Capstone Holding Corp. has announced that its subsidiary, Carolina Stone, has secured a series of commercial agreements. These include expanding its collaboration with D.R. Horton to 19 communities in the Raleigh area and winning all regional stone installation work for a new, nationally leading homebuilder in the Charlotte region.
The company has also secured a multifamily housing project in the Charlotte metropolitan area valued at approximately $1 million. These contracts have driven the order book to its highest level in two years.
Matthew Lipman, CEO of Capstone, stated that these achievements reflect the broader momentum across the platform, with order volumes reaching their strongest point in at least two years, which will accelerate Capstone's organic growth. Securing the full regional stone installation work from a top national builder and deepening the partnership with D.R. Horton positions the company to achieve positive adjusted EBITDA in the second quarter while continuing to expand gross profit and margins.
Revenue from the new contracts is expected to begin being recognized in the fourth quarter of 2026 and continue into subsequent quarters, providing future revenue visibility and business expansion opportunities. The company anticipates these contracts will further strengthen its project pipeline and support continued gross margin expansion.
These new agreements build upon a strong first-quarter performance. First-quarter revenue grew 60% year-over-year to $12.6 million, gross profit increased 124% to $3 million, and the gross margin expanded by 670 basis points to 23.5%, representing the highest first-quarter gross margin in four years.
Key highlights include the expansion of the D.R. Horton partnership to 19 communities in the Raleigh market, winning all regional stone installation work for a new builder in the Charlotte market, establishing a repeatable revenue base, and securing a multifamily housing development project comprising 12 buildings, with revenue expected to be recognized starting in Q4 2026 and continuing into 2027.
Capstone is a technology-enabled building materials distribution platform that supplies stone veneer, hardscape materials, and modular masonry systems across 38 U.S. states and Canada through its Instone operating platform and inventory portal.
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