United States Lime & Minerals reports $38.78 million net income for Q3 2025

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For the quarterly period ended June September 30, 2025

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Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date: As of July October 28, 2025, 28,639,539 28,639,399 shares of common stock, $0.10 par value, were outstanding.

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Financial statements 10 changes

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Six Months Ended June 30,

Three Months Ended June September 30,

Nine Months Ended September 30,

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Stock-based compensation

Balances at September 30, 2025

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Stock-based compensation

Balances at September 30, 2024

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Six Months Ended June 30,

Nine Months Ended September 30,

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Loss (gain) on disposition of property, plant, and equipment ( 53 46 )

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Note 1: Basis of Presentation 1 change

The condensed consolidated financial statements included herein have been prepared by United States Lime & Minerals, Inc. (the "Company") without independent audit. In the opinion of the Company's management, all adjustments of a normal and recurring nature necessary to present fairly the financial position, results of operations, and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the period ended December 31, 2024. The results of operations for the three- and six-month nine-month periods ended June September 30, 2025 are not necessarily indicative of operating results for the full year.

Note 3: Accounting Policies 1 change

Revenue Recognition. The Company recognizes revenue for its lime and limestone operations when (i) a contract with the customer exists and the performance obligations are identified; (ii) the price has been established; and (iii) the performance obligations have been satisfied, which is generally upon shipment. The Company's returns and allowances are minimal. Revenues include external freight billed to customers with related costs accounted for as fulfillment costs and included in cost of revenues. External freight billed to customers included in 2025 and 2024 revenues was $ 12.2 13.7 million and $ 11.0 12.3 million, for the respective three-month periods ended June September 30, and $ 23.6 37.3 million and $ 22.2 34.5 million, for the respective six-month nine-month periods ended June September 30, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. For its natural gas interests, the Company recognizes revenue in the month of production and delivery.

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Note 4: Reportable Segment 2 changes

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The Company is managed as one reportable segment, lime and limestone operations, based on the distinctness of the Company's activities and products. All operations are in the United States. During 2024, the Company determined that the activities of its natural gas interests and the associated level of review of those activities by the chief operating decision maker ("CODM") precluded the natural gas activities from meeting the definition of an operating segment, as provided in ASC 280. In addition, previously unallocated items, including cash, interest income and expense, and other expense are now included as part of lime and limestone operations, and consolidated net income is now used as the measure of segment profit or loss. Segment disclosures for the three- and six-month nine-month periods ended June September 30, 2024 have been recast to be consistent with the presentation for the periods ended June September 30, 2025.

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The following table presents revenue, significant expenses, and profit for the three- and six-month nine-month periods ended June September 30, 2025 and 2024, as reviewed and used by the CODM. There are no other significant segment items or reconciling items to consolidated net income.

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Note 5: Income and Dividends Per Share of Common Stock 2 changes

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(1) Excludes 2 and 1 Stock options for the three- and six-month periods ended June 30, 2025, respectively, as are considered anti-dilutive because if the exercise price exceeded exceeds the average per share market price for the period. No stock options were excluded for any of the 2024 periods presented above due to being anti-dilutive.

The Company paid $ 0.06 and $ 0.12 0.18 of cash dividends per share of common stock in the three- and six-month nine-month periods ended June September 30, 2025, respectively. The Company paid $ 0.05 and $ 0.10 0.15 of cash dividends per share of common stock in the three- and six-month nine-month periods ended June September 30, 2024, respectively.

Note 7: Banking Facilities and Debt 1 change

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As of June September 30, 2025, the Company had no debt outstanding and no draws on the Revolving Facility other than $ 7.4 4.7 million of letters of credit, principally related to the new kiln project at the Texas Lime Company plant, which count as draws against the available commitment under the Revolving Facility.

Note 8: Leases 10 changes

Six Months Ended June 30,

The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 9 8 years , with a weighted-average remaining lease term of 4 years at both June September 30, 2025 and December 31, 2024. Some operating leases include options to extend the leases for up to 5 years and are only considered in the lease terms if the Company is reasonably certain it will exercise the option to extend.

The components of lease costs for the three- and six-month nine-month periods ended June September 30, 2025 and 2024 were as follows (in thousands):

Three Months Ended June September 30,

Nine Months Ended September 30,

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As of June September 30, 2025, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands):

2025 (excluding the six nine months ended June September 30, 2025)

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Six Months Ended June 30,

Supplemental cash flow information pertaining to the Company's leasing activity for the six nine months ended June September 30, 2025 and 2024 is as follows (in thousands):

Nine Months Ended September 30,

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Note 9: Income Taxes 3 changes

On July 4, 2025, President Trump signed a tax and spending bill, referred to as the "One Big Beautiful Bill Act" (the "Act"). The Company anticipates the Act will result in the reclassification of a portion of its current taxes payable, currently presented in accrued expenses, to deferred tax liabilities, net, on its consolidated balance sheet, but does not anticipate a significant impact on the Company's effective income tax rate in future periods. The Company is currently evaluating the full impact of the Act on its financial statements, and no impact was included in the condensed consolidated financial statements for the period ended June 30, 2025.

The Company has estimated that its effective income tax rate for 2025 will be 20.6 21.1 % . The primary reason for the effective income tax rate being below above the federal statutory rate is due to state income taxes, partially offset by statutory depletion, which is allowed for income tax purposes and is a permanent difference between net income for financial reporting purposes and taxable income.

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation. The OBBBA did not have a material impact on the Company's effective income tax rate for 2025, but it did reduce the Company's cash tax outflows for the remainder of 2025 from what they would have been under the previous federal tax law.

Note 10: Dividends 1 change

On September 12 , the Company paid $ 1.7 million in cash dividends, based on a dividend of $ 0.06 per share of its common stock, to shareholders of record at the close of business on August 22, 2025 . On June 13, 2025 , the Company paid $ 1.7 million in cash dividends, based on a dividend of $ 0.06 per share of its common stock, to shareholders of record at the close of business on May 23, 2025 . On March 14, 2025 , the Company paid $ 1.7 million in cash dividends, based on a dividend of $ 0.06 per share of its common stock, to shareholders of record at the close of business on February 21, 2025 .

Note 11: Subsequent Event 1 change

On July 30, October 29, 2025 , the Company's Board of Directors declared a regular quarterly cash dividend of $ 0.06 per share on the Company's common stock. This dividend is payable on September December 12, 2025 , to shareholders of record at the close of business on August 22, November 21, 2025 .

MD&A 17 changes

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, IT systems failures or disruptions, including due to cybersecurity threats and incidents, utility disruptions, supply chain delays and disruptions, labor shortages and disruptions, or regulatory requirements; (v) volatile coal, petroleum coke, diesel, natural gas, electricity, and transportation costs and the consistent availability of trucks, truck drivers, and rail cars to deliver the Company's products to its customers and solid fuels to its plants on a timely basis at competitive prices; (vi) the Company's ability to expand its operations through projects and acquisitions of businesses with related or similar operations and the Company's ability to obtain any required financing for such projects and acquisitions, to integrate the projects and acquisitions into the Company's overall operations, and to sell any resulting increased production at acceptable prices; (vii) inadequate demand and/or prices for the Company's lime and limestone products due to increased competition from competitors, increasing competition for certain customer accounts, conditions in the U.S. economy, recessionary pressures in, and the impact of government policies, including changes in immigration policy, on the overall economy and particular industries, including oil and gas services, utility plants, steel, construction, and industrial, moderation in areas of active growth, including data center construction, effects of governmental fiscal and budgetary constraints, including the level of highway construction and infrastructure funding, changes to tax laws, including the One Big Beautiful Bill Act (the "Act"), "OBBBA"), legislative impasses, extended governmental shutdowns, reduced levels of government staffing, downgrades and defaults on U.S. government obligations, tariffs, trade wars, international conflicts and incidents, including conflicts in Ukraine, Venezuela, Columbia, Israel, Iran, and the broader Middle East, oil cartel production and supply actions, sanctions, economic and regulatory uncertainties under state governments and the United States Administration and Congress, inflation, recession, and other macroeconomic concerns, Federal Reserve responses to macroeconomic concerns and other pressures, including changes in interest rates, and inability to continue to maintain or increase prices for the Company's products, including passing through any increased costs of energy, labor, parts, and supplies, and changes in inflationary expectations; (viii) ongoing and possible new regulations, investigations, enforcement actions and costs, legal expenses, penalties, fines, assessments, litigation, judgments and settlements, taxes, and disruptions and limitations of operations, including those related to climate change, health and safety, human capital, diversity, inclusion, and other environmental, social, governance, and sustainability considerations, and those that could impact the Company's ability to continue or renew its operating permits or successfully secure new permits in connection with its modernization and expansion and development projects; (ix) estimates of resources and reserves and remaining lives of reserves; (x) the impact of potential pandemics, epidemics, or disease outbreaks, and governmental responses thereto, including decreased demand, lower prices, tightened labor and other markets, and increased costs, and the risk of non-compliance with health and safety protocols and mandates, on the Company's financial condition, results of operations, cash flows, and competitive position; (xi) the impact of social or political unrest; (xii) risks relating to mine safety and reclamation and remediation; and (xiii) other risks and uncertainties set forth in this Report or indicated from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

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Our revenues increased 19.6% 14.1% and 23.3% 19.8% in the second third quarter and first six nine months 2025, respectively, compared to the second third quarter and first six nine months 2024. Revenues increased in the second third quarter 2025, compared to the second third quarter 2024, primarily due to a 12.1% an 8.9% increase in sales volumes of our lime and limestone products, which was principally due to increased demand from our construction, environmental, and steel customers, partially offset by decreased demand from our oil and gas services customers, and a 7.6% 5.1% increase in the average selling prices for our lime and limestone products. Revenues increased in the first six nine months 2025, compared to the first six nine months 2024, primarily due to a 15.7% 13.3% increase in sales volumes of our lime and limestone products, which was principally due to increased demand from our construction, including for the construction of large data centers, environmental, and steel customers, partially offset by decreased demand from our oil and gas services customer, and a 7.6% 6.6% increase in the average selling prices for our lime and limestone products. Looking ahead, we anticipate ongoing data center construction demand being partially offset by softer demand from some of the other industries that we serve.

Our gross profit increased 20.3% 21.1% and 34.5% 29.2% in the second third quarter and first six nine months 2025, respectively, compared to the second third quarter and first six nine months 2024. The increases in gross profit for the 2025 periods resulted primarily from the increases in revenues discussed above.

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Net cash provided by operating activities was $73.5 $119.4 million in the first six nine months 2025, compared to $48.4 $87.4 million in the first six nine months 2024, an increase of $25.1 $32.0 million, or 51.9%. 36.6%. Our net cash provided by operating activities is composed of net income, depreciation, depletion, and amortization ("DD&A"), deferred income taxes, stock-based compensation, other non-cash items included in net income, and changes in working capital. In the first six nine months 2025, net cash provided by operating activities was principally composed of $64.9 $103.7 million net income, $12.3 $18.5 million DD&A, and $4.3 $6.2 million stock- based compensation, partially offset by $2.3 million deferred income taxes and a $6.1 $9.4 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six nine months 2025 included an increase increases of $10.4 $15.3 million in trade receivables, net, due primarily to increased sales in the second third quarter 2025 compared to the fourth quarter 2024, and $1.0 million in inventories, partially offset by decreases a decrease of $2.1 million in inventories and $1.5 $2.3 million in prepaid expenses and other current assets and an increase of $0.5 $4.5 million in accounts payable and accrued expenses. In the first six nine months 2024, net cash provided by operating activities was principally composed of $48.5 $81.8 million net income, $12.0 $18.1 million DD&A, and $2.4 $3.6 million stock-based compensation, partially offset by $0.4 $0.8 million deferred income taxes and a $14.1 $15.3 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six nine months 2024 included an increase of $8.2 $14.9 million in trade receivables, net, due primarily to increased sales in the second third quarter 2024 compared to the fourth quarter 2023, increases of $3.0 million in inventories and $1.6 million in other assets, and a decrease an increase of $2.4 $3.5 million in accounts payable and accrued expenses, inventories, partially offset by a decrease of $1.2 $1.9 million in prepaid expenses and other current assets and an increase of $1.2 million in accounts payable and accrued expenses.

We had $28.1 $42.8 million in capital expenditures in the first six nine months 2025, compared to $11.2 $16.4 million in the first six nine months 2024. Capital expenditures in the first six nine months 2025 included $14.1 $20.8 million related to the Texas kiln project. Net cash used in financing activities was $3.7 $5.4 million in the first six nine months 2025, compared to $2.9 $4.3 million in the first six nine months 2024, consisting primarily of cash dividends paid in each period.

Cash and cash equivalents increased $41.9 $71.5 million to $319.9 $349.5 million at June September 30, 2025 from $278.0 million at December 31, 2024.

We are not committed to any planned capital expenditures until actual orders are placed for equipment. As of June September 30, 2025, we were committed to $29.2 $28.8 million of open purchase orders related to the Texas kiln project. We did not have any other material commitments for open purchase orders. As of June September 30, 2025, we had incurred a total of $17.4 $24.8 million on the Texas kiln project, of which $15.4 $22.1 million had been paid in cash.

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At June September 30, 2025, we had no debt outstanding and no draws on the Revolving Facility other than $7.4 $4.7 million of letters of credit, principally related to the Texas kiln project, which count as draws against the available commitment under the Revolving Facility. We believe that, absent a significant acquisition, cash on hand and cash flows from operations will be sufficient to meet our operating needs, ongoing capital needs, including current and possible future modernization, expansion, and development projects, and liquidity needs and allow us to pay regular quarterly cash dividends for the near future.

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On July 4, 2025, President Trump signed the Act. We anticipate the Act will result in the reclassification of a portion of our current taxes payable, currently presented in accrued expenses, to deferred tax liabilities, net, on our consolidated balance sheet, but we do not anticipate a significant impact on our effective income tax rate in future periods. We are currently evaluating the full impact of the Act on our financial statements, and no impact was included in our condensed consolidated financial statements for the period ended June 30, 2025.

Revenues in the second third quarter 2025 were $91.5 $102.0 million, compared to $76.5 $89.4 million in the second third quarter 2024, an increase of $15.0 $12.6 million, or 19.6%. 14.1%. For the first six nine months 2025, revenues were $182.8 $284.8 million, compared to $148.2 $237.7 million in the first six nine months 2024, an increase of $34.5 $47.1 million, or 23.3%. 19.8%. The increases in our revenues in the second third quarter and first six nine months 2025, compared to the comparable 2024 periods, resulted from increased sales volumes of our lime and limestone products, principally due to increased demand from our construction, environmental, and steel customers, partially offset by decreased demand from our oil and gas services customers, and an increase in the average selling prices for our lime and limestone products.

Gross profit was $41.9 $52.2 million in the second third quarter 2025, compared to $34.8 $43.1 million in the second third quarter 2024, an increase of $7.1 $9.1 million, or 20.3%. 21.1%. Gross profit was $88.0 $140.2 million in the first six nine months 2025, compared to $65.4 $108.5 million in the first six nine months 2024, an increase of $22.6 $31.7 million, or 34.5%. 29.2%. The increases in gross profit in the second third quarter and first six nine months 2025, compared to the comparable 2024 periods, resulted primarily from the increased revenues discussed above.

Selling, general, and administrative ("SG&A") expenses were $5.9 million in the third quarter 2025, compared to $5.0 million in the third quarter 2024, an increase of $1.0 million, or 19.1%. SG&A expenses were $18.4 million in the first nine months 2025, compared to $14.7 million in the first nine months 2024, an increase of $3.7 million, or

Selling, general, and administrative ("SG&A") expenses were $6.2 million in the second quarter 2025, compared to $4.9 million in the second quarter 2024, an increase of $1.3 million, or 26.8%. SG&A expenses were $12.5 million in the first six months 2025, compared to $9.7 million in the first six months 2024, an increase of $2.7 million, or 28.0%. 25.0%. The increases in SG&A expenses in the 2025 periods, compared to the comparable 2024 periods, were primarily due to increased personnel expenses, including stock-based compensation.

Other (income) expense, net was $3.1 $3.4 million income in the second third quarter 2025 and $6.2 $9.6 million income in the first six nine months 2025, compared to $2.8 $3.1 million income in the second third quarter 2024 and $5.3 $8.4 million income in the first six nine months 2024. The increases of $0.3 $0.4 million and $0.9 $1.2 million in other (income) expense, net during the 2025 periods, compared to the comparable 2024 periods, were primarily due to interest earned on higher average balances of our cash and cash equivalents.

Income tax expense was $8.0 $10.9 million and $16.8 $27.7 million in the second third quarter and first six nine months 2025, respectively, compared to $6.7 $7.8 million and $12.5 $20.4 million in the second third quarter and first six nine months 2024, respectively. The increases in income tax expense in the 2025 periods, compared to the comparable 2024 periods, were due to the increases in income before taxes.

On July 4, 2025, the OBBBA was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation. The OBBBA did not have a material impact on our effective income tax rate for 2025, but it did reduce our cash tax outflows for the remainder of 2025 from what they would have been under the previous federal tax law.

Our net income was $30.8 $38.8 million ($1.07 ($1.35 per share diluted) in the second third quarter 2025, compared to net income of $26.1 $33.4 million ($0.91 ($1.16 per share diluted) in the second third quarter 2024, an increase of $4.8 $5.4 million, or 18.3%. 16.3%. For the first six nine months 2025, our net income was $64.9 $103.7 million ($2.26 ($3.61 per share diluted), compared to $48.5 $81.8 million ($1.69 ($2.85 per share diluted) for the first six nine months 2024, an increase of $16.4 $21.9 million, or 33.9%. 26.7%.

Unregistered sales of stock 1 change

Our Amended and Restated 2001 Long-Term Incentive Plan, as Amended and Restated, allows employees and directors to pay the exercise price for stock options and the tax withholding liability upon the lapse of restrictions on restricted stock by payment in cash and/or delivery of shares of common stock. There were no repurchases in the second third quarter 2025 pursuant to these provisions or otherwise.

Mine safety disclosures 1 change

Under Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S- K, each operator of a coal or other mine is required to include disclosures regarding certain mine safety results in its periodic reports filed with the SEC. The operation of our quarries, underground mines and plants is subject to regulation by the federal Mine Safety and Health Administration ("MSHA") under the Federal Mine Safety and Health Act of 1977. The required information regarding certain mining safety and health matters, broken down by mining complex, for the quarter ended June September 30, 2025, is presented in Exhibit 95.1 to this Report.

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