ITEM 1: FINANCIAL STATEMENTS
UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(Unaudited)
| Line item | March 31, 2026 | December 31, 2025 |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | ||
| Trade receivables, net | ||
| Inventories | ||
| Prepaid expenses and other current assets | ||
| Total current assets | ||
| Property, plant, and equipment | ||
| Less accumulated depreciation and depletion | () | () |
| Property, plant, and equipment, net | ||
| Operating lease right-of-use assets | ||
| Other assets, net | ||
| Total assets | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities | ||
| Accounts payable | ||
| Current portion of operating lease liabilities | ||
| Accrued expenses | ||
| Total current liabilities | ||
| Deferred tax liabilities, net | ||
| Operating lease liabilities, excluding current portion | ||
| Other liabilities | ||
| Total liabilities | ||
| Stockholders’ equity | ||
| Common stock | ||
| Additional paid-in capital | ||
| Retained earnings | ||
| Less treasury stock, at cost | () | () |
| Total stockholders’ equity | ||
| Total liabilities and stockholders’ equity |
See accompanying notes to condensed consolidated financial statements.
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UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share amounts)
(Unaudited)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Revenues | % | % |
| Cost of revenues | ||
| Labor and other operating expenses | % | % |
| Depreciation, depletion and amortization | % | % |
| % | % | |
| Gross profit | % | % |
| Selling, general, and administrative expenses | % | % |
| Operating profit | % | % |
| Other (income) expense, net | ()% | ()% |
| Income before income tax expense | % | % |
| Income tax expense | % | % |
| Net income | % | % |
| Net income per share of common stock | ||
| Basic | ||
| Diluted |
See accompanying notes to condensed consolidated financial statements.
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UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(dollars in thousands)
(Unaudited)
| Line item | Common Stock · SharesOutstanding | Common StockAmount | Additional · Paid-InCapital | RetainedEarnings | TreasuryStock | Total |
|---|---|---|---|---|---|---|
| Balances at December 31, 2025 | 28,668,193 | $2,975 | $48,839 | $643,025 | $(64,079) | |
| Stock options exercised | 12,000 | 1 | 127 | — | — | 128 |
| Stock-based compensation | 4,953 | — | 1,779 | — | — | |
| Treasury shares purchased | (3,090) | — | — | — | (370) | () |
| Cash dividends paid | — | — | — | (1,720) | — | () |
| Net income | — | — | — | 30,582 | — | |
| Balances at March 31, 2026 | 28,682,056 | $2,976 | $50,745 | $671,887 | $(64,449) |
| Line item | Common Stock · SharesOutstanding | Common StockAmount | Additional · Paid-InCapital | RetainedEarnings | TreasuryStock | Total |
|---|---|---|---|---|---|---|
| Balances at December 31, 2024 | 28,619,837 | $2,968 | $40,549 | $515,622 | $(61,398) | |
| Stock options exercised | 12,000 | 1 | 159 | — | — | 160 |
| Stock-based compensation | 4,800 | — | 2,336 | — | — | |
| Treasury shares purchased | (3,838) | — | — | — | (424) | () |
| Cash dividends paid | — | — | — | (1,719) | — | () |
| Net income | — | — | — | 34,113 | — | |
| Balances at March 31, 2025 | 28,632,799 | $2,969 | $43,044 | $548,016 | $(61,822) |
See accompanying notes to condensed consolidated financial statements.
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UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(Unaudited)
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| OPERATING ACTIVITIES: | ||
| Net income | $30,582 | $34,113 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation, depletion, and amortization | ||
| Amortization of deferred financing costs | ||
| Deferred income taxes | () | |
| Loss on disposition of property, plant, and equipment | ||
| Stock-based compensation | ||
| Changes in operating assets and liabilities: | ||
| Trade receivables, net | () | () |
| Inventories | () | |
| Prepaid expenses and other current assets | ||
| Other assets | () | |
| Accounts payable and accrued expenses | ||
| Other liabilities | () | () |
| Net cash provided by operating activities | ||
| INVESTING ACTIVITIES: | ||
| Purchase of property, plant, and equipment | () | () |
| Proceeds from sale of property, plant, and equipment | ||
| Net cash used in investing activities | () | () |
| FINANCING ACTIVITIES: | ||
| Cash dividends paid | () | () |
| Proceeds from exercise of stock options | ||
| Purchase of treasury shares | () | () |
| Net cash used in financing activities | () | () |
| Net increase in cash and cash equivalents | ||
| Cash and cash equivalents at beginning of period | 371,124 | 278,031 |
| Cash and cash equivalents at end of period | $383,165 | $300,634 |
See accompanying notes to condensed consolidated financial statements.
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UNITED STATES LIME & MINERALS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
- Basis of Presentation
The condensed consolidated financial statements included herein have been prepared by United States Lime & Minerals, Inc. (the “Company”) without independent audit. In the opinion of the Company’s management, all adjustments of a normal and recurring nature necessary to present fairly the financial position, results of operations, and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2025. The results of operations for the three-month period ended March 31, 2026 are not necessarily indicative of operating results for the full year.
- Organization
The Company is 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. The Company is headquartered in Dallas, Texas and operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas through its 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, the Company, through its wholly owned subsidiary, U.S. Lime Company-O & G, LLC, has royalty and non-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation.
- Accounting Policies
Revenue Recognition. The Company recognizes revenue for its lime and limestone operations when (i) a contract with the customer exists and the performance obligations are identified; (ii) the price has been established; and (iii) the performance obligations have been satisfied, which is generally upon shipment. The Company’s returns and allowances are minimal. Revenues include external freight billed to customers, with related costs accounted for as fulfillment costs and included in cost of revenues. External freight billed to customers included in 2026 and 2025 revenues was $11.7 million and $11.4 million, for the respective three-month periods ended March 31, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues.
Trade Receivables, Net. The majority of the Company’s trade receivables are unsecured. Payment terms for all trade receivables are based on the underlying purchase orders, contracts, or purchase agreements, and are generally fixed, short-term, and do not contain a significant financing component. The Company estimates credit losses relating to trade receivables based on an assessment of the current and forecasted probability of collection, historical trends, economic conditions, and other significant events that may impact the collectability of trade receivables. Due to the relatively homogenous nature of its trade receivables, the Company does not believe there are any meaningful asset-specific differences within its trade receivables portfolio that would require the portfolio to be grouped below the consolidated level for review of credit losses. Credit losses relating to trade receivables have generally been within management expectations and historical trends. Uncollected trade receivables are charged-off when identified by management to be unrecoverable. The Company maintains an allowance for credit losses to reflect currently expected estimated losses resulting from the failure of customers to make required payments.
New Accounting Pronouncements. In November 2024, the Financial Accounting Standards Board issued guidance that requires disclosure of specified information about certain costs and expenses in the notes to the Consolidated Financial Statements (“ASU 2024-03”). ASU 2024-03 requires, among other things, that public business entities include tabular
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and qualitative disclosures that disaggregate each relevant expense caption on the face of a statement of income and include certain natural expenses relevant to the Company. ASU 2024-03 is to be applied on a prospective basis and is effective for annual reporting periods beginning after December 15, 2026. This ASU will likely result in additional disclosures being included in the Company’s consolidated financial statements once adopted.
- Reportable Segment
The Company is managed as reportable segment, lime and limestone operations, based on the distinctness of the Company’s activities and products. All operations are in the United States. The Company has determined that the activities of its natural gas interests and the associated level of review of those activities by the chief operating decision maker (“CODM”) precluded the natural gas activities from meeting the definition of an operating segment.
The Company’s CODM is the chief executive officer. The Company’s lime and limestone operations segment derives revenues from the sale of crushed limestone, pulverized limestone, aggregate, quicklime, hydrated lime, and lime slurry.
In evaluating the operating results of the Company, the CODM assesses performance for the lime and limestone operations segment and decides how to allocate resources (including, but not limited to, decisions on fuel blends, capital investments, and staffing levels) based on net income that is also reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as “Total assets,” and the measure of segment capital expenditures is reported on the Consolidated Statements of Cash Flows as “Purchase of property, plant, and equipment.”
The following table presents revenue, significant expenses, and profit for the periods ended March 31, 2026 and 2025, as reviewed and used by the CODM (in thousands). There are no other significant segment items or reconciling items to consolidated net income.
| Line item | Three Months EndedMarch 31, 2026 | Three Months EndedMarch 31, 2025 |
|---|---|---|
| Revenues | ||
| Less: | ||
| Fuel, energy, and transportation | ||
| Depreciation, depletion, and amortization | ||
| Outside services, maintenance, and supplies | ||
| Personnel expenses, cost of revenues | ||
| Other cost of revenues | ||
| Selling, general, and administrative expenses | ||
| Other (income) expense, net | () | () |
| Income tax expense | ||
| Net income |
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- Income and Dividends Per Share of Common Stock
The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share amounts):
| Line item | Three Months EndedMarch 31, 2026 | Three Months EndedMarch 31, 2025 |
|---|---|---|
| Net income for basic and diluted income per common share | ||
| Weighted-average shares for basic income per common share | ||
| Effect of dilutive securities: | ||
| Employee and director stock options(1) | ||
| Adjusted weighted-average shares and assumed exercises for diluted income per common share | ||
| Basic net income per common share | ||
| Diluted net income per common share |
(1) Stock options are considered anti-dilutive if the exercise price exceeds the average per share market price for the period. No stock options were excluded for any of the periods presented above as anti-dilutive.
The Company paid of cash dividends per share of common stock in each of the three-month periods ended March 31, 2026 and 2025.
- Inventories
Inventories are valued principally at the lower of cost, determined using the average cost method, or net realizable value. Costs for raw materials and finished goods include materials, labor, and production overhead. A summary of inventories is as follows (in thousands):
| Line item | March 31, 2026 | December 31, 2025 |
|---|---|---|
| Lime and limestone inventories: | ||
| Raw materials | ||
| Finished goods | ||
| 11,565 | 12,127 | |
| Parts inventories | 19,042 | 18,781 |
- Banking Facilities and Debt
The Company’s 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 the Company. 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 the Company’s 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 the Company’s Cash Flow Leverage Ratio, defined as the ratio of the Company’s 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 the Company’s existing and hereafter acquired tangible assets, intangible assets, and real property.
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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. The Company’s maximum Cash Flow Leverage Ratio is 3.50 to 1.
The Company may pay dividends so long as it remains in compliance with the provisions of the Company’s credit agreement, and it may purchase, redeem, or otherwise acquire shares of its common stock so long as its 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.
As of March 31, 2026, the Company had no debt outstanding and no draws on the Revolving Facility other than $4.6 million of letters of credit, principally related to the new kiln project at the Texas Lime Company plant, which count as draws against the available commitment under the Revolving Facility.
- Leases
The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 8 years, with a weighted-average remaining lease term of 3 years and 4 years at March 31, 2026 and December 31, 2025, respectively. Some operating leases include options to extend the leases for up to 5 years and are only considered in the lease terms if the Company is reasonably certain it will exercise the option to extend.
The components of net operating lease costs for the three months ended March 31, 2026 and 2025 were as follows (in thousands):
| Line item | Classification | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|---|
| Operating lease costs(1) | Cost of revenues | $705 | $724 |
| Operating lease costs(1) | Selling, general and administrative expenses | 79 | 85 |
| Rental revenues | Revenues | (51) | (55) |
| Rental revenues | Other (income) expense, net | (26) | (31) |
| Net operating lease costs |
(1) Includes the costs of leases with a term of one year or less.
As of March 31, 2026, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands):
| $2026 | $1,272 |
| 2027 | 1,328 |
| 2028 | 635 |
| 2029 | 217 |
| 2030 | 191 |
| Thereafter | 290 |
| Total future minimum lease payments | |
| Less imputed interest | () |
| Present value of lease liabilities |
Supplemental cash flow information pertaining to the Company’s leasing activity for the three months ended March 31, 2026 and 2025 is as follows (in thousands):
| Line item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Cash payments for lease liabilities included in operating cash flows | ||
| Right-of-use assets obtained in exchange for operating lease obligations | — |
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- Income Taxes
The Company has estimated that its effective income tax rate for 2026 will be %. The primary reason for the effective income tax rate being above the federal statutory rate is due to state income taxes, partially offset by statutory depletion, which is allowed for income tax purposes and is a permanent difference between net income for financial reporting purposes and taxable income.
- Dividends
On March 13, 2026, the Company paid $1.7 million in cash dividends, based on a dividend of $0.06 per share of its common stock, to shareholders of record at the close of business on February 20, 2026.
- Subsequent Event
On April 29, 2026, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.06 per share on the Company’s common stock. This dividend is payable on June 12, 2026, to shareholders of record at the close of business on May 22, 2026.
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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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Overview.
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.
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.
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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 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.
At March 31, 2026, we had no debt outstanding and no draws on the Revolving Facility other than $4.6 million of letters of credit, principally related to the Texas kiln project, which count as draws against the available commitment under the Revolving Facility. We believe that, absent a significant acquisition, cash on hand and cash flows from operations will be sufficient to meet our operating needs, ongoing capital needs, including current and possible future modernization, expansion, and development projects, and liquidity needs and allow us to pay regular quarterly cash dividends for the near future.
Results of Operations.
Revenues in the first quarter 2026 were $87.8 million, compared to $91.3 million in the first quarter 2025, a decrease of $3.4 million, or 3.7%. The decrease in our revenues in the first quarter 2026, compared to the first quarter 2025, resulted primarily from decreased sales volumes of our lime and limestone products, principally due to decreased demand from our construction, oil and gas, and roof shingle customers, partially offset by increased demand from our steel customers.
Gross profit was $41.8 million in the first quarter 2026, compared to $46.2 million in the first quarter 2025, a decrease of $4.4 million, or 9.5%. The decrease in gross profit in the first quarter 2026, compared to the first quarter 2025, resulted primarily from the decreased revenues discussed above and higher fuel and transportation costs.
Selling, general, and administrative (“SG&A”) expenses were $6.0 million in the first quarter 2026, compared to $6.3 million in the first quarter 2025, a decrease of $0.3 million, or 4.7%. The decrease in SG&A expenses in the first quarter 2026, compared to the first quarter 2025, was primarily due to decreased personnel expenses, including stock-based compensation.
Other (income) expense, net was $3.2 million income in the first quarter 2026, compared to $3.1 million income in the first quarter 2025, an increase of $0.1 million, primarily due to interest earned on higher average balances of cash and cash equivalents.
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Income tax expense was $8.4 in the first quarter 2026, compared to $8.9 million in the first quarter 2025. The decrease in income tax expense was due to the decrease in income before taxes.
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%.
ITEM 4: CONTROLS AND PROCEDURES
Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. Based upon that evaluation, the CEO and CFO concluded that our disclosure controls and procedures as of the end of the period covered by this Report were effective.
No change in our internal control over financial reporting occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Our 2001 Long-Term Incentive Plan, as Amended and Restated, allows employees and directors to pay the exercise price for stock options and the tax withholding liability upon the lapse of restrictions on restricted stock by payment in cash and/or delivery of shares of common stock. There were no repurchases in the first quarter 2026 pursuant to these provisions or otherwise.
ITEM 4: MINE SAFETY DISCLOSURES
Under Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S-K, each operator of a coal or other mine is required to include disclosures regarding certain mine safety results in its periodic reports filed with the SEC. The operation of our quarries, underground mines and plants is subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977. The required information regarding certain mining safety and health matters, broken down by mining complex, for the quarter ended March 31, 2026, is presented in Exhibit 95.1 to this Report.
We believe we are responsible to employees to provide a safe and healthy workplace environment. We seek to accomplish this by: training employees in safe work practices; openly communicating with employees; following safety standards and establishing and improving safe work practices; involving employees in safety processes; and recording, reporting and investigating accidents, incidents and losses to avoid reoccurrence.
ITEM 6: EXHIBITS
The Exhibit Index set forth below is incorporated by reference in response to this Item.
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
31.1 Rule 13a-14(a)/15d-14(a) Certification by the Chief Executive Officer.
31.2 Rule 13a-14(a)/15d-14(a) Certification by the Chief Financial Officer.
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| 32.1 | Section 1350 Certification by the Chief Executive Officer. |
| 32.2 | Section 1350 Certification by the Chief Financial Officer. |
| 95.1 | Mine Safety Disclosures. |
| 101 | Interactive Data Files (formatted as Inline XBRL). |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
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UNITED STATES LIME & MINERALS, INC.
April 30, 2026 By: /s/ Timothy W. Byrne
Timothy W. Byrne
President and Chief Executive Officer
(Principal Executive Officer)
April 30, 2026 By: /s/ Michael L. Wiedemer
Michael L. Wiedemer
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
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