Channel checks: Building Materials "Expert: Lime is a high margin,..."

Research evidence excerpt

Channel checks: Building Materials "Expert: Lime is a high margin,..."

Global Research

10 July 2026ab

Channel checks: Building Materials Equities

AmericasExpert: Lime is a high margin, diversified product

Industrial Equipment

Steven Fisher, CFA

Channel Check: MLM expanding into high margin adjacency Analyst

We hosted an expert call to discuss the lime/limestone market following Martin steven.fisher@ubs.com

Marietta's announced acquisition of Lhoist North America. Our key takeaways: +1-212-713 8634

Avinatan Jaroslawicz Lime is more capital intensive than aggregates, but less than cement: Like

Analyst

cement, lime plants require continuous operation, and unplanned shutdowns can avinatan.jaroslawicz@ubs.com

be expensive. However, lime plants are smaller and they are less complex/do not +1-212-713 1405

require as many different types of minerals. The energy intensity is also lower.

Judah Aronovitz

High barriers to entry: New capacity requires quality limestone reserves, Associate Analyst

investment, and permitting; expansions are more likely than greenfield projects. judah.aronovitz@ubs.com

+1-212-713-4881

High margins and broad customer base: Lime margins should be ~5-10 ppts

Lauren Sullivan

above aggregates, and lime serves a broader customer base, making it less cyclical Associate Analyst

(applications include coal fired power/decarbonization, steel production, lauren.sullivan@ubs.com

agriculture). +1-212-713 8230

Strategic fit for MLM: The acquisition is seen as an extension/adjacency to

MLM’s existing capabilities, not necessarily a pivot; import competition remains

limited (i.e. quick lime has specialized handling requirements).

Lime producers have prioritized price over volume: Lime volumes have been