USLM's Q3 Earnings Soar on Strong Revenue, Profit Growth

TL;DR

**USLM is crushing it, with profits up 26.7% and zero debt, making it a solid bet in a growing market.**

AI Summary

UNITED STATES LIME & MINERALS INC (USLM) reported robust financial performance for the nine months ended September 30, 2025, with revenues increasing by 19.8% to $284.787 million from $237.659 million in the prior year. Net income surged by 26.7% to $103.726 million, up from $81.849 million, demonstrating strong profitability. Basic net income per common share rose to $3.62 from $2.86. The company significantly increased its capital expenditures, with purchases of property, plant, and equipment reaching $42.789 million, a substantial increase from $16.371 million in the same period of 2024, primarily driven by the new kiln project at the Texas Lime Company plant. Cash and cash equivalents grew to $349.514 million as of September 30, 2025, from $278.031 million at December 31, 2024. Operating activities generated $119.406 million in cash, up from $87.414 million. The company maintains a strong balance sheet with no debt outstanding on its $75 million revolving credit facility, though $4.7 million in letters of credit are outstanding.

Why It Matters

This strong performance from UNITED STATES LIME & MINERALS INC signals robust demand in its core markets, including construction, industrial, and environmental sectors. For investors, the significant increase in net income and cash flow, coupled with zero outstanding debt, indicates financial health and potential for continued shareholder returns, as evidenced by increased cash dividends. Employees benefit from a stable and growing company, while customers can expect continued investment in production capacity, like the new kiln, which could enhance supply reliability. In a competitive landscape, USLM's strong capital position and strategic investments position it favorably against peers in the lime and limestone industry.

Risk Assessment

Risk Level: low — The company exhibits a low risk profile, evidenced by its strong cash position of $349.514 million and zero outstanding debt on its $75 million revolving credit facility as of September 30, 2025. Furthermore, the Cash Flow Leverage Ratio covenant of 3.50 to 1 provides ample headroom, and the company's ability to pay dividends and repurchase shares is tied to a pro forma Cash Flow Leverage Ratio of less than 3.00 to 1.00, indicating conservative financial management.

Analyst Insight

Investors should consider USLM a stable investment given its strong financial performance, significant cash reserves, and lack of outstanding debt. The increased capital expenditures suggest strategic growth initiatives, which could drive future earnings. Monitor the progress of the new kiln project at the Texas Lime Company plant for further operational efficiencies.

Financial Highlights

debt To Equity

0.08

revenue

$284.787M

operating Margin

42.8%

total Assets

$652.804M

total Debt

$0

net Income

$103.726M

eps

$3.62

gross Margin

49.2%

cash Position

$349.514M

revenue Growth

+19.8%

Revenue Breakdown

Key Numbers

• $284.787M — Revenues (Increased by 19.8% for the nine months ended September 30, 2025, compared to $237.659 million in 2024.)
• $103.726M — Net Income (Increased by 26.7% for the nine months ended September 30, 2025, compared to $81.849 million in 2024.)
• $3.62 — Basic Net Income Per Share (Increased from $2.86 for the nine months ended September 30, 2024.)
• $349.514M — Cash and Cash Equivalents (As of September 30, 2025, up from $278.031 million at December 31, 2024.)
• $42.789M — Purchase of Property, Plant, and Equipment (Increased significantly from $16.371 million for the nine months ended September 30, 2024, indicating capital investment.)
• $0 — Debt Outstanding (As of September 30, 2025, on the $75 million revolving credit facility.)
• $4.7M — Letters of Credit (Outstanding as of September 30, 2025, related to the new kiln project.)
• 28,639,399 — Shares of Common Stock Outstanding (As of October 28, 2025.)
• 21% — Estimated Effective Income Tax Rate (For the full year 2025.)
• $0.18 — Cash Dividends Per Share (Paid for the nine months ended September 30, 2025, up from $0.15 in 2024.)

Key Players & Entities

• UNITED STATES LIME & MINERALS INC (company) — registrant
• Wells Fargo Bank, N.A. (company) — lender for revolving credit facility
• Texas Lime Company (company) — subsidiary with new kiln project
• Nasdaq Stock Market LLC (regulator) — exchange where common stock is registered
• SEC (regulator) — filing oversight
• Arkansas Lime Company (company) — wholly owned subsidiary
• ART Quarry TRS LLC (company) — wholly owned subsidiary
• Colorado Lime Company (company) — wholly owned subsidiary
• Mill Creek Dolomite, LLC (company) — wholly owned subsidiary
• U.S. Lime Company-O & G, LLC (company) — wholly owned subsidiary with natural gas interests

FAQ

Risk Factors

• Operational Disruptions [high — operational]: Interruptions to operations and increased expenses can arise from changes in mining methods, variability in limestone properties impacting equipment and quality, inclement weather (including climate change impacts), natural disasters, accidents, IT system failures (including cybersecurity threats), utility disruptions, supply chain delays, labor shortages, and regulatory requirements.
• Input Cost Volatility [medium — market]: Volatile costs for coal, petroleum coke, diesel, natural gas, electricity, and transportation, along with the availability of delivery resources like trucks and rail cars, pose a risk to timely and competitive product delivery.
• Demand and Pricing Pressure [medium — market]: Inadequate demand and/or pricing for lime and limestone products due to increased competition is a significant risk.
• Liquidity and Capital Needs [medium — financial]: The company's ability to meet short-term and long-term liquidity demands, including operating and capital needs, possible acquisitions, and dividend payments, is subject to credit and equity market conditions and customer payment abilities.
• Expansion and Integration Risks [medium — operational]: Expanding operations through projects and acquisitions carries risks related to financing, integration, and selling increased production at acceptable prices.
• Regulatory Compliance [low — regulatory]: The company must navigate various regulatory requirements that could lead to increased expenses or operational disruptions.

Industry Context

The lime and limestone industry is characterized by its essential role in various sectors, including construction, steel manufacturing, environmental applications, and agriculture. Key trends include increasing demand for high-purity lime products, growing environmental regulations driving demand for emissions control solutions, and consolidation within the industry. USLM operates in a competitive landscape where reliable supply, product quality, and cost management are critical success factors.

Regulatory Implications

The company faces potential regulatory risks related to environmental standards, mining operations, and transportation. Compliance with evolving environmental regulations, particularly concerning emissions and land use, is crucial. Any disruptions or increased costs associated with regulatory changes could impact operational efficiency and profitability.

What Investors Should Do

1. Monitor the progress and cost-effectiveness of the new kiln project at the Texas Lime Company plant.
2. Assess the impact of rising input costs and transportation expenses on future margins.
3. Evaluate the company's ability to maintain strong revenue growth and operating margins amidst competitive pressures.
4. Review the company's cash generation and capital allocation strategy, particularly regarding dividends and potential acquisitions.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant revenue growth of 19.8% and net income surge of 26.7%, alongside a substantial increase in capital expenditures for the new kiln project.
• 2025-10-28: Shares of Common Stock Outstanding — Reported 28,639,399 shares outstanding, providing a basis for per-share metrics and market capitalization.
• 2025-12-31: Year-end 2024 — Provided a comparative baseline for cash and cash equivalents ($278.031 million) and total assets ($543.163 million).

Glossary

Property, plant, and equipment, net

The net book value of tangible assets used in the company's operations, after deducting accumulated depreciation and depletion. (Indicates the company's investment in its operational infrastructure, with a significant increase noted due to the new kiln project.)

Retained earnings

The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (Shows the company's historical profitability and its ability to reinvest earnings back into the business, with a substantial increase from $515.622 million to $614.193 million.)

Treasury stock

Shares of the company's own stock that it has repurchased from the open market. (Represents a reduction in outstanding shares and can be used for stock options or future acquisitions. The value increased slightly from $61.398 million to $61.822 million.)

Operating lease right-of-use assets

Assets recognized under accounting standards for leases, representing the right to use an asset for the lease term. (Reflects the company's obligations for leased assets, with a decrease from $4.855 million to $4.153 million.)

Letters of credit

A financial instrument issued by a bank guaranteeing that a seller will receive payment from a buyer, provided certain conditions are met. (Outstanding letters of credit of $4.7 million are noted, primarily related to the new kiln project, indicating contingent liabilities.)

Operating profit

Profitability derived from a company's core business operations before accounting for interest and taxes. (Demonstrates the strong performance of the company's primary activities, with an increase to $121.845 million for the nine months.)

Other (income) expense, net

Includes various non-operating income or expense items, such as interest income, interest expense, and foreign currency gains or losses. (This line item shows a net income of $9.605 million for the nine months, indicating favorable non-operating items.)

Income tax expense

The amount of tax a company is liable for on its taxable income. (The effective tax rate for the full year 2025 is estimated at 21%, with the nine-month expense totaling $27.724 million.)

Year-Over-Year Comparison

UNITED STATES LIME & MINERALS INC (USLM) has demonstrated a strong upward trajectory compared to the prior year. Revenues for the nine months ended September 30, 2025, increased by 19.8% to $284.787 million, a significant improvement from $237.659 million in 2024. Net income also saw a substantial rise of 26.7%, reaching $103.726 million from $81.849 million, indicating enhanced profitability. The company has aggressively increased capital expenditures, more than doubling investments in property, plant, and equipment to $42.789 million, primarily for a new kiln project, signaling a strategic focus on future growth. This investment is supported by a robust increase in operating cash flow and a growing cash balance, while maintaining a debt-free position on its credit facility.

Key Financial Figures

• $0.10 — ange on which registered Common stock, $0.10 par value USLM The Nasdaq Stock Mar

Filing Documents

• uslm-20250930x10q.htm (10-Q) — 909KB
• uslm-20250930xex31d1.htm (EX-31.1) — 14KB
• uslm-20250930xex31d2.htm (EX-31.2) — 14KB
• uslm-20250930xex32d1.htm (EX-32.1) — 6KB
• uslm-20250930xex32d2.htm (EX-32.2) — 6KB
• uslm-20250930xex95d1.htm (EX-95.1) — 98KB
• 0001104659-25-104345.txt ( ) — 4114KB
• uslm-20250930.xsd (EX-101.SCH) — 26KB
• uslm-20250930_cal.xml (EX-101.CAL) — 51KB
• uslm-20250930_def.xml (EX-101.DEF) — 82KB
• uslm-20250930_lab.xml (EX-101.LAB) — 256KB
• uslm-20250930_pre.xml (EX-101.PRE) — 165KB
• uslm-20250930x10q_htm.xml (XML) — 596KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

: FINANCIAL STATEMENTS

ITEM 1: FINANCIAL STATEMENTS UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands) (Unaudited) September 30, December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 349,514 $ 278,031 Trade receivables, net 59,296 43,982 Inventories 28,681 27,686 Prepaid expenses and other current assets 2,795 5,083 Total current assets 440,286 354,782 Property, plant, and equipment 535,132 493,246 Less accumulated depreciation and depletion ( 327,220 ) ( 310,355 ) Property, plant, and equipment, net 207,912 182,891 Operating lease right-of-use assets 4,153 4,855 Other assets, net 453 635 Total assets $ 652,804 $ 543,163 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 11,892 $ 8,819 Current portion of operating lease liabilities 1,643 1,602 Accrued expenses 9,611 6,541 Total current liabilities 23,146 16,962 Deferred tax liabilities, net 23,414 23,659 Operating lease liabilities, excluding current portion 2,674 3,437 Other liabilities 1,301 1,364 Total liabilities 50,535 45,422 Stockholders' equity Common stock 2,970 2,968 Additional paid-in capital 46,928 40,549 Retained earnings 614,193 515,622 Less treasury stock, at cost ( 61,822 ) ( 61,398 ) Total stockholders' equity 602,269 497,741 Total liabilities and stockholders' equity $ 652,804 $ 543,163 See accompanying notes to condensed consolidated financial statements. 2 UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues $ 102,016 100.0 % $ 89,427 100.0 % $ 284,787 100.0 % $ 237,659 100.0 % Cost of revenues Labor and other operatin

: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements. Any statements contained in this Report that are not statements of historical fact are forward- looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward- looking statements in this Report, including without limitation statements relating to the Company's plans, strategies, objectives, expectations, intentions, and adequacy of resources, are identified by such words as "will," "could," "should," "would," "believe," "possible," "potential," "expect," "intend," "plan," "schedule," "estimate," "anticipate," and "project." The Company undertakes no obligation to publicly update or revise any forward-looking statements. The Company cautions that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including without limitation the following: (i) the Company's plans, strategies, objectives, expectations, and intentions are subject to change at any time at the Company's discretion; (ii) the Company's plans and results of operations will be affected by its ability to maintain and increase its revenues and manage its growth; (iii) the Company's ability to meet short-term and long-term liquidity demands, including meeting the Company's operating and capital needs, including possible acquisitions and paying dividends, and conditions in the credit and equity markets, including the ability of the Company's customers to meet their obligations; (iv) interruptions to operations and increased expenses at the Company's facilities resulting from changes in mining methods or conditions, variability of chemical or physical properties of the Company's limestone and its impact on process equipment and product quality, inclement weather conditions, including more severe and frequent weather events resulting from climate change, natural disasters, accidents,

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View this 10-Q filing on SEC EDGAR