United States Lime & Minerals, Inc. ( USLM ) is a lime- and limestone-producing company. For the last 5 years, it has shown improvements in revenue growth. Revenues rose at a CAGR of 14.6% from 2020 to 2024. CostWorked in the finance and operational departments in the construction industry for 5 years. With a desire to become an equity research analyst and start my investing journey, I decided to leave the construction industry and go back to my roots in finance. Became a sector-focused analyst specializing ...

Group 1 - Spheria Asset Management's "Spheria Global Opportunities Fund" returned -1.7% in Q3 2025, underperforming the MSCI World Small Cap Accumulation Index which returned 5.6% [1] - The fund's performance in October 2025 was -1.6%, compared to a benchmark return of 1.4% [1] - The current market is characterized by speculative behavior, with high price-to-earnings multiples and loss-making companies outperforming fundamentally sound businesses [1] Group 2 - United States Lime & Minerals, Inc. (NASDAQ:USLM) had a one-month return of 1.35% but lost 15.94% over the last 52 weeks, closing at $120.73 per share on December 08, 2025, with a market capitalization of $3.458 billion [2] - The company is an integrated manufacturer of lime and limestone products, extracting limestone from long-life open-pit quarries and underground mines for use primarily in steel manufacturing and construction [3] - United States Lime & Minerals, Inc. was one of the largest detractors from the fund's performance, with an overweight position resulting in a -10% return [3]

Financial Performance - Revenues increased by 14.1% in Q3 2025 and 19.8% in the first nine months of 2025 compared to the same periods in 2024, driven by an 8.9% increase in sales volumes and a 5.1% increase in average selling prices for lime and limestone products [41]. - Gross profit rose by 21.1% in Q3 2025 and 29.2% in the first nine months of 2025, reflecting the revenue increases [42]. - Net income for Q3 2025 was $38.8 million, or $1.35 per diluted share, representing an increase of $5.4 million, or 16.3%, compared to Q3 2024 [59]. - For the first nine months of 2025, net income reached $103.7 million, or $3.61 per diluted share, an increase of $21.9 million, or 26.7%, compared to the same period in 2024 [59]. Cash Flow and Expenditures - Net cash provided by operating activities was $119.4 million in the first nine months of 2025, up 36.6% from $87.4 million in the same period of 2024 [44]. - Capital expenditures totaled $42.8 million in the first nine months of 2025, including $20.8 million related to the Texas kiln project [45]. - Cash and cash equivalents increased by $71.5 million to $349.5 million as of September 30, 2025, compared to $278.0 million at the end of 2024 [46]. Expenses and Taxation - Selling, general, and administrative expenses increased by 19.1% in Q3 2025 and 25.0% in the first nine months of 2025, primarily due to higher personnel expenses [54]. - Income tax expense increased to $10.9 million in Q3 2025 and $27.7 million in the first nine months of 2025, reflecting higher income before taxes [57]. Debt and Financing - The company had no debt outstanding and no draws on the revolving credit facility, except for $4.7 million in letters of credit related to the Texas kiln project [51]. Future Outlook - The company anticipates ongoing demand from data center construction, partially offset by softer demand from other industries [41]. - The company began construction on a new vertical kiln at the Texas Lime Company plant, with estimated costs of approximately $65 million, expected to be completed in 2026 [43]. Tax Legislation - The OBBBA, signed into law on July 4, 2025, made permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation [58]. - The OBBBA did not materially impact the effective income tax rate for 2025 but reduced cash tax outflows for the remainder of the year [58].

Financial Performance - Revenues for Q3 2025 were $102.0 million, a 14.1% increase from $89.4 million in Q3 2024[2] - Gross profit for Q3 2025 was $52.2 million, reflecting a 21.1% increase from $43.1 million in Q3 2024[3] - Net income for Q3 2025 was $38.8 million ($1.35 per diluted share), up 16.3% from $33.4 million ($1.16 per diluted share) in Q3 2024[6] - For the first nine months of 2025, revenues reached $284.8 million, a 19.8% increase from $237.7 million in the same period of 2024[2] - Other income for Q3 2025 was $3.4 million, compared to $3.1 million in Q3 2024, reflecting an increase due to higher interest earned[5] Expenses - SG&A expenses increased to $5.9 million in Q3 2025, a rise of 19.1% from $5.0 million in Q3 2024[4] Assets and Equity - Total assets as of September 30, 2025, were $652.8 million, compared to $543.2 million as of December 31, 2024[13] - Stockholders' equity increased to $602.3 million as of September 30, 2025, up from $497.7 million at the end of 2024[13] Dividends - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on December 12, 2025[8] Market Outlook - The company anticipates mixed demand moving forward, with strong construction demand offset by softer demand in other industries[7]

Core Insights - United States Lime & Minerals, Inc. reported a strong financial performance in Q3 2025, with revenues increasing by 14.1% year-over-year to $102.0 million, driven by higher sales volumes and average selling prices of lime and limestone products [1][2] - The company’s net income for Q3 2025 was $38.8 million, reflecting a 16.3% increase compared to $33.4 million in Q3 2024, with diluted earnings per share rising to $1.35 from $1.16 [5] Revenue and Profitability - Revenues for the first nine months of 2025 reached $284.8 million, up 19.8% from $237.7 million in the same period of 2024, attributed to increased sales volumes primarily from construction, environmental, and steel sectors [1] - Gross profit for Q3 2025 was $52.2 million, a 21.1% increase from $43.1 million in Q3 2024, and for the first nine months, gross profit rose by 29.2% to $140.2 million [2] Expenses - Selling, general and administrative (SG&A) expenses increased to $5.9 million in Q3 2025 from $5.0 million in Q3 2024, marking a 19.1% rise, with total SG&A expenses for the first nine months at $18.4 million, up 25.0% from $14.7 million [3] Other Income and Net Income - Other income for Q3 2025 was $3.4 million, compared to $3.1 million in Q3 2024, while for the first nine months, it increased to $9.6 million from $8.4 million [4] - The company’s net income for the first nine months of 2025 was $103.7 million, a 26.7% increase from $81.8 million in the same period of 2024 [5] Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on December 12, 2025, to shareholders of record by November 21, 2025 [7] Company Overview - United States Lime & Minerals, Inc. is a manufacturer of lime and limestone products, serving various industries including construction, environmental, industrial, metals, and oil and gas services, with operations across multiple states [8]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow generation and growth potential [1] - Subscribers benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the industry [1] Subscription Offer - A two-week free trial is available for new subscribers, allowing them to explore the oil and gas investment opportunities [2]

Core Insights - United States Lime & Minerals reported strong double-digit growth in revenue and net income for Q2 2025, but both GAAP EPS and revenue fell short of Wall Street expectations [1][5][6] Financial Performance - Revenue for Q2 2025 was $91.5 million, a 19.6% increase from Q2 2024, but $5.5 million below the analyst consensus of $97.0 million [1][2] - GAAP EPS was $1.07, reflecting a 17.6% increase year-over-year, yet $0.07 below the expected $1.14 [1][2] - Gross profit increased by 20.3% year-over-year, with a gross margin of 45.8%, slightly up from 45.5% in Q2 2024 [2][6] - Operating profit rose to $35.7 million, a 19.4% increase from the previous year [2] - Net income reached $30.8 million, an 18.3% increase compared to Q2 2024 [2] Business Overview - The company specializes in mining limestone and processing it into lime and limestone products for various sectors, including construction and environmental remediation [3][4] - It operates primarily in the Southern and Midwestern United States, with a significant focus on its Texas Lime Quarry [3] Strategic Focus - Recent strategies emphasize efficient extraction and production, supported by a diverse customer base of approximately 675 clients [4] - Key success factors include high-quality limestone deposits, production capacity, and regulatory compliance [4] Operational Insights - The increase in revenue was attributed to higher sales volumes and stronger selling prices, with solid demand from construction, steel, and environmental sectors [5] - SG&A expenses rose by 26.8% to $6.2 million, driven by higher personnel costs, which outpaced revenue and profit growth [6] Balance Sheet Strength - Current assets totaled $403.4 million, with equity at $563.3 million as of June 30, 2025 [7] - The company increased its quarterly dividend by 20% to $0.06 per share [7] Outlook - Management indicated strong demand in the construction sector but did not provide specific forward-looking financial guidance [8] - Investors are encouraged to monitor upcoming capital projects, operational efficiency, and SG&A expenses in future quarters [10]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [ITEM 1: FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201%3A%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs. Dec 31, 2024) | | :-------------------------------- | :----------------------------- | :------------------------------- | :------------------------ | | **ASSETS** | | | | | Cash and cash equivalents | $319,910 | $278,031 | +$41,879 | | Total current assets | $403,446 | $354,782 | +$48,664 | | Property, plant, and equipment, net | $199,223 | $182,891 | +$16,332 | | Total assets | $607,422 | $543,163 | +$64,259 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | | Total current liabilities | $18,548 | $16,962 | +$1,586 | | Total liabilities | $44,131 | $45,422 | -$1,291 | | Total stockholders' equity | $563,291 | $497,741 | +$65,550 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement reports the company's revenues, expenses, and net income over specific periods, reflecting operational performance Three Months Ended June 30 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | | Revenues | $91,518 | $76,545 | +19.6% | | Gross profit | $41,878 | $34,822 | +20.3% | | Operating profit | $35,689 | $29,940 | +19.2% | | Net income | $30,831 | $26,057 | +18.3% | | Basic Net income per share | $1.08 | $0.91 | +18.7% | | Diluted Net income per share | $1.07 | $0.91 | +17.6% | Six Months Ended June 30 | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------- | | Revenues | $182,771 | $148,232 | +23.3% | | Gross profit | $88,034 | $65,429 | +34.5% | | Operating profit | $75,583 | $55,699 | +35.7% | | Net income | $64,944 | $48,496 | +33.9% | | Basic Net income per share | $2.27 | $1.70 | +33.5% | | Diluted Net income per share | $2.26 | $1.69 | +33.7% | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement details changes in equity accounts, including net income, dividends, and stock-based compensation, over specific periods | Item | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | | Balances at Dec 31 | $497,741 | $393,104 | | Stock options exercised | $160 | $130 | | Stock-based compensation | $4,307 | $2,388 | | Treasury shares purchased | $(424) | $(172) | | Cash dividends paid | $(3,437) | $(2,857) | | Net income | $64,944 | $48,496 | | Balances at June 30 | $563,291 | $441,089 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash inflows and outflows from operating, investing, and financing activities over specific periods | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | YoY Change (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------ | | Net cash provided by operating activities | $73,465 | $48,364 | +$25,101 | | Net cash used in investing activities | $(27,885) | $(10,928) | -$16,957 | | Net cash used in financing activities | $(3,701) | $(2,899) | -$802 | | Net increase in cash and cash equivalents | $41,879 | $34,537 | +$7,342 | | Cash and cash equivalents at end of period | $319,910 | $222,501 | +$97,409 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [1. Basis of Presentation](index=7&type=section&id=1.%20Basis%20of%20Presentation) This note outlines the preparation principles for the unaudited financial statements, including adjustments and comparability considerations [2. Organization and Business Description](index=7&type=section&id=2.%20Organization) This note describes the company's core business of manufacturing lime and limestone products and its operational footprint - The Company manufactures lime and limestone products, supplying construction, industrial, environmental, metals, roof shingle, agriculture, and oil and gas services industries[15](index=15&type=chunk) - Operations are located in Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas, with headquarters in Dallas, Texas[15](index=15&type=chunk) - The Company also holds royalty and non-operated working interests in natural gas wells in Johnson County, Texas[15](index=15&type=chunk) [3. Accounting Policies](index=7&type=section&id=3.%20Accounting%20Policies) This note details the company's key accounting policies for revenue recognition and trade receivables - Revenue for lime and limestone operations is recognized upon shipment, with external freight billed to customers included in revenues[16](index=16&type=chunk) - Natural gas interests recognize revenue in the month of production and delivery[16](index=16&type=chunk) - Trade receivables are unsecured with fixed, short-term payment terms; credit losses are estimated based on collection probability, historical trends, and economic conditions[17](index=17&type=chunk) [4. Reportable Segment](index=8&type=section&id=4.%20Reportable%20Segment) This note clarifies the company's single reportable segment as lime and limestone operations, with prior period disclosures recast - The Company operates as **one reportable segment**: lime and limestone operations, with all activities in the United States[19](index=19&type=chunk) - Natural gas interests no longer meet the definition of an operating segment[19](index=19&type=chunk) Segment Revenues and Net Income | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Revenues | $91,518 | $76,545 | $182,771 | $148,232 | | Net income | $30,831 | $26,057 | $64,944 | $48,496 | [5. Income and Dividends Per Share of Common Stock](index=9&type=section&id=5.%20Income%20and%20Dividends%20Per%20Share%20of%20Common%20Stock) This note presents basic and diluted net income per share and cash dividends per share for common stock Net Income Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic net income per common share | $1.08 | $0.91 | $2.27 | $1.70 | | Diluted net income per common share | $1.07 | $0.91 | $2.26 | $1.69 | Cash Dividends Per Share | Period | 2025 Dividend Per Share | 2024 Dividend Per Share | | :-------------------------- | :---------------------- | :---------------------- | | Three Months Ended June 30 | $0.06 | $0.05 | | Six Months Ended June 30 | $0.12 | $0.10 | [6. Inventories](index=9&type=section&id=6.%20Inventories) This note details the valuation method for inventories and provides a breakdown of inventory types and their values - Inventories are valued at the lower of cost (average cost method) or net realizable value, including materials, labor, and production overhead[25](index=25&type=chunk) Inventories (in thousands) | Inventory Type | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Raw materials | $5,972 | $8,947 | | Finished goods | $2,387 | $3,000 | | Parts inventories | $17,236 | $15,739 | | Total Inventories | $25,595 | $27,686 | [7. Banking Facilities and Debt](index=9&type=section&id=7.%20Banking%20Facilities%20and%20Debt) This note describes the company's revolving credit facility and its debt status as of the reporting date - The Company has a **$75 million revolving credit facility** with Wells Fargo Bank, N.A., maturing on August 3, 2028, with an incremental **$50 million accordion feature**[26](index=26&type=chunk) - Interest rates are SOFR-based or Prime Rate-based, with margins determined by the Company's Cash Flow Leverage Ratio[27](index=27&type=chunk) - As of June 30, 2025, the Company had **no debt outstanding**, with **$7.4 million in letters of credit** related to the Texas kiln project counting as draws against the facility[30](index=30&type=chunk) [8. Leases](index=10&type=section&id=8.%20Leases) This note outlines the company's operating lease commitments, associated costs, and future minimum lease payments - The Company has operating leases for equipment, corporate office space, and terminal/distribution facilities, with a weighted-average remaining lease term of **4 years**[31](index=31&type=chunk) Net Operating Lease Costs (in thousands) | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $1,012 | $615 | | Six Months Ended June 30 | $1,734 | $1,118 | Future Minimum Lease Payments (in thousands) | Year | Amount | | :--- | :----- | | 2025 (remaining) | $1,175 | | 2026 | $1,537 | | 2027 | $1,043 | | 2028 | $519 | | 2029 | $184 | | Thereafter | $413 | | Total future minimum lease payments | $4,871 | | Present value of lease liabilities | $4,478 | [9. Income Taxes](index=11&type=section&id=9.%20Income%20Taxes) This note provides the estimated effective income tax rate and discusses the impact of recent tax legislation - The estimated effective income tax rate for 2025 is **20.6%**, primarily due to statutory depletion[35](index=35&type=chunk) - The "One Big Beautiful Bill Act" is expected to reclassify current taxes payable to deferred tax liabilities but not significantly impact future effective income tax rates[36](index=36&type=chunk) [10. Dividends](index=11&type=section&id=10.%20Dividends) This note reports the cash dividends paid per share during the reporting period - Cash dividends of **$0.06 per share** were paid on June 13, 2025, and March 14, 2025, each totaling **$1.7 million**[37](index=37&type=chunk) [11. Subsequent Event](index=11&type=section&id=11.%20Subsequent%20Event) This note discloses a significant event that occurred after the reporting period but before the financial statements were issued - On July 30, 2025, the Board declared a regular quarterly cash dividend of **$0.06 per share**, payable on September 12, 2025[38](index=38&type=chunk) [ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=12&type=section&id=ITEM%202%3A%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial performance and condition, discussing key drivers of revenue and profit changes, liquidity, capital resources, and operational results for the periods presented [Forward-Looking Statements](index=12&type=section&id=Forward-Looking%20Statements) This section cautions readers about statements regarding future events, which are subject to risks and uncertainties - The report contains forward-looking statements regarding plans, strategies, objectives, expectations, and resources, identified by words like "will," "expect," "intend," and "project"[39](index=39&type=chunk) - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including changes in demand, costs, regulations, and economic conditions[39](index=39&type=chunk) - The Company does not undertake to publicly update or revise any forward-looking statements[39](index=39&type=chunk) [Overview](index=14&type=section&id=Overview) This section provides a high-level summary of the company's financial performance, including revenue and gross profit trends and key strategic initiatives - Revenues increased by **19.6% in Q2 2025** and **23.3% in the first six months of 2025** compared to the prior year, driven by increased sales volumes (**12.1% in Q2, 15.7% in H1**) and a **7.6% increase in average selling prices**[41](index=41&type=chunk) - Increased demand from construction, environmental, and steel customers primarily drove the sales volume growth[41](index=41&type=chunk) - Gross profit increased by **20.3% in Q2 2025** and **34.5% in the first six months of 2025**, primarily due to higher revenues[42](index=42&type=chunk) - Construction of a new vertical kiln at the Texas Lime Company plant began in 2024, with an estimated total cost of **$65 million** and completion in 2026[43](index=43&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to generate and manage cash, including operating cash flows, capital expenditures, and available credit facilities - Net cash provided by operating activities increased by **$25.1 million (51.9%) to $73.5 million** in the first six months of 2025, primarily due to higher net income, depreciation, depletion, and amortization, and stock-based compensation[44](index=44&type=chunk) - Capital expenditures significantly increased to **$28.1 million** in the first six months of 2025 from **$11.2 million** in 2024, including **$14.1 million** for the Texas kiln project[45](index=45&type=chunk) - Cash and cash equivalents increased by **$41.9 million to $319.9 million** at June 30, 2025[46](index=46&type=chunk) - The Company has a **$75 million revolving credit facility** with no outstanding debt as of June 30, 2025, apart from **$7.4 million in letters of credit** for the Texas kiln project[51](index=51&type=chunk) - Management believes current cash and operating cash flows will be sufficient to meet operating, capital, and liquidity needs, including dividends, in the near future[51](index=51&type=chunk) [Results of Operations](index=15&type=section&id=Results%20of%20Operations) This section analyzes the company's financial results, detailing changes in revenues, expenses, and net income for the reporting periods Key Financial Performance (YoY Changes) | Metric | Q2 2025 vs Q2 2024 | H1 2025 vs H1 2024 | | :-------------------------------- | :----------------- | :----------------- | | Revenues | +19.6% ($15.0M) | +23.3% ($34.5M) | | Gross profit | +20.3% ($7.1M) | +34.5% ($22.6M) | | Selling, general, and administrative expenses | +26.8% ($1.3M) | +28.0% ($2.7M) | | Other (income) expense, net | +$0.3M | +$0.9M | | Income tax expense | +$1.3M | +$4.3M | | Net income | +18.3% ($4.8M) | +33.9% ($16.4M) | - Increases in revenues and gross profit were driven by higher sales volumes from construction, environmental, and steel customers, and increased average selling prices[52](index=52&type=chunk)[53](index=53&type=chunk) - SG&A expenses increased primarily due to higher personnel expenses, including stock-based compensation[54](index=54&type=chunk) - Other (income) expense, net, increased due to higher interest earned on increased cash and cash equivalents balances[56](index=56&type=chunk) - Income tax expense increased in line with the increase in income before taxes[57](index=57&type=chunk) [PART II. OTHER INFORMATION](index=16&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes disclosures on controls and procedures, equity security sales, and mine safety information [ITEM 4: CONTROLS AND PROCEDURES](index=16&type=section&id=ITEM%204%3A%20CONTROLS%20AND%20PROCEDURES) This section reports on the effectiveness of the company's disclosure controls and internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2025[60](index=60&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[61](index=61&type=chunk) [ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=16&type=section&id=ITEM%202%3A%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's equity incentive plan and confirms no repurchases of equity securities during the quarter - The Amended and Restated 2001 Long-Term Incentive Plan allows employees and directors to pay for stock option exercises and tax withholding liabilities with cash and/or common stock[62](index=62&type=chunk) - There were **no repurchases of equity securities** in the second quarter of 2025[62](index=62&type=chunk) [ITEM 4: MINE SAFETY DISCLOSURES](index=16&type=section&id=ITEM%204%3A%20MINE%20SAFETY%20DISCLOSURES) This section provides information on the company's compliance with federal mine safety regulations and its commitment to workplace safety - The Company's quarries, underground mines, and plants are subject to MSHA regulation under the Federal Mine Safety and Health Act of 1977[63](index=63&type=chunk) - The Company aims to provide a safe workplace through employee training, open communication, adherence to safety standards, employee involvement, and accident investigation[64](index=64&type=chunk) - MSHA enforcement and dollar penalties for citations have significantly increased since the Mine Improvement and New Emergency Response Act of 2006[65](index=65&type=chunk) [EXHIBIT INDEX](index=17&type=section&id=EXHIBIT%20INDEX) This section lists all supplementary documents and certifications filed as part of the Form 10-Q report - The Exhibit Index includes Rule 13a-14(a)/15d-14(a) Certifications by the CEO and CFO, Section 1350 Certifications, Mine Safety Disclosures, and Interactive Data Files (Inline XBRL)[68](index=68&type=chunk) [SIGNATURES](index=18&type=section&id=SIGNATURES) This section contains the official certifications and signatures of the company's authorized officers for the report filing - The report is signed by Timothy W. Byrne, President and Chief Executive Officer, and Michael L. Wiedemer, Vice President and Chief Financial Officer, on July 31, 2025[72](index=72&type=chunk)

Financial Performance - The company's revenues for Q2 2025 were $91.5 million, a 19.6% increase from $76.5 million in Q2 2024, and for the first six months of 2025, revenues were $182.8 million, up 23.3% from $148.2 million in the same period of 2024 [1][2] - Gross profit for Q2 2025 was $41.9 million, reflecting a 20.3% increase from $34.8 million in Q2 2024, and for the first six months of 2025, gross profit was $88.0 million, a 34.5% increase from $65.4 million in the same period of 2024 [2] - Net income for Q2 2025 was $30.8 million ($1.07 per diluted share), an 18.3% increase from $26.1 million ($0.91 per diluted share) in Q2 2024, and for the first six months of 2025, net income was $64.9 million ($2.26 per diluted share), a 33.9% increase from $48.5 million ($1.69 per diluted share) in the same period of 2024 [5] Expenses - Selling, general and administrative (SG&A) expenses were $6.2 million in Q2 2025, a 26.8% increase from $4.9 million in Q2 2024, and for the first six months of 2025, SG&A expenses were $12.5 million, up 28.0% from $9.7 million in the same period of 2024 [3] - Other income for Q2 2025 was $3.1 million, compared to $2.8 million in Q2 2024, and for the first six months of 2025, it was $6.2 million, up from $5.3 million in the same period of 2024, primarily due to interest earned on higher cash balances [4] Dividend Announcement - The company declared a quarterly cash dividend of $0.06 per share, payable on September 12, 2025, to shareholders of record as of August 22, 2025 [7] Company Overview - United States Lime & Minerals, Inc. is a manufacturer of lime and limestone products, serving various industries including construction, environmental, industrial, metals, agriculture, and oil and gas services [8]

[News Release Summary](index=1&type=section&id=News%20Release%20Summary) United States Lime & Minerals, Inc. reported strong financial results for the second quarter and first six months of 2025, driven by increased sales volumes and average selling prices of lime and limestone products [Key Financial Highlights (Q2 & YTD 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20(Q2%20%26%20YTD%202025)) United States Lime & Minerals, Inc. reported strong financial results for the second quarter and first six months of 2025, driven by increased sales volumes and average selling prices of lime and limestone products Key Financial Highlights (Q2 & YTD 2025 vs 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Q2 YoY Change (%) | YTD 2025 ($ millions) | YTD 2024 ($ millions) | YTD YoY Change (%) | | :----------------- | :------------------- | :------------------- | :---------------- | :-------------------- | :-------------------- | :----------------- | | Revenues | 91.5 | 76.5 | 19.6% | 182.8 | 148.2 | 23.3% | | Gross Profit | 41.9 | 34.8 | 20.3% | 88.0 | 65.4 | 34.5% | | Net Income | 30.8 | 26.1 | 18.3% | 64.9 | 48.5 | 33.9% | | Diluted EPS | 1.07 | 0.91 | 17.6% | 2.26 | 1.69 | 33.7% | - Demand from construction customers remained **solid**[7](index=7&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) This section analyzes Q2 and YTD 2025 performance across revenues, gross profit, SG&A, other income, and net income [Revenues](index=1&type=section&id=Revenues) Revenues significantly increased in Q2 and YTD 2025, driven by higher sales volumes and average selling prices of lime and limestone products to key customers Revenue Performance (Q2 & YTD 2025 vs 2024) | Period | 2025 ($ millions) | 2024 ($ millions) | Increase ($ millions) | Increase (%) | | :--------------- | :---------------- | :---------------- | :-------------------- | :----------- | | Second Quarter | 91.5 | 76.5 | 15.0 | 19.6% | | First Six Months | 182.8 | 148.2 | 34.5 | 23.3% | - Increases in revenues resulted from **increases in sales volumes** and **average selling prices** for lime and limestone products, principally to construction, environmental, and steel customers[2](index=2&type=chunk) [Gross Profit](index=1&type=section&id=Gross%20Profit) Gross profit saw substantial growth in Q2 and the first half of 2025, primarily attributable to the overall increase in revenues Gross Profit Performance (Q2 & YTD 2025 vs 2024) | Period | 2025 ($ millions) | 2024 ($ millions) | Increase ($ millions) | Increase (%) | | :--------------- | :---------------- | :---------------- | :-------------------- | :----------- | | Second Quarter | 41.9 | 34.8 | 7.1 | 20.3% | | First Six Months | 88.0 | 65.4 | 22.6 | 34.5% | - Increases in gross profit primarily resulted from the **increases in revenues**[3](index=3&type=chunk) [Selling, General and Administrative Expenses (SG&A)](index=1&type=section&id=Selling,%20General%20and%20Administrative%20Expenses%20(SG%26A)) SG&A expenses increased in both periods, mainly due to higher personnel expenses, including stock-based compensation SG&A Expenses (Q2 & YTD 2025 vs 2024) | Period | 2025 ($ millions) | 2024 ($ millions) | Increase ($ millions) | Increase (%) | | :--------------- | :---------------- | :---------------- | :-------------------- | :----------- | | Second Quarter | 6.2 | 4.9 | 1.3 | 26.8% | | First Six Months | 12.5 | 9.7 | 2.7 | 28.0% | - Increases in SG&A expenses were primarily due to **increased personnel expenses**, including **stock-based compensation**[4](index=4&type=chunk) [Other (Income) Expense, Net](index=1&type=section&id=Other%20(Income)%20Expense,%20Net) Other income, net, increased in both periods, primarily driven by higher interest earned on increased average balances of cash and cash equivalents Other (Income) Expense, Net (Q2 & YTD 2025 vs 2024) | Period | 2025 ($ millions) | 2024 ($ millions) | Increase ($ millions) | | :--------------- | :---------------- | :---------------- | :-------------------- | | Second Quarter | 3.1 | 2.8 | 0.3 | | First Six Months | 6.2 | 5.3 | 0.9 | - Increases in other (income) expense, net were primarily due to **interest earned** on **higher average balances of cash and cash equivalents**[5](index=5&type=chunk) [Net Income and Earnings Per Share (EPS)](index=1&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share%20(EPS)) The company reported significant increases in net income and diluted EPS for both the second quarter and the first six months of 2025 Net Income and Diluted EPS (Q2 & YTD 2025 vs 2024) | Metric | 2025 ($ millions) | 2024 ($ millions) | Increase ($ millions) | Increase (%) | | :--------------- | :---------------- | :---------------- | :-------------------- | :----------- | | **Net Income:** | | | | | | Second Quarter | $30.8 | $26.1 | $4.8 | 18.3% | | First Six Months | $64.9 | $48.5 | $16.4 | 33.9% | | **Diluted EPS:** | | | | | | Second Quarter | $1.07 | $0.91 | | | | First Six Months | $2.26 | $1.69 | | | [Dividend Information](index=1&type=section&id=Dividend%20Information) The Board of Directors declared a regular quarterly cash dividend, payable in September 2025 to shareholders of record in August 2025 - The Board of Directors declared a regular quarterly cash dividend of **$0.06 per share** on the Company's common stock[8](index=8&type=chunk) - This dividend is payable on September 12, 2025, to shareholders of record at the close of business on August 22, 2025[8](index=8&type=chunk) [Company Profile](index=1&type=section&id=Company%20Profile) This section outlines the company's business operations, product offerings, and geographic presence through its subsidiaries [Business Operations and Products](index=1&type=section&id=Business%20Operations%20and%20Products) United States Lime & Minerals, Inc. manufactures lime and limestone products for construction, industrial, environmental, metals, and oil and gas industries - United States Lime & Minerals, Inc. is a **manufacturer of lime and limestone products**[8](index=8&type=chunk) - The company supplies primarily the **construction** (including highway, road and building contractors), **industrial** (including paper and glass manufacturers), **environmental** (including municipal sanitation and water treatment facilities and flue gas treatment processes), **metals** (including steel producers), **roof shingle manufacturers**, **agriculture** (including poultry producers), and **oil and gas services industries**[8](index=8&type=chunk)[9](index=9&type=chunk) [Geographic Presence and Subsidiaries](index=3&type=section&id=Geographic%20Presence%20and%20Subsidiaries) The company operates lime and limestone plants across six states through subsidiaries and holds natural gas interests in Johnson County, Texas - The Company operates lime and limestone plants and distribution facilities in **Arkansas**, **Colorado**, **Louisiana**, **Missouri**, **Oklahoma**, and **Texas**[9](index=9&type=chunk) - Operations are conducted through wholly owned subsidiaries such as **Arkansas Lime Company**, **Colorado Lime Company**, **Mill Creek Dolomite, LLC**, **Texas Lime Company**, and others[9](index=9&type=chunk) - Through its wholly owned subsidiary, U.S. Lime Company-O & G, LLC, the Company has **royalty and non-operated working interests** in **natural gas wells** located in Johnson County, Texas, in the Barnett Shale Formation[9](index=9&type=chunk) [Condensed Consolidated Financial Data](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Data) This section presents the condensed consolidated income statements and balance sheets, highlighting key financial positions and performance metrics [Income Statements](index=4&type=section&id=Income%20Statements) The condensed consolidated income statements show significant year-over-year growth in revenues, gross profit, operating profit, and net income for Q2 and YTD 2025 Condensed Consolidated Income Statements (In thousands, except per share amounts) | INCOME STATEMENTS | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $ 91,518 | $ 76,545 | $182,771 | $ 148,232 | | Cost of revenues | 49,640 | 41,723 | 94,737 | 82,803 | | Gross profit | $ 41,878 | $ 34,822 | $ 88,034 | $ 65,429 | | Selling, general and administrative expenses | 6,189 | 4,882 | 12,451 | 9,730 | | Operating profit | $ 35,689 | $ 29,940 | $ 75,583 | $ 55,699 | | Other (income) expense, net | (3,098) | (2,786) | (6,189) | (5,326) | | Income tax expense | 7,956 | 6,669 | 16,828 | 12,529 | | Net income | $ 30,831 | $ 26,057 | $ 64,944 | $ 48,496 | | Income per share of common stock: | | | | | | Basic | $ 1.08 | $ 0.91 | $ 2.27 | $ 1.70 | | Diluted | $ 1.07 | $ 0.91 | $ 2.26 | $ 1.69 | | Weighted-average shares outstanding: | | | | | | Basic | 28,637 | 28,590 | 28,630 | 28,564 | | Diluted | 28,729 | 28,698 | 28,728 | 28,661 | | Cash dividends per share of common stock | $ 0.06 | $ 0.05 | $ 0.12 | $ 0.10 | [Balance Sheets](index=4&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets indicate increased total assets and stockholders' equity as of June 30, 2025, driven by growth in current assets and property, plant and equipment Condensed Consolidated Balance Sheets (In thousands) | BALANCE SHEETS | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **Assets:** | | | | Current assets | $403,446 | $354,782 | | Property, plant and equipment, net | 199,223 | 182,891 | | Other non-current assets | 4,753 | 5,490 | | Total assets | $607,422 | $543,163 | | **Liabilities and Stockholders' Equity:** | | | | Current liabilities | $ 18,548 | $ 16,962 | | Deferred tax liabilities, net | 21,370 | 23,659 | | Other long-term liabilities | 4,213 | 4,801 | | Stockholders' equity | 563,291 | 497,741 | | Total liabilities and stockholders' equity | $607,422 | $543,163 | [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section cautions investors about forward-looking statements, noting inherent risks and uncertainties that may cause actual results to differ materially - Statements in the News Release that are not historical fact are **forward-looking statements** as defined in the Private Securities Litigation Reform Act of 1995[10](index=10&type=chunk) - The Company undertakes no obligation to publicly update or revise any forward-looking statements[10](index=10&type=chunk) - Investors are cautioned that such statements involve **risks and uncertainties** that could cause actual results to differ materially from expectations[10](index=10&type=chunk)