LEASES

9 Months Ended

May 31, 2026

NOTE 7. LEASES

As part of the Foley Acquisition and the CP&P Acquisition, as outlined in Note 2, Acquisitions, the Company 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 operating lease assets related to the precast platform were $65.3 million as of May 31, 2026. The Company entered into an additional $3.7 million and $19.1 million of operating lease assets and $18.6 million and

$67.3 million of finance lease assets unrelated to the precast platform in the three and nine months ended May 31, 2026, respectively.

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	May 31, 2026		August 31, 2025
Assets:
Operating assets	Other noncurrent assets	$	221,904	$	172,374
Finance assets	Property, plant and equipment, net	231,864		189,923
Total leased assets		$	453,768	$	362,297

Liabilities:
Operating lease liabilities:
Current	Other accrued expenses and payables	$	43,535	$	37,250
Long-term	Other noncurrent liabilities	180,846		136,629
Total operating lease liabilities		224,381		173,879
Finance lease liabilities:
Current	Current maturities of long-term debt	53,898		42,500
Long-term	Long-term debt	138,131		116,417
Total finance lease liabilities		192,029		158,917
Total lease liabilities		$	416,410	$	332,796

The components of lease expense were as follows:


	Three Months Ended May 31,				Nine Months Ended May 31,
(in thousands)	2026		2025		2026		2025
Operating lease expense	$	15,515	$	12,197	$	41,969	$	36,295
Finance lease expense:
Amortization of assets	9,234		7,045		25,739		20,521
Interest on lease liabilities	2,406		1,968		6,773		5,668
Total finance lease expense	11,640		9,013		32,512		26,189
Variable and short-term lease expense	5,203		4,527		18,836		15,098
Total lease expense	$	32,358	$	25,737	$	93,317	$	77,582

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


	May 31, 2026		August 31, 2025
Weighted average remaining lease term (years):
Operating leases	6.8		5.9
Finance leases	3.9		3.9

Weighted average discount rate:
Operating leases	5.237	%	5.126	%
Finance leases	5.132	%	5.263	%

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


	Nine Months Ended May 31,
(in thousands)	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	40,993	$	35,997
Operating cash outflows from finance leases	6,773		5,668
Financing cash outflows from finance leases	35,391		30,010

Right of use assets obtained in exchange for lease obligations:
Operating leases	$	84,318	$	24,911
Finance leases	67,325		38,442

Future maturities of lease liabilities at May 31, 2026 are presented in the following table:


(in thousands)	Operating Leases		Finance Leases
Year 1	$	54,094	$	62,336
Year 2	46,058		56,859
Year 3	37,256		44,697
Year 4	29,843		28,738
Year 5	24,915		15,301
Thereafter	78,000		3,605
Total lease payments	270,166		211,536
Less imputed interest	(45,785)		(19,507)
Present value of lease liabilities	$	224,381	$	192,029

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For the table above, each year represents June 1st to May 31st of the following year.

As of May 31, 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 $12.6 million, with $9.4 million to commence in 2026 and $3.2 million to commence in 2027. These leases have noncancellable terms of 5 to 6 years.

Finance Leases