Capstone Holding Corp. (NASDAQ: CAPS), a national distributor of building products, has reaffirmed its ambitious financial targets for 2025 while intensifying its mergers and acquisitions (M&A) strategy. The company continues to pursue a $100 million revenue run-rate and $10 million in adjusted EBITDA by year-end, powered by organic growth and strategic acquisitions.

Capstone remains confident in reaching its 2025 goals, emphasizing disciplined execution and a robust acquisition pipeline. The company is currently assessing several M&A opportunities priced attractively at 4–6x EBITDA, with up to 45% of deal value structured through non-cash consideration. Management expects these deals, if finalized, to significantly boost earnings.

To support this strategy, Capstone has secured an Equity Line of Credit (ELOC), enabling it to access capital for acquisitions without taking on high-interest debt or causing major equity dilution. CEO Matthew Lipman highlighted this flexible capital structure as key to executing profitable deals swiftly, stating, “We’ll only use the facility for earnings-accretive transactions, ensuring shareholder value remains protected.”

The company’s M&A framework is built for scale—targeting tuck-ins, sister businesses, and new platforms—to capitalize on long-term housing demand trends.

Meanwhile, its Instone division delivered stable margins despite typical Q1 seasonality and weather-related delays in the Northeast and Midwest. With SG&A expenses tracking to a sustainable $8 million annual rate, Capstone anticipates a stronger second half, driven by increased order volumes and the continued rollout of proprietary brands like Toro and Pangea.

Lipman added, “Our strategy is delivering results. With strong execution and disciplined capital deployment, we’re on track to double our business and expand margins—safeguarding long-term shareholder value.”

Capstone’s forward-looking outlook remains subject to factors like acquisition timing and broader economic conditions, as detailed in its SEC filings.

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News Source: Finance.yahoo.com