United States Lime & Minerals(USLM) - 2025 Q3 - Quarterly Report

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].