Why This Matters to Distributors: Capstone’s results show how smaller specialty distributors are using rapid acquisition-driven scale to chase profitability — a pattern emerging across fragmented building products markets.
Capstone Holding Corp., a distributor of stone veneer, hardscape materials and modular masonry systems, reported $46.9 million in full-year 2025 revenue and projected $72.1 million in 2026, citing a full year of contributions from two acquisitions completed in the second half of last year.
The New York-based company closed 2025 with a gross margin of 23%, up from 21.4% the prior year, and expects that figure to reach 26% in 2026. Operating profit, which totaled $0.9 million in 2025, is projected to reach $3.8 million this year. Capstone expects to make a profit on an ongoing basis beginning in the second quarter.
The revenue and margin gains were driven primarily by two acquisitions that added approximately $26 million in combined annual revenue and expanded Capstone from a single-location operation to a nine-location platform covering 38 U.S. states and Canada. Carolina Stone Products closed in August 2025, contributing approximately $11 million in annual revenue and establishing Capstone’s first presence in the Southeast. Canadian Stone Industries closed in December 2025, adding $15 million in annual revenue and extending the company’s reach into Canada.
“It was a transformational year for Capstone,” said Matthew Lipman, chief executive officer. “Synergies from our recent acquisitions are enabling margin growth and operating leverage across the platform. With a full year of contributions from these assets, along with our product and geographic expansion, we expect 2026 to deliver a sharp increase in both revenue and profitability.”
Capstone also identified approximately $480,000 in annual cost savings from facility consolidation, with additional savings expected from logistics and inventory improvements. The company distributes through its Instone platform, which uses a digital inventory system to manage and deliver stone products across its network.
A recently awarded distribution agreement for Eldorado Stone, a premium manufactured stone veneer brand from Westlake Royal Building Products, is expected to contribute $5 million in annual revenue by the third quarter of 2027.
Capstone has set a longer-term target of $100 million in annual revenue and outlined a path to 10% operating profit margins through organic growth, cost leverage, and additional acquisitions. The gap between its 2026 revenue projection of $72.1 million and that $100 million target suggests the company’s acquisition pace is unlikely to slow.
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