United States Lime Rebounds as Construction Demand Recovers
Gross margin widened about 1.3 percentage points to 47.1% despite higher fuel and transportation costs.
United States Lime & Minerals (USLM) returned to growth in the second quarter as stronger construction and steel demand lifted sales volumes, reversing the lime-and-limestone producer’s first-quarter contraction.
Revenue rose 8.3% from a year earlier to $99.1 million and increased 12.8% sequentially from $87.8 million. Growth had fallen 3.7% in the first quarter and remained below the rates recorded in the final three quarters of 2024.
Net income increased 11.9% to $34.5 million, or $1.20 a diluted share, after declining 10.4% in the first quarter. Sequentially, net income rose about 12.8% from $30.6 million, while diluted earnings increased from $1.06 a share.
Higher sales volumes drove the quarter’s revenue gain, with construction customers leading the increase and steel demand also improving. Roof-shingle demand remained weak. Earlier growth periods had benefited from both volume and higher average selling prices, while there was no pricing contribution for the latest quarter.
Gross profit rose 11.6% to $46.7 million and increased 11.9% from the first quarter. The margin narrowed about half a percentage point sequentially as fuel and transportation costs remained a drag. Selling, general and administrative expenses declined 2% to $6.1 million, driven by lower stock-based compensation.
The first-quarter decline continued to weigh on the half-year comparison. Six-month revenue increased 2.3% to $187.0 million, gross profit gained 0.5% to $88.5 million and net income edged up 0.2% to $65.1 million.
Data-center projects should continue supporting strong construction demand. A new kiln at its Texas facility is expected to begin operating during summer 2026, adding capacity as that demand strengthens.