United States Lime & Minerals (USLM) Q1 2025 earnings summary

Executive summary

• Revenue increased 27.3% year-over-year in Q1 2025 to $91.3 million, driven by higher sales volumes and increased average selling prices, mainly from construction and environmental sectors.

• Gross profit rose 50.8% to $46.2 million, reflecting higher revenues and improved margins.

• Net income grew 52.0% to $34.1 million ($1.19 per diluted share), supported by strong demand from construction and environmental customers.

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

• Regular quarterly cash dividend increased to $0.06 per share in Q1 2025, with a similar dividend declared for Q2.

Financial highlights

• Q1 2025 revenues: $91.3 million, up from $71.7 million in Q1 2024.

• Gross profit: $46.2 million (50.6% margin), up from $30.6 million (42.7% margin) year-over-year.

• Operating profit: $39.9 million, up from $25.8 million in Q1 2024.

• Cash and cash equivalents at March 31, 2025: $300.6 million, up from $278.0 million at year-end 2024.

• SG&A expenses increased 29.2% to $6.3 million, mainly due to higher personnel and stock-based compensation costs.

Outlook and guidance

• Management expects cash on hand and operating cash flows to be sufficient for ongoing operations, capital needs, and regular dividends, barring significant acquisitions.

• Texas kiln project remains on track, with $10.5 million incurred and $28.2 million in open purchase orders as of March 31, 2025.

• Management noted continued strong demand from construction customers, amplified by large ongoing projects.