Capstone Positioned to Lead Multi-Year Remodeling Cycle as Demand Improves
Strong market and industry tailwinds are forming around Capstone as the Company targets margin expansion and a positive EBITDA run-rate beginning in Q2 2026.
NEW YORK CITY, NEW YORK / ACCESS Newswire / February 17, 2026 / Capstone Holding Corp. (NASDAQ:CAPS), a tech-enabled building products distribution platform, highlighted new industry research from Zonda showing that deferred home-remodeling activity is accumulating into a multi-year demand cycle. Zonda forecasts 3.6% market growth in 2026, accelerating to 8.1% in 2027.
This demand outlook aligns with Capstone's platform capabilities and is expected to drive margin expansion and operating leverage. The Company remains on track to reach a positive EBITDA run-rate beginning in the second quarter.
"We're emerging from a prolonged period of deferred construction and remodeling activity. While our peers pulled back, we invested-building a tech-enabled platform with significant scale and supply chain advantages," said Matthew Lipman, Chief Executive Officer of Capstone. "As we enter a new demand cycle, there is no company better positioned than Capstone to lead the market. We are very confident in the project-driven growth we expect to capture in the periods ahead."
Key Highlights:
Improving Spend and Project Activity: Capstone enters the second half of 2026 with favorable year-over-year comparisons, improving premium customer spend, and projected growth across outdoor and exterior project categories.
Demand Cycle With Historical Precedent: The current deferral cycle closely mirrors conditions seen in the early 1980s, which preceded the largest expansions in U.S. mobility, remodeling, and DIY spending in history.
Growth Accretive to Margins: Capstone enters this demand cycle with established scale, technology, and supply chain advantages. As volumes recover, incremental growth is expected to be directly accretive to margins, reinforcing the Company's profitability trajectory.
AI-Native Operating Efficiencies: Capstone is actively transitioning toward an AI-native operating model, with initiatives expected to deliver measurable efficiency gains and profitability uplift across its distribution portfolio.
Multiple Tailwinds Converging: Improving economic visibility, a constructive outlook for small-cap equities, and an emerging industry demand cycle are combining to create the strongest forward tailwind environment the Company has seen in years.
Zonda's industry research represents the latest data point supporting Capstone's forward-looking outlook, alongside a set of broader structural tailwinds. These include expectations for accelerating small-cap earnings growth in 2026. Bank of America strategist Jill Carey Hall has forecast 17% earnings growth for small-cap companies, compared with 14% for large-cap peers.
"It's an important moment for our business," Lipman added. "We entered 2026 focused on converting the scale we've built into margin expansion and profitable growth, and we are executing that transition with speed and discipline as market conditions improve."
Capstone expects to publish an Earnings Power Presentation in the first quarter of 2026, outlining the impact of these initiatives and management's vision for building a full-stack AI leader in the building products sector.
About Capstone Holding Corp.
Capstone Holding Corp. (NASDAQ:CAPS) is a national, technology-enabled building products distribution platform optimizing supply chains across 38 U.S. states and Canada. Through its Instone operating platform and inventory portal, the Company aggregates and delivers proprietary stone veneer, hardscape materials, and modular masonry systems. Capstone's model combines digital infrastructure, owned-inventory logistics, and disciplined acquisitions to drive scalable margin expansion and operating leverage across its growing platform.
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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.
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