United States Lime & Minerals reported higher revenue but slightly lower profit for the third quarter and first nine months of 2026, as increased sales to steel customers were offset by weaker demand in some other markets and higher operating costs. The company also declared its regular quarterly dividend of 6 cents per share.
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Third-quarter revenue rose 4.1% to $106.2 million from $102.0 million a year earlier. For the first nine months, revenue increased 2.9% to $293.1 million from $284.8 million.
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Sales prices and volumes both increased modestly. Higher volumes were principally supported by stronger demand from steel customers. That gain was partly offset by weaker demand from construction customers in the quarter and from roof-shingle customers over the nine-month period.
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Gross profit declined despite the revenue growth. It fell 2.7% to $50.8 million in the third quarter and 0.7% to $139.2 million for the first nine months. The company attributed the declines mainly to higher transportation and fuel costs, especially diesel, and production inefficiencies as it integrates a new kiln at its Texas plant.
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Net income and diluted earnings per share edged lower. Third-quarter net income was $38.0 million, or $1.32 per diluted share, compared with $38.8 million, or $1.35, a year earlier. For the first nine months, net income was $103.1 million, or $3.58 per diluted share, versus $103.7 million, or $3.61.
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Other income increased, largely because the company earned more interest on higher average cash balances. Selling, general and administrative expenses were slightly higher in the quarter but lower for the nine-month period.
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The Texas kiln is still being brought online. It began producing quicklime intermittently during the third quarter, and the company expects final commissioning to be completed in the fourth quarter. The integration process has contributed to production inefficiencies and higher costs.
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Management flagged mixed signals in construction. It said some large projects have been delayed, including because of permitting, and it is monitoring signs of slowing residential construction in Texas. The company said it remains optimistic about construction demand over the longer term.
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The quarterly dividend is $0.06 per share, payable December 11 to shareholders of record at the close of business November 20.
The results show that revenue growth has not yet translated into higher earnings: increases in prices and steel-related sales volumes were outweighed by fuel, transportation and kiln-integration costs.