LEASES

6 Months Ended

Feb. 28, 2026

NOTE 7. LEASES

As part of the Foley and CP&P Acquisitions, as outlined in Note 2, Acquisitions, the Company has assumed leases. Further, upon closing, the Company entered into real property leases with the former owner of CP&P that were not included in the

CP&P Acquisition. Total new operating leases related to Foley and CP&P were $4.0 million and $61.2 million, respectively, as of February 28, 2026.

The Company entered into an additional $8.2 million of operating leases and $36.7 million of finance leases unrelated to Foley and CP&P in the three months ended February 28, 2026. As a result, the below disclosure has been included.

The following table presents the components of the total lease assets and lease liabilities and their classification in the condensed consolidated balance sheets:


(in thousands)	Classification in Condensed Consolidated Balance Sheets	February 28, 2026		August 31, 2025
Assets:
Operating assets	Other noncurrent assets	$	231,334	$	172,374
Finance assets	Property, plant and equipment, net	222,287		189,923
Total leased assets		$	453,621	$	362,297

Liabilities:
Operating lease liabilities:
Current	Other accrued expenses and payables	$	41,365	$	37,250
Long-term	Other noncurrent liabilities	192,169		136,629
Total operating lease liabilities		233,534		173,879
Finance lease liabilities:
Current	Current maturities of long-term debt	50,831		42,500
Long-term	Long-term debt	135,622		116,417
Total finance lease liabilities		186,453		158,917
Total lease liabilities		$	419,987	$	332,796

The components of lease expense were as follows:


	Three Months Ended February 28,				Six Months Ended February 28,
(in thousands)	2026		2025		2026		2025
Operating lease expense	$	14,355	$	12,061	$	26,454	$	24,098
Finance lease expense:
Amortization of assets	8,548		6,754		16,505		13,476
Interest on lease liabilities	2,254		1,863		4,367		3,700
Total finance lease expense	10,802		8,617		20,872		17,176
Variable and short-term lease expense	4,930		4,884		13,633		10,571
Total lease expense	$	30,087	$	25,562	$	60,959	$	51,845

The weighted average remaining lease term and discount rate for operating and finance leases are presented in the following table:


	February 28, 2026		August 31, 2025
Weighted average remaining lease term (years):
Operating leases	7.0		5.9
Finance leases	3.9		3.9

Weighted average discount rate:
Operating leases	5.237	%	5.126	%
Finance leases	5.128	%	5.263	%

Cash flow and other information related to leases is included in the following table:


	Six Months Ended February 28,
(in thousands)	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	25,847	$	24,294
Operating cash outflows from finance leases	4,367		3,700
Financing cash outflows from finance leases	22,529		19,834

Right of use assets obtained in exchange for lease obligations:
Operating leases	$	80,551	$	21,710
Finance leases	48,746		24,582

Future maturities of lease liabilities at February 28, 2026 are presented in the following table:


(in thousands)	Operating Leases		Finance Leases
Year 1	$	51,766	$	59,054
Year 2	47,236		55,003
Year 3	38,804		44,294
Year 4	30,231		28,487
Year 5	25,924		15,475
Thereafter	86,117		3,309
Total lease payments	280,078		205,622
Less imputed interest	(46,544)		(19,169)
Present value of lease liabilities	$	233,534	$	186,453

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For the table above, each year represents March 1st to February 28th of the following year.

As of February 28, 2026, the Company has additional leases that have not yet commenced, primarily for heavy-duty vehicles, with aggregate fixed payments over their terms of approximately $5.4 million, all of which are expected to commence in 2026. These leases have noncancellable terms of 5 to 6 years. These leases are not related to the precast platform.

Finance Leases