Business Context and Reporting Period
Company: United States Lime & Minerals, Inc. (USLM)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: The Company is a manufacturer of lime and limestone products, operating primarily in the United States. It supplies construction, industrial, environmental, metals, agriculture, and oil and gas sectors. Operations include open-pit quarries and underground mines in Texas, Arkansas, Oklahoma, Missouri, and Colorado. The Company operates as a single reportable segment: lime and limestone operations.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 | 2024 |
|---|---|---|
| Total Revenues | $372.7 million | $317.7 million |
| Gross Profit | $182.4 million | $144.0 million |
| Gross Margin | 48.9% | 45.3% |
| Operating Profit | $157.9 million | $124.9 million |
| Net Income | $134.3 million | $108.8 million |
| Diluted EPS | $4.67 | $3.79 |
| Cash from Operations | $165.0 million | $126.0 million |
| Cash & Equivalents (Ending) | $371.1 million | $278.0 million |
| Total Debt | $0 | $0 |
| Capital Expenditures | $62.7 million | $26.9 million |
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 17.3% to $372.7 million, driven by an 11.7% increase in sales volume and a 5.6% increase in average selling prices. Volume growth was led by construction (including data center projects), environmental, and steel customers, partially offset by lower demand from oil and gas services.
- Profitability: Gross profit rose 26.7% to $182.4 million. Operating profit increased 26.4% to $157.9 million. Net income grew 23.4% to $134.3 million.
- Expenses: Selling, general, and administrative (SG&A) expenses increased 28.8% to $24.5 million, primarily due to higher personnel expenses. Other income increased to $13.2 million due to higher interest earned on cash balances.
- Capital Investment: Investing cash outflows more than doubled to $62.5 million, largely due to $35.9 million spent on the new vertical kiln project at the Texas Lime plant.
Guidance, Outlook, and Risks
- Capital Projects: The new vertical kiln at Texas Lime is expected to start up in summer 2026. Total project costs are estimated at $65 million; $37.3 million has been paid as of year-end 2025.
- Dividends: The Board declared a quarterly dividend of $0.06 per share on February 2, 2026, payable March 13, 2026. The Company anticipates funding operations and dividends from cash on hand and operating cash flows absent significant acquisitions.
- Outlook Risks:
- Weather: A major winter storm in January 2026 interrupted shipments, though no plant damage occurred. Weakness in roof shingle demand seen in Q4 2025 is expected to continue into early 2026.
- Regulatory: The Company faces uncertainty regarding EPA regulations on greenhouse gases, ozone standards (Dallas-Fort Worth area redesignated as severe nonattainment), and hazardous air pollutants (NESHAPs). Compliance costs may increase.
- Market: Demand is sensitive to economic conditions, construction cycles, and energy prices. The Company notes reduced demand from coal-fired utility plants as a long-term trend.
Investor Verification Checklist
- Capital Project Execution: Verify the timeline and cost management of the $65 million Texas Lime vertical kiln project, which is critical for future capacity and efficiency.
- Regulatory Compliance Costs: Monitor the impact of new EPA ozone and NESHAP regulations on capital expenditures and operating margins, particularly for the Texas Lime facility.
- Customer Concentration & Demand: Assess the sustainability of demand from construction and data center sectors versus the cyclical downturn in oil and gas services and roof shingles.
- Liquidity Position: Confirm the maintenance of the debt-free balance sheet and the sufficiency of the $371.1 million cash balance to fund future CAPEX and dividends without external financing.
- Reserve Estimates: Note that mineral reserve estimates rely on a 2023 price assumption ($12.70/ton) despite a 2025 USGS price increase to $15.86/ton; verify if updated Technical Report Summaries are forthcoming.