USLM · United States Lime & Minerals, Inc.

United States Lime & Minerals, Inc. reported Q1 2026 results reflecting its first revenue decline against the comparable prior-year quarter since the COVID pandemic began in 2020. Revenue decreased 3.7% to $87.8 million from $91.3 million, primarily due to lower lime and limestone volumes amid softer demand from construction customers and oil/gas sectors. This volume pressure, combined with higher fuel and transportation costs, compressed gross profit by 9.5% to $41.8 million, though the gross margin remained resilient at 47.5%. Management remains optimistic about construction demand recovery for the balance of the year, supported by strategic capacity expansion.

Operating income fell 10.3% to $35.8 million, representing a still-strong 40.7% operating margin. The decline was partially offset by decreased selling, general, and administrative (SG&A) expenses, driven by lower personnel expenses including stock-based compensation. This discipline helped cushion the profitability impact from topline weakness. Net income decreased 10.4% to $30.6 million, with diluted EPS of $1.06 versus $1.19 in the prior-year quarter. The reduction in income tax expense aligned with lower income before taxes, maintaining overall earnings resilience.

Net cash provided by operating activities was $32.1 million, down from $39.4 million in Q1 2025. This reflects the lower net income partially offset by non-cash items such as depreciation, depletion, and amortization (DD&A), deferred income taxes, stock-based compensation, other non-cash adjustments, and changes in working capital. Despite the decline, cash generation remains robust, funding growth investments without liquidity strain.

Overall, while near-term demand softness pressured results, lower SG&A and disciplined capex position USLM for recovery, with the kiln expansion poised to enhance long-term capacity and support construction sector growth.