v3.26.1
Lease Obligations
6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Lease Obligations Lease Obligations
In the ordinary course of business, the Company enters into agreements that provide financing primarily for machinery, equipment, and vehicles, including certain related party leases. As of June 30, 2026, the Company’s leases have remaining lease terms of up to 13 years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for 1 to 5 years for both equipment and facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.
Finance Leases
The gross amount of assets held under finance leases as of June 30, 2026 and December 31, 2025 totaled $819.2 million and $798.8 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $590.8 million and $560.1 million as of June 30, 2026 and December 31, 2025, respectively. Depreciation expense associated with finance leases totaled $17.5 million and $17.8 million for the three months ended June 30, 2026 and 2025, respectively, and totaled $34.8 million and $36.9 million for the six months ended June 30, 2026 and 2025, respectively.
Operating Leases
Operating lease additions for the three months ended June 30, 2026 and 2025 totaled $60.9 million and $47.5 million, respectively, and for the six months ended June 30, 2026 and 2025, totaled $119.8 million and $96.5 million, respectively. Acquisition-related additions for the six months ended June 30, 2026 were immaterial. For the three months ended June 30, 2026 and 2025, rent expense for leases that have terms in excess of one year totaled approximately $66.3 million and $53.8 million, respectively, of which $5.9 million and $5.1 million, respectively, represented variable lease costs. For the six months ended June 30, 2026 and 2025, rent expense for such leases totaled approximately $130.8 million and $105.1 million, respectively, of which $11.0 million and $10.1 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $225.5 million and $148.2 million for the three months ended June 30, 2026 and 2025, respectively, and totaling approximately $445.9 million and $282.6 million for the six months ended June 30, 2026 and 2025, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.
Additional Lease Information
Future minimum lease commitments as of June 30, 2026 were as follows (in millions):
Finance
Leases
Operating
Leases
2026, remaining six months$80.0 $107.3 
2027135.7 178.2 
2028108.7 126.9 
202969.0 64.6 
203024.0 27.8 
Thereafter2.2 39.3 
Total minimum lease payments$419.6 $544.1 
Less amounts representing interest(31.3)(48.9)
Total lease obligations, net of interest$388.3 $495.2 
Less current portion139.9 181.2 
Long-term portion of lease obligations, net of interest$248.4 $314.0 
The following table presents weighted average remaining lease terms and discount rates for finance and non-cancelable operating leases as of the dates indicated:
June 30,
2026
December 31,
2025
Weighted average remaining lease term (in years):
Finance leases3.23.1
Operating leases3.53.4
Weighted average discount rate:
Finance leases4.9 %4.9 %
Operating leases5.2 %5.2 %
Lease Obligations Lease Obligations
In the ordinary course of business, the Company enters into agreements that provide financing primarily for machinery, equipment, and vehicles, including certain related party leases. As of June 30, 2026, the Company’s leases have remaining lease terms of up to 13 years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for 1 to 5 years for both equipment and facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.
Finance Leases
The gross amount of assets held under finance leases as of June 30, 2026 and December 31, 2025 totaled $819.2 million and $798.8 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $590.8 million and $560.1 million as of June 30, 2026 and December 31, 2025, respectively. Depreciation expense associated with finance leases totaled $17.5 million and $17.8 million for the three months ended June 30, 2026 and 2025, respectively, and totaled $34.8 million and $36.9 million for the six months ended June 30, 2026 and 2025, respectively.
Operating Leases
Operating lease additions for the three months ended June 30, 2026 and 2025 totaled $60.9 million and $47.5 million, respectively, and for the six months ended June 30, 2026 and 2025, totaled $119.8 million and $96.5 million, respectively. Acquisition-related additions for the six months ended June 30, 2026 were immaterial. For the three months ended June 30, 2026 and 2025, rent expense for leases that have terms in excess of one year totaled approximately $66.3 million and $53.8 million, respectively, of which $5.9 million and $5.1 million, respectively, represented variable lease costs. For the six months ended June 30, 2026 and 2025, rent expense for such leases totaled approximately $130.8 million and $105.1 million, respectively, of which $11.0 million and $10.1 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $225.5 million and $148.2 million for the three months ended June 30, 2026 and 2025, respectively, and totaling approximately $445.9 million and $282.6 million for the six months ended June 30, 2026 and 2025, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.
Additional Lease Information
Future minimum lease commitments as of June 30, 2026 were as follows (in millions):
Finance
Leases
Operating
Leases
2026, remaining six months$80.0 $107.3 
2027135.7 178.2 
2028108.7 126.9 
202969.0 64.6 
203024.0 27.8 
Thereafter2.2 39.3 
Total minimum lease payments$419.6 $544.1 
Less amounts representing interest(31.3)(48.9)
Total lease obligations, net of interest$388.3 $495.2 
Less current portion139.9 181.2 
Long-term portion of lease obligations, net of interest$248.4 $314.0 
The following table presents weighted average remaining lease terms and discount rates for finance and non-cancelable operating leases as of the dates indicated:
June 30,
2026
December 31,
2025
Weighted average remaining lease term (in years):
Finance leases3.23.1
Operating leases3.53.4
Weighted average discount rate:
Finance leases4.9 %4.9 %
Operating leases5.2 %5.2 %