United States Lime & Minerals Revenue Reaches $106.2 Million Despite Profit Decline
Key Facts
United States Lime & Minerals reported third-quarter 2026 revenue of $106.2 million, up 4.1% from $102.0 million in the same period a year earlier, according to the company statement published via Nasdaq. But sales growth did not translate into higher profits: net income fell to $38.0 million, or $1.32 per diluted share, compared with $38.8 million and $1.35 per share a year earlier. The company said net income declined 1.9% year over year. Gross profit also fell to $50.8 million from $52.2 million, a decrease of 2.7%. The results show a widening gap between revenue growth and pressure from operating costs during the quarter.
The company attributed the quarterly revenue increase mainly to modest gains in average selling prices and sales volume. Higher demand from steel-sector customers drove the improvement in volume, while weaker demand from construction customers limited its effect. For the first nine months of 2026, revenue reached $293.1 million, compared with $284.8 million in the corresponding period of 2025, an increase of 2.9%. By contrast, the company reported nine-month net income of $103.1 million, or $3.58 per diluted share, compared with $103.7 million and $3.61 per share a year earlier. Revenue growth therefore remained modest over the extended period, while net income declined over the same period.
Gross profit declined as the cost of revenue rose to $55.420 million in the third quarter from $49.827 million a year earlier, according to the unaudited financial data cited in the statement. The company attributed the lower gross profit to higher transportation and fuel costs, mainly due to increased diesel costs, as well as production inefficiencies related to integrating the new kiln at its Texas facility. Chief Executive Timothy Byrne said, "Our expenses reflected the impact of the sharp increase in diesel prices." The new kiln began producing quicklime intermittently during the third quarter. The company expects to complete its final commissioning in the fourth quarter, making the kiln's performance one of the factors it will monitor in the period ahead.
On demand, the company said it is monitoring delays in some large construction projects, including delays related to obtaining permits. It added that it is watching for signs that residential construction in Texas is beginning to slow, a development relevant to the company given the decline in demand it had already recorded from construction customers during the quarter. In the broader economic backdrop, U.S. real gross domestic product grew at an annual rate of 3.4% in the third quarter, following growth of 2.2% in the second quarter, according to the advance estimate released by the U.S. Bureau of Economic Analysis on October 29. The bureau said investment and consumer and government spending contributed to growth, while a decline in exports limited the increase, and imports rose. This provides context for the U.S. economy, while the company identified demand from steel and construction customers as a direct development in its market.
The company's board declared a quarterly cash dividend of $0.06 per share. The dividend will be paid on December 11, 2026, to shareholders of record on November 20. In trading, the company's stock closed at $113.89 on October 29, according to EL7 data. The available data do not include a daily trading range, so they establish only the closing price. In the near term, final commissioning of the Texas kiln is due in the fourth quarter, while the second estimate of third-quarter GDP and corporate profits is scheduled for November 25, according to the Bureau of Economic Analysis.