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UNITED STATES LIME & MINERALS INC (USLM)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered strong fundamentals with revenues up 19.6% YoY to $91.5M and diluted EPS at $1.07, driven by higher volumes and pricing to construction, environmental, and steel customers .
  • Both revenue and EPS missed S&P Global consensus: $97.0M* revenue vs $91.5M actual (MISS), and $1.14* EPS vs $1.07 actual (MISS); coverage is thin (1 estimate each)*.
  • Sequential margins compressed vs Q1 2025 as cost of revenues increased, reducing gross margin from ~50.6% to ~45.8% and operating margin from ~43.7% to ~39.0% .
  • The Board declared a regular quarterly cash dividend of $0.06 per share, consistent with Q1 2025 and above Q2 2024’s $0.05 .
  • Management highlighted solid construction demand; near‑term stock narrative likely hinges on estimate misses and margin trajectory, balanced by ongoing volume/pricing strength and dividend support .

What Went Well and What Went Wrong

What Went Well

  • Demand remained solid in key end markets; revenue grew 19.6% YoY to $91.5M on stronger volumes and higher average selling prices across lime and limestone products .
  • Gross profit increased 20.3% YoY to $41.9M, reflecting the top‑line expansion .
  • Management tone positive: “Demand from our construction customers remained solid,” said CEO Timothy W. Byrne .

What Went Wrong

  • Estimate misses: revenue came in at $91.5M vs $97.0M* consensus and diluted EPS at $1.07 vs $1.14* consensus (1 estimate each)*.
  • Sequential margin compression: gross margin ~45.8% (Q2) vs ~50.6% (Q1); operating margin ~39.0% (Q2) vs ~43.7% (Q1), as cost of revenues increased QoQ .
  • SG&A rose 26.8% YoY to $6.2M, primarily from increased personnel expenses, including stock‑based comp .

Financial Results

Quarterly Trend (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$80.062 $91.253 $91.518
Diluted EPS ($)$0.94 $1.19 $1.07
Gross Profit ($USD Millions)$35.439 $46.156 $41.878
Gross Margin (%)44.3% (35.439/80.062) 50.6% (46.156/91.253) 45.8% (41.878/91.518)
Operating Profit ($USD Millions)$31.087 $39.894 $35.689
Operating Margin (%)38.8% (31.087/80.062) 43.7% (39.894/91.253) 39.0% (35.689/91.518)
Net Income ($USD Millions)$26.990 $34.113 $30.831
Net Margin (%)33.7% (26.990/80.062) 37.4% (34.113/91.253) 33.7% (30.831/91.518)

YoY Comparison (Q2 2024 → Q2 2025)

MetricQ2 2024Q2 2025YoY Change
Revenue ($USD Millions)$76.545 $91.518 +19.6%
Diluted EPS ($)$0.91 $1.07 +17.6%
Gross Profit ($USD Millions)$34.822 $41.878 +20.3%
Gross Margin (%)45.5% (34.822/76.545) 45.8% (41.878/91.518) +30 bps
Operating Profit ($USD Millions)$29.940 $35.689 +19.2%
Operating Margin (%)39.1% (29.940/76.545) 39.0% (35.689/91.518) -10 bps
Net Income ($USD Millions)$26.057 $30.831 +18.3%
Net Margin (%)34.1% (26.057/76.545) 33.7% (30.831/91.518) -40 bps

Additional KPIs

KPIQ2 2024Q2 2025
SG&A ($USD Millions)$4.882 $6.189
Other (Income) Expense, net ($USD Millions)$(2.786) $(3.098)
Income Tax Expense ($USD Millions)$6.669 $7.956
Cash Dividend per Share ($)$0.05 $0.06

Segment Breakdown

SegmentQ2 2025 RevenueNotes
Lime & LimestoneN/ACompany reports as an integrated lime and limestone business; no formal segment breakout in Q2 materials .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Cash Dividend per ShareQ2 2025$0.06 (Q1 2025 declaration) $0.06 (declared July 30, 2025) Maintained
Quarterly Cash Dividend per ShareQ1 2025$0.05 (Q4 2024) $0.06 (declared Apr 30, 2025) Raised

No formal revenue, margin, OpEx, OI&E, tax rate or segment guidance was provided in the Q2 materials .

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available; themes below reflect management’s press releases across periods.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Construction Demand“Guardedly optimistic” moving into early 2025 despite slightly down overall demand in 2024 . Q1: solid demand amplified by large ongoing projects .Demand from construction customers “remained solid” .Improving steadiness into mid‑2025
Pricing Actions2024 revenue growth driven by higher average selling prices .Continued benefit from higher average selling prices .Sustained pricing tailwind
End‑Market Mix (Environmental/Industrial/Steel)2024: increased demand from industrial, environmental, roof shingle; construction down slightly . Q1: construction and environmental strong .Volumes up principally to construction, environmental, and steel customers .Balanced multi‑end‑market support
Operating Costs2024 gross profit up; SG&A flat QoQ in Q4 . Q1: SG&A up on personnel/stock comp .SG&A +26.8% YoY; sequential cost of revenues up, compressing margins .Cost pressure persists (personnel and COGS)
Capital ReturnsDividend increased to $0.06 in Q1 .Dividend maintained at $0.06 in Q2 .Stable shareholder return

Management Commentary

  • “We are pleased with the Company’s strong financial performance in the second quarter 2025. Demand from our construction customers remained solid.” — Timothy W. Byrne, President & CEO .
  • Q1 tone: “We continued to see solid demand from our construction customers during the quarter, which was further amplified by some large, ongoing construction projects.” — Timothy W. Byrne .
  • Year‑end tone: “Even though overall demand was down slightly, compared to 2023, we remain guardedly optimistic moving into the first part of 2025.” — Timothy W. Byrne .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; no Q&A themes or guidance clarifications could be sourced from transcripts .

Estimates Context

MetricQ2 2025 Consensus*ActualSurprise
Revenue ($USD Millions)$97.0*$91.5 -$5.5M (MISS)
Diluted EPS ($)$1.14*$1.07 -$0.07 (MISS)
# of Estimates (Revenue)1*——
# of Estimates (EPS)1*——

Values retrieved from S&P Global.*

Implications: With only one estimate per metric, the “consensus” bar was set by limited coverage; nevertheless, both top‑line and EPS underperformed this benchmark.*

Key Takeaways for Investors

  • Strong YoY growth continues: revenue +19.6% and EPS +17.6% YoY; multi‑end‑market demand and pricing remain supportive .
  • Sequential margin compression warrants attention; higher cost of revenues drove gross and operating margin declines vs Q1 2025 despite similar revenue level .
  • Estimate misses on both revenue and EPS may pressure near‑term sentiment; thin analyst coverage means revisions could be lumpy*.
  • SG&A inflation (personnel and stock comp) is a recurring theme; monitor OpEx intensity versus pricing power .
  • Dividend maintained at $0.06 provides capital return stability; watch for consistency through H2 2025 .
  • End‑market breadth (construction, environmental, steel) and pricing discipline underpin resilience; mix shifts could influence margin path .
  • Actionable focus: track Q3 margin recovery potential and cost trends; any commentary on energy, input costs, or logistics in subsequent filings could be stock catalysts.