UNITED STATES LIME & MINERALS INC (USLM)

CIK: 0000082020. SIC: 1400 Mining & Quarrying of Nonmetallic Minerals (No Fuels). Latest 10-K as of: 2026-02-26.

SIC breadcrumb: Mining > SIC Major Group 14 > SIC 1400 Mining & Quarrying of Nonmetallic Minerals (No Fuels)

SEC company page: https://www.sec.gov/edgar/browse/?CIK=82020. Latest filing source: 0001104659-26-020480.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000082020.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000082020.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001104659-26-052866.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high. Filing date: 2026-04-30. Report date: 2026-03-31.

ITEM 2:     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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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.

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11

Overview.

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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.

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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.

12

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 Facil

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high. Filing date: 2026-02-26. Report date: 2025-12-31.

ITEM 7. 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, 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 current 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, legislative impasses, extended governmental shutdowns, reduced levels of government staffing, downgrades and defaults on U.S. government obligations, trade wars, tariffs, international incidents, including conflicts in Ukraine, the Middle East, and Latin America, 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 changing interest rates, 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, 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 SEC, including the Company’s Quarterly Reports on Form 10-Q.

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Table of Contents

OVERVIEW.

Set forth below is certain selected financial data for the five years ended December 31, 2025:

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Years Ended December 31,

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2025

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2024

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2023

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2022

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2021

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(dollars in thousands, except per share amounts)

Operating results

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Total revenues

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$

372,727

317,721

281,330

236,150

189,255

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Gross profit

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$

182,398

143,981

102,867

70,342

59,260

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Operating profit

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$

157,859

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124,923

​

85,422

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54,783

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46,417

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Other (income) expense, net

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$

(13,158)

(11,460)

(7,940)

(1,779)

(101)

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Income tax expense

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$

36,742

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27,544

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18,813

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11,133

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9,473

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Net income

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$

134,275

108,839

74,549

45,429

37,045

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Net income per share of common stock:

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Basic

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$

4.69

3.81

2.62

1.60

1.31

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Diluted

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$

4.67

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3.79

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2.61

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1.60

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1.31

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Dividends per share of common stock

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$

0.24

0.20

0.16

0.16

0.13

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As of December 31,

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2025

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2024

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2023

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2022

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2021

Total assets

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$

681,044

543,163

440,602

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367,772

279,098

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Stockholders’ equity per outstanding common share

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$

22.00

17.39

13.78

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11.30

9.82

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Employees

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346

345

333

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338

308

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General.

We have identified one reportable business segment, lime and limestone operations, based on the distinctness of our activities and products. All operations are in the United States.

Our revenues increased 17.3% in 2025 compared to 2024, due to an increase in sales volume of our lime and limestone products of 11.7% and a 5.6% increase in average selling prices. The increase in sales volume was primarily due to increased demand from our construction, environmental, and steel customers, partially offset by decreased demand from our oil and gas services customers. Our gross profit increased 26.7% in 2025, compared to 2024, primarily due to the increased revenues discussed above.

Our other (income) expense, net was $13.2 million income in 2025, compared to $11.5 million income in 2024, an increase of $1.7 million. The increase in other (income) expense, net in 2025, compared to 2024, was due to interest earned on higher average balances of our cash and cash equivalents.

Our net income increased $25.4 million, or 23.4%, in 2025, compared to 2024. Net income per fully diluted share increased to $4.67 in 2025, compared to $3.79 in 2024, an increase of 23.2%.

Cash flows from operations enabled us to make $62.7 million of capital investments in 2025. It also enabled us to pay $6.9 million in dividends in 2025 and increase our cash and cash equivalents balances to $371.1 million as of December 31, 2025, compared to $278.0 million as of December 31, 2024. As of December 31, 2025 and 2024, we had no debt outstanding.

Our new vertical kiln and related equipment and infrastructure at our Texas Lime plant is expected to start up in the summer of 2026. We expect the total costs of the Texas kiln project to be approximately $65 million when completed. As of December 31, 2025, we have paid an aggregate of $37.3 million on the project, and we anticipate most of the remaining costs will be paid in 2026. We will begin to depreciate the new kiln and related equipment when they consistently produce commercially saleable quicklime.

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In January 2026, much of North America experienced an expansive major winter storm which interrupted commerce in the areas we serve. Our plants did not sustain any damage from the storm, but product shipments were interrupted for a period of time. The impact, if any, on our first quarter 2026 financial performance, has not been determined. In addition to shipment delays to our customers from weather-related interruptions, we anticipate the weakness in demand we saw from our roof shingle customers in the fourth quarter 2025 will continue in early 2026.

On February 2, 2026, we announced that our Board of Directors had declared a regular quarterly cash dividend of $0.06 per share. The dividend is payable on March 13, 2026, to stockholders of record on February 20, 2026.

Absent a significant acquisition opportunity arising during 2026, we anticipate funding our operating and capital needs and our regular cash dividends from our cash balances on hand and cash flows from operations.

Our Operations.

We produce and sell crushed limestone, PLS, aggregate, quicklime, hydrated lime and lime slurry. The principal factors affecting our success are the level of demand and prices for our products and whether we are able to maintain sufficient production levels and product quality while controlling costs.

Adverse weather conditions, such as ice storms, freezing weather, hurricanes, tornadoes, excessive rains, and flooding, generally reduce the demand for lime and limestone products supplied to construction-related customers that account for a significant amount of our revenues. Inclement weather also interferes with our open-pit mining operations and can disrupt our plant production and product shipments. In addition to weather, various maintenance, environmental, accident, and other operational and construction issues can also disrupt our operations and increase our operating expenses.

Demand for our lime and limestone products in our market areas is also affected by general economic, political, and regulatory conditions, the pace of construction, including the level of governmental and private funding for highway, infrastructure, and data center construction, utility plant usage of coal for power generation, the demand for steel, the demand for roof shingles, and the level and oil and gas drilling in our markets.

Texas continues to invest heavily in its transportation infrastructure, including directing certain sales and use tax revenues, state motor vehicle sales and rental tax revenues, and oil and gas tax revenues to the State Highway Fund, as required under the Texas constitution. The major metropolitan areas in Texas continue to experience net population growth and are characterized by solid new housing demand and related infrastructure growth. With these funding sources and investment, we expect to see strong continued demand from our construction customers, but the timing and amount of any increase in demand is uncertain and subject to weather, political, economic, and other factors.

Our modernization and expansion and development projects in Texas, Arkansas, and Oklahoma, our acquisitions in Oklahoma and Missouri, and our Texas slurry operations have positioned us to meet the demand for high-quality lime and limestone products in our markets. Our modernization and expansion and development projects have also equipped us with up-to-date, fuel-efficient plant facilities, which have resulted in lower production costs and greater operating efficiencies, thus enhancing our competitive position. All of our rotary kilns are preheater kilns, and the addition of the vertical kiln at St. Clair further increased the fuel efficiency of our fleet of kilns. Future projects, such as our new kiln project at Texas Lime, will create opportunities for further fuel efficiency.

For our plants to operate at peak efficiency, we must meet operational challenges that arise from time to time, including bringing new facilities on-line and refurbishing and/or improving acquired facilities, as well as operating existing facilities efficiently. We also incur ongoing costs for maintenance and to remain in compliance with rapidly changing Environmental Laws and health and safety and other regulations.

Our primary variable cost is energy. Prices for coal, petroleum coke, diesel, natural gas, electricity, transportation, and freight are volatile. In addition, our freight costs, including the cost of diesel, to deliver our products can be high relative to the value of our products.

Historically, we have been able to mitigate to some degree the impact of volatile energy costs by varying the mixes of fuel used in our kilns, and by passing on some of any increase in costs to our customers, where possible,

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Table of Contents

through higher prices and/or surcharges on certain products. In addition, we continually look for other ways to better manage our energy costs at our plants. Finally, we have not engaged in any significant hedging activity in an effort to control our energy costs but may do so in the future.

We continue to believe that the enhanced efficiency and production capacity resulting from our modernization and expansion and development projects in Texas, Arkansas, and Oklahoma, our expanded slurry operations, our acquisitions, including the acquisitions of Carthage and Mill Creek, and the operational strategies that we have implemented have allowed us to increase our efficiency, grow production capacity, improve product quality, better serve existing customers, attract new customers, and control costs. However, there can be no assurance that demand and prices for our lime and limestone products will enable us to fully utilize any additional production capacity, nor that our production will not be adversely affected by weather, maintenance, regulatory, accident, cybersecurity, and other operational and construction issues; that we can successfully invest in improvements to our existing facilities and acquisitions; that our results will not be adversely affected by increases in fuel, natural gas, electricity, transportation, and freight costs, taxes, or new environmental, health and safety, or other regulatory requirements; or that, with increasing competition with other lime and limestone producers, our revenues, gross profit, net income, and cash flows can be maintained or improved.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES.

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities, at the date of our financial statements. Actual results may differ from these estimates and judgments under different assumptions or conditions and historical trends.

Critical accounting policies are defined as those that are reflective of significant management judgments and uncertainties and potentially result in materially different results under different assumptions and conditions. We believe the following critical accounting policies require the most significant management estimates and judgments used in the preparation of our consolidated financial statements.

Contingencies. We are party to proceedings, lawsuits, and claims arising in the normal course of business relating to regulatory, labor, product, and other matters. We are required to estimate the likelihood of any adverse judgments or outcomes with respect to these matters, as well as potential ranges of possible losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual matter, including coverage under our insurance policies. This determination may change in the future because of new information or developments.

Income taxes. We utilize the asset and liability approach in reporting our income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We establish valuation allowances when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Income tax related interest and penalties are included in income tax expense. We also assess individual tax positions to determine if they meet the criteria for some or all of the benefits of that position to be recognized in our financial statements and only recognize tax positions that meet the more-likely-than-not recognition threshold.

Environmental costs and liabilities. We record environmental accruals, including accrued reclamation costs, in other liabilities, based on studies and estimates, when it is probable we have incurred a reasonably estimable cost or liability. The accruals are adjusted when further information warrants an adjustment. Environmental expenditures that extend the life, increase the capacity, or improve the safety or efficiency of Company-owned assets or are incurred to mitigate or prevent future possible environmental issues are capitalized. Other environmental costs are expensed when incurred.

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RESULTS OF OPERATIONS.

The following table sets forth certain financial information expressed as a percentage of revenues for the three years ended December 31, 2025:

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

​

Revenues

100.0

%

100.0

%

100.0

%

​

Cost of revenues

​

​

​

​

​

​

​

​

Labor and other operating expenses

(44.4)

​

(47.2)

​

(55.1)

​

​

Depreciation, depletion and amortization

(6.7)

​

(7.5)

​

(8.3)

​

​

Gross profit

48.9

​

45.3

​

36.6

​

​

Selling, general and administrative expenses

(6.5)

​

(5.9)

​

(6.2)

​

​

Operating profit

42.4

​

39.4

​

30.4

​

​

Other (income) expense, net

​

3.5

​

3.6

​

2.8

​

​

Income tax expense

(9.9)

​

(8.7)

​

(6.7)

​

​

Net income

36.0

%  

34.3

%  

26.5

%

​

2025 vs. 2024

Our revenues in 2025 increased to $372.7 million from $317.7 million in 2024, an increase of $55.0 million, or 17.3%. The increase in revenues in 2025 was due to an 11.7% increase in sales volumes and a 5.6% increase in average selling prices for our lime and limestone products. The increase in sales volumes was principally due to increased demand from our construction, including the construction of some large data centers in the regions we serve, environmental, and steel customers, partially offset by decreased demand from our oil and gas services customers.

Our gross profit increased to $182.4 million in 2025 from $144.0 million in 2024, an increase of $38.4 million, or 26.7%. The increase in gross profit in 2025, compared to 2024, resulted primarily from the increased revenues discussed above.

Selling, general and administrative expenses (“SG&A”) increased to $24.5 million in 2025, an increase of $5.5 million, or 28.8%, compared to $19.1 million in 2024. As a percentage of revenues, SG&A was 6.5% in 2025, compared to 5.9% in 2024. The increase in SG&A was primarily due to increased personnel expenses in 2025 compared to 2024.

Other (income) expense, net was $13.2 million income in 2025, compared to $11.5 million income in 2024, an increase of $1.7 million. The increase in other (income) expense, net in 2025, compared to 2024, was due to interest earned on higher average balances of our cash and cash equivalents.

Income tax expense was $36.7 million in 2025, for an effective rate of 21.5%, compared to $27.5 million in 2024, for an effective rate of 20.2%, an increase of $9.2 million, primarily due to the increase in income before income taxes in 2025, compared to 2024. Our effective income tax rates in 2025 and 2024 were increased from the statutory rate primarily due to state income taxes and disallowed executive compensation, and reduced primarily by statutory depletion in excess of basis.

Net income increased to $134.3 million ($4.67 per share diluted) in 2025, compared to $108.8 million ($3.79 per share diluted) in 2024, an increase of $25.4 million, or 23.4%.

2024 vs. 2023

Our revenues in 2024 increased to $317.7 million from $281.3 million in 2023, an increase of $36.4 million, or 12.9%. The increase in revenues in 2024 was due to a 14.2% increase in average selling prices for our lime and limestone products, partially offset by a 1.2% decrease in sales volumes. The decrease in sales volume was primarily due

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to decreased demand from our construction customers, partially offset by increased demand from our industrial, environmental, and roof shingle customers.

Our gross profit increased to $144.0 million in 2024 from $102.9 million in 2023, an increase of $41.1 million, or 40.0%. The increase in gross profit in 2024, compared to 2023, resulted primarily from the increased revenues discussed above.

SG&A increased to $19.1 million in 2024, an increase of $1.6 million, or 9.2%, compared to $17.4 million in 2023. As a percentage of revenues, SG&A was 5.9% in 2024, compared to 6.2% in 2023. The increase in SG&A was primarily due to increased personnel expenses, including stock-based compensation, in 2024, compared to 2023.

Other (income) expense, net was $11.5 million income in 2024, compared to $7.9 million income in 2023, an increase of $3.5 million. The increase in other (income) expense, net in 2024, compared to 2023, was due to interest earned on higher average balances of our cash and cash equivalents.

Income tax expense was $27.5 million in 2024, for an effective rate of 20.2%, compared to $18.8 million in 2023, for an effective rate of 20.2%, an increase of $8.7 million, primarily due to the increase in income before income taxes in 2024, compared to 2023. Our effective income tax rates in 2024 and 2023 were reduced from the statutory rate primarily due to statutory depletion in excess of basis, and increased primarily due to disallowed executive compensation and state income taxes.

Net income increased to $108.8 million ($3.79 per share diluted) in 2024, compared to $74.5 million ($2.61 per share diluted) in 2023, an increase of $34.3 million, or 46.0%.

Summary of Quarterly Financial Data

(dollars in thousands except per share amounts)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2025

​

​

March 31,

​

June 30,

​

September 30,

​

December 31,

Revenues

​

$

91,253

​

​

91,518

​

​

102,016

​

​

87,940

​

Gross profit

​

$

46,156

​

​

41,878

​

​

52,189

​

​

42,175

​

Operating profit

​

$

39,894

​

​

35,689

​

​

46,262

​

​

36,014

​

Net income

​

$

34,113

​

​

30,831

​

​

38,782

​

​

30,549

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic income per common share

​

$

1.19

​

​

1.08

​

​

1.35

​

​

1.07

​

Diluted income per common share

​

$

1.19

​

​

1.07

​

​

1.35

​

​

1.06

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

​

March 31,

​

June 30,

​

September 30,

​

December 31,

Revenues

​

$

71,687

​

​

76,545

​

​

89,427

​

​

80,062

​

Gross profit

​

$

30,607

​

​

34,822

​

​

43,113

​

​

35,439

​

Operating profit

​

$

25,759

​

​

29,940

​

​

38,137

​

​

31,087

​

Net income

​

$

22,439

​

​

26,057

​

​

33,353

​

​

26,990

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic income per common share

​

$

0.79

​

​

0.91

​

​

1.17

​

​

0.94

​

Diluted income per common share

​

$

0.78

​

​

0.91

​

​

1.16

​

​

0.94

​

​

FINANCIAL CONDITION.

Capital Requirements. We require capital primarily for normal recurring capital and re-equipping projects, modernization and expansion and development projects, and acquisitions. Our capital needs are expected to be met principally from cash on hand, cash flows from operations, and our $75.0 million revolving credit facility.

We expect to spend approximately $25.0 million per year over the next several years for normal recurring capital and re-equipping projects at our plants and facilities to maintain or improve efficiency, ensure compliance with

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Environmental Laws, meet customer needs, and reduce costs. As of December 31, 2025, we had $18.6 million in open orders for equipment and construction services contracts, including $15.9 million of contractual obligations relating to the new kiln project at Texas Lime.

Liquidity and Capital Resources. Net cash provided by operating activities was $165.0 million in 2025, compared to $126.0 million in 2024, an increase of $39.0 million, or 30.9%. Our net cash provided by operating activities is composed of net income, depreciation, depletion and amortization (“DD&A”), other non-cash items included in net income, and changes in working capital. In 2025, net cash provided by operating activities was principally composed of $134.3 million net income, $25.2 million DD&A, and $8.1 million stock-based compensation, partially offset by a $0.7 million decrease in deferred income taxes and a $2.6 million decrease from changes in working capital. In 2025, the changes in working capital were principally composed of a $4.0 million increase in trade receivables, net, primarily as a result of increased sales in the fourth quarter 2025, compared to the fourth quarter 2024, and a $3.2 million increase in inventories, primarily due to increases in the costs of our supply of critical parts, partially offset by a $4.5 million increase in accounts payable and accrued expenses. In 2024, net cash provided by operating activities was principally composed of $108.8 million net income, $24.2 million DD&A, and $4.9 million stock-based compensation, partially offset by a $1.0 million decrease in deferred income taxes and an $11.0 million decrease from changes in working capital. In 2024, the changes in working capital were principally composed of a $5.9 million increase in trade receivables, net, primarily as a result of increased sales in the fourth quarter 2024, compared to the fourth quarter 2023, a $3.4 million increase in inventories, primarily due to increases in the costs of our supply of critical parts and the volume of our solid fuel stockpiles, and a $1.0 million decrease in accounts payable and accrued expenses.

Net cash used in investing activities was $62.5 million for 2025, compared to $26.9 million for 2024. Net cash used in investing activities for 2025 included $35.9 million on the Texas kiln project and $4.6 million for real property purchases. Net cash used in investing activities for 2024 included $1.4 million on the Texas kiln project and $1.6 million for real property purchases.

Net cash used in financing activities primarily consisted of $6.9 million for dividend payments and $2.7 million to repurchase shares of our common stock in 2025, compared to $5.7 million for dividend payments and $3.5 million to repurchase shares of our common stock in 2024.

Our cash and cash equivalents at December 31, 2025 increased to $371.1 million from $278.0 million at December 31, 2024.

Banking Facilities and Debt. 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.

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Table of Contents

At December 31, 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.

Common Stock Buybacks. We spent $2.7 million, $3.5 million, and $1.3 million in 2025, 2024, and 2023, respectively, to repurchase treasury shares tendered for payment of the tax withholding liability upon the lapse of restrictions on restricted stock.

Contractual Obligations. The following table sets forth our contractual obligations as of December 31, 2025 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Payments Due by Period

​

  ​ ​ ​

​

​

  ​ ​ ​

​

  ​ ​ ​

​

  ​ ​ ​

​

  ​ ​ ​

More Than

Contractual Obligations

​

Total

​

1 Year

​

2 - 3 Years

​

4 - 5 Years

​

5 Years

Operating leases(1)

​

$

4,394

1,713

1,983

408

290

​

Limestone mineral leases

​

$

2,315

123

354

283

1,555

​

Purchase obligations(2)(3)

​

$

41,009

34,989

6,020

—

—

​

Other liabilities

​

$

1,401

120

240

240

801

​

Total

​

$

49,119

36,945

8,597

931

2,646

​

(1)

Represents operating leases for railcars, corporate office space, and some equipment that are either non-cancelable or subject to significant penalty upon cancellation.

(2)

Of these obligations, $3,749 were recorded on the Consolidated Balance Sheet at December 31, 2025.

(3)

Purchase obligations includes enforceable agreements to purchase goods, equipment, or services that specify all significant terms, including fixed or minimum quantities to be purchased, generally pertaining to fuel contracts, fixed-price provisions, and the approximate timing of the transaction, and are either non-cancelable or subject to significant penalty upon cancellation, including $15.9 million, $2.7 million of which is on the Consolidated Balance Sheet at December 31, 2025, related to the Texas kiln project.

Absent a significant acquisition, we believe that cash on hand and cash flows from operations will be sufficient to meet our operating needs, ongoing capital needs, including our current and possible future modernization and expansion and development projects, such as the Texas kiln project, and liquidity needs and allow us to pay our regular cash dividends for the short-term and beyond.

Off-Balance Sheet Arrangements. We do not utilize off-balance sheet financing arrangements.