Industry research signals rising demand for stone; recent acquisitions and a 32-state footprint position Capstone to lead the market
NEW YORK CITY, NEW YORK / ACCESS Newswire / November 13, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today highlighted accelerating demand for stone in global construction markets. This industry trend is directly supportive of Capstone's strategy, as the company builds scale in stone distribution through Carolina Stone and its recently announced, on-track LOI.
Key Highlights:
Accelerating Stone Demand: Recent industry research projects a 4.1% CAGR for natural stone over the next five years, driven by rising adoption among developers and homeowners.
Scaled Stone Platform: Capstone has built a leading stone platform through HHT's Stone Business, Heller's Stone, Carolina Stone, and a recently signed LOI, positioning the company to capitalize on this demand tailwind.
Expanding Distribution Footprint: Capstone operates across 32 states with a strong network of proprietary brands, positioning it to meet growing demand with consistent supply and quality.
Strong Outlook: With stone demand rising and a remodeling rebound expected, Capstone reaffirms its $100 million 2026 run-rate revenue target and highlights continued gross-margin expansion.
Sustainability is one of the most important trends in residential and commercial construction. Energy-efficient building practices deliver measurable ROI, often reducing operating costs by up to 40 percent.1 Recent research shows stone is the most effective material in sustainable construction, fueling a surge in demand for stone products.2
Capstone Holding Corp. built a platform of high-quality stone manufacturers and distributors through its acquisitions of HHT's Stone Business, Heller's Stone, and Carolina Stone, along with its recently signed LOI. Today, the company has a scaled presence in one of the fastest-growing categories in building products, supported by a 32-state distribution network and a growing family of proprietary brands.
"We're seeing a renaissance in demand for stone products, and given their durability, sustainability, and aesthetic advantages, we expect this momentum to continue," said Matthew Lipman, CEO of Capstone Holding Corp. "Through a series of strategic acquisitions, we've built one of the most sophisticated and scaled stone distributors in the United States, and we believe we are exceptionally well-positioned to capture this market tailwind."
A recent report from Grand View Research projects the natural stone market will grow at a 4.1 percent compound annual rate over the next five years.3 Similar momentum is underway in the U.K., where builders are being encouraged by both public and private stakeholders to adopt stone.4 The global nature of this trend suggests Capstone will benefit from a durable and expanding demand tailwind in the years ahead.
"Our acquisitions continue to put us at the forefront of a very exciting market," said Lipman. "We see this tailwind, combined with a rebound in remodeling demand, setting us up for a very strong 2026."
Capstone reaffirms its $100 million run-rate revenue target for 2026. The company also reported record gross-margin expansion in Q2 2025, rising to 24.4% from 21.4% in the prior-year period.
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 32 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.
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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.
1https://openasset.com/resources/construction-industry-trends/
2https://www.grandviewresearch.com/industry-analysis/us-natural-stone-market-report
3https://www.grandviewresearch.com/industry-analysis/us-natural-stone-market-report
4https://www.bbc.com/news/articles/cgr42wqey22o
SOURCE: Capstone Holding Corp.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/industrial-and-manufacturing/capstone-expands-stone-distribution-platform-amid-strong-market-tailwi-1101784