United States Lime & Minerals, Inc.

What they do

The company produces crushed limestone, pulverized limestone (PLS), quicklime, hydrated lime, and lime slurry from its open-pit quarries and underground mines. It operates plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas. Products are sold primarily to construction, industrial (paper and glass), environmental (water treatment and flue gas), metals (steel), roof shingle, agriculture, and oil and gas services customers. Sales are made by nine sales employees, mostly on a purchase-order basis.

Revenue drivers

• Construction aggregates and soil stabilization — Crushed limestone and hydrated lime used in highway, road, and building construction; a primary revenue driver with increased demand in 2026.
• Steel and metals — Quicklime used in metal processing; increased demand from steel customers contributed to revenue growth in Q2 2026.
• Environmental applications — Quicklime, hydrated lime, and PLS used in municipal water treatment and flue gas scrubbing; steady contributor subject to regulatory-driven demand.
• Roof shingle manufacturing — PLS used as a filler in roof shingles; demand decreased in 2026, partially offsetting gains from construction and steel.

Recent performance

For the second quarter ended June 30, 2026, revenues were $99.1 million, up 8.3% from $91.5 million in Q2 2025. Net income for Q2 2026 was $34.5 million ($1.20 per diluted share), up from $30.8 million ($1.07) in the prior year. For the first six months of 2026, revenues were $187.0 million, up 2.3% year-over-year, and net income was $65.1 million ($2.26 per diluted share), essentially flat versus $64.9 million ($2.26) in the first half of 2025. Gross profit for Q2 2026 was $46.7 million, up 11.6% from $41.9 million, driven by higher volumes but partially offset by higher fuel and transportation costs. Cash and cash equivalents stood at $402.6 million as of June 30, 2026, with no long-term debt.

Strategy

Management emphasizes expanding capacity and modernizing operations, with a new kiln at the Texas facility expected to come online in summer 2026. The company is investing to meet strong construction demand, including from data center projects. It maintains a conservative balance sheet with no long-term debt and a large cash position, supporting potential acquisitions and ongoing dividend payments. The company continues to focus on its core lime and limestone product lines and geographic footprint in the south-central U.S.

Risks

• Fuel and transportation cost volatility — Higher coal, petroleum coke, diesel, natural gas, and electricity costs, plus truck and rail availability, can pressure margins.
• Demand cyclicality — Reliance on construction, steel, and industrial customers exposes revenue to economic downturns and government infrastructure spending levels.
• Operational and permitting risks — Mining operations are subject to weather, equipment failures, and regulatory requirements; difficulty securing permits could delay expansion projects.
• Customer concentration and competition — Sales are concentrated in a limited geographic region, and increased competition from new entrants could affect pricing and market share.

Outlook

Management anticipates continued strong construction demand supported by data center projects. The new kiln at the Texas facility is expected to start operations in summer 2026, which should increase production capacity. However, management also cites potential headwinds from fuel and transportation costs, as well as broader economic uncertainties. The company intends to maintain its regular quarterly dividend, recently declared at $0.06 per share.