Sign in

You're signed outSign in or to get full access.

US

UNITED STATES LIME & MINERALS INC (USLM)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered strong top-line and earnings growth: revenue rose 14.1% year over year to $102.0M and diluted EPS increased 16.4% to $1.35, driven by higher volumes and average selling prices, notably in construction, environmental, and steel; oil & gas services was a headwind .
  • Sequentially, revenue and EPS improved versus Q2 2025 ($91.5M, $1.07), with margins expanding on volume mix and pricing; gross margin reached ~51.2% vs ~45.8% in Q2 .
  • Management highlighted sustained construction demand supported by data center builds, but cautioned on a “more mixed demand picture” ahead as other end markets soften, setting expectations conservatively for near‑term demand mix .
  • The Board declared a regular quarterly dividend of $0.06 per share, payable December 12, 2025, continuing shareholder returns while maintaining balance sheet strength .

What Went Well and What Went Wrong

What Went Well

  • Broad-based demand strength: higher sales volumes and average selling prices in lime and limestone supported revenue and gross profit growth; major contributors were construction, environmental, and steel customers .
  • Margin expansion and earnings growth: gross profit rose 21.1% YoY to $52.2M; net income increased 16.3% YoY to $38.8M and diluted EPS to $1.35, reflecting operating leverage and higher other income on larger cash balances .
  • Positive strategic commentary: “Demand from our construction customers remained solid, supported by the construction of large data centers in the regions that we serve” — CEO Timothy W. Byrne .

What Went Wrong

  • End‑market softness: lower sales volumes to oil & gas services customers partially offset strength in other sectors in Q3 .
  • Higher SG&A: expenses rose 19.1% YoY to $5.9M due to increased personnel costs and stock‑based compensation, tempering operating profit flow‑through .
  • Mixed outlook: management expects “a more mixed demand picture,” with non‑data center end markets potentially softer, implying near‑term variability in volumes/mix .

Financial Results

Core P&L and Margin Comparison (oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$89.4 $91.3 $91.5 $102.0
Diluted EPS ($USD)$1.16 $1.19 $1.07 $1.35
Gross Profit ($USD Millions)$43.1 $46.2 $41.9 $52.2
Gross Margin (%)48.2% 50.6% 45.8% 51.2%
Operating Profit ($USD Millions)$38.1 $39.9 $35.7 $46.3
Operating Margin (%)42.6% 43.7% 39.0% 45.4%
Net Income ($USD Millions)$33.4 $34.1 $30.8 $38.8

Estimate vs Actual (Q3 2025)

MetricConsensus EstimateActualSurprise
Revenue ($USD Millions)$102.0*$102.0 +$0.0M (in line)*
Diluted EPS ($USD)N/A*$1.35 N/A*

Values retrieved from S&P Global.*

Operating Drivers

MetricQ3 2024Q1 2025Q2 2025Q3 2025
SG&A ($USD Millions)$5.0 $6.3 $6.2 $5.9
Other (Income) Expense, net ($USD Millions)$(3.1) $(3.1) $(3.1) $(3.4)
Income Tax Expense ($USD Millions)$7.8 $8.9 $8.0 $10.9
Cash Dividends per Share ($USD)$0.05 $0.06 $0.06 $0.06

Segment Breakdown

USLM reports as a single business focused on lime and limestone; no segment revenue disclosures provided in Q3 2025 materials .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue, EPS, Margins)Q4 2025/FY 2025Not providedNot providedMaintained (no formal guidance)
Regular Quarterly Dividend ($/share)Q4 2025$0.06 (Q2 & Q1 2025) $0.06 payable Dec 12, 2025; record date Nov 21, 2025 Maintained

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the company document set; themes compiled from management commentary in press releases.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Construction demand“Demand from our construction customers remained solid.” (Q2) ; “solid demand… amplified by some large, ongoing construction projects.” (Q1) Solid demand supported by large data center construction Improving and sustained in construction/data centers
Environmental and steel end marketsVolumes contributed to growth (Q2) Continued contribution to higher volumes Stable to positive
Oil & gas servicesMixed; not a driver of growth (Q2) Softer demand, partial offset to overall strength Weakening
PricingHigher average selling prices supported revenue (Q1 & Q2) Higher ASPs remained a tailwind Positive
Outlook tonePositive near‑term demand in construction (Q1/Q2) “More mixed demand picture” ahead (cautious) Turning more cautious

Management Commentary

  • “Demand from our construction customers remained solid, supported by the construction of large data centers in the regions that we serve.” — Timothy W. Byrne, President & CEO .
  • “Looking ahead, we anticipate a more mixed demand picture, with ongoing data center construction demand being partially offset by softer demand from some of the other industries that we serve.” — Timothy W. Byrne .
  • Prior quarters: “We are pleased with the Company’s strong financial performance” (Q2) ; “solid demand… further amplified by some large, ongoing construction projects” (Q1) .

Q&A Highlights

The company did not provide a Q3 2025 earnings call transcript in the available filings/press releases; Q&A details are not available in the document set.

Estimates Context

  • Revenue matched the single-estimate S&P Global consensus at ~$102.0M, resulting in an “in line” print; limited sell-side coverage (one revenue estimate) reduces the likelihood of a statistically meaningful surprise classification.*
  • No EPS consensus was available; reported diluted EPS was $1.35.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Q3 momentum: Double-digit revenue growth (+14.1% YoY) and margin expansion (gross margin ~51.2%) underpin robust earnings ($1.35 diluted EPS), with pricing and volumes both contributing .
  • Construction/data center narrative: Ongoing data center projects are a visible catalyst for construction volumes in regions served; this has been a consistent driver across Q1–Q3 .
  • Mixed forward demand: Management’s cautious tone on non‑data center end markets (e.g., oil & gas services softness) suggests near‑term variability in mix and margins .
  • Cost discipline vs inflation: SG&A increases tied to personnel and stock-based comp; monitor cost trends versus revenue growth to sustain operating margin >45% .
  • Balance sheet strength: Higher other income from cash balances and growing equity base provide flexibility to invest and maintain dividends; dividend maintained at $0.06/share for Q4 .
  • Coverage/estimates: With minimal sell-side estimates, price reactions may hinge more on reported fundamentals and management commentary than consensus beats/misses.*
  • Near-term trading setup: Watch construction pipeline updates (data centers) and any signs of broadening softness beyond oil & gas; quarterly cadence shows sequential improvement Q2→Q3, supportive for near‑term sentiment .

Appendix: Source Documents

  • Q3 2025 8‑K and News Release (Exhibit 99.1)
  • Q2 2025 Press Release
  • Q1 2025 Press Release
  • Estimates (S&P Global) for Q3 2025: Revenue consensus and coverage* (see table above).