Capstone Awarded Eldorado Stone Distribution, Targeting $5 Million in Organic Revenue Growth

Capstone Holding Corp. (NASDAQ: CAPS) said it has been awarded distribution rights for Eldorado Stone, a premium manufactured stone veneer brand from Westlake Royal Building Products. The company expects the addition to generate $5 million in annualized run-rate revenue by Q3 2027, sold entirely through Capstone’s existing distribution channels with no incremental infrastructure investment.

Expansion of Westlake portfolio

Capstone is already a top-three national distributor of Westlake’s Cultured Stone brand. The Eldorado award expands that relationship by adding a second premium stone veneer brand to Capstone’s portfolio, highlighting the company’s ability to grow leading brands through its national distribution platform.

Eldorado Stone has more than 50 years of market presence and is described as one of the most widely specified manufactured stone veneer brands in North America.

Planned rollout through existing network

Capstone expects Eldorado Stone to be sold through its existing distribution network, increasing revenue per customer and per delivery route without requiring incremental fixed-cost investment. The company said the addition is another example of its scaled national distribution infrastructure driving operating leverage and margin expansion.

Key expected benefits

• $5 million in organic revenue growth: Capstone expects the Eldorado Stone addition to contribute $5 million in annualized run-rate revenue by Q3 2027. The company characterized the revenue as organic, requiring no acquisition cost, and flowing through existing infrastructure at high incremental margins.
• Deepening relationship with Westlake Royal Building Products: The award adds a second premium brand to Capstone’s portfolio, building on its existing distribution position for Cultured Stone.
• Share-of-wallet capture from existing customers: Capstone said many of its current customers already purchase Eldorado products elsewhere, creating an opportunity to redirect that spend to Capstone and increase revenue per account.
• New customer acquisition via architect specification: The company said Eldorado is frequently specified by architects and designers, generating inbound demand that can open new customer accounts and support cross-selling across Capstone’s product portfolio.
• Operating leverage and margin expansion: Capstone said incremental Eldorado revenue is expected to convert to EBITDA at significantly higher margins than its blended average, supported by sales through existing channels without incremental warehouse, logistics, or headcount investment.
• Platform momentum: Management said the Eldorado addition compounds accelerating growth across the platform, alongside recent multi-year homebuilder programs representing more than 300,000 square feet of annualized demand, a $2 million cost rationalization program, and a national commercial sales partnership.

Management commentary

Matthew Lipman, Chief Executive Officer of Capstone, said the Eldorado addition is expected to be a significant organic growth driver and reflects confidence in Capstone’s platform and ability to grow premium brands. He added that the $5 million in revenue requires no acquisition cost and flows through a cost structure already in place.

Lipman also said Capstone is at an inflection point, with scale and operating leverage built in 2025 driving volume growth across the platform at higher margins. He said the Eldorado award, along with homebuilder project wins and cost discipline, supports confidence in the company’s growth and earnings trajectory in 2026 and beyond.

Next steps and outlook

Capstone said it expects to publish an Earnings Power Presentation following its 2025 annual report, outlining organic growth momentum and management’s vision for building a technology leader in the building products sector.

The company also stated that it targets a positive corporate EBITDA run-rate beginning in Q2 2026, driven by the combination of Eldorado, recent homebuilder wins, and its cost rationalization program.

Company and brand background

Capstone Holding Corp. (NASDAQ: CAPS) is a national, technology-enabled building products distribution platform operating across 38 U.S. states and Canada. Through its Instone operating platform and inventory portal, Capstone aggregates and delivers proprietary stone veneer, hardscape materials, and modular masonry systems.

Eldorado Stone is a brand of Westlake Royal Building Products, a Westlake Corporation company (NYSE: WLK). Eldorado Stone has been a leader in premium manufactured stone veneer for more than 50 years and is headquartered in Oceanside, California.

Forward-looking statements

Capstone noted that the press release includes forward-looking statements under the Private Securities Litigation Reform Act of 1995, including expectations related to future revenue and EBITDA targets, capital use, and operating outlook. The company said actual results may differ materially due to factors such as acquisition timing, macroeconomic conditions, and execution risks, and it undertakes no obligation to revise forward-looking statements except as required by law.