Capstone Takes Big Swing On Acquisitions, Shares Soar

Capstone Holding Corp. CAPS shares jumped on Friday after the building products distributor reaffirmed its 2025 financial targets.

The firm, a building products distribution company, also posted a stable first-quarter update.

Illinois-based Capstone remains on track to reach $100 million in revenue and $10 million in adjusted EBITDA by year-end. A mix of organic growth and acquisitions fuels the momentum.

Capstone is pursuing multiple deals at 4–6x EBITDA, with up to 45% of consideration in non-cash terms, aimed at maximizing earnings while minimizing dilution. CEO Matthew Lipman said the company is positioned to double in size, supported by favorable deal valuations and strong operational performance.

Also Read: Capstone Eyes $100 Million Goal With Southeast Expansion, Targets 1,500 Acquisition Opportunities

Capstone secured a flexible equity line of credit to fund acquisitions, which it plans to use only for transactions immediately accretive to earnings.

The firm’s subsidiary, Instone, maintained margin targets and cost discipline, despite weather-related project delays in the Northeast and Midwest. Management expects a recovery in activity by Q3. Instone also expanded geographically and continued rolling out proprietary products like Toro and Pangea.

Capstone's acquisition strategy spans tuck-ins and new platforms, allowing it to scale quickly amid persistent housing demand.

Price Action: CAPS shares are trading higher by 82.53% at $3.03 premarket on Friday.

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