Capstone Holding Corp. (NASDAQ: CAPS) announced that its Carolina Stone subsidiary is expanding into the Wilmington–Myrtle Beach coastal corridor to meet rising demand from builder partners. This strategic move positions the company to deliver high-margin products and installation services to more than 230 active new-home communities in the Southeast's fastest-growing homebuilding region. The expansion is a direct response to increased construction activity from Capstone's builder partners across the coastal Carolinas, creating an immediate need for additional capacity.

The expansion follows a series of major commercial wins for Carolina Stone, including the expansion of its relationship with D.R. Horton to 19 communities. This development contributed to Capstone's strongest order volume in two years. By entering the Wilmington–Myrtle Beach market, Carolina Stone aims to capture revenue from active builder projects beginning in the second half of 2026.

"Myrtle Beach is the second-fastest-growing metropolitan area in the country, and expanding into this market is a key milestone for Carolina Stone," said Matthew Lipman, Chief Executive Officer. "This expansion is a direct response to demand from our builder partners, who are seeking greater access to our products and installation services as they grow across the coastal Carolinas. It is another sign of accelerating order volume and organic growth at Capstone."

Key Highlights of the Expansion

• Customer-Driven Expansion: The move into the Coastal Carolinas is driven by immediate demand from existing builder partners and record residential construction activity.
• Market Reach: The expansion brings Carolina Stone's inventory and installation services to the Southeast's most active homebuilding corridor, with over 230 communities currently in development.
• Sales Momentum: The decision follows platform-wide sales momentum, including the expanded D.R. Horton relationship, which helped drive order volume to its strongest level in two years.
• Margin Expansion: The initiative increases Carolina Stone's ability to sell architectural stone products and installation services, supporting continued gross profit growth.
• Revenue Timeline: The new operation is expected to open in August–September 2026, positioning the company to capture revenue in the second half of 2026.

Operational Details

The new operation will focus on delivering architectural stone products and installation services to builders in the region. Capstone's model combines digital infrastructure, owned-inventory logistics, and disciplined acquisitions to drive scalable margin expansion. The company expects the expansion to support continued pipeline visibility and gross profit growth.

Forward-Looking Statements

Capstone indicated that the benefits of its margin expansion and organic growth initiatives are expected to materialize in the quarters ahead. The company continues to focus on optimizing supply chains across 38 U.S. states and Canada through its Instone operating platform and inventory portal.