Capstone Highlights How Accretive M&A Drives Shareholder Value
Rhea-AI Summary
Capstone Holding Corp (NASDAQ:CAPS) reaffirmed that its disciplined, accretive M&A strategy is strengthening shareholder value and keeping the company on track to a $100 million annualized revenue run rate by Q1 2026. Capstone has completed four acquisitions, signed an LOI for a multi-location stone distributor, and now operates a dense distribution network across 31 states. The company says each deal has been immediately accretive to revenue and EBITDA, and cites Bain research showing acquisitive building-products firms deliver roughly 3x higher shareholder returns than inactive peers.
Positive
- On pace to $100M run-rate by Q1 2026
- Completed four accretive acquisitions to date
- Signed LOI to acquire a multi-location stone distributor
- Distribution network covers 31 states
- Each acquisition immediately accretive to revenue and EBITDA
Negative
- None.
News Market Reaction 6 Alerts
On the day this news was published, CAPS gained 4.90%, reflecting a moderate positive market reaction. Argus tracked a peak move of +6.4% during that session. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $345K to the company's valuation, bringing the market cap to $7M at that time.
Data tracked by StockTitan Argus on the day of publication.
Recent deals by Lowe's and Home Depot validate Capstone's disciplined acquisition strategy as the company advances new LOI and remains on track toward a
NEW YORK CITY, NEW YORK / ACCESS Newswire / October 21, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today reaffirmed the success of its disciplined, accretive M&A strategy that continues to strengthen shareholder value. Recent building materials acquisitions by Lowe's and Home Depot validate the sector-wide consolidation thesis that Capstone has been executing - namely, leveraging acquisitions to expand its footprint, scale operations, and drive immediate revenue and EBITDA growth.
Capstone has completed four accretive acquisitions to date and recently signed another LOI to acquire a multi-location stone distributor. With its proven integration playbook and financing capacity, the company remains on track to achieve a
Key Highlights:
Industry Validation: Recent acquisitions by Home Depot and Lowe's show that leading distributors share Capstone's view that consolidation in building products is the path to growth.
Proven Outperformance: Bain & Company research shows that building products companies pursuing regular, material acquisitions deliver 3x higher shareholder returns than inactive peers (
9.6% vs.2.7% ).Accretive Track Record: Every Capstone acquisition has been immediately accretive to revenue and EBITDA, reflecting consistent discipline in valuation and post-close execution.
Record Growth Trajectory: With multiple transactions closed and an additional LOI underway, Capstone remains on pace toward its
$100 million revenue run-rate target.
"We've said from day one that scale in building products is the key to sustainable growth, operational leverage, and a durable competitive moat - and our recent acquisitions are proof of that," said Matthew Lipman, CEO of Capstone Holding Corp. "When Home Depot and Lowe's reinforce that same thesis, it further validates the strategy we've been executing."
Capstone has previously highlighted research from Bain showing that the most successful building products companies use M&A to expand product lines and geographic reach. Many businesses in the sector are too small to pursue this strategy. Capstone is one of the few with the capital structure and experience to scale in a sector that rewards it.
To date, Capstone has completed four acquisitions, building a dense distribution network spanning 31 states. Each deal has been immediately accretive and supported record revenue and margin performance in the same year. Two weeks ago, the company announced another LOI with a stone distributor - the latest sign of continued momentum in its acquisition strategy.
"We'll continue to emphasize the value of scale in third-party examples, industry research, and our own results," said Matthew Lipman, CEO of Capstone Holding Corp. "We look forward to sharing more progress on our recently signed LOI and our
About Capstone Holding Corp.
Capstone Holding Corp. (NASDAQ:CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Through its Instone subsidiary, Capstone serves 31 U.S. states, offering proprietary stone veneer, hardscape materials, and modular masonry systems. The company's strategy combines disciplined M&A, operational efficiency, and a growing portfolio of owned brands to build a scalable and durable platform.
Investor Contact
Investor Relations
Capstone Holding Corp.
investors@capstoneholdingcorp.com
www.capstoneholdingcorp.com
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements relate to future events and performance, including guidance regarding revenue and EBITDA targets, M&A strategy, use of capital, and operating outlook. Actual results may differ materially from those projected due to a range of factors, including but not limited to acquisition timing, macroeconomic conditions, and execution risks. Please review the Company's filings with the SEC for a full discussion of risk factors. Capstone undertakes no obligation to revise forward-looking statements except as required by law.
SOURCE: Capstone Holding Corp.
View the original press release on ACCESS Newswire
FAQ
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