15; legal provision of $51.2M against $80M market cap is material
Risk Factors
- U.S. tariffs could materially increase costs and further depress Americas revenue and margins
- Silica litigation overhang with $51.2M provision and potential for additional claims or adverse verdicts
- Continued revenue decline in Americas (-14.7% YoY) and overall soft demand may pressure cash burn
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-003839 |
| Document: zk2635850.htm | 0001178913-26-003839 |
| Document: 0001178913-26-003839-index-headers.html | 0001178913-26-003839 |
| Document: 0001178913-26-003839-index.html | 0001178913-26-003839 |
| Document: 0001178913-26-003839.txt | 0001178913-26-003839 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 6-K | $2.31 | awaiting T+20 | — | $2.34 (−1.33%) |
Oct 21, 2026 5d ago | 6-K | $2.41 | awaiting T+20 | — | $2.34 (−2.88%) |
Oct 8, 2026 18d ago | SC 13D/A | $2.85 | awaiting T+20 | — | $2.34 (−17.87%) |
Sep 23, 2026 4w ago | SC 13D/A | $2.79 $2.68 | ▼ −3.94% | ▼ −4.63% | $2.34 (−16.10%) |
Aug 5, 2026 11w ago | 6-K | $2.32 $3.00 | ▼ −29.31% | ▼ −29.91% | $2.34 (−0.89%) |
May 13, 2026 23w ago | 6-K | $1.49 $1.78 | ▼ −19.46% | ▼ −20.08% | $2.34 (−57.09%) |
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