Capstone Reaffirms $100M Revenue Target for 2025, Accelerates M&A Strategy with Flexible Growth Capital
Capstone Holding Corp. (NASDAQ:CAPS) has reaffirmed its 2025 financial targets of $100 million revenue run-rate and $10 million in adjusted EBITDA. The company is pursuing growth through both organic initiatives and strategic M&A, currently evaluating multiple acquisition targets at 4-6x EBITDA valuations, with 20-45% in non-cash consideration.
The company has secured an Equity Line of Credit (ELOC) to facilitate acquisitions without requiring high-interest debt or immediate equity dilution. Its subsidiary, Instone, maintained margin stability in Q1 2025 with SG&A tracking at an $8 million annual run-rate, despite weather-related challenges. Instone expects order volumes to rebound by Q3 2025 and continues expanding geographically while rolling out proprietary products like Toro and Pangea.
Capstone Holding Corp. (NASDAQ:CAPS) ha confermato i suoi obiettivi finanziari per il 2025, puntando a un fatturato annuo di 100 milioni di dollari e un EBITDA rettificato di 10 milioni di dollari. L'azienda sta perseguendo la crescita sia attraverso iniziative organiche sia tramite fusioni e acquisizioni strategiche, valutando attualmente diversi potenziali target di acquisizione a multipli EBITDA compresi tra 4 e 6 volte, con una componente di pagamento non monetario tra il 20% e il 45%.
La società ha ottenuto una Linea di Credito Azionaria (ELOC) per facilitare le acquisizioni senza dover ricorrere a debiti ad alto interesse o a una diluizione immediata del capitale. La sua controllata, Instone, ha mantenuto stabile il margine nel primo trimestre del 2025, con le spese generali e amministrative (SG&A) che si attestano su un livello annuo di 8 milioni di dollari, nonostante le difficoltà legate alle condizioni meteorologiche. Instone prevede un recupero dei volumi di ordini entro il terzo trimestre del 2025 e continua ad espandersi geograficamente, lanciando prodotti proprietari come Toro e Pangea.
Capstone Holding Corp. (NASDAQ:CAPS) ha reafirmado sus objetivos financieros para 2025, con una meta de 100 millones de dólares en ingresos anuales y 10 millones de dólares en EBITDA ajustado. La compañía está impulsando su crecimiento tanto a través de iniciativas orgánicas como de fusiones y adquisiciones estratégicas, evaluando actualmente múltiples objetivos de adquisición con valoraciones de 4 a 6 veces el EBITDA, con un 20-45% de la contraprestación en forma no monetaria.
La empresa ha asegurado una Línea de Crédito de Capital (ELOC) para facilitar adquisiciones sin necesidad de recurrir a deuda con altos intereses ni a una dilución inmediata de capital. Su subsidiaria, Instone, mantuvo la estabilidad del margen en el primer trimestre de 2025, con gastos generales y administrativos (SG&A) en un ritmo anual de 8 millones de dólares, a pesar de los desafíos relacionados con el clima. Instone espera que los volúmenes de pedidos se recuperen para el tercer trimestre de 2025 y continúa expandiéndose geográficamente mientras lanza productos propios como Toro y Pangea.
Capstone Holding Corp. (NASDAQ:CAPS)는 2025년 재무 목표인 연간 1억 달러 매출과 1,000만 달러 조정 EBITDA를 재확인했습니다. 회사는 유기적 성장과 전략적 인수를 통해 성장을 추진하고 있으며, 현재 EBITDA 4~6배 평가의 여러 인수 대상 기업을 검토 중이며, 20~45%는 현금이 아닌 대가로 지급될 예정입니다.
회사는 고금리 부채나 즉각적인 주식 희석 없이 인수를 용이하게 하기 위해 주식 신용 한도(ELOC)를 확보했습니다. 자회사 Instone은 2025년 1분기에도 기후 관련 어려움에도 불구하고 SG&A 비용이 연간 800만 달러 수준으로 안정적인 마진을 유지했습니다. Instone은 2025년 3분기까지 주문량이 회복될 것으로 예상하며, Toro와 Pangea 같은 독자 제품을 출시하면서 지리적 확장도 계속하고 있습니다.
Capstone Holding Corp. (NASDAQ:CAPS) a réaffirmé ses objectifs financiers pour 2025, visant un chiffre d'affaires annuel de 100 millions de dollars et un EBITDA ajusté de 10 millions de dollars. L'entreprise poursuit sa croissance à la fois par des initiatives organiques et des fusions-acquisitions stratégiques, évaluant actuellement plusieurs cibles d'acquisition à des valorisations EBITDA de 4 à 6 fois, avec une part de 20 à 45 % de contrepartie non monétaire.
La société a obtenu une ligne de crédit en actions (ELOC) pour faciliter les acquisitions sans recourir à une dette à taux élevé ni à une dilution immédiate du capital. Sa filiale Instone a maintenu une stabilité de marge au premier trimestre 2025, avec des frais SG&A s'inscrivant à un rythme annuel de 8 millions de dollars, malgré des difficultés liées aux conditions météorologiques. Instone prévoit un rebond des volumes de commandes d'ici le troisième trimestre 2025 et continue son expansion géographique tout en lançant des produits propriétaires tels que Toro et Pangea.
Capstone Holding Corp. (NASDAQ:CAPS) hat seine Finanzziele für 2025 bestätigt: ein Umsatz von 100 Millionen US-Dollar pro Jahr und ein bereinigtes EBITDA von 10 Millionen US-Dollar. Das Unternehmen verfolgt Wachstum sowohl durch organische Initiativen als auch durch strategische M&A und prüft derzeit mehrere Übernahmeziele mit EBITDA-Bewertungen von 4-6-fach, wobei 20-45 % der Gegenleistung nicht in bar erfolgt.
Das Unternehmen hat eine Eigenkapitalkreditlinie (ELOC) gesichert, um Akquisitionen zu erleichtern, ohne auf hochverzinsliche Schulden oder sofortige Eigenkapitalverwässerung zurückgreifen zu müssen. Die Tochtergesellschaft Instone hielt im ersten Quartal 2025 stabile Margen, wobei die SG&A-Kosten mit einem Jahreswert von 8 Millionen US-Dollar trotz wetterbedingter Herausforderungen im Rahmen blieben. Instone erwartet bis zum dritten Quartal 2025 eine Erholung der Auftragseingänge und baut seine geografische Präsenz aus, während es proprietäre Produkte wie Toro und Pangea einführt.
- Reaffirmed strong 2025 targets: $100M revenue run-rate and $10M adjusted EBITDA
- Favorable M&A valuations at 4-6x EBITDA with 20-45% non-cash consideration
- Secured flexible Equity Line of Credit for M&A without immediate dilution
- Instone subsidiary maintaining margin stability and $8M annual SG&A run-rate
- Weather conditions affected Q1 project timing in Northeast and Midwest regions
- Potential future dilution from ELOC usage for acquisitions
- Dependency on M&A execution for reaching revenue targets
Insights
Capstone reaffirms ambitious growth targets while securing flexible capital for acquisitions, though execution risks remain amid seasonality challenges.
Capstone's reaffirmation of its
The newly secured Equity Line of Credit (ELOC) represents a strategic capital structure decision that merits attention. By avoiding high-interest debt or large upfront equity dilution, management has created flexibility to pursue acquisitions only when advantageous opportunities arise. The ELOC essentially functions as acquisition dry powder without immediate dilution costs.
Importantly, their M&A approach incorporates 20-45% non-cash consideration, reducing cash outlay while potentially aligning seller interests with Capstone's future performance. This structure could be particularly valuable in a building products distribution sector often characterized by fragmentation and private ownership.
The Instone subsidiary's performance warrants scrutiny. While management cites "margin stability," the reference to weather-related project timing issues suggests potential revenue softness. The
The company's emphasis on addressing the structural housing supply-demand imbalance provides a reasonable long-term thesis, but near-term execution on the ambitious doubling of business size remains the critical investment consideration.
Capstone Holding Corp. Highlights - Q1 2025 & 2025 Outlook
ALSIP, IL / ACCESS Newswire / May 16, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national platform of building products distribution businesses, today announced its financial and strategic highlights for the first quarter of 2025 and reaffirmed full-year 2025 guidance.
The Company continues to target a
Guidance Reaffirmed: Capstone reiterates its 2025 financial targets of
$100M run-rate revenue and$10M adjusted EBITDA, with expected contributions from both organic initiatives and strategic M&A.Active M&A Pipeline: The company is currently evaluating multiple acquisition targets at attractive 4-6x EBITDA valuations, with 20
-45% of deal consideration in non-cash consideration. If consummated, these transactions will be highly accretive to earnings.Flexible Capital Access: Capstone has secured an Equity Line of Credit (ELOC) giving it access to acquisition capital only when needed, without resorting to high interest debt or large, upfront equity dilution.
Instone Performance on Track: Instone maintained margin stability and cost discipline amid typical Q1 seasonality. SG&A remains on track at a sustainable
$8M annual run-rate, with Q3 order volumes expected to rebound as conditions normalize.Scalable Acquisition Framework: Capstone's M&A strategy spans tuck-ins, sister companies, and new platform targets-positioning the Company to capitalize on a major structural tailwind: persistent housing demand outpacing supply.
Shareholder-Aligned Growth Strategy: The Company's capital deployment strategy is designed to be earnings accretive, ensuring value-accretive growth to enhance long-term shareholder value.
"Our strategy is working. We are reaffirming our 2025 targets" said Matthew Lipman, Chief Executive Officer of Capstone. "Through a disciplined M&A approach, favorable valuations, and solid on the ground execution, we are positioned to double the size of our business in the near term. We remain focused on earnings growth and margin expansion while protecting shareholder value."
"The Equity Line of Credit gives us the flexibility to act quickly and efficiently on M&A opportunities without burdening our capital structure," further explained Mr. Lipman. "We intend to use the facility only for transactions that are immediately accretive to earnings - ensuring that any share issuance is tied directly to profitability."
Instone Subsidiary: Positioned for Second-Half Upside
Capstone's Instone business delivered margin performance within target range in Q1 and maintained disciplined cost control with SG&A tracking to about an
Access to Full Materials
Capstone has posted an investor presentation and audio commentary discussing Q1 2025 and its strategic outlook. These materials are available in the Investor Relations section of www.capstoneholdingcorp.com.
About Capstone Holding Corp.
Capstone Holding Corp. (NASDAQ:CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Capstone's Instone subsidiary currently serves 31 U.S. states, with proprietary offerings including stone veneer, landscape stone, and modular masonry systems. Capstone's strategy blends organic growth with disciplined accretive M&A, supported by a shareholder-aligned capital structure.
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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