United States Lime & Minerals, Inc. (USLM) Q3 2026: Revenue Growth Amid Cost Pressures — Mixed Results for Shareholders

In the third quarter of 2026, United States Lime & Minerals, Inc. (NASDAQ: USLM) reported revenues of $106.2 million, an increase of $4.2 million or +4.1% compared to $102.0 million in the same quarter of 2025. This growth reflects a modest rise in both average sales prices and sales volumes, primarily driven by increased demand from steel customers, although partially offset by reduced demand from construction customers.

Despite the revenue growth, the company experienced a decline in gross profit, which fell to $50.8 million from $52.2 million in Q3 2025, a decrease of $1.4 million or -2.7%. This decline in profitability was attributed to higher transportation and fuel costs, particularly due to rising diesel prices, as well as production inefficiencies related to the integration of a new kiln at their Texas facility.

Key Financial Metrics:

• Revenue: $106.2 million in Q3 2026 vs. $102.0 million in Q3 2025 (+4.1%)
• Gross Profit: $50.8 million in Q3 2026 vs. $52.2 million in Q3 2025 (-2.7%)
• Net Income: $38.0 million ($1.32 per share diluted) in Q3 2026 vs. $38.8 million ($1.35 per share diluted) in Q3 2025 (-1.9%)
• SG&A Expenses: $6.1 million in Q3 2026 vs. $5.9 million in Q3 2025 (+2.3%)
• Other Income: $3.8 million in Q3 2026 vs. $3.4 million in Q3 2025 (+11.8%)

Analyst View:

This quarter presents a mixed bag for shareholders. On one hand, the revenue growth of $4.2 million is a positive sign, indicating that the company is managing to increase sales despite challenging market conditions. However, the decline in gross profit and net income raises concerns about the company's ability to maintain profitability in the face of rising costs. The increase in SG&A expenses, although modest, further highlights the pressures on the company's cost structure.

The announcement of a regular quarterly cash dividend of $0.06 per share, payable on December 11, 2026, to stockholders of record on November 20, 2026, provides some reassurance to investors looking for income. However, the overall decrease in net income suggests that the company may need to navigate carefully to sustain both growth and profitability moving forward.

Forward Catalyst:

Investors should closely monitor the integration of the new kiln at the Texas facility, as its successful commissioning could lead to improved production efficiencies and potentially lower costs in the future. Additionally, any developments in construction demand, particularly in Texas, will be crucial to watch, as delays in large projects could impact sales volumes. The company’s ability to adapt to these market dynamics will be key in determining its performance in the upcoming quarters.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)

Note: Amounts in thousands.

Description	Three Months Ended Sept 30, 2026	Three Months Ended Sept 30, 2025	Nine Months Ended Sept 30, 2026	Nine Months Ended Sept 30, 2025
Revenues	$106,200	$102,000	$293,100	$284,800
Cost of revenues	$55,400	$49,800	$153,000	$144,000
Gross profit	$50,800	$52,200	$139,100	$140,200
Selling, general and administrative expenses	$6,066	$5,927	$18,000	$18,400
Operating profit	$44,734	$46,273	$121,100	$121,800
Other (income) expense, net	-$3,800	-$3,400	-$10,000	-$9,600
Income tax expense	$10,400	$10,800	$28,000	$27,000
Net income	$38,000	$38,700	$103,100	$103,700
Income per share of common stock	Basic: $1.33	Basic: $1.35	Basic: $3.60	Basic: $3.62
	Diluted: $1.32	Diluted: $1.35	Diluted: $3.58	Diluted: $3.61
Weighted-average shares used to compute net income per share	Basic: 28,600	Basic: 28,600	Basic: 28,000	Basic: 28,000
	Diluted: 28,700	Diluted: 28,700	Diluted: 28,000	Diluted: 28,000
Cash dividend per share of common stock	$0.06	$0.06	$0.18	$0.18

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

Note: Amounts in thousands.

Description	Sept 30, 2026	Dec 31, 2025
Assets
Current assets	$543,000	$455,000
Property, plant and equipment, net	$250,000	$221,000
Other non-current assets	$4,500	$4,300
Total assets	$798,500	$681,300
Liabilities and Stockholders' Equity
Current liabilities	$24,000	$23,000
Deferred tax liabilities, net	$36,000	$22,000
Other long-term liabilities	$3,700	$3,600
Stockholders' equity	$733,000	$630,000
Total liabilities and stockholders' equity	$798,500	$681,300

Disclaimer

The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.