Leases

6 Months Ended

Jun. 28, 2026

The Company has operating and finance leases for corporate and field offices, equipment yards, construction equipment and transportation vehicles. The Company is currently not a lessor in any significant lease arrangements. The Company’s leases have remaining lease terms of up to 12 years. Some of these leases include options to extend the leases, generally for optional terms of up to five years, and some include options to terminate the leases within one year. The equipment leases may include variable payment terms in addition to the fixed lease payments if machinery is used in excess of the standard work periods. The occurrence of these variable payments is not probable under the Company’s current operating environment and has not been included in consideration of lease payments. Leases with an initial term of 12 months or less are classified as short-term leases and are not recognized on the condensed consolidated balance sheets unless the lease contains a purchase option that is reasonably certain to be exercised, or unless it is reasonably certain that the equipment or property will be leased for greater than 12 months. Due to the seasonality of the Company’s operations, expense for short-term leases will fluctuate throughout the year with higher expense typically incurred during the periods when revenue is the greatest. As of June 28, 2026, the Company did not have any significant executed lease agreements that had not yet commenced.

The components of lease expense were as follows (in thousands):


		Fiscal Three Months Ended				Fiscal Six Months Ended
Lease cost	Classification	June 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
Operating lease cost	Cost of revenue and selling, general and administrative expenses	$	11,628	$	6,575	$	22,000	$	13,002
Finance lease cost:
Amortization of ROU assets	Depreciation (1)	1,199		1,490		2,638		3,397
Interest on lease liabilities	Interest expense, net	184		246		380		512
Total finance lease cost		1,383		1,736		3,018		3,909
Short-term lease cost (2)	Cost of revenue and selling, general and administrative expenses	43,994		27,052		77,311		49,061
Total lease cost		$	57,005	$	35,363	$	102,329	$	65,972

(1)Depreciation is included within cost of revenue in the accompanying condensed consolidated statements of operations.

(2)Short-term lease cost includes both leases and rentals with initial terms of 12 months or less.

Supplemental cash flow information related to leases was as follows (in thousands):


	Fiscal Six Months Ended
	June 28, 2026		June 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21,196	$	12,881
Operating cash flows from finance leases	$	380	$	512
Financing cash flows from finance leases	$	3,861	$	5,188
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	30,190	$	12,914
Finance leases	$	1,383	$	—

Supplemental information related to leases was as follows:


	June 28, 2026		December 28, 2025
Weighted average remaining lease term (in years):
Operating leases	5.84		6.17
Finance leases	2.35		2.52

Weighted average discount rate:
Operating leases	5.96	%	5.74	%
Finance leases	5.19	%	4.98	%

The following is a schedule of maturities of lease liabilities as of June 28, 2026 (in thousands):


	Operating Leases		Finance Leases
Fiscal year ended:
Remainder of 2026	$	23,247	$	4,041
2027	45,184		6,530
2028	41,244		2,592
2029	36,429		1,208
2030	33,548		566
Thereafter	54,382		—
Total lease payments	234,034		14,937
Less: Amount of lease payments representing interest	(36,555)		(938)
Total	$	197,479	$	13,999

Certain leases require the Company to pay variable property taxes, insurance and maintenance costs that have been excluded from the minimum lease payments in the above tables as they are variable in nature.

Leases