v3.26.1
LEASES
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES LEASES
Lessee Activities
The Company records a right-of-use (“ROU”) asset and lease liability for substantially all leases for which it is a lessee, in accordance with Accounting Standards Codification (“ASC”) 842. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.
The Company leases certain industrial spaces, office spaces, land, and equipment. Some leases include one or more options to renew, with renewal terms that can extend the lease term from generally 1 year to 5 years. The exercise of lease renewal options is at the Company’s sole discretion, and are included in the lease term only to the extent such renewal options are reasonably certain of being exercised at lease commencement. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
During the six months ended June 30, 2026, leased assets obtained in exchange for new operating lease liabilities totaled approximately $3.4 million. During the six months ended June 30, 2025, leased assets obtained in exchange for new operating lease liabilities totaled approximately $3.0 million. As of June 30, 2026 and June 30, 2025, obligations related to operating leases that the Company has executed but have not yet commenced were both insignificant.
Leased assets and liabilities included within the Condensed Consolidated Balance Sheets consist of the following (in thousands):
ClassificationJune 30, 2026December 31, 2025
Right-of-Use Assets
OperatingOther assets$30,344 $35,412 
Total leased ROU assets$30,344 $35,412 
Liabilities
Current
OperatingOther accrued liabilities$9,711 $13,319 
Noncurrent
OperatingOther non-current liabilities22,179 23,184 
Total lease liabilities$31,890 $36,503 
Lease costs included in the Condensed Consolidated Statements of Operations consist of the following (in thousands):
ClassificationThree Months Ended
June 30, 2026		Three Months Ended
June 30, 2025
Operating lease costCost of sales, selling expenses and general and administrative expense$3,189 $3,536 
Net lease cost$3,189 $3,536 
ClassificationSix Months Ended
June 30, 2026		Six Months Ended
June 30, 2025
Operating lease costCost of sales, selling expenses and general and administrative expense$6,984 $7,124 
Net lease cost$6,984 $7,124 

Maturity of the Company’s lease liabilities as of June 30, 2026 is as follows (in thousands):
Operating Leases
2026 (remainder)$6,040 
20279,701 
20287,855 
20296,084 
20304,243 
Thereafter1,945 
Total lease payments$35,868 
Less: interest3,978 
Present value of lease payments$31,890 
As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.
Remaining lease term and discount rates are as follows:
June 30, 2026December 31, 2025
Weighted average remaining lease term (years)
Operating leases3.93.4
Weighted average discount rate
Operating leases6.05 %5.89 %
Lease costs included in the Condensed Consolidated Statements of Cash Flows are as follows (in thousands):
Six Months Ended
June 30, 2026		Six Months Ended
June 30, 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$6,984 $7,056 

Lessor and Sublessor Activities
The Company leases dry van trailers to customers under full-service lease agreements and operating lease agreements. At the inception of a contract, in accordance with the applicable accounting guidance (ASC 842, Leases) the Company considers whether the arrangement contains a lease and, as applicable, performs the required lease classification tests. The Company, as a lessor, does not have any significant sales-type or direct financing lease arrangements as of June 30, 2026.
The Company’s full-service lease agreements are an integrated service that include lease component amounts related to the use of the trailer, as well as non-lease components for preventative maintenance, certain repairs as defined in the related agreement, and ad valorem taxes. In accordance with the applicable accounting guidance (ASC 842, Leases), the Company has elected to combine lease and non-lease components when reporting revenue for the full-service underlying class of leased assets.
Initial lease terms are generally three to five years. Certain of the Company’s leases provide customers with renewal options that provide the ability to extend the lease term for a period of generally 1 year to 5 years. In addition, some leases include options for the customer to purchase the trailers at fair market value, as determined by the Company at or near the end of the lease. The Company’s lease agreements generally do not have residual value guarantees nor permit customers to terminate the lease agreements prior to natural expiration. As stipulated in the lease agreements, the Company may receive reimbursements from customers for certain damage or required repairs to the trailers.
Certain of the Company’s leases and subleases are with a related party—such transactions were at market value and at arm’s length.
Lease income is included in Net sales on the Company’s Condensed Consolidated Statements of Operations, and is recorded in the Parts & Services operating segment. For the three and six months ended June 30, 2026 and 2025, the Company’s lease income consisted of the following components (in thousands):
Three Months Ended
June 30, 2026		Three Months Ended
June 30, 2025
Operating lease income
Fixed lease income$1,774 $1,002 
Total lease income
$1,774 $1,002 
Six Months Ended
June 30, 2026		Six Months Ended
June 30, 2025
Operating lease income
Fixed lease income$3,465 $1,651 
Total lease income$3,465 $1,651 
LEASES LEASES
Lessee Activities
The Company records a right-of-use (“ROU”) asset and lease liability for substantially all leases for which it is a lessee, in accordance with Accounting Standards Codification (“ASC”) 842. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.
The Company leases certain industrial spaces, office spaces, land, and equipment. Some leases include one or more options to renew, with renewal terms that can extend the lease term from generally 1 year to 5 years. The exercise of lease renewal options is at the Company’s sole discretion, and are included in the lease term only to the extent such renewal options are reasonably certain of being exercised at lease commencement. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
During the six months ended June 30, 2026, leased assets obtained in exchange for new operating lease liabilities totaled approximately $3.4 million. During the six months ended June 30, 2025, leased assets obtained in exchange for new operating lease liabilities totaled approximately $3.0 million. As of June 30, 2026 and June 30, 2025, obligations related to operating leases that the Company has executed but have not yet commenced were both insignificant.
Leased assets and liabilities included within the Condensed Consolidated Balance Sheets consist of the following (in thousands):
ClassificationJune 30, 2026December 31, 2025
Right-of-Use Assets
OperatingOther assets$30,344 $35,412 
Total leased ROU assets$30,344 $35,412 
Liabilities
Current
OperatingOther accrued liabilities$9,711 $13,319 
Noncurrent
OperatingOther non-current liabilities22,179 23,184 
Total lease liabilities$31,890 $36,503 
Lease costs included in the Condensed Consolidated Statements of Operations consist of the following (in thousands):
ClassificationThree Months Ended
June 30, 2026		Three Months Ended
June 30, 2025
Operating lease costCost of sales, selling expenses and general and administrative expense$3,189 $3,536 
Net lease cost$3,189 $3,536 
ClassificationSix Months Ended
June 30, 2026		Six Months Ended
June 30, 2025
Operating lease costCost of sales, selling expenses and general and administrative expense$6,984 $7,124 
Net lease cost$6,984 $7,124 

Maturity of the Company’s lease liabilities as of June 30, 2026 is as follows (in thousands):
Operating Leases
2026 (remainder)$6,040 
20279,701 
20287,855 
20296,084 
20304,243 
Thereafter1,945 
Total lease payments$35,868 
Less: interest3,978 
Present value of lease payments$31,890 
As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.
Remaining lease term and discount rates are as follows:
June 30, 2026December 31, 2025
Weighted average remaining lease term (years)
Operating leases3.93.4
Weighted average discount rate
Operating leases6.05 %5.89 %
Lease costs included in the Condensed Consolidated Statements of Cash Flows are as follows (in thousands):
Six Months Ended
June 30, 2026		Six Months Ended
June 30, 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$6,984 $7,056 

Lessor and Sublessor Activities
The Company leases dry van trailers to customers under full-service lease agreements and operating lease agreements. At the inception of a contract, in accordance with the applicable accounting guidance (ASC 842, Leases) the Company considers whether the arrangement contains a lease and, as applicable, performs the required lease classification tests. The Company, as a lessor, does not have any significant sales-type or direct financing lease arrangements as of June 30, 2026.
The Company’s full-service lease agreements are an integrated service that include lease component amounts related to the use of the trailer, as well as non-lease components for preventative maintenance, certain repairs as defined in the related agreement, and ad valorem taxes. In accordance with the applicable accounting guidance (ASC 842, Leases), the Company has elected to combine lease and non-lease components when reporting revenue for the full-service underlying class of leased assets.
Initial lease terms are generally three to five years. Certain of the Company’s leases provide customers with renewal options that provide the ability to extend the lease term for a period of generally 1 year to 5 years. In addition, some leases include options for the customer to purchase the trailers at fair market value, as determined by the Company at or near the end of the lease. The Company’s lease agreements generally do not have residual value guarantees nor permit customers to terminate the lease agreements prior to natural expiration. As stipulated in the lease agreements, the Company may receive reimbursements from customers for certain damage or required repairs to the trailers.
Certain of the Company’s leases and subleases are with a related party—such transactions were at market value and at arm’s length.
Lease income is included in Net sales on the Company’s Condensed Consolidated Statements of Operations, and is recorded in the Parts & Services operating segment. For the three and six months ended June 30, 2026 and 2025, the Company’s lease income consisted of the following components (in thousands):
Three Months Ended
June 30, 2026		Three Months Ended
June 30, 2025
Operating lease income
Fixed lease income$1,774 $1,002 
Total lease income
$1,774 $1,002 
Six Months Ended
June 30, 2026		Six Months Ended
June 30, 2025
Operating lease income
Fixed lease income$3,465 $1,651 
Total lease income$3,465 $1,651