Israeli company Caesarstone (Nasdaq: CSTE), which makes quartz and porcelain surfaces for kitchen countertops, bathrooms and interior design, has struggled in recent years to recover from the crisis it was plunged into. The company has now announced another simplifying measure: the closure of its factory in the Bar Lev industrial zone near Carmiel in northern Israel. The closure includes the layoff of 200 employees.
Thirty months ago, the company closed its factory in Kibbutz Sdot Yam, where it began operations more than 30 years ago, and laid off 150 employees. At the end of 2024, Caesarstone had 1,532 employees, including 371 in Israel, so the latest layoffs will only leave a small number of employees here.
“Necessary steps
The company says this is a strategic move aimed at improving profitability, cash flow and improving production. The company will record a non-cash impairment of $40-45 million and cash costs of $4-8 million in the coming quarters, due to the closure. However, it also has expenses on a long-term lease agreement, and aims to find a sublease for the plant. Caesarstone indicates that production will be transferred from site to subcontractors.
“We are moving quickly forward in transforming our business model, which focuses on innovation, product development and marketing,” said Youssef Shiran, CEO of Caesarstone. “We are investing in strengthening the Caesarstone brand, expanding our ceramic offerings and increasing our research and development capabilities.”
“As part of the strategic transformation, we are improving our global manufacturing footprint, and are announcing the closure of the Bar-Live site and shifting production to our global partners. This move should generate annual savings of approximately $22 million and bring total savings since 2023 to more than $85 million – steps necessary to strengthen our competitive position and return to adjusted EBITDA in the third quarter of next year.”
Weak demand and competitive pressures
Factors impacting Caesarstone shares include legal proceedings related to health injury claims by installers exposed to materials on its roofs, increased competition in the market, and uncertainty about global tariffs. The company says that 48% of its revenues come from the US market, is working to simplify its supply chain, and recently announced a price increase in the US, to mitigate the increase in the cost of goods imported into the US.
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In the third quarter of 2025, Caesarstone reported revenue of $102 million, down from $108 million in the corresponding quarter last year, and said sales volume was affected by weak demand and competitive pressures.
Net loss was $1.8 million, down from $4.2 million in the corresponding quarter, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was negative at $7.9 million. The company had net cash of $66.7 million at the end of the quarter.
Caesarstone listed on the Nasdaq in 2012 and three years later reached a peak market capitalization of about $2.5 billion. The TINA Fund, led by Ariel Halperin, which focuses on kibbutz industries, invested in Caesarstone in 2006, and seven years later exited with a five-fold return on investment, selling the shares for $186 million. The fund returned for another round of investment in the company in 2016, purchasing shares worth a total of about $74 million, an amount it is currently losing mostly “on paper.”
This is also Sheeran’s second term as CEO. He ran the company from 2009 to 2016, leading it through its IPO and peak period, returning to the job in 2023 after a period in which Caesarstone went through a turbulent period including declining financial expectations, frequent management changes, and a loss of investor confidence in the stock. He has led a global simplification plan, which has included the closure of the Sdot Yam plant and now the closure of the Karmiel plant.
Published by Globes, Israel Business News – en.globes.co.il – on November 12, 2025.
© Copyright Globes Publisher Itonut (1983) Ltd., 2025.
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