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 September 30, 2025
OR
☐
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 October 28, 2025, 28,639,399 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)
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
See accompanying notes to condensed consolidated financial statements.
2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
Revenues
102,016
100.0
%
89,427
284,787
237,659
Cost of revenues
Labor and other operating expenses
43,752
42.9
40,282
45.0
126,331
44.4
111,222
46.8
Depreciation, depletion and amortization
6,075
5.9
6,032
6.8
18,233
6.4
17,895
7.5
49,827
48.8
46,314
51.8
144,564
50.8
129,117
54.3
Gross profit
52,189
51.2
43,113
48.2
140,223
49.2
108,542
45.7
Selling, general, and administrative expenses
5,927
5.8
4,976
5.6
18,378
14,706
6.2
Operating profit
46,262
45.4
38,137
42.6
121,845
42.8
93,836
39.5
Other (income) expense, net
(3,416)
(3.3)
(3,061)
(3.5)
(9,605)
(3.4)
(8,387)
Income before income tax expense
49,678
48.7
41,198
46.1
131,450
46.2
102,223
43.0
Income tax expense
10,896
10.7
7,845
8.8
27,724
9.8
20,374
8.6
Net income
38,782
38.0
33,353
37.3
103,726
36.4
81,849
34.4
Net income per share of common stock
Basic
1.35
1.17
3.62
2.86
Diluted
1.16
3.61
2.85
3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Common Stock
Additional
Shares
Paid-In
Retained
Treasury
Outstanding
Amount
Capital
Earnings
Stock
Total
Balances at December 31, 2024
28,619,837
Stock options exercised
12,000
1
159
—
160
Stock-based compensation
4,800
2,336
Treasury shares purchased
(3,838)
(424)
Cash dividends paid
(1,719)
34,113
Balances at March 31, 2025
28,632,799
2,969
43,044
548,016
532,207
6,740
1,970
1,971
(1,718)
30,831
Balances at June 30, 2025
28,639,539
45,014
577,129
563,291
(140)
1,914
Balances at September 30, 2025
28,639,399
Balances at December 31, 2023
28,522,780
2,955
35,539
412,499
(57,889)
393,104
129
130
14,785
1,240
1,241
(3,435)
(172)
(1,426)
22,439
Balances at March 31, 2024
28,546,130
2,957
36,908
433,512
(58,061)
415,316
40,025
4
(4)
8,115
1,145
1,147
(1,431)
26,057
Balances at June 30, 2024
28,594,270
2,963
38,049
458,138
441,089
1,202
(1,430)
Balances at September 30, 2024
39,251
490,061
474,214
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
OPERATING ACTIVITIES:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization
18,492
18,125
Amortization of deferred financing costs
18
Deferred income taxes
(245)
(825)
Loss (gain) on disposition of property, plant, and equipment
584
(46)
6,221
3,590
Changes in operating assets and liabilities:
(15,314)
(14,853)
(995)
(3,470)
2,288
1,891
Other assets
164
17
Accounts payable and accrued expenses
4,534
1,214
(67)
(80)
Net cash provided by operating activities
119,406
87,414
INVESTING ACTIVITIES:
Purchase of property, plant, and equipment
(42,789)
(16,371)
Proceeds from sale of property, plant, and equipment
285
344
Net cash used in investing activities
(42,504)
(16,027)
FINANCING ACTIVITIES:
(5,155)
(4,287)
Proceeds from exercise of stock options
Purchase of treasury shares
Net cash used in financing activities
(5,419)
(4,329)
Net increase in cash and cash equivalents
71,483
67,058
Cash and cash equivalents at beginning of period
187,964
Cash and cash equivalents at end of period
255,022
5
Notes to Condensed Consolidated Financial Statements
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, 2024. The results of operations for the three- and nine-month periods ended September 30, 2025 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 2025 and 2024 revenues was $13.7 million and $12.3 million, for the respective three-month periods ended September 30, and $37.3 million and $34.5 million, for the respective nine-month periods ended 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.
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 accounts 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.
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4. Reportable Segment
In November 2023, the Financial Accounting Standards Board amended guidance in ASC 280, Segment Reporting (“ASC 280”), by issuing Accounting Standards Update 2023-07, which updated the disclosure requirements for reportable segments, primarily through requiring enhanced disclosures about significant segment expenses. The Company adopted this guidance in the fourth quarter 2024, with retrospective application to prior reportable periods.
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 nine-month periods ended September 30, 2024 have been recast to be consistent with the presentation for the periods ended September 30, 2025.
The Company’s CODM is the chief executive officer. The Company’s lime and limestone operations 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 income. 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 three- and nine-month periods ended 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.
Three Months Ended
Nine Months Ended
Less:
Fuel, energy, and transportation
24,075
22,881
68,467
61,382
Outside services, maintenance, and supplies
8,802
7,090
26,267
20,121
Personnel expenses, cost of revenues
8,375
8,048
24,610
23,372
Other cost of revenues
2,500
2,263
6,987
6,347
7
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):
Net income for basic and diluted income per common share
Weighted-average shares for basic income per common share
28,639
28,594
28,633
28,574
Effect of dilutive securities:
Employee and director stock options(1)
99
133
97
109
Adjusted weighted-average shares and assumed exercises for diluted income per common share
28,738
28,727
28,730
28,683
Basic net income per common share
Diluted net income per common share
The Company paid $0.06 and $0.18 of cash dividends per share of common stock in the three- and nine-month periods ended September 30, 2025, respectively. The Company paid $0.05 and $0.15 of cash dividends per share of common stock in the three- and nine-month periods ended September 30, 2024, respectively.
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. Inventories consisted of the following (in thousands):
Lime and limestone inventories:
Raw materials
7,579
8,947
Finished goods
2,779
3,000
10,358
11,947
Parts inventories
18,323
15,739
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
8
(“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 September 30, 2025, the Company had no debt outstanding and no draws on the Revolving Facility other than $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.
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 4 years at both 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 nine-month periods ended September 30, 2025 and 2024 were as follows (in thousands):
Classification
Operating lease costs(1)
998
700
2,697
1,948
Selling, general and administrative expenses
78
76
240
229
Rental revenues
(104)
(47)
(177)
(269)
(7)
(13)
(61)
(74)
Net operating lease costs
965
716
2,699
1,834
As of 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 nine months ended September 30, 2025)
471
2026
1,673
2027
1,306
2028
612
2029
184
Thereafter
459
Total future minimum lease payments
4,705
Less imputed interest
(388)
Present value of lease liabilities
4,317
9
Supplemental cash flow information pertaining to the Company’s leasing activity for the nine months ended September 30, 2025 and 2024 is as follows (in thousands):
Cash payments for lease liabilities included in operating cash flows
1,510
1,450
Right-of-use assets obtained in exchange for operating lease obligations
368
827
9. Income Taxes
The Company has estimated that its effective income tax rate for 2025 will be 21.1%. The primary reason for the effective income tax rate being 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.
10. Dividends
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.
11. Subsequent Event
On 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 December 12, 2025, to shareholders of record at the close of business on November 21, 2025.
10
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, 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 “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 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.
11
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.
Our revenues increased 14.1% and 19.8% in the third quarter and first nine months 2025, respectively, compared to the third quarter and first nine months 2024. Revenues increased in the third quarter 2025, compared to the third quarter 2024, primarily due to 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 5.1% increase in the average selling prices for our lime and limestone products. Revenues increased in the first nine months 2025, compared to the first nine months 2024, primarily due to a 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 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 21.1% and 29.2% in the third quarter and first nine months 2025, respectively, compared to the third quarter and first nine months 2024. The increases in gross profit for the 2025 periods resulted primarily from the increases in revenues discussed above.
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 be completed in 2026.
Liquidity and Capital Resources.
Net cash provided by operating activities was $119.4 million in the first nine months 2025, compared to $87.4 million in the first nine months 2024, an increase of $32.0 million, or 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 nine months 2025, net cash provided by operating activities was principally composed of $103.7 million net income, $18.5 million DD&A, and $6.2 million stock-based compensation, partially offset by a $9.4 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first nine months 2025 included increases of $15.3 million in trade receivables, net, due primarily to increased sales in the third quarter 2025 compared to the fourth quarter 2024, and $1.0 million in inventories, partially offset by a decrease of $2.3 million in prepaid expenses and other current assets and an increase of $4.5 million in accounts payable and accrued expenses. In the first nine months 2024, net cash provided by operating activities was principally composed of $81.8 million net income, $18.1 million DD&A, and $3.6 million stock-based compensation, partially offset by $0.8 million deferred income taxes and a $15.3 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first nine months 2024 included an increase of $14.9 million in trade receivables, net, due primarily to increased sales in the third quarter 2024 compared to the fourth quarter 2023, and an increase of $3.5 million in inventories, partially offset by a decrease of $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 $42.8 million in capital expenditures in the first nine months 2025, compared to $16.4 million in the first nine months 2024. Capital expenditures in the first nine months 2025 included $20.8 million related to the Texas kiln project. Net cash used in financing activities was $5.4 million in the first nine months 2025, compared to $4.3 million in the first nine months 2024, consisting primarily of cash dividends paid in each period.
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Cash and cash equivalents increased $71.5 million to $349.5 million at 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 September 30, 2025, we were committed to $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 September 30, 2025, we had incurred a total of $24.8 million on the Texas kiln project, of which $22.1 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 September 30, 2025, we had no debt outstanding and no draws on the Revolving Facility other than $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.
Results of Operations.
Revenues in the third quarter 2025 were $102.0 million, compared to $89.4 million in the third quarter 2024, an increase of $12.6 million, or 14.1%. For the first nine months 2025, revenues were $284.8 million, compared to $237.7 million in the first nine months 2024, an increase of $47.1 million, or 19.8%. The increases in our revenues in the third quarter and first 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 $52.2 million in the third quarter 2025, compared to $43.1 million in the third quarter 2024, an increase of $9.1 million, or 21.1%. Gross profit was $140.2 million in the first nine months 2025, compared to $108.5 million in the first nine months 2024, an increase of $31.7 million, or 29.2%. The increases in gross profit in the third quarter and first 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
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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 $3.4 million income in the third quarter 2025 and $9.6 million income in the first nine months 2025, compared to $3.1 million income in the third quarter 2024 and $8.4 million income in the first nine months 2024. The increases of $0.4 million and $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 $10.9 million and $27.7 million in the third quarter and first nine months 2025, respectively, compared to $7.8 million and $20.4 million in the third quarter and first 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 $38.8 million ($1.35 per share diluted) in the third quarter 2025, compared to net income of $33.4 million ($1.16 per share diluted) in the third quarter 2024, an increase of $5.4 million, or 16.3%. For the first nine months 2025, our net income was $103.7 million ($3.61 per share diluted), compared to $81.8 million ($2.85 per share diluted) for the first nine months 2024, an increase of $21.9 million, or 26.7%.
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 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 third quarter 2025 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 September 30, 2025, 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
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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.
Following passage of the Mine Improvement and New Emergency Response Act of 2006, MSHA significantly increased the enforcement of mining safety and health standards on all aspects of mining operations. There has also been an increase in the dollar penalties assessed for citations and orders issued in recent years.
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).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
October 30, 2025
By:
/s/ Timothy W. Byrne
Timothy W. Byrne
President and Chief Executive Officer
(Principal Executive Officer)
/s/ Michael L. Wiedemer
Michael L. Wiedemer
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
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