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UNITED STATES LIME & MINERALS INC (USLM)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered strong YoY growth: revenue rose 21.9% to $80.1M and diluted EPS increased to $0.94 from $0.60; gross profit climbed 50.2% to $35.4M, driven by higher average selling prices and increased volumes to construction, environmental, and industrial customers .
  • Sequentially, results moderated from Q3 2024 (seasonally higher): revenue fell to $80.1M from $89.4M and diluted EPS to $0.94 from $1.16, while margins remained elevated vs prior year .
  • Management declared an increased regular quarterly dividend to $0.06 per share for Q1 2025, signaling confidence and cash generation (prior dividend was $0.05 in Q3 2024) .
  • Management tone: “pleased” with 2024 performance but “guardedly optimistic” entering early 2025; Street consensus data via S&P Global was unavailable during this session, so beat/miss vs estimates cannot be assessed .

What Went Well and What Went Wrong

What Went Well

  • Pricing power plus volume growth drove Q4 revenue up 21.9% YoY to $80.1M, with specific strength in construction, environmental, and industrial end markets .
  • Gross profit surged 50.2% YoY to $35.4M; operating profit rose to $31.1M, supported by prior-period tailwinds from lower natural gas costs and kiln fuel optimization (highlighted in Q3) .
  • Other income expanded ($3.1M in Q4) on higher interest income from larger cash balances; net income rose 58.8% YoY to $27.0M, and dividend was raised to $0.06 per share .
  • CEO: “We are pleased with the Company’s financial performance in 2024… we remain guardedly optimistic moving into the first part of 2025.” — Timothy W. Byrne .

What Went Wrong

  • Sequential softening from Q3: revenue decreased to $80.1M (from $89.4M) and diluted EPS to $0.94 (from $1.16), reflecting normal seasonality and mix dynamics vs a strong Q3 .
  • Full-year SG&A climbed 9.2% YoY to $19.1M, primarily due to higher personnel expenses including stock-based compensation, a continuing cost headwind .
  • Construction demand was a headwind earlier in 2024 (Q1 and Q2) due to project timing and unusually heavy rainfall; although demand improved by Q3 and volumes increased in Q4, this end-market remains weather/project dependent .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Revenue ($USD Millions)$65.7 $89.4 $80.1
Diluted EPS ($)$0.60 $1.16 $0.94
Gross Profit ($USD Millions)$23.6 $43.1 $35.4
Gross Margin (%)35.9% 48.2% 44.3%
Operating Profit ($USD Millions)$19.0 $38.1 $31.1
Operating Margin (%)28.9% 42.6% 38.8%
Net Income ($USD Millions)$17.0 $33.4 $27.0
Net Margin (%)25.9% 37.3% 33.7%

Segment/Category Breakdown

MetricQ2 2024Q3 2024Q4 2024
Lime & Limestone Revenues ($USD Millions)$76.3 $89.2 $79.8
Lime & Limestone Gross Profit ($USD Millions)$34.8 $43.2 $35.3

KPIs

KPIQ4 2023Q3 2024Q4 2024
SG&A ($USD Millions)$4.6 $5.0 $4.4
Other (Income) Expense, net ($USD Millions)$2.4 income $3.1 income $3.1 income
Income Tax Expense ($USD Millions)$4.4 $7.8 $7.2
Weighted-Average Diluted Shares (Millions)28.559 28.727 28.727
Cash Dividends per Share ($)$0.04 $0.05 $0.05

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025 (payable Mar 14, 2025)Regular quarterly dividend $0.05 (Q3 2024 declaration) Regular quarterly dividend increased to $0.06 Raised

Note: USLM did not provide formal revenue, margin, OpEx, OI&E, tax rate, or segment-specific quantitative guidance in Q4 2024 materials; only the dividend change and stock split disclosure were provided .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Construction demand & weatherQ2: Reduced demand; heavy rainfall delayed projects in South-Central U.S. . Q3: Improved construction demand as weather normalized .Increased volumes to construction customers contributed to revenue growth .Improving sequentially from mid-year weather headwinds.
PricingQ2: Revenue growth driven by increased average selling prices . Q3: Pricing continued to support growth .Pricing remained a key driver of YoY revenue growth .Sustained pricing tailwind.
Fuel costs (natural gas) & kiln optimizationQ3: Lower natural gas prices and fuel blend optimization reduced operating expenses .Q4: Performance primarily attributed to pricing/volumes; no explicit fuel-cost comment in the release .Tailwind earlier; neutral in Q4 commentary.
End-markets: roof shingles, environmental, industrialQ2/Q3: Increased demand from industrial and roof shingle customers .Q4: Volumes increased in environmental and industrial; full-year commentary cites roof shingle strength .Broad-based demand outside construction.
Capital actionsQ2/Q3: Announced 5-for-1 stock split effective July 12, 2024 .Q4: Reiterated split and raised dividend for Q1 2025 .Completed split; dividend increased.

Management Commentary

  • “We are pleased with the Company’s financial performance in 2024… we remain guardedly optimistic moving into the first part of 2025.” — Timothy W. Byrne, President & CEO .
  • “We did see improved demand from our construction customers in the third quarter 2024 as weather conditions… returned to a more normal pattern compared to the heavier than usual rainfalls… in the first half 2024.” — Timothy W. Byrne .
  • “We experienced reduced demand from our construction customers as heavier than usual rainfalls contributed to the delay of construction projects in the south-central United States.” — Timothy W. Byrne (Q2 2024) .

Q&A Highlights

  • No public earnings call transcript was available in our source set for Q4 2024; therefore analyst Q&A highlights and any verbal guidance clarifications could not be reviewed.

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable during this session due to data access limits; as a result, we cannot benchmark reported results vs Street estimates. Future estimate comparisons should default to S&P Global consensus when accessible.

Key Takeaways for Investors

  • Pricing power plus recovering construction demand drove strong Q4 YoY expansion; margins remained well above prior year despite seasonal sequential moderation from Q3 .
  • Prior-period operating efficiency (lower natural gas and kiln fuel optimization) provided cost relief; continued focus on mix/pricing should sustain elevated margins into early 2025 .
  • Balance sheet strength is evident via higher cash balances (supporting interest income) and dividend increase to $0.06, offering capital returns while preserving flexibility .
  • Watch construction activity and weather normalization in USLM’s core geographies; Q3 normalization and Q4 volume gains suggest a favorable setup if project pipelines remain active .
  • End-market breadth (environmental, industrial, roof shingles) provides diversification; monitor industrial and roofing exposure for volume durability .
  • Near term: Seasonal factors may temper Q1/Q2 sequential progression; pricing/mix and backlog health will be key trading catalysts. Medium term: Sustained pricing power and disciplined costs support margin resilience and dividend capacity .