LEASES

12 Months Ended

Aug. 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 and finance lease assets related to the precast platform were $65.3 million and $0.9 million, respectively, as of August 31, 2026. As of August 31, 2026, the Company had an additional $36.9 million of operating lease assets and $83.6 million of finance lease assets unrelated to the precast platform that were added in 2026.

The following table presents the components of total leased assets and lease liabilities, including their classification in the consolidated balance sheets:


(in thousands)	Classification in Consolidated Balance Sheets	August 31, 2026		August 31, 2025
Assets:
Operating assets	Other noncurrent assets	$	225,372	$	172,374
Finance assets	Property, plant and equipment, net	234,010		189,923
Total leased assets		$	459,382	$	362,297

Liabilities:
Operating lease liabilities:
Current	Other accrued expenses and payables	$	42,906	$	37,250
Long-term	Other noncurrent liabilities	185,377		136,629
Total operating lease liabilities		228,283		173,879
Finance lease liabilities:
Current	Current maturities of long-term debt	56,623		42,500
Long-term	Long-term debt	139,070		116,417
Total finance lease liabilities		195,693		158,917
Total lease liabilities		$	423,976	$	332,796

The components of lease cost were as follows:


	Year Ended August 31,
(in thousands)	2026		2025		2024
Operating lease expense	$	57,165	$	48,618	$	46,515
Finance lease expense:
Amortization of assets	35,481		27,966		23,825
Interest on lease liabilities	9,220		7,690		5,712
Total finance lease expense	44,701		35,656		29,537
Variable and short-term lease expense	24,309		20,901		19,481
Total lease expense	$	126,175	$	105,175	$	95,533

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


	August 31, 2026		August 31, 2025
Weighted average remaining lease term (years):
Operating leases	6.8		5.9
Finance leases	3.8		3.9

Weighted average discount rate:
Operating leases	5.263	%	5.126	%
Finance leases	5.136	%	5.263	%

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


	Year Ended August 31,
(in thousands)	2026		2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	55,711	$	48,649	$	47,508
Operating cash outflows from finance leases	9,220		7,690		5,712
Financing cash outflows from finance leases	48,971		40,567		34,508

ROU assets obtained in exchange for lease obligations:
Operating leases	$	102,176	$	38,263	$	57,746
Finance leases	84,467		59,102		79,841

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


(in thousands)	Operating Leases		Finance Leases
2027	$	53,811	$	65,173
2028	47,685		58,749
2029	38,127		44,146
2030	31,896		29,643
2031	25,887		14,812
Thereafter	77,184		2,636
Total lease payments	274,590		215,159
Less imputed interest	(46,307)		(19,466)
Present value of lease liabilities	$	228,283	$	195,693

As of August 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 $4.7 million, all of which are expected to commence in 2027. These leases have noncancellable terms of 4 to 6 years.

Finance Leases