LEASES

3 Months Ended

Mar. 31, 2026

We lease certain buildings and equipment under both operating and finance leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC Topic 842, Leases, we made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of our leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we used our incremental borrowing rate (7.27%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the condensed consolidated statements of operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the condensed consolidated statements of operations.

Supplemental balance sheet information related to leases was as follows (amounts in thousands):


	Balance Sheet Classification	March 31, 2026		December 31, 2025
Operating lease ROU assets (1)	Operating lease assets	$	101,874	$	119,225

Operating lease current liabilities	Operating leases current liabilities	14,815		13,830
Operating lease long-term liabilities	Operating leases long-term liabilities	107,891		111,054
Total operating lease liabilities		$	122,706	$	124,884

Finance lease, gross	Property, plant & equipment, net	$	8,148	$	8,024
Finance lease accumulated depreciation	Property, plant & equipment, net	(5,008)		(4,611)
Finance lease, net		$	3,140	$	3,413

Finance lease current liabilities	Other current liabilities	$	1,462	$	1,511
Finance lease long-term liabilities	Other long-term liabilities	1,789		2,038
Total finance lease liabilities		$	3,251	$	3,549

(1) The Company recorded $14.7 million during the three months ended March 31, 2026 associated with impairment of the building right of use (ROU) asset.

At March 31, 2026, maturities of lease liabilities were as follows (amounts in thousands):


	Operating Leases			Finance Leases
April 1 - December 31, 2026	$	19,322		$	1,432
2027	20,172			1,294
2028	17,650			679
2029	15,754			189
2030	14,573			77
Thereafter	106,955			10
Total lease payments	$	194,426		$	3,681
Less imputed interest	71,720			430
	$	122,706		$	3,251

Weighted average remaining lease term (in years)	12.17			2.48
Weighted average discount rate	7.27		%	7.27		%

Supplemental cash flow information related to leases for the three months ended March 31, 2026 were as follows: operating cash flows for operating leases were $6.6 million.

Supplemental cash flow information related to leases for the three months ended March 31, 2025 were as follows: operating cash flows for operating leases were $5.3 million.

LEASES

Supplemental balance sheet information related to leases was as follows (amounts in thousands):


	Balance Sheet Classification	March 31, 2026		December 31, 2025
Operating lease ROU assets (1)	Operating lease assets	$	101,874	$	119,225

Operating lease current liabilities	Operating leases current liabilities	14,815		13,830
Operating lease long-term liabilities	Operating leases long-term liabilities	107,891		111,054
Total operating lease liabilities		$	122,706	$	124,884

Finance lease, gross	Property, plant & equipment, net	$	8,148	$	8,024
Finance lease accumulated depreciation	Property, plant & equipment, net	(5,008)		(4,611)
Finance lease, net		$	3,140	$	3,413

Finance lease current liabilities	Other current liabilities	$	1,462	$	1,511
Finance lease long-term liabilities	Other long-term liabilities	1,789		2,038
Total finance lease liabilities		$	3,251	$	3,549

(1) The Company recorded $14.7 million during the three months ended March 31, 2026 associated with impairment of the building right of use (ROU) asset.

At March 31, 2026, maturities of lease liabilities were as follows (amounts in thousands):


	Operating Leases			Finance Leases
April 1 - December 31, 2026	$	19,322		$	1,432
2027	20,172			1,294
2028	17,650			679
2029	15,754			189
2030	14,573			77
Thereafter	106,955			10
Total lease payments	$	194,426		$	3,681
Less imputed interest	71,720			430
	$	122,706		$	3,251

Weighted average remaining lease term (in years)	12.17			2.48
Weighted average discount rate	7.27		%	7.27		%

Supplemental cash flow information related to leases for the three months ended March 31, 2026 were as follows: operating cash flows for operating leases were $6.6 million.

Supplemental cash flow information related to leases for the three months ended March 31, 2025 were as follows: operating cash flows for operating leases were $5.3 million.