Leases

3 Months Ended

Mar. 29, 2026

The Company has operating and finance leases for corporate and field offices, equipment yards, construction equipment and transportation vehicles. The Company is currently not a lessor in any significant lease arrangements. The Company’s leases have remaining lease terms of up to 12 years. Some of these leases include options to extend the leases, generally for optional terms of up to five years, and some include options to terminate the leases within one year. The equipment leases may include variable payment terms in addition to the fixed lease payments if machinery is used in excess of the standard work periods. The occurrence of these variable payments is not probable under the Company’s current operating environment and has not been included in consideration of lease payments. Leases with an initial term of 12 months or less are classified as short-term leases and are not recognized on the condensed consolidated balance sheets unless the lease contains a purchase option that is reasonably certain to be exercised, or unless it is reasonably certain that the equipment or property will be leased for greater than 12 months. Due to the seasonality of the Company’s operations, expense for short-term leases will fluctuate throughout the year with higher expense typically incurred during the periods when revenue is the greatest. As of March 29, 2026, the Company did not have any significant executed lease agreements that had not yet commenced.

The components of lease expense were as follows (in thousands):


		Fiscal Three Months Ended
Lease cost	Classification	March 29, 2026		March 30, 2025
Operating lease cost	Cost of revenue and selling, general and administrative expenses	$	10,372	$	6,427
Finance lease cost:
Amortization of ROU assets	Depreciation (1)	1,439		1,907
Interest on lease liabilities	Interest expense, net	196		266
Total finance lease cost		1,635		2,173
Short-term lease cost (2)	Cost of revenue and selling, general and administrative expenses	33,317		22,009
Total lease cost		$	45,324	$	30,609

(1)Depreciation is included within cost of revenue in the accompanying condensed consolidated statements of operations.

(2)Short-term lease cost includes both leases and rentals with initial terms of 12 months or less.

Supplemental cash flow information related to leases was as follows (in thousands):


	Fiscal Three Months Ended
	March 29, 2026		March 30, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,215	$	6,435
Operating cash flows from finance leases	$	196	$	266
Financing cash flows from finance leases	$	1,964	$	2,648
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	10,646	$	9,458

Supplemental information related to leases was as follows:


	March 29, 2026		December 28, 2025
Weighted average remaining lease term (in years):
Operating leases	5.93		6.17
Finance leases	2.36		2.52

Weighted average discount rate:
Operating leases	5.79	%	5.74	%
Finance leases	5.00	%	4.98	%

The following is a schedule of maturities of lease liabilities as of March 29, 2026 (in thousands):


	Operating Leases		Finance Leases
Fiscal year ended:
Remainder of 2026	$	31,927	$	5,836
2027	41,082		6,186
2028	37,249		2,208
2029	32,892		820
2030	30,190		394
Thereafter	46,704		—
Total lease payments	220,044		15,444
Less: Amount of lease payments representing interest	(33,601)		(866)
Total	$	186,443	$	14,578

Certain leases require the Company to pay variable property taxes, insurance and maintenance costs that have been excluded from the minimum lease payments in the above tables as they are variable in nature.

Leases