Financial Analysis

(8) Commitments and Contingencies The Company is party to lawsuits and claims arising in the normal course of business, none of which, in the opinion of management, is expected to have a material adverse effect on the Companys financial condition, results of operations, cash flows, or competitive position. The Company is not contractually committed to any planned capital expenditures until actual orders are placed for equipment or services. At December 31, 2025, the Company had $18,599 for open equipment and construction services contracts. …

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(2) Banking Facilities and Debt The Companys credit agreement with Wells Fargo Bank, N.A. (the Lender), as amended as of August 3, 2023, provides for a $75,000 revolving credit facility (the Revolving Facility) and an incremental four-year accordion feature to borrow up to an additional $50,000 on the same terms, subject to approval by the Lender or another lender selected by the Company. The credit agreement also provides for a $10,000 letter of credit sublimit under the Revolving Facility. The Revolving Facility and any incremental loans mature on August 3, 2028. Interest rates on the Revolving Facility are, at the Companys option, SOFR, plus a SOFR adjustment rate of 0.10%, plus a margin of 1.000% to 2.000%, or the Lenders Prime Rate, plus a margin of 0.000% to 1.000%, and a commitment fee range of 0.225% to 0.350% on the undrawn portion of the Revolving Facility. The Revolving Facility interest rate margins and commitment fee are determined quarterly in accordance with a pricing grid based upon the Companys Cash Flow Leverage Ratio, defined as the ratio of the Companys total funded senior indebtedness to earnings before interest, taxes, depreciation, depletion, amortization, and stock-based compensation expense (EBITDA) for the 12 months ended on the last day of the most recent calendar quarter, plus pro forma EBITDA from any businesses acquired during the period. Pursuant to a security agreement, dated August 25, 2004, the Revolving Facility is secured by the Companys ex …

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(6) Stock-Based Compensation The Plan provides for stock options, restricted stock, and dollar-denominated cash awards, including performance-based awards. In addition to stock options, restricted stock, and cash awards, the Plan provides for the grant of stock appreciation rights, deferred stock, and other stock-based awards to directors, officers, employees, and consultants. The Plan was amended in 2024 to increase the number of shares of Company common stock reserved for stock-based awards under the Plan and to make other changes. At December 31, 2025, the number of shares of common stock remaining available for future grants of stock options, restricted stock, or other forms of stock-based awards under the Plan was 774,101. Stock options granted under the Plan expire ten years from the date of grant and generally become exercisable, or vest, immediately. Restricted stock generally vests over periods of one-half to three years. Upon the exercise of stock options, the Company issues common stock from its non- issued authorized or treasury shares that have been reserved for issuance pursuant to the Plan. Forfeitures are recognized in the period they occur. The Company recorded $8,137, $4,893, and $3,182 for stock-based compensation expense related to stock options and shares of restricted stock for 2025, 2024, and 2023, respectively. The amounts included in cost of revenues were $352, $320, and $248 and in selling, general, and administrative expense were $7,785, $4,573, and …

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(4) Income Taxes On July 4, 2025, the One Big Beautiful Bill Act (the OBBBA) was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation. The OBBBA did not have a material impact on the Companys effective income tax rate for 2025, but it did reduce the Companys cash tax outflows in 2025 from what they would have been under the previous federal tax law. Income tax expense for the years ended December 31 was as follows: 2025 2024 2023 Current income tax expense Federal $ 34,540 27,099 18,734 State 2,862 1,445 1,002 Deferred income tax (benefit) expense Federal (817) (1,173) (1,385) State 157 173 462 Income tax expense $ 36,742 $ 27,544 $ 18,813 The Company pays United States federal and state taxes. Federal and state income taxes paid, net of refunds, for the years ended December 31 were as follows: 2025 2024 2023 Federal $ 34,750 $ 29,550 $ 17,300 State 2,920 507 694 Total $ 37,670 $ 30,057 $ 17,994 A reconciliation of income taxes computed at the federal statutory rate to income tax expense for the years ended December 31 is as follows: 2025 2024 2023 Percent of Percent of Percent of Pretax Pretax Pretax Amount Income Amount Income Amount Income Income taxes computed at the federal statutory rate $ 35,914 21.0 % $ 28,640 21.0 % $ 19,606 21.0 % (Reduction) increase in taxes resulting from: State income taxes, net of federal income tax benefit 2,577 1.5 682 0.5 1,144 1.2 Nontaxable or nondeductible items: S …

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(3) Leases The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 8 years, with a weighted-average remaining lease term of 4 years at December 31, 2025 . Some operating leases include options to extend the leases for up to 5 years . The Companys lease calculations include the impact of options to extend when it is reasonably certain the Company will exercise the option. The Company used a weighted-average discount rate of 5.5% and 6.4% for leases entered into during 2025 and 2024, respectively. The components of net operating lease costs for 2025, 2024, and 2023 were as follows: Year Ended December 31, Classification 2025 2024 2023 Operating lease costs (1) Cost of revenues $ 3,442 $ 2,642 $ 3,090 Operating lease costs (1) Selling, general and administrative expenses 318 307 216 Rental revenues Revenues (222) (332) (470) Rental revenues Other (income) expense, net (91) (95) (91) Net operating lease costs $ 3,447 $ 2,522 $ 2,745 (1) Includes the costs of leases with a term of one year or less. As of December 31, 2025, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows: 2026 $ 1,712 2027 1,339 2028 645 2029 217 2030 191 Thereafter 290 Total future min …

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Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board (FASB) issued guidance that expands income tax disclosures for public entities, including requiring enhanced disclosures related to the rate reconciliation and income taxes paid information (ASU 2023-09). ASU 2023-09 is effective for annual disclosures for fiscal years beginning after December 15, 2024. The guidance has been applied on a retrospective basis to all prior periods presented. The Company adopted ASU 2023-09 in the fourth quarter of 2025. See Note (4) Income Taxes. Expense Disaggregation Disclosures - In November 2024, the FASB issued guidance that requires disclosure of specified information about certain costs and expenses in the notes to the consolidated financial statements (ASU 2024-03). ASU 2024-03 requires, among other things, public business entities include tabular and qualitative disclosures that disaggregate each relevant expense caption on the face of a statement of income and include certain natural expenses relevant to the Company. ASU 2024-03 is to be applied on a prospective basis and is effective for annual reporting periods beginning after December 15, 2026. This ASU will likely result in additional disclosures being included in the Companys consolidated financial statements once adopted. …

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(5) Employee Retirement Plans The Company has a contributory retirement (401(k)) savings plans for non-union employees and for union employees of Arkansas Lime Company, Carthage Crushed Limestone, and Texas Lime Company. Company contributions to these plans were $389, $352 and $329 in 2025, 2024, and 2023, respectively.

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(9) Reportable Segment The Company is managed as one reportable segment, lime and limestone operations, based on the distinctness of the Companys activities and products. All operations are in the United States. During 2024, the Company determined that the activities of its natural gas interests and the associated level of review of those activities by the CODM precluded the natural gas activities from meeting the definition of an operating segment, as provided in ASC 280. In addition, previously unallocated items, including cash, interest income and expense, and other expense are now included as part of lime and limestone operations, and consolidated net income is now used as the measure of segment profit or loss. Segment disclosures for 2023 have been recast to be consistent with the 2025 and 2024 presentations. The Companys CODM is the chief executive officer. The lime and limestone operations segment derives revenues from the sale of crushed limestone, pulverized limestone, aggregate, quicklime, hydrated lime, and lime slurry. The accounting policies of the lime and limestone operations segment are the same as those described in Note (1) Summary of Significant Accounting Policies. In evaluating the operating results of the Company, the CODM assesses performance for the lime and limestone operations segment and decides how to allocate resources (including, but not limited to, decisions on fuel blends, capital purchases, and staffing levels) based on net income that is also …

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(1) Summary of Significant Accounting Policies (a) Organization and Presentation United States Lime & Minerals, Inc. (the Company) is a manufacturer of lime and limestone products, supplying primarily the construction (including highway, road, and building contractors), industrial (including paper and glass manufacturers), environmental (including municipal sanitation and water treatment facilities and flue gas treatment processes), metals (including steel producers), roof shingle manufacturers, agriculture (including poultry producers), and oil and gas services industries. The Company is headquartered in Dallas, Texas and operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma, and Texas through its wholly owned subsidiaries, Arkansas Lime Company, ART Quarry TRS LLC (DBA Carthage Crushed Limestone), Colorado Lime Company, Mill Creek Dolomite, LLC, Texas Lime Company, U.S. Lime Company, U.S. Lime Company-Shreveport, U.S. Lime Company-St. Clair, and U.S. Lime Company-Transportation. In addition, the Company, through its wholly owned subsidiary, U.S. Lime Company-O & G, LLC, has royalty and non-operated working interests in natural gas wells located in Johnson County, Texas, in the Barnett Shale Formation. On July 12, 2024, the Company effected a 5-for-1 split of its common stock in the form of a stock dividend of four additional shares of common stock for each share outstanding to stockholders of record at th …

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(7) Share Repurchases During 2025, pursuant to provisions in the Plan that allow employees and directors to pay the tax withholding liability upon the lapse of restrictions on restricted stock in either cash and/or delivery of shares of the Companys common stock, the Company repurchased 22,529 shares at a weighted-average price of $119.00 per share. …

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(10) Subsequent Events On February 2, 2026, the Company declared a regular quarterly cash dividend of $0.06 per share on the Companys common stock. This dividend is payable on March 13, 2026 to stockholders of record at the close of business on February 20, 2026. …

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7. Banking Facilities and Debt The Companys credit agreement with Wells Fargo Bank, N.A. (the Lender), as amended as of August 3, 2023, provides for a $75 million revolving credit facility (the Revolving Facility) and an incremental four-year accordion feature to borrow up to an additional $50 million on the same terms, subject to approval by the Lender or another lender selected by the Company. The credit agreement also provides for a $10 million letter of credit sublimit under the Revolving Facility. The Revolving Facility and any incremental loans mature on August 3, 2028. Interest rates on the Revolving Facility are, at the Companys option, SOFR, plus a SOFR adjustment rate of 0.10%, plus a margin of 1.000% to 2.000%, or the Lenders Prime Rate, plus a margin of 0.000% to 1.000%, and a commitment fee range of 0.225% to 0.350% on the undrawn portion of the Revolving Facility. The Revolving Facility interest rate margins and commitment fee are determined quarterly in accordance with a pricing grid based upon the Companys Cash Flow Leverage Ratio, defined as the ratio of the Companys total funded senior indebtedness to earnings before interest, taxes, depreciation, depletion, amortization, and stock-based compensation expense (EBITDA) for the 12 months ended on the last day of the most recent calendar quarter, plus pro forma EBITDA from any businesses acquired during the period. Pursuant to a security agreement, dated August 25, 2004, the Revolving Facility is secured by the …

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9. Income Taxes The Company has estimated that its effective income tax rate for 2026 will be 21.6% . The primary reason for the effective income tax rate being above the federal statutory rate is due to state income taxes, partially offset by statutory depletion, which is allowed for income tax purposes and is a permanent difference between net income for financial reporting purposes and taxable income. …

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8. Leases The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 8 years , with a weighted-average remaining lease term of 3 years and 4 years at June 30, 2026 and December 31, 2025, respectively. Some operating leases include options to extend the leases for up to 5 years and are only considered in the lease terms if the Company is reasonably certain it will exercise the option to extend. The components of net operating lease costs for the three- and six-month periods ended June 30, 2026 and 2025 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Classification 2026 2025 2026 2025 Operating lease costs (1) Cost of revenues $ 776 $ 975 $ 1,481 $ 1,699 Operating lease costs (1) Selling, general and administrative expenses 79 78 158 162 Rental revenues Revenues (18) (31) (73) Rental revenues Other (income) expense, net (6) (23) (32) (54) Net operating lease costs $ 849 $ 1,012 $ 1,576 $ 1,734 (1) Includes the costs of leases with a term of one year or less. As of June 30, 2026, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands): 2026 (excluding the six months ended June 30, 2026) $ 854 2027 1,328 2028 …

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New Accounting Pronouncements. In November 2024, the Financial Accounting Standards Board issued guidance that requires disclosure of specified information about certain costs and expenses in the notes to the Consolidated Financial Statements (ASU 2024-03). ASU 2024-03 requires, among other things, that public business entities include tabular and qualitative disclosures that disaggregate each relevant expense caption on the face of a statement of income and include certain natural expenses relevant to the Company. ASU 2024-03 is to be applied on a prospective basis and is effective for annual reporting periods beginning after December 15, 2026. This ASU will result in additional disclosures being included in the Companys consolidated financial statements once adopted. …

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4. Reportable Segment The Company is managed as one reportable segment, lime and limestone operations, based on the distinctness of the Companys activities and products. All operations are in the United States. The Company has determined that the activities of its natural gas interests and the associated level of review of those activities by the chief operating decision maker (CODM) precluded the natural gas activities from meeting the definition of an operating segment. The Companys CODM is the chief executive officer. The Companys lime and limestone operations segment derives revenues from the sale of crushed limestone, pulverized limestone, aggregate, quicklime, hydrated lime, and lime slurry. In evaluating the operating results of the Company, the CODM assesses performance for the lime and limestone operations segment and decides how to allocate resources (including, but not limited to, decisions on fuel blends, capital investments, and staffing levels) based on net income that is also reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as Total assets, and the measure of segment capital expenditures is reported on the Consolidated Statements of Cash Flows as Purchase of property, plant, and equipment. The following table presents revenue, significant expenses, and profit for the three- and six-month periods ended June 30, 2026 and 2025, as reviewed and used by the CODM (in thousands). There …

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3. Accounting Policies Revenue Recognition. The Company recognizes revenue for its lime and limestone operations when (i) a contract with the customer exists and the performance obligations are identified; (ii) the price has been established; and (iii) the performance obligations have been satisfied, which is generally upon shipment. The Companys returns and allowances are minimal. Revenues include external freight billed to customers, with related costs accounted for as fulfillment costs and included in cost of revenues. External freight billed to customers included in 2026 and 2025 revenues was $15.2 million and $12.2 million, for the respective three-month periods ended June 30, and $26.9 million and $23.6 million for the respective six-month periods ended June 30, which approximates the amount of external freight included in cost of revenues. Sales taxes billed to customers are not included in revenues. Trade Receivables, Net. The majority of the Companys trade receivables are unsecured. Payment terms for all trade receivables are based on the underlying purchase orders, contracts, or purchase agreements, and are generally fixed, short-term, and do not contain a significant financing component. The Company estimates credit losses relating to trade receivables based on an assessment of the current and forecasted probability of collection, historical trends, economic conditions, and other significant events that may impact the collectability of trade receivables. Due to the …

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11. Subsequent Event On July 29, 2026 , the Companys Board of Directors declared a regular quarterly cash dividend of $0.06 per share on the Companys common stock. This dividend is payable on September 11, 2026 , to stockholders of record at the close of business on August 21, 2026 . …

SubsequentEventsTextBlock · excerpt; the full note is in the filing