United States Lime & Minerals (USLM) investor relations material

Executive summary

• Revenues for Q1 2026 decreased 3.7% year-over-year to $87.8 million, mainly due to lower sales volumes from construction, oil and gas, and roof shingle customers, partially offset by higher demand from steel customers.

• Net income for Q1 2026 was $30.6 million ($1.06 per diluted share), down 10.4% from Q1 2025.

• Gross profit declined 9.5% to $41.8 million, mainly due to decreased revenues and higher fuel and transportation costs.

• Management remains optimistic for the rest of the year, citing anticipated demand recovery and progress on the Texas kiln project.

Financial highlights

• Operating profit for Q1 2026 was $35.8 million, down from $39.9 million in Q1 2025.

• Cash and cash equivalents increased to $383.2 million as of March 31, 2026, from $371.1 million at year-end 2025.

• Net cash provided by operating activities was $32.1 million, down from $39.4 million in Q1 2025.

• SG&A expenses decreased 4.7% to $6.0 million, mainly from lower personnel and stock-based compensation costs.

• Other income increased to $3.2 million, driven by higher interest income.

Outlook and guidance

• Construction on a new vertical kiln at the Texas Lime Company plant is ongoing, with estimated total costs of $65 million and startup expected in summer 2026.

• Management expects improved demand from construction customers for the remainder of 2026.

• Sufficient liquidity is expected to meet operating and capital needs and to continue paying regular quarterly dividends.