UNITED STATES LIME & MINERALS INC

Previous wording

Forward-Looking Statements. Any statements contained in this Report that are not statements of historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this Report, including without limitation statements relating to the Company’s plans, strategies, objectives, expectations, intentions, and adequacy of resources, are identified by such words as “will,” “could,” “should,” “would,” “believe,” “possible,” “potential,” “expect,” “intend,” “plan,” “schedule,” “estimate,” “anticipate,” and “project.” The Company undertakes no obligation to publicly update or revise any forward-looking statements. The Company cautions that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including without limitation the following: (i) the Company’s plans, strategies, objectives, expectations, and intentions are subject to change at any time at the Company’s discretion; (ii) the Company’s plans and results of operations will be affected by its ability to maintain or increase its revenues and manage any growth; (iii) the Company’s ability to meet short-term and long-term liquidity demands, including meeting the Company’s operating and capital needs, including possible acquisitions and paying dividends, conditions in the credit and equity markets, and the ability of the Company’s customers to meet their obligations; (iv) interruptions to operations and increased expenses at the Company’s facilities resulting from changes in mining methods or conditions, variability of chemical or physical properties of the Company’s limestone and its impact on process equipment and product quality, inclement weather conditions, including more severe and frequent weather events resulting from climate change, natural disasters, accidents, IT systems failures or disruptions, including due to cybersecurity threats and incidents, utility disruptions, supply chain delays and disruptions, labor shortages and disruptions, or regulatory requirements; (v) volatile coal, petroleum coke, diesel, natural gas, electricity, and transportation costs and the consistent availability of trucks, truck drivers, and rail cars to deliver the Company’s products to its customers and solid fuels to its plants on a timely basis at competitive prices; (vi) the Company’s ability to expand its operations through projects and acquisitions of businesses with related or similar operations and the Company’s ability to obtain any required financing for such projects and acquisitions, to integrate the projects and acquisitions into the Company’s overall operations, and to sell any resulting increased production at acceptable prices; (vii) inadequate demand and/or prices for the Company’s lime and limestone products due to increased competition from competitors, including new entrants into our markets, or other changes to the competitive landscape, increasing…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Forward-Looking Statements. Any statements contained in this Report that are not statements of historical fact are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this Report, including without limitation statements relating to the Company’s plans, strategies, objectives, expectations, intentions, and adequacy of resources, are identified by such words as “will,” “could,” “should,” “would,” “believe,” “possible,” “potential,” “expect,” “intend,” “plan,” “schedule,” “estimate,” “anticipate,” and “project.” The Company undertakes no obligation to publicly update or revise any forward-looking statements. The Company cautions that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including without limitation the following: (i) the Company’s plans, strategies, objectives, expectations, and intentions are subject to change at any time at the Company’s discretion; (ii) the Company’s plans and results of operations will be affected by its ability to maintain or increase its revenues and manage any growth; (iii) the Company’s ability to meet short-term and long-term liquidity demands, including meeting the Company’s operating and capital needs, including possible acquisitions and paying dividends, conditions in the credit and equity markets, and the ability of the Company’s customers to meet their obligations; (iv) interruptions to operations and increased expenses at the Company’s facilities resulting from changes in mining methods or conditions, variability of chemical or physical properties of the Company’s limestone and its impact on process equipment and product quality, inclement weather conditions, including more severe and frequent weather events resulting from climate change, natural disasters, accidents, IT systems failures or disruptions, including due to cybersecurity threats and incidents, utility disruptions, supply chain delays and disruptions, labor shortages and disruptions, or regulatory requirements; (v) volatile coal, petroleum coke, diesel, natural gas, electricity, and transportation costs and the consistent availability of trucks, truck drivers, and rail cars to deliver the Company’s products to its customers and solid fuels to its plants on a timely basis at competitive prices; (vi) the Company’s ability to expand its operations through projects and acquisitions of businesses with related or similar operations and the Company’s ability to obtain any required financing for such projects and acquisitions, to successfully integrate the projects and acquisitions into the Company’s overall existing operations, and to sell any resulting increased production at acceptable prices; (vii) inadequate demand and/or prices for the Company’s lime and limestone products due to increased competition from competitors, including new entrants into our markets, or other changes to the competitive…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Our revenues increased 8.3% and 2.3% in the second quarter and first six months 2026, respectively, compared to the second quarter and first six months 2025. Revenues increased in the second quarter 2026, compared to the second quarter 2026, primarily due to a 6.6% increase in sales volumes of our lime and limestone products, and a 1.7% increase in the average selling prices for our lime and limestone products. Revenues increased in the first six months 2026, compared to the first six months 2025, primarily due to a 1.7% increase in sales volumes of our lime and limestone products, and a 0.7% increase in the average selling prices for our lime and limestone products. Increased sales volumes in the second quarter 2026 and first six months 2026 were principally due to increased demand from our construction and steel customers, partially offset by decreased demand from our roof shingle customers. Looking ahead, we anticipate that data center projects should continue to support strong construction demand.

Current wording

Our revenues increased 4.1% and 2.9% in the third quarter and first nine months 2026, respectively, compared to the third quarter and first nine months 2025. Revenues increased in the third quarter 2026, compared to the third quarter 2025, primarily due to a 2.5% increase in the average selling prices for our lime and limestone products and a 1.6% increase in sales volumes of our lime and limestone products. Increased sales volumes in the third quarter 2026 were principally due to increased demand from our steel customers, partially offset by decreased demand from our construction customers. Revenues increased in the first nine months 2026, compared to the first nine months 2025, primarily due to a 1.7% increase in sales volumes of our lime and limestone products and a 1.3% increase in the average selling prices for our lime and limestone products. Increased sales volumes in the first nine months 2026 were principally due to increased demand from our steel customers, partially offset by decreased demand from our roof shingle customers. Although we remain optimistic regarding overall construction demand in the future, certain large construction projects have experienced delays for various reasons, including securing permits, and we are monitoring indications that Texas’ residential construction is beginning to slow down.

Previous wording

Our gross profit increased 11.6% and 0.5% in the second quarter and first six months 2026, respectively, compared to the second quarter and first six months 2025. The increases in gross profit resulted primarily from the increases in revenues discussed above, partially offset by higher fuel and transportation costs. Our net income was $34.5 million ($1.20 per share diluted) in the second quarter 2026, compared to net income of $30.8 million ($1.07 per share diluted) in the second quarter 2025, an increase of $3.7 million, or 11.9%. For the first six months 2026, our net income was $65.1 million ($2.26 per share diluted), compared to $64.9 million ($2.26 per share diluted) for the first six months 2025, an increase of $0.1 million, or 0.2%.

Current wording

Our gross profit decreased 2.7% and 0.7% in the third quarter and first nine months 2026, respectively, compared to the third quarter and first nine months 2025. The decreases in gross profit resulted primarily from increased transportation and fuel costs, driven principally by higher diesel costs, and production inefficiencies experienced during the integration of our new Texas kiln into our existing plant operations. Our net income was $38.0 million ($1.32 per share diluted) in the third quarter 2026, compared to net income of $38.8 million ($1.35 per share diluted) in the third quarter 2025, a decrease of $0.7 million, or 1.9%. For the first nine months 2026, our net income was $103.1 million ($3.58 per share diluted), compared to $103.7 million ($3.61 per share diluted) for the first nine months 2025, a decrease of $0.6 million, or 0.6%.

Previous wording

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 that the new kiln will come online this summer. We will begin to depreciate the new kiln and related equipment when they consistently produce commercially saleable quicklime.

Current wording

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. The new kiln began intermittently producing quicklime in the third quarter and we expect to have final commissioning completed in the fourth quarter, at which point we will begin to depreciate the new kiln and related equipment. Our costs in Texas have been impacted by production inefficiencies as we continue to integrate the new kiln into our existing plant operations.

Previous wording

Net cash provided by operating activities was $71.1 million in the first six months 2026, compared to $73.5 million in the first six months 2025, a decrease of $2.3 million, or 3.2%. 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 six months 2026, net cash provided by operating activities was principally composed of $65.1 million net income, $13.0 million DD&A, $7.5 million deferred income taxes, and $3.6 million stock-based compensation, partially offset by a $18.2 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six months 2026 included an increase of $13.1 million in trade receivables, net, due primarily to timing of the sales in the second quarter 2026 compared to the fourth quarter 2025, a decrease of $3.1 million in accounts payable and accrued expenses, an increase of $1.4 million in other assets, and an increase of $1.1 million in inventories, partially offset by a decrease of $0.6 million in prepaid expenses and other current assets. In the first six months 2025, net cash provided by operating activities was principally composed of $64.9 million net income, $12.3 million DD&A, and $4.3 million stock-based compensation, partially offset by $2.3 million deferred income taxes and a $6.1 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first six months 2025 included an increase of $10.4 million in trade receivables, net, due primarily to increased sales in the second quarter

Current wording

Net cash provided by operating activities was $123.3 million in the first nine months 2026, compared to $119.4 million in the first nine months 2025, an increase of $3.9 million, or 3.3%. 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 nine months 2026, net cash provided by operating activities was principally composed of $103.1 million net income, $19.4 million DD&A, $13.5 million deferred income taxes, and $5.3 million stock-based compensation, partially offset by a $18.1 million decrease from changes in operating assets and liabilities. Changes in operating assets and liabilities in the first nine months 2026 included an increase of $18.1 million in trade receivables, net, due primarily to increased sales in the third quarter 2026 compared to the fourth quarter 2025, and $2.2 million in inventories, partially offset by a decrease of $0.4 million in prepaid expenses and other current assets and an increase of $1.8 million in accounts payable and accrued

Previous wording

We had $36.2 million in capital expenditures in the first six months 2026, compared to $28.1 million in the first six months 2025. Capital expenditures in the first six months 2026 included $20.9 million related to the Texas kiln project, compared to $14.1 million in the first six months 2025. Net cash used in financing activities was $3.7 million in both the first six months 2026 and 2025, consisting primarily of cash dividends paid in each period.

Current wording

We had $50.2 million in capital expenditures in the first nine months 2026, compared to $42.8 million in the first nine months 2025. Capital expenditures in the first nine months 2026 included $24.5 million related to the Texas kiln project, compared to $20.8 million in the first nine months 2025. Net cash used in financing activities was $5.4 million in both the first nine months 2026 and 2025, consisting primarily of cash dividends paid in each period.

Previous wording

Cash and cash equivalents increased $31.5 million to $402.6 million at June 30, 2026 from $371.1 million at December 31, 2025.

Current wording

Cash and cash equivalents increased $68.1 million to $439.2 million at September 30, 2026 from $371.1 million at December 31, 2025.

Previous wording

We are not committed to any planned capital expenditures until actual orders are placed for equipment. As of June 30, 2026, we were committed to $2.5 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 June 30, 2026, we had incurred a total of $57.7 million on the Texas kiln project, of which $56.8 million had been paid in cash.

Current wording

We are not committed to any planned capital expenditures until actual orders are placed for equipment. As of September 30, 2026, we were committed to $2.8 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 September 30, 2026, we had incurred a total of $61.0 million on the Texas kiln project, of which $60.4 million had been paid in cash.

Previous wording

Revenues in the second quarter 2026 were $99.1 million, compared to $91.5 million in the second quarter 2025, an increase of $7.6 million, or 8.3%. For the first six months 2026, revenues were $187.0 million, compared to $182.8 million in the first six months 2025, an increase of $4.2 million, or 2.3%. The increases in our revenues in the second quarter and first six months 2026, compared to the comparable 2025 periods, resulted primarily from increased sales volumes of our lime and limestone products, principally due to increased demand from our construction and steel customers, partially offset by decreased demand from our roof shingle customers.

Current wording

Revenues in the third quarter 2026 were $106.2 million, compared to $102.0 million in the third quarter 2025, an increase of $4.2 million, or 4.1%, primarily due to an increase in average selling price for lime and limestone products and an increase in sales volumes. Increased sales volumes in the third quarter 2026 were principally due to increased demand from our steel customers, partially offset by decreased demand from our construction customers. For the first nine months 2026, revenues were $293.1 million, compared to $284.8 million in the first nine months 2025, an increase

Previous wording

Selling, general, and administrative (“SG&A”) expenses were $6.1 million in the second quarter 2026, compared to $6.2 million in the second quarter 2025, a decrease of $0.1 million, or 2.0%. SG&A expenses were $12.0 million in the first six months 2026, compared to $12.5 million in the first six months 2025, a decrease of $0.4 million, or 3.3%. The decreases in SG&A expenses in the 2026 periods, compared to the comparable 2025 periods, were primarily due to decreased personnel expenses, including stock-based compensation.

Current wording

Selling, general, and administrative (“SG&A”) expenses were $6.1 million in the third quarter 2026, compared to $5.9 million in the third quarter 2025, an increase of $0.1 million, or 2.3%. SG&A expenses were $18.1 million in the first nine months 2026, compared to $18.4 million in the first nine months 2025, a decrease of $0.3 million, or 1.5%.

Previous wording

Other (income) expense, net was $3.4 million income in the second quarter 2026 and $6.6 million income in the first six months 2026, compared to $3.1 million income in the second quarter 2025 and $6.2 million income in the first six months 2025. The increases of $0.3 million and $0.4 million in other (income) expense, net, during the 2026 periods, compared to the comparable 2025 periods, were primarily due to interest earned on higher average balances of our cash and cash equivalents.

Current wording

Other (income) expense, net was $3.8 million income in the third quarter 2026 and $10.4 million income in the first nine months 2026, compared to $3.4 million income in the third quarter 2025 and $9.6 million income in the first nine months 2025. The increases of $0.4 million and $0.8 million in other (income) expense, net, during the 2026 periods, compared to the comparable 2025 periods, were primarily due to interest earned on higher average balances of our cash and cash equivalents.

Previous wording

Our net income was $34.5 million ($1.20 per share diluted) in the second quarter 2026, compared to net income of $30.8 million ($1.07 per share diluted) in the second quarter 2025, an increase of $3.7 million, or 11.9%. For the first six months 2026, our net income was $65.1 million ($2.26 per share diluted), compared to $64.9 million ($2.26 per share diluted) for the first six months 2025, an increase of $0.1 million, or 0.2%.

Current wording

Our net income was $38.0 million ($1.32 per share diluted) in the third quarter 2026, compared to net income of $38.8 million ($1.35 per share diluted) in the third quarter 2025, a decrease of $0.7 million, or 1.9%. For the first nine months 2026, our net income was $103.1 million ($3.58 per share diluted), compared to $103.7 million ($3.61 per share diluted) for the first nine months 2025, a decrease of $0.6 million, or 0.6%.