Capstone Secures Major Homebuilder Contracts and Multifamily Project, Driving Strongest Order Growth in Two Years
Capstone Holding Corp., a technology-enabled building products distribution platform, has announced a series of significant commercial wins through its Carolina Stone subsidiary, further strengthening its position in the residential and multifamily construction markets. The new awards include an expanded relationship with D.R. Horton, one of the nation’s largest homebuilders, a new partnership with another leading national homebuilder, and a major multifamily development project in the Charlotte metropolitan area.
The company believes these contract awards represent an important milestone in its growth strategy and have already contributed to the strongest order volume experienced across the platform in the past two years. The new business is expected to generate revenue beginning in the fourth quarter of 2026 and continue into future quarters, providing greater visibility into upcoming financial performance while creating opportunities for additional project expansion.
The latest wins underscore Capstone’s continued momentum as it seeks to strengthen its market presence across the Southeast while expanding both revenue and profitability.
A key component of the announcement is the significant expansion of Carolina Stone’s relationship with D.R. Horton. Through the new agreement, Capstone has added 19 D.R. Horton communities in the Raleigh, North Carolina market to its portfolio. The expansion deepens the company’s relationship with one of the largest residential builders in the United States and substantially increases its participation in ongoing homebuilding activity throughout the region.
The Raleigh housing market continues to benefit from strong population growth, economic development, and demand for new residential construction. By increasing its involvement across multiple D.R. Horton communities, Capstone is positioned to capture additional volume while strengthening long-term customer relationships.
Company leadership views the expanded partnership as an important validation of Carolina Stone’s service capabilities, installation expertise, and ability to support large-scale residential developments.
In addition to its expanded work with D.R. Horton, Capstone announced the establishment of a new relationship with another leading national homebuilder operating in the Charlotte market. As part of the agreement, Carolina Stone secured all regional stone installation work for the builder, representing a significant opportunity for recurring revenue and future expansion.
Winning exclusive regional stone installation responsibilities creates a foundation for long-term collaboration and provides Capstone with access to multiple future communities and developments. The company expects the relationship to support ongoing growth as additional projects move through the builder’s development pipeline.
Management believes the award highlights Carolina Stone’s competitive position within the regional building products and installation market. By securing the entirety of the builder’s stone installation business in the region, the company has established itself as a trusted partner capable of supporting large-scale residential construction programs.
Beyond the residential sector, Capstone also strengthened its presence in multifamily construction through the award of a major project in the Charlotte metropolitan area. The company secured a contract valued at approximately $1 million for a 12-building multifamily development, further diversifying its project portfolio.
Revenue from the multifamily project is expected to begin in the fourth quarter of 2026 and continue throughout 2027. The development provides Capstone with additional exposure to one of the fastest-growing construction segments in the United States while expanding its opportunities within the commercial and multifamily markets.
The Charlotte region has experienced sustained growth in multifamily housing demand due to population increases, employment growth, and ongoing urban development. Projects of this scale provide contractors and building product suppliers with long-term revenue streams while supporting broader market expansion efforts.
Collectively, these newly awarded projects have driven Capstone’s order volume to its highest level in at least two years. The increase reflects growing demand across the company’s markets and demonstrates the effectiveness of its strategy to build long-term relationships with national homebuilders and commercial developers.
Matthew Lipman, Chief Executive Officer of Capstone Holding Corp., said the recent awards are consistent with positive trends the company is seeing throughout its operations.
“These wins reflect what we are seeing across the platform: order volume is the strongest it has been in at least two years, and Capstone’s organic growth is poised to accelerate,” Lipman said.
He noted that securing all of a leading homebuilder’s regional stone installation work while simultaneously expanding the company’s relationship with D.R. Horton creates meaningful opportunities for future growth and profitability.
According to Lipman, the new business supports Capstone’s efforts to achieve positive Adjusted EBITDA while continuing to improve gross profit and margins.
The company’s recent commercial success builds upon strong financial performance reported during the first quarter of the year. Capstone generated revenue of $12.6 million during the quarter, representing a 60 percent increase compared to the same period in the previous year.
Gross profit rose even more rapidly, increasing 124 percent to approximately $3 million. The company also reported a significant improvement in gross margin, which expanded by 670 basis points to reach 23.5 percent. This marked the highest first-quarter gross margin achieved by the company in four years.
The margin improvement reflects management’s ongoing efforts to enhance operational efficiency, optimize project selection, and increase the contribution of higher-value installation and distribution services across the platform.
Looking ahead, Capstone continues to target a gross margin of 26 percent for fiscal year 2026 while pursuing additional opportunities to strengthen profitability. Management has also indicated that the company expects to achieve positive Adjusted EBITDA during the second quarter, representing another important milestone in its financial development.
The company’s growth strategy extends beyond the recently announced project awards. Earlier initiatives, including the addition of Eldorado Stone distribution rights, are expected to contribute approximately $5 million in incremental annualized revenue by the third quarter of 2027.
These efforts form part of a broader expansion strategy focused on increasing market share, strengthening customer relationships, and enhancing Capstone’s position as a leading provider of building products and installation services.
“Our first-quarter results gave shareholders the clearest signal yet that Capstone’s growth strategy is working,” Lipman added. “As weather conditions normalize and our commercial pipeline strengthens, the quarters ahead are when the full impact of our margin expansion should become evident.”
With a growing order backlog, expanding partnerships with national builders, increasing exposure to multifamily construction, and improving financial performance, Capstone appears well-positioned to continue its growth trajectory. The latest contract awards not only reinforce the company’s market momentum but also provide a strong foundation for sustained revenue growth and profitability in the years ahead.
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