v3.26.1
Leases (Notes)
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Finance Leases LEASES
As Lessee
We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating and finance leases include transportation, office, yard, warehouse, and other equipment, in addition to truck washes. Most leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.
In conjunction with the acquisition of M&M, the Company entered into nine related party operating leases. The leases are for shop, warehouse, office, and drop yard locations throughout the U.S. As of June 30, 2026, seven of these leases have been renewed with terms extending through 2029, while the remaining two leases are scheduled to expire later in 2026. The related lease payments are not material.
Additional information related to our leases is as follows:
Six Months Ended
June 30,
(in millions)20262025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$20.0 $20.8 
Operating cash flows for finance leases0.1 0.2 
Financing cash flows for finance leases1.4 2.0 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$41.1 $10.4 
Finance leases0.4 — 
As of June 30, 2026, we had two leases that were signed but not yet commenced totaling $3.8 million. They will commence in the third quarter of 2026 and have terms of four and six years.
As Lessor
We finance various types of transportation-related equipment for third parties under lease contracts that generally have terms of one to three years. These arrangements are accounted for as sales-type leases and include fully guaranteed residual values. At the end of the lease term, the lessee may return the equipment, extend the lease, or purchase the equipment for the contractually specified residual value. This contractual residual value is intended to approximate the estimated fair value of the equipment at the end of the lease term. Consideration under these leases primarily consists of base rental payments and guaranteed residual values.
As of June 30, 2026 and December 31, 2025, investments in lease receivables were as follows:
(in millions)June 30, 2026December 31, 2025
Future minimum payments to be received on leases$179.9 $162.9 
Guaranteed residual lease values101.8 93.5 
Total minimum lease payments to be received281.7 256.4 
Unearned income(48.7)(43.8)
Net investment in leases$233.0 $212.6 
Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed.
Our net investment in leases with any portion past due as of June 30, 2026 was $36.5 million, which includes both current and future lease payments. Lease payments are generally due weekly and are considered past due when payment is not received by the contractual due date. As of June 30, 2026, lease payments past due totaled $2.0 million.
The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2026202520262025
Revenue$61.4 $63.2 $119.6 $119.2 
Cost of goods sold(56.2)(56.6)(109.1)(107.0)
Operating profit$5.2 $6.6 $10.5 $12.2 
Interest income on lease receivables$8.2 $8.2 $15.9 $16.1 
Operating Leases LEASES
As Lessee
We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating and finance leases include transportation, office, yard, warehouse, and other equipment, in addition to truck washes. Most leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.
In conjunction with the acquisition of M&M, the Company entered into nine related party operating leases. The leases are for shop, warehouse, office, and drop yard locations throughout the U.S. As of June 30, 2026, seven of these leases have been renewed with terms extending through 2029, while the remaining two leases are scheduled to expire later in 2026. The related lease payments are not material.
Additional information related to our leases is as follows:
Six Months Ended
June 30,
(in millions)20262025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$20.0 $20.8 
Operating cash flows for finance leases0.1 0.2 
Financing cash flows for finance leases1.4 2.0 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$41.1 $10.4 
Finance leases0.4 — 
As of June 30, 2026, we had two leases that were signed but not yet commenced totaling $3.8 million. They will commence in the third quarter of 2026 and have terms of four and six years.
As Lessor
We finance various types of transportation-related equipment for third parties under lease contracts that generally have terms of one to three years. These arrangements are accounted for as sales-type leases and include fully guaranteed residual values. At the end of the lease term, the lessee may return the equipment, extend the lease, or purchase the equipment for the contractually specified residual value. This contractual residual value is intended to approximate the estimated fair value of the equipment at the end of the lease term. Consideration under these leases primarily consists of base rental payments and guaranteed residual values.
As of June 30, 2026 and December 31, 2025, investments in lease receivables were as follows:
(in millions)June 30, 2026December 31, 2025
Future minimum payments to be received on leases$179.9 $162.9 
Guaranteed residual lease values101.8 93.5 
Total minimum lease payments to be received281.7 256.4 
Unearned income(48.7)(43.8)
Net investment in leases$233.0 $212.6 
Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed.
Our net investment in leases with any portion past due as of June 30, 2026 was $36.5 million, which includes both current and future lease payments. Lease payments are generally due weekly and are considered past due when payment is not received by the contractual due date. As of June 30, 2026, lease payments past due totaled $2.0 million.
The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2026202520262025
Revenue$61.4 $63.2 $119.6 $119.2 
Cost of goods sold(56.2)(56.6)(109.1)(107.0)
Operating profit$5.2 $6.6 $10.5 $12.2 
Interest income on lease receivables$8.2 $8.2 $15.9 $16.1 
Sales-type Leases LEASES
As Lessee
We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating and finance leases include transportation, office, yard, warehouse, and other equipment, in addition to truck washes. Most leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.
In conjunction with the acquisition of M&M, the Company entered into nine related party operating leases. The leases are for shop, warehouse, office, and drop yard locations throughout the U.S. As of June 30, 2026, seven of these leases have been renewed with terms extending through 2029, while the remaining two leases are scheduled to expire later in 2026. The related lease payments are not material.
Additional information related to our leases is as follows:
Six Months Ended
June 30,
(in millions)20262025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$20.0 $20.8 
Operating cash flows for finance leases0.1 0.2 
Financing cash flows for finance leases1.4 2.0 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$41.1 $10.4 
Finance leases0.4 — 
As of June 30, 2026, we had two leases that were signed but not yet commenced totaling $3.8 million. They will commence in the third quarter of 2026 and have terms of four and six years.
As Lessor
We finance various types of transportation-related equipment for third parties under lease contracts that generally have terms of one to three years. These arrangements are accounted for as sales-type leases and include fully guaranteed residual values. At the end of the lease term, the lessee may return the equipment, extend the lease, or purchase the equipment for the contractually specified residual value. This contractual residual value is intended to approximate the estimated fair value of the equipment at the end of the lease term. Consideration under these leases primarily consists of base rental payments and guaranteed residual values.
As of June 30, 2026 and December 31, 2025, investments in lease receivables were as follows:
(in millions)June 30, 2026December 31, 2025
Future minimum payments to be received on leases$179.9 $162.9 
Guaranteed residual lease values101.8 93.5 
Total minimum lease payments to be received281.7 256.4 
Unearned income(48.7)(43.8)
Net investment in leases$233.0 $212.6 
Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed.
Our net investment in leases with any portion past due as of June 30, 2026 was $36.5 million, which includes both current and future lease payments. Lease payments are generally due weekly and are considered past due when payment is not received by the contractual due date. As of June 30, 2026, lease payments past due totaled $2.0 million.
The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2026202520262025
Revenue$61.4 $63.2 $119.6 $119.2 
Cost of goods sold(56.2)(56.6)(109.1)(107.0)
Operating profit$5.2 $6.6 $10.5 $12.2 
Interest income on lease receivables$8.2 $8.2 $15.9 $16.1