v3.26.1
Leases
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Leases Leases
Most of the leases the Company enters into are for equipment, buildings and vehicles as part of its ongoing operations. The Company also leases certain equipment to third parties.
Lessee Accounting
The leases the Company has entered into as part of its ongoing operations are considered operating leases. The corresponding lease costs are included in Cost of sales and Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.
Generally, operating leases for vehicles and equipment have a term of one to five years and buildings have a longer term of up to 10 years or more. For certain operating leases, lease terms may include the options to extend or terminate the lease. Similarly, building or property operating leases could include one or more options to renew, with renewal terms that could extend the lease term by one to five years or more.
The Company also has guaranteed the residual value under certain of its equipment operating leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of lease termination. Historically, the fair value of the asset at the time of lease termination generally has approximated or exceeded the residual value guarantee. To date, the Company does not have any residual value guarantee amounts probable of being owed to a lessor, financing leases or material agreements with related parties.
In addition, the Company has entered into short-term leases to help support its ongoing operations, consisting primarily of short-term equipment and vehicle leases, and generally have lease terms of less than one year.
The following table provides information on the Company's lease costs for operating leases:
Three months ended March 31,
20262025
(In thousands)
Lease costs:
Operating lease cost
$10,881 $8,558 
Variable lease cost
408 335 
Short-term lease cost
29,125 23,686 
Total lease costs
$40,414 $32,579 
The following is summary information of lease terms and discount rates for operating leases as of:
March 31, 2026December 31, 2025
Weighted average remaining lease term (in years)
1.13 years
1.15 years
Weighted average discount rate (in percentages)
5.36 %5.43 %
The following is a summary of other information and supplemental cash flow information related to operating leases:
Three months ended March 31,
20262025
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating lease liabilities
$10,653 $8,574 
Right-of-use assets obtained in exchange for new operating lease liabilities
$3,582 $8,431 
The reconciliation of future undiscounted cash flows to operating lease liabilities, including current portion of operating lease liabilities, presented on the unaudited condensed consolidated balance sheet as of March 31, 2026 was as follows:
March 31, 2026
(In thousands)
Remainder of 2026$28,475 
202727,275 
202815,643 
20298,593 
20304,930 
Thereafter8,153 
Total
93,069 
Less: discount
(8,504)
Total operating lease liabilities
$84,565 
The Company has entered into a $22.7 million operating lease that has not yet commenced as of March 31, 2026. The operating lease has an estimated lease term of 10 years, 4 months, which is expected to commence in July 2026.
Lessor Accounting
The Company leases certain equipment to third parties. These leases are considered short-term operating leases with lease terms of less than 12 months, with the majority being month-to-month leases currently. The Company recognizes revenues from operating leases in Operating revenues in the unaudited condensed consolidated statements of income on a straight-line basis over the respective operating lease terms.
The following table provides information on the Company's lease income for operating leases:
Three months ended March 31,
20262025
(In thousands)
Lease income:
Operating lease income
$14,157 $11,138 
Total lease income
$14,157 $11,138 
The following table is a maturity analysis of undiscounted cash flows relating to lease payments expected to be received by the Company as a lessor of operating leases as of:
March 31, 2026
(In thousands)
Remainder of 2026$11,597 
Total lease payments
$11,597 
The majority of the total lease payments are currently from month-to-month leases as stated above and are included in Receivables, net on the unaudited condensed consolidated balance sheets as rent receivables due to the timing of billings compared to earned operating lease income.
Equipment under operating leases, which was included within Property, plant and equipment, net in the unaudited condensed consolidated balance sheets, was as follows as of:
March 31, 2026December 31, 2025
(In thousands)
Machinery and equipment$71,336 $69,152 
Less: accumulated depreciation
(33,671)(32,565)
Property, plant and equipment, net
$37,665 $36,587 
Leases Leases
Most of the leases the Company enters into are for equipment, buildings and vehicles as part of its ongoing operations. The Company also leases certain equipment to third parties.
Lessee Accounting
The leases the Company has entered into as part of its ongoing operations are considered operating leases. The corresponding lease costs are included in Cost of sales and Selling, general and administrative expenses on the unaudited condensed consolidated statements of income.
Generally, operating leases for vehicles and equipment have a term of one to five years and buildings have a longer term of up to 10 years or more. For certain operating leases, lease terms may include the options to extend or terminate the lease. Similarly, building or property operating leases could include one or more options to renew, with renewal terms that could extend the lease term by one to five years or more.
The Company also has guaranteed the residual value under certain of its equipment operating leases, agreeing to pay any difference between the residual value and the fair market value of the underlying asset at the date of lease termination. Historically, the fair value of the asset at the time of lease termination generally has approximated or exceeded the residual value guarantee. To date, the Company does not have any residual value guarantee amounts probable of being owed to a lessor, financing leases or material agreements with related parties.
In addition, the Company has entered into short-term leases to help support its ongoing operations, consisting primarily of short-term equipment and vehicle leases, and generally have lease terms of less than one year.
The following table provides information on the Company's lease costs for operating leases:
Three months ended March 31,
20262025
(In thousands)
Lease costs:
Operating lease cost
$10,881 $8,558 
Variable lease cost
408 335 
Short-term lease cost
29,125 23,686 
Total lease costs
$40,414 $32,579 
The following is summary information of lease terms and discount rates for operating leases as of:
March 31, 2026December 31, 2025
Weighted average remaining lease term (in years)
1.13 years
1.15 years
Weighted average discount rate (in percentages)
5.36 %5.43 %
The following is a summary of other information and supplemental cash flow information related to operating leases:
Three months ended March 31,
20262025
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating lease liabilities
$10,653 $8,574 
Right-of-use assets obtained in exchange for new operating lease liabilities
$3,582 $8,431 
The reconciliation of future undiscounted cash flows to operating lease liabilities, including current portion of operating lease liabilities, presented on the unaudited condensed consolidated balance sheet as of March 31, 2026 was as follows:
March 31, 2026
(In thousands)
Remainder of 2026$28,475 
202727,275 
202815,643 
20298,593 
20304,930 
Thereafter8,153 
Total
93,069 
Less: discount
(8,504)
Total operating lease liabilities
$84,565 
The Company has entered into a $22.7 million operating lease that has not yet commenced as of March 31, 2026. The operating lease has an estimated lease term of 10 years, 4 months, which is expected to commence in July 2026.
Lessor Accounting
The Company leases certain equipment to third parties. These leases are considered short-term operating leases with lease terms of less than 12 months, with the majority being month-to-month leases currently. The Company recognizes revenues from operating leases in Operating revenues in the unaudited condensed consolidated statements of income on a straight-line basis over the respective operating lease terms.
The following table provides information on the Company's lease income for operating leases:
Three months ended March 31,
20262025
(In thousands)
Lease income:
Operating lease income
$14,157 $11,138 
Total lease income
$14,157 $11,138 
The following table is a maturity analysis of undiscounted cash flows relating to lease payments expected to be received by the Company as a lessor of operating leases as of:
March 31, 2026
(In thousands)
Remainder of 2026$11,597 
Total lease payments
$11,597 
The majority of the total lease payments are currently from month-to-month leases as stated above and are included in Receivables, net on the unaudited condensed consolidated balance sheets as rent receivables due to the timing of billings compared to earned operating lease income.
Equipment under operating leases, which was included within Property, plant and equipment, net in the unaudited condensed consolidated balance sheets, was as follows as of:
March 31, 2026December 31, 2025
(In thousands)
Machinery and equipment$71,336 $69,152 
Less: accumulated depreciation
(33,671)(32,565)
Property, plant and equipment, net
$37,665 $36,587