United States Lime & Minerals Reports Third Quarter 2026 Results and Declares Regular Quarterly Cash Dividend

Revenue rose, but profits slipped as costs and Texas kiln inefficiencies weighed on results.

What the company is saying

United States Lime & Minerals, Inc. reports third quarter 2026 revenues of $106.2 million, up 4.1% year-over-year, and nine-month revenues of $293.1 million, up 2.9%. The company frames the increase as driven by modest gains in both average sales prices and sales volumes, with steel sector demand offsetting weaker construction and roof shingle markets. Gross profit declined by $1.4 million in Q3 to $50.8 million and by $1.0 million for the nine months to $139.2 million, which management attributes to higher transportation and fuel costs—especially diesel—and production inefficiencies during the integration of a new Texas kiln. CEO Timothy W. Byrne highlights optimism for future construction demand but acknowledges recent delays in large projects and signs of slowing Texas residential construction. The new Texas kiln began intermittent quicklime production in Q3, with final commissioning targeted for Q4, and Byrne notes current costs are elevated due to ongoing integration. The company declares a regular $0.06 per share quarterly dividend, payable December 11, 2026 to shareholders of record November 20, 2026. The tone is factual, with no promotional language and clear acknowledgment of operational challenges.

What the data suggests

Headline revenue increased to $106.2 million in Q3 2026 from $102.0 million in Q3 2025, and to $293.1 million for the first nine months from $284.8 million in the prior year, but profitability declined. Gross profit fell to $50.8 million in Q3 (down 2.7%) and $139.2 million for the nine months (down 0.7%), while net income dropped to $38.0 million ($1.32 per diluted share) in Q3 (down 1.9%) and $103.1 million ($3.58 per diluted share) for the nine months (down 0.6%). The company attributes these declines to higher transportation and fuel costs, especially diesel, and production inefficiencies from integrating the new Texas kiln, which only began intermittent production in Q3 and is not yet fully commissioned. SG&A expenses were stable, with a slight Q3 increase to $6.1 million and a nine-month decrease to $18.1 million. Other income rose due to higher interest earned on larger cash balances. The company maintains a strong balance sheet with $543.3 million in current assets and $733.8 million in equity. The data shows that while top-line growth continues, cost pressures and operational integration issues are eroding margins, and the new kiln's benefits are not yet realised.

Analysis

The announcement is factual and measured, with no evidence of exaggerated or promotional language. The company reports modest revenue growth but declining gross profit and net income, citing higher costs and production inefficiencies during the integration of a new kiln. The only forward-looking claim is the expectation of final commissioning of the Texas kiln in the fourth quarter, which is a near-term operational milestone rather than an aspirational projection. The capital intensity flag is set because the new kiln represents a significant investment, and its benefits are not yet fully realised, as evidenced by current production inefficiencies. However, the tone remains neutral, and there is no attempt to overstate progress or future benefits. The data supports a narrative of operational challenge rather than outperformance.

Risk flags

• ●Production inefficiencies at the new Texas kiln are currently impacting gross profit, and there is no guarantee that final commissioning in Q4 will immediately resolve these issues. If integration challenges persist, cost overruns or further margin erosion could follow.
• ●Rising transportation and fuel costs, particularly diesel, have materially reduced profitability despite revenue growth. If these input costs remain elevated or increase further, margins could continue to contract.
• ●Demand from key customer segments is uneven, with steel sector strength offset by weaker construction and roof shingle markets. The company notes delays in large construction projects and early signs of a slowdown in Texas residential construction, which could pressure future sales volumes.

Bottom line

United States Lime & Minerals, Inc. is growing revenue but struggling to convert that growth into higher profits due to rising costs and operational challenges from a major capital project. The new Texas kiln, while a significant investment, is not yet delivering efficiency gains and is currently a drag on margins. Management is transparent about these headwinds and does not overstate near-term prospects, but the company’s ability to restore profitability hinges on resolving production inefficiencies and seeing cost relief. Investors should focus on Q4 and early 2027 results for evidence that the Texas kiln is fully operational and contributing positively. The most important takeaway is that margin recovery, not just revenue growth, will determine the company’s near-term value creation.

Announcement summary

(NASDAQ: USLM) United States Lime & Minerals, Inc. reported revenues of $106.2 million for the third quarter 2026, up from $102.0 million in the third quarter 2025, representing an increase of $4.2 million or 4.1%. Revenues for the first nine months of 2026 were $293.1 million, compared to $284.8 million in the same period of 2025, an increase of $8.4 million or 2.9%. The revenue increase in the third quarter was primarily due to modest increases in both average sales prices and sales volumes, with higher demand from steel customers partially offset by reduced demand from construction customers. For the first nine months, increased sales volumes were mainly due to higher demand from steel customers, partially offset by lower demand from roof shingle customers. Gross profit for the third quarter 2026 was $50.8 million, down from $52.2 million in the third quarter 2025, a decrease of $1.4 million or 2.7%. Gross profit for the first nine months 2026 was $139.2 million, compared to $140.2 million in the first nine months 2025, a decrease of $1.0 million or 0.7%. The decrease in gross profit was attributed to higher transportation and fuel costs, especially diesel, and production inefficiencies during the integration of a new Texas kiln. SG&A expenses were $6.1 million in the third quarter 2026, up from $5.9 million in the third quarter 2025, an increase of $0.1 million or 2.3%. SG&A expenses for the first nine months 2026 were $18.1 million, compared to $18.4 million in the first nine months 2025, a decrease of $0.3 million or 1.5%. Other (income) expense, net was $3.8 million and $10.4 million income in the third quarter and first nine months 2026, compared to $3.4 million and $9.6 million income in the comparable 2025 periods, increases of $0.4 million and $0.8 million, respectively, primarily due to interest earned on higher average cash balances. Net income for the third quarter 2026 was $38.0 million ($1.32 per diluted share), compared to $38.8 million ($1.35 per diluted share) in the third quarter 2025, a decrease of $0.7 million or 1.9%. Net income for the first nine months 2026 was $103.1 million ($3.58 per diluted share), compared to $103.7 million ($3.61 per diluted share) in the first nine months 2025, a decrease of $0.6 million or 0.6%. The company announced a regular quarterly cash dividend of $0.06 per share, payable on December 11, 2026 to stockholders of record at the close of business on November 20, 2026. The new kiln at the Texas facility began intermittent production of quicklime in the third quarter, with final commissioning expected in the fourth quarter. As of September 30, 2026, current assets were $543,338,000 and property, plant and equipment, net, were $250,574,000. Total assets were $798,429,000 and stockholders’ equity was $733,833,000. United States Lime & Minerals, Inc. operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas through its wholly owned subsidiaries. The company, through U.S. Lime Company-O & G, LLC, also has royalty and non-operated working interests in natural gas wells in Johnson County, Texas, in the Barnett Shale Formation. Timothy W. Byrne is President and Chief Executive Officer.

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