Capstone Strengthens Southeast Presence and Achieves Key Milestones in Carolina Stone Integration
Capstone Holding Corp (NASDAQ:CAPS) said the integration of Carolina Stone has hit early operational and commercial milestones, including a completed full ERP system upgrade, regional marketing rollout, and new customer engagements. The company said the deal is already delivering operational synergies such as lower logistics costs, greater purchasing power, and cross-selling potential that it expects will be immediately accretive.
Capstone highlighted access to the Southeast — where new development is up 33% year-over-year — and reaffirmed a $100 million run-rate revenue target by Q1 2026.
- Completed full ERP system upgrade during integration
- Acquisition described as immediately accretive to the platform
- Southeast new development up 33% YoY
- Reaffirmed $100 million run-rate revenue target by Q1 2026
- None.
Insights
Integration shows concrete early wins: systems, marketing, and reseller access that support immediate scale and cost synergies.
The combined platform completed a full ERP system upgrade and rolled out coordinated regional marketing, which address two common integration failure points: systems harmonization and go-to-market alignment. These steps enable consolidated ordering, unified customer data, and faster cross-selling across the newly combined footprint.
Dependencies and risks remain around realization of the cited cost reductions and margin expansion because the content only confirms early milestones and dialogues with builders rather than closed, recurring revenue contracts. Sustained margin improvement depends on execution of purchasing consolidation, logistics optimization, and measured customer retention.
Watch for concrete, monitorable milestones: signed customer contracts or volume commitments from regional and national production homebuilders, reported savings from purchasing/logistics, any updates to the recently signed LOI, and progress toward the
Early commercial activity and marketing extension into remodeling could expand addressable demand in a high-growth Southeast market.
The platform reports active dialogue with regional and national production homebuilders and extension of Instone's marketing to Carolina Stone, which creates two parallel demand streams: new development and remodeling. Access to Instone's proprietary product line and national logistics network provide practical channels to serve both segments.
Key risks include converting dialogues into repeatable sales and measuring incremental customer acquisition from the regional campaign. The release cites new customer engagement but does not disclose signed orders or revenue impact, so commercial traction is suggestive, not confirmed.
Trackable near-term items: customer wins or booking announcements, measurable lift in new-customer counts from the marketing activation, and whether regional new development—reported up
Combined platform expands reach in the nation's fastest-growing housing market through operational efficiencies and new customer growth
NEW YORK CITY, NEW YORK / ACCESS Newswire / October 14, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced that the integration of Carolina Stone is already delivering operational and commercial synergies.
The combined companies have completed a full ERP system upgrade, launched a regional marketing campaign, and established new customer relationships. These early milestones reinforce Capstone's expectation that the acquisition would be immediately accretive and deliver significant value for the platform.
Key Highlights:
Immediate Milestones: The combined team has already completed a full ERP system upgrade, rolled out regional marketing initiatives, and begun engaging new customers through coordinated field and digital campaigns.
Customer Traction: The combined team is in active dialogue with regional and national production homebuilders, signaling early commercial traction and positioning the platform for continued growth.
Marketing Activation: Instone has extended its marketing platform to Carolina Stone, activating a secondary customer segment in home remodeling and positioning the platform to capture rising demand in a high-growth market.
Operational Synergies: The integration is driving near-term cost reductions and margin expansion through greater purchasing power, lower logistics costs, and expanded cross-selling potential.
"With Carolina Stone, we've met every milestone and are already capitalizing on new opportunities in the region," said Matt Lipman, Chief Executive Officer of Capstone Holding Corp. "It's two businesses leveraging each other's strengths to build one of the Southeast's most effective sales engines."
One of the key benefits of the acquisition is expanded access to the Southeast, the fastest-growing housing market in the United States. New development is up
Carolina Stone, a local leader in the region, now has access to Instone's proprietary product line, advanced marketing and sales capabilities, and national logistics network. This positions the platform to capture a larger share of both new development and secondary remodeling demand.
"When you look across the Southeast, new homes are going up everywhere," said Kevin Grotke, President and CEO of Instone. "By completing major milestones early - like the full ERP system upgrade - we've been able to shift our focus immediately to winning new customers."
Capstone's integration playbook has delivered repeated success across the platform. The company recently wrote about its integration of Northeast Masonry, which expanded natural stone offerings across Instone's network, opened new hardscape channels, and enabled the combined business to reach a record number of customers.
With a newly signed LOI and a strong pipeline of acquisition targets, Capstone is well positioned to advance its dual-track strategy of disciplined M&A and organic growth. The company has reaffirmed its goal of reaching a
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 31 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.
Investor Contact
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Capstone Holding Corp.
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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.
SOURCE: Capstone Holding Corp.
View the original press release on ACCESS Newswire
FAQ
What integration milestones did Capstone (NASDAQ:CAPS) complete with Carolina Stone on October 14, 2025?
How does Carolina Stone expand Capstone's reach in the Southeast and why does it matter for CAPS investors?
What financial target did Capstone (CAPS) reaffirm after the Carolina Stone integration?
Does the Capstone press release claim immediate financial benefits from the Carolina Stone deal for CAPS shareholders?
What commercial traction did Capstone report for CAPS after integrating Carolina Stone?
