UNITED STATES LIME & MINERALS INC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ........ to ........

Commission file number is 000-04197

UNITED STATES LIME & MINERALS, INC.

(Exact name of registrant as specified in its charter)


Texas		75-0789226
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)


5429 LBJ Freeway, Suite 230, Dallas, TX		75240
(Address of principal executive offices)		(Zip Code)

(972) 991-8400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.10 par value	USLM	The Nasdaq Stock Market LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer ☐
Non-accelerated filer	☐	Smaller reporting company ☐
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the latest practicable date: As of April 28, 2026, 28,682,056 shares of common stock, $0.10 par value, were outstanding.

PART I. FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

(Unaudited)


		March 31,			December 31,
		2026			2025
ASSETS
Current assets
Cash and cash equivalents		$	383,165		$	371,124
Trade receivables, net			58,111			47,933
Inventories			30,607			30,908
Prepaid expenses and other current assets			4,382			5,351
Total current assets			476,265			455,316
Property, plant, and equipment			570,861			554,612
Less accumulated depreciation and depletion			(338,769)			(333,191)
Property, plant, and equipment, net			232,092			221,421
Operating lease right-of-use assets			3,481			3,864
Other assets, net			1,999			443
Total assets		$	713,837		$	681,044
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	11,714		$	14,516
Current portion of operating lease liabilities			1,618			1,643
Accrued expenses			9,643			7,473
Total current liabilities			22,975			23,632
Deferred tax liabilities, net			26,429			22,999
Operating lease liabilities, excluding current portion			2,008			2,370
Other liabilities			1,266			1,283
Total liabilities			52,678			50,284
Stockholders’ equity
Common stock			2,976			2,975
Additional paid-in capital			50,745			48,839
Retained earnings			671,887			643,025
Less treasury stock, at cost			(64,449)			(64,079)
Total stockholders’ equity			661,159			630,760
Total liabilities and stockholders’ equity		$	713,837		$	681,044

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share amounts)

(Unaudited)


		Three Months Ended March 31,
		2026					2025
Revenues		$	87,833		100.0	%	$	91,253		100.0	%
Cost of revenues
Labor and other operating expenses			39,561		45.1	%		39,047		42.8	%
Depreciation, depletion and amortization			6,520		7.4	%		6,050		6.6	%
			46,081		52.5	%		45,097		49.4	%
Gross profit			41,752		47.5	%		46,156		50.6	%
Selling, general, and administrative expenses			5,969		6.8	%		6,262		6.9	%
Operating profit			35,783		40.7	%		39,894		43.7	%

Other (income) expense, net			(3,229)		(3.7)	%		(3,091)		(3.4)	%
Income before income tax expense			39,012		44.4	%		42,985		47.1	%
Income tax expense			8,430		9.6	%		8,872		9.7	%
Net income		$	30,582		34.8	%	$	34,113		37.4	%
Net income per share of common stock
Basic		$	1.07				$	1.19
Diluted		$	1.06				$	1.19

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(dollars in thousands)

(Unaudited)



		Common Stock					Additional
		Shares					Paid-In			Retained			Treasury
		Outstanding		Amount			Capital			Earnings			Stock			Total
Balances at December 31, 2025		28,668,193		$	2,975		$	48,839		$	643,025		$	(64,079)		$	630,760
Stock options exercised		12,000			1			127			—			—			128
Stock-based compensation		4,953			—			1,779			—			—			1,779
Treasury shares purchased		(3,090)			—			—			—			(370)			(370)
Cash dividends paid		—			—			—			(1,720)			—			(1,720)
Net income		—			—			—			30,582			—			30,582
Balances at March 31, 2026		28,682,056		$	2,976		$	50,745		$	671,887		$	(64,449)		$	661,159



		Common Stock					Additional
		Shares					Paid-In			Retained			Treasury
		Outstanding		Amount			Capital			Earnings			Stock			Total
Balances at December 31, 2024		28,619,837		$	2,968		$	40,549		$	515,622		$	(61,398)		$	497,741
Stock options exercised		12,000			1			159			—			—			160
Stock-based compensation		4,800			—			2,336			—			—			2,336
Treasury shares purchased		(3,838)			—			—			—			(424)			(424)
Cash dividends paid		—			—			—			(1,719)			—			(1,719)
Net income		—			—			—			34,113			—			34,113
Balances at March 31, 2025		28,632,799		$	2,969		$	43,044		$	548,016		$	(61,822)		$	532,207

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
OPERATING ACTIVITIES:
Net income	$	30,582	$	34,113
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization		6,598		6,137
Amortization of deferred financing costs		6		6
Deferred income taxes		3,430		(571)
Loss on disposition of property, plant, and equipment		75		106
Stock-based compensation		1,779		2,336
Changes in operating assets and liabilities:
Trade receivables, net		(10,178)		(11,790)
Inventories		301		(174)
Prepaid expenses and other current assets		969		1,012
Other assets		(1,562)		164
Accounts payable and accrued expenses		82		8,113
Other liabilities		(20)		(18)
Net cash provided by operating activities		32,062		39,434
INVESTING ACTIVITIES:
Purchase of property, plant, and equipment		(18,340)		(14,852)
Proceeds from sale of property, plant, and equipment		281		4
Net cash used in investing activities		(18,059)		(14,848)
FINANCING ACTIVITIES:
Cash dividends paid		(1,720)		(1,719)
Proceeds from exercise of stock options		128		160
Purchase of treasury shares		(370)		(424)
Net cash used in financing activities		(1,962)		(1,983)
Net increase in cash and cash equivalents		12,041		22,603
Cash and cash equivalents at beginning of period		371,124		278,031
Cash and cash equivalents at end of period	$	383,165	$	300,634

See accompanying notes to condensed consolidated financial statements.

UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation

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, 2025. The results of operations for the three-month period ended March 31, 2026 are not necessarily indicative of operating results for the full year.

2. Organization

The Company is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), roof shingle manufacturers, agriculture (including poultry producers), and oil and gas services industries. The Company is headquartered in Dallas, Texas and operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas through its wholly owned subsidiaries, Arkansas Lime Company, ART Quarry TRS LLC (DBA Carthage Crushed Limestone), Colorado Lime Company, Mill Creek Dolomite, LLC, Texas Lime Company, U.S. Lime Company, U.S. Lime Company-Shreveport, U.S. Lime Company-St. Clair, and U.S. Lime Company-Transportation. In addition, the Company, through its wholly owned subsidiary, U.S. Lime Company-O & G, LLC, has royalty and non-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation.

3. Accounting Policies

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 2026 and 2025 revenues was $11.7 million and $11.4 million, for the respective three-month periods ended March 31, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues.

Trade Receivables, Net. The majority of the Company’s trade receivables are unsecured. Payment terms for all trade receivables are based on the underlying purchase orders, contracts, or purchase agreements, and are generally fixed, short-term, and do not contain a significant financing component. The Company estimates credit losses relating to trade receivables based on an assessment of the current and forecasted probability of collection, historical trends, economic conditions, and other significant events that may impact the collectability of trade receivables. Due to the relatively homogenous nature of its trade receivables, the Company does not believe there are any meaningful asset-specific differences within its trade receivables portfolio that would require the portfolio to be grouped below the consolidated level for review of credit losses. Credit losses relating to trade receivables have generally been within management expectations and historical trends. Uncollected trade receivables are charged-off when identified by management to be unrecoverable. The Company maintains an allowance for credit losses to reflect currently expected estimated losses resulting from the failure of customers to make required payments.

New Accounting Pronouncements. In November 2024, the Financial Accounting Standards Board issued guidance that requires disclosure of specified information about certain costs and expenses in the notes to the Consolidated Financial Statements (“ASU 2024-03”). ASU 2024-03 requires, among other things, that public business entities include tabular

and qualitative disclosures that disaggregate each relevant expense caption on the face of a statement of income and include certain natural expenses relevant to the Company. ASU 2024-03 is to be applied on a prospective basis and is effective for annual reporting periods beginning after December 15, 2026. This ASU will likely result in additional disclosures being included in the Company’s consolidated financial statements once adopted.

4. Reportable Segment

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. The Company has 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.

The Company’s CODM is the chief executive officer. The Company’s lime and limestone operations segment derives revenues from the sale of crushed limestone, pulverized limestone, aggregate, quicklime, hydrated lime, and lime slurry.

In evaluating the operating results of the Company, the CODM assesses performance for the lime and limestone operations segment and decides how to allocate resources (including, but not limited to, decisions on fuel blends, capital investments, and staffing levels) based on net income that is also reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as “Total assets,” and the measure of segment capital expenditures is reported on the Consolidated Statements of Cash Flows as “Purchase of property, plant, and equipment.”

The following table presents revenue, significant expenses, and profit for the periods ended March 31, 2026 and 2025, as reviewed and used by the CODM (in thousands). There are no other significant segment items or reconciling items to consolidated net income.


	Three Months Ended
	March 31,
	2026		2025
Revenues	$	87,833	$	91,253
Less:
Fuel, energy, and transportation		21,973		20,265
Depreciation, depletion, and amortization		6,520		6,050
Outside services, maintenance, and supplies		7,134		8,355
Personnel expenses, cost of revenues		8,129		7,940
Other cost of revenues		2,325		2,487
Selling, general, and administrative expenses		5,969		6,262
Other (income) expense, net		(3,229)		(3,091)
Income tax expense		8,430		8,872
Net income	$	30,582	$	34,113

5. Income and Dividends Per Share of Common Stock

The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts):


		Three Months Ended
		March 31,
		2026			2025
Net income for basic and diluted income per common share		$	30,582		$	34,113
Weighted-average shares for basic income per common share			28,671			28,623
Effect of dilutive securities:
Employee and director stock options⁽¹⁾			99			96
Adjusted weighted-average shares and assumed exercises for diluted income per common share			28,770			28,719
Basic net income per common share		$	1.07		$	1.19
Diluted net income per common share		$	1.06		$	1.19

(1)	Stock options are considered anti-dilutive if the exercise price exceeds the average per share market price for the period. No stock options were excluded for any of the periods presented above as anti-dilutive.

The Company paid $0.06 of cash dividends per share of common stock in each of the three-month periods ended March 31, 2026 and 2025.

6. Inventories

Inventories are valued principally at the lower of cost, determined using the average cost method, or net realizable value. Costs for raw materials and finished goods include materials, labor, and production overhead. A summary of inventories is as follows (in thousands):


	March 31,		December 31,
	2026		2025
Lime and limestone inventories:
Raw materials	$	7,657	$	8,312
Finished goods		3,908		3,815
		11,565		12,127
Parts inventories		19,042		18,781
	$	30,607	$	30,908

7. Banking Facilities and Debt

The Company’s credit agreement with Wells Fargo Bank, N.A. (the “Lender”), as amended as of August 3, 2023, provides for a $75 million revolving credit facility (the “Revolving Facility”) and an incremental four-year accordion feature to borrow up to an additional $50 million on the same terms, subject to approval by the Lender or another lender selected by the Company. The credit agreement also provides for a $10 million letter of credit sublimit under the Revolving Facility. The Revolving Facility and any incremental loans mature on August 3, 2028.

Interest rates on the Revolving Facility are, at the Company’s option, SOFR, plus a SOFR adjustment rate of 0.10%, plus a margin of 1.000% to 2.000%, or the Lender’s Prime Rate, plus a margin of 0.000% to 1.000%, and a commitment fee range of 0.225% to 0.350% on the undrawn portion of the Revolving Facility. The Revolving Facility interest rate margins and commitment fee are determined quarterly in accordance with a pricing grid based upon the Company’s Cash Flow Leverage Ratio, defined as the ratio of the Company’s total funded senior indebtedness to earnings before interest, taxes, depreciation, depletion, amortization, and stock-based compensation expense (“EBITDA”) for the 12 months ended on the last day of the most recent calendar quarter, plus pro forma EBITDA from any businesses acquired during the period. Pursuant to a security agreement, dated August 25, 2004, the Revolving Facility is secured by the Company’s existing and hereafter acquired tangible assets, intangible assets, and real property.

The maturity of the Revolving Facility and any incremental loans can be accelerated if any event of default, as defined under the credit agreement, occurs. The Company’s maximum Cash Flow Leverage Ratio is 3.50 to 1.

The Company may pay dividends so long as it remains in compliance with the provisions of the Company’s credit agreement, and it may purchase, redeem, or otherwise acquire shares of its common stock so long as its pro forma Cash Flow Leverage Ratio is less than 3.00 to 1.00 and no default or event of default exists or would exist after giving effect to such stock repurchase.

As of March 31, 2026, the Company had no debt outstanding and no draws on the Revolving Facility other than $4.6 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.

8. Leases

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 8 years, with a weighted-average remaining lease term of 3 years and 4 years at March 31, 2026 and December 31, 2025, respectively. 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 net operating lease costs for the three months ended March 31, 2026 and 2025 were as follows (in thousands):


			Three Months Ended March 31,
	Classification		2026			2025
Operating lease costs⁽¹⁾	Cost of revenues		$	705		$	724
Operating lease costs⁽¹⁾	Selling, general and administrative expenses			79			85
Rental revenues	Revenues			(51)			(55)
Rental revenues	Other (income) expense, net			(26)			(31)
Net operating lease costs			$	708		$	723

(1)	Includes the costs of leases with a term of one year or less.

As of March 31, 2026, 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):


2026	$	1,272
2027		1,328
2028		635
2029		217
2030		191
Thereafter		290
Total future minimum lease payments		3,934
Less imputed interest		(308)
Present value of lease liabilities	$	3,626

Supplemental cash flow information pertaining to the Company’s leasing activity for the three months ended March 31, 2026 and 2025 is as follows (in thousands):


	Three Months Ended March 31,
	2026		2025
Cash payments for lease liabilities included in operating cash flows	$	466	$	450
Right-of-use assets obtained in exchange for operating lease obligations	$	—	$	176

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 or increase its revenues and manage any 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, including new entrants into our markets, 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 construction, oil and gas services, utility plants, steel, 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, 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, oil cartel production and supply actions, sanctions, embargoes, and blockades, 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 changing interest rates, and inability to continue to maintain or increase prices for the Company’s products, including passing through any increased costs of energy, transportation, 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, equal employment opportunities, and other social, environmental, 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, 2025 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Overview.

We are a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), roof shingle manufacturers, agriculture (including poultry producers), and oil and gas services industries. We are headquartered in Dallas, Texas and operate lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas through our wholly owned subsidiaries, Arkansas Lime Company, ART Quarry TRS LLC (DBA Carthage Crushed Limestone), Colorado Lime Company, Mill Creek Dolomite, LLC, Texas Lime Company, U.S. Lime Company, U.S. Lime Company-Shreveport, U.S. Lime Company-St. Clair, and U.S. Lime Company-Transportation. In addition, through our wholly owned subsidiary, U.S. Lime Company-O & G, LLC, we have royalty and non-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation.

Our revenues decreased 3.7% in the first quarter 2026, compared to the first quarter 2025, primarily due to a 3.4% decrease in sales volumes of our lime and limestone products, which was principally due to decreased demand from our construction, oil and gas, and roof shingle customers, partially offset by increased demand from our steel customers, and a 0.2% decrease in the average selling prices for our lime and limestone products. During the first quarter 2026, we caught up on most of the weather-related shipping interruptions that resulted from the January winter storm. Although we experienced our first revenue decrease against the comparable prior-year quarter since the COVID pandemic began in 2020, we remain optimistic about the balance of the year, including as it pertains to demand from our construction customers.

Our gross profit decreased 9.5% in the first quarter 2026, compared to the first quarter 2025. The decrease in gross profit resulted primarily from the decrease in revenues discussed above and higher fuel and transportation costs. Our net income was $30.6 million ($1.06 per share diluted) in the first quarter 2026, compared to net income of $34.1 million ($1.19 per share diluted) in the first quarter 2025, a decrease of $3.5 million, or 10.4%.

In 2024, we began construction on a new vertical kiln and related equipment and infrastructure at our Texas Lime Company plant. We estimate that the construction costs of the Texas kiln project will total approximately $65 million, and we anticipate it will start up in the summer of 2026. We will begin to depreciate the new kiln and related equipment when they consistently produce commercially saleable quicklime.

Liquidity and Capital Resources.

Net cash provided by operating activities was $32.1 million in the first quarter 2026, compared to $39.4 million in the first quarter 2025, a decrease of $7.4 million, or 18.7%. 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 quarter 2026, net cash provided by operating activities was principally composed of $30.6 million net income, $6.6 million DD&A, $3.4 million deferred income taxes, and $1.8 million stock-based compensation, partially offset by a $10.4 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first quarter 2026 included an increase of $10.2 million in trade receivables, net, due primarily to timing of the sales in the first quarter 2026 compared to the fourth quarter 2025, and an increase of $1.6 million in other assets, partially offset by a decrease of $0.3 million in inventories and a decrease of $1.0 million in prepaid expenses and other current assets. In the first quarter 2025, net cash provided by operating activities was principally composed of $34.1 million net income, $6.1 million DD&A, and $2.3 million stock-based compensation, partially offset by $0.6 million deferred income taxes and a $2.7 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first quarter 2025 included an increase of $11.8 million in trade receivables, net, due primarily to increased sales in the first quarter 2025 compared to the fourth quarter 2024, and an increase of $0.2 million in inventories, partially offset by a decrease of $1.0 million in prepaid expenses and other current assets and an increase of $8.1 million in accounts payable and accrued expenses.

We had $18.3 million in capital expenditures in the first quarter 2026, compared to $14.9 million in the first quarter 2025. Capital expenditures in the first quarter 2026 included $10.0 million related to the Texas kiln project, compared to $7.8 million in the first quarter 2025. Net cash used in financing activities was $2.0 million in both the first quarter 2026 and 2025, consisting primarily of cash dividends paid in each period.

Cash and cash equivalents increased $12.0 million to $383.2 million at March 31, 2026 from $371.1 million at December 31, 2025.

We are not committed to any planned capital expenditures until actual orders are placed for equipment. As of March 31, 2026, we were committed to $5.3 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 March 31, 2026, we had incurred a total of $48.5 million on the Texas kiln project, of which $45.9 million had been paid in cash.

Our credit agreement with Wells Fargo Bank, N.A. (the “Lender”), as amended as of August 3, 2023, provides for a $75 million revolving credit facility (the “Revolving Facility”) and an incremental four-year accordion feature to borrow up to an additional $50 million on the same terms, subject to approval by the Lender or another lender selected by us. The credit agreement also provides for a $10 million letter of credit sublimit under the Revolving Facility. The Revolving Facility and any incremental loans mature on August 3, 2028.

Interest rates on the Revolving Facility are, at our option, SOFR, plus a SOFR adjustment rate of 0.10%, plus a margin of 1.000% to 2.000%, or the Lender’s Prime Rate, plus a margin of 0.000% to 1.000%, and a commitment fee range of 0.225% to 0.350% on the undrawn portion of the Revolving Facility. The Revolving Facility interest rate margins and commitment fee are determined quarterly in accordance with a pricing grid based upon our Cash Flow Leverage Ratio, defined as the ratio of our total funded senior indebtedness to earnings before interest, taxes, depreciation, depletion, amortization, and stock-based compensation expense (“EBITDA”) for the 12 months ended on the last day of the most recent calendar quarter, plus pro forma EBITDA from any businesses acquired during the period. Pursuant to a security agreement, dated August 25, 2004, the Revolving Facility is secured by our existing and hereafter acquired tangible assets, intangible assets, and real property. The maturity of the Revolving Facility and any incremental loans can be accelerated if any event of default, as defined under the credit agreement, occurs. Our maximum Cash Flow Leverage Ratio is 3.50 to 1.

We may pay dividends so long as we remain in compliance with the provisions of our credit agreement, and we may purchase, redeem or otherwise acquire shares of our common stock so long as our pro forma Cash Flow Leverage Ratio is less than 3.00 to 1.00 and no default or event of default exists or would exist after giving effect to such stock repurchase.

At March 31, 2026, we had no debt outstanding and no draws on the Revolving Facility other than $4.6 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.

Results of Operations.

Revenues in the first quarter 2026 were $87.8 million, compared to $91.3 million in the first quarter 2025, a decrease of $3.4 million, or 3.7%. The decrease in our revenues in the first quarter 2026, compared to the first quarter 2025, resulted primarily from decreased sales volumes of our lime and limestone products, principally due to decreased demand from our construction, oil and gas, and roof shingle customers, partially offset by increased demand from our steel customers.

Gross profit was $41.8 million in the first quarter 2026, compared to $46.2 million in the first quarter 2025, a decrease of $4.4 million, or 9.5%. The decrease in gross profit in the first quarter 2026, compared to the first quarter 2025, resulted primarily from the decreased revenues discussed above and higher fuel and transportation costs.

Selling, general, and administrative (“SG&A”) expenses were $6.0 million in the first quarter 2026, compared to $6.3 million in the first quarter 2025, a decrease of $0.3 million, or 4.7%. The decrease in SG&A expenses in the first quarter 2026, compared to the first quarter 2025, was primarily due to decreased personnel expenses, including stock-based compensation.

Other (income) expense, net was $3.2 million income in the first quarter 2026, compared to $3.1 million income in the first quarter 2025, an increase of $0.1 million, primarily due to interest earned on higher average balances of cash and cash equivalents.

Income tax expense was $8.4 in the first quarter 2026, compared to $8.9 million in the first quarter 2025. The decrease in income tax expense was due to the decrease in income before taxes.

Our net income was $30.6 million ($1.06 per share diluted) in the first quarter 2026, compared to net income of $34.1 million ($1.19 per share diluted) in the first quarter 2025, a decrease of $3.5 million, or 10.4%.

ITEM 4: CONTROLS AND PROCEDURES

Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. Based upon that evaluation, the CEO and CFO concluded that our disclosure controls and procedures as of the end of the period covered by this Report were effective.

No change in our internal control over financial reporting occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Our 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 first quarter 2026 pursuant to these provisions or otherwise.

ITEM 4: MINE SAFETY DISCLOSURES

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 March 31, 2026, is presented in Exhibit 95.1 to this Report.

We believe we are responsible to employees to provide a safe and healthy workplace environment. We seek to accomplish this by: training employees in safe work practices; openly communicating with employees; following safety standards and establishing and improving safe work practices; involving employees in safety processes; and recording, reporting and investigating accidents, incidents and losses to avoid reoccurrence.

ITEM 6: EXHIBITS

The Exhibit Index set forth below is incorporated by reference in response to this Item.

EXHIBIT INDEX


EXHIBIT
NUMBER		DESCRIPTION

31.1		Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer.

31.2		Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer.


32.1		Section 1350 Certification by the Chief Executive Officer.

32.2		Section 1350 Certification by the Chief Financial Officer.

95.1		Mine Safety Disclosures.

101		Interactive Data Files (formatted as Inline XBRL).

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


	UNITED STATES LIME & MINERALS, INC.


April 30, 2026	By:	/s/ Timothy W. Byrne
		Timothy W. Byrne
		President and Chief Executive Officer
		(Principal Executive Officer)


April 30, 2026	By:	/s/ Michael L. Wiedemer
		Michael L. Wiedemer
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)