# USLM End Markets USLM sells to ~675 customers. No customer is above 10% of revenue. Four markets drive demand, and each has a different cycle.^[Colubeat Investment Desk, 28 May 2026, https://colubeatid.substack.com/p/united-states-lime-and-minerals-inc] | Market | Use of lime | What drives it | Cycle | |---|---|---|---| | **Construction** (largest) | Soil stabilisation under roads and sites | TxDOT budget, data centers, chip fabs | Public and institutional. Not housing. | | **Steel** | Removes silica, phosphorus and sulfur from molten metal | Steel output, data center steel | Industrial cycle | | **Environment** | Water softening, pH, metals removal, flue gas | Regulation | Stable | | **Oil and gas** | Oilfield roads, drilling mud, produced water | Permian rig count, oil price | Volatile | ## Construction is two markets - Texas clay swells when wet and cracks when dry. TxDOT requires lime in the subgrade before paving. - One mile of treated highway takes 60–100 tons of lime. - Texas approved a record $39.92B transport budget for 2026–27. - Housing fell after 2022 rate rises. Non-residential (data centers, CHIPS Act fabs, highways) kept growing. - So "weak construction" in a quarter may mean housing, which matters less to USLM. ## Oil and gas links to energy cost - More Permian drilling means more lime demand at well sites. - It also means more associated gas, which keeps Waha Hub gas cheap. - Cheap gas lowers USLM's kiln cost. High oil helps USLM twice. See [[USLM Energy and the Vertical Kiln]]. ## Since the thesis (filings) - Q2 2026: revenue +8.3% to $99.1M on construction and steel volume.^[https://www.stocktitan.net/news/USLM/united-states-lime-minerals-reports-second-quarter-2026-results-and-k4nkempg5vl2.html] - Q3 2026: revenue +4.1% to $106.2M. Steel offset weaker construction.^[https://www.sec.gov/Archives/edgar/data/0000082020/000110465926120712/uslm-20260930x10q.htm] - Analysts also point to soft roofing demand.^[https://247wallst.com/cards/united-states-lime-minerals-q2-2026-earnings-uslm-01kyqsqtq2jxyjvb2xwqk2p2cd] ---- tags: #boat #investing links: [[United States Lime and Minerals MOC]] [[Data Center MoC]] [[Industries Benefiting from Data Center Set Ups]]