v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Leases Leases
The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset.
Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.
The components of lease expense for the three and nine months ended September 30, 2026 and 2025 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2026202520262025
Finance lease cost:
Amortization of right-of-use assets$13,445 $14,693 $40,502 $42,098 
Interest on lease liabilities4,386 5,356 14,142 15,446 
Operating lease cost7,197 9,204 23,045 26,938 
Variable lease cost1,825 1,567 5,623 4,612 
Short-term lease cost772 790 2,279 2,570 
Total lease cost, net$27,625 $31,610 $85,591 $91,664 

Supplemental cash flow and other information related to leases for the three and nine months ended September 30, 2026 and 2025 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2026202520262025
Cash paid for amounts included in measurement of liabilities:
Operating leases$7,521 $9,809 $24,128 $27,072 
Finance leases27,148 25,223 82,380 69,509 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases9,913 8,765 18,211 23,071 
Finance leases15,013 37,261 22,791 87,885 
Lease terms and discount rates as of September 30, 2026 and December 31, 2025 were as follows:
September 30, 2026December 31, 2025
Weighted-average remaining lease term:
Operating leases4.04.1
Finance leases2.42.9
Weighted-average discount rate:
Operating leases8.4 %7.6 %
Finance leases6.7 %6.9 %
Future minimum lease commitments as of September 30, 2026 are as follows:
($ in thousands)FinanceOperating
Remainder of 2026$28,724 $6,462 
202791,237 22,323 
202896,095 14,924 
202957,030 11,269 
20305,194 5,995 
Thereafter— 7,972 
Total lease payments278,280 68,945 
Less imputed interest25,217 9,046 
Total$253,063 $59,899 
The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of September 30, 2026 is $13.4 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability.
Lessor Arrangements
The Company leases dry and wet sand containers, conveyor belts, and other equipment to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. The majority of the lease agreements are short-term in nature and contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items.
The carrying amount of lease equipment, included in property, plant and equipment, that are leased to others under an operating lease or are available to lease as of September 30, 2026 and December 31, 2025 were as follows:
($ in thousands)September 30, 2026December 31, 2025
Equipment leased to others - at original cost$158,329 $158,716 
Less: Accumulated depreciation(70,992)(59,299)
Equipment leased to others - net$87,337 $99,417 
Future payments receivable for long-term non-cancelable operating leases as of September 30, 2026 are as follows:
($ in thousands)
Remainder of 2026$130 
2027— 
2028— 
2029— 
2030— 
Thereafter— 
Total$130 
Revenues from operating leases for the three and nine months ended September 30, 2026 were $4.4 million and $13.7 million, respectively. Revenues from operating leases for the three and nine months ended September 30, 2025 were $11.3 million and $39.4 million, respectively.
Leases Leases
The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset.
Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred.
The components of lease expense for the three and nine months ended September 30, 2026 and 2025 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2026202520262025
Finance lease cost:
Amortization of right-of-use assets$13,445 $14,693 $40,502 $42,098 
Interest on lease liabilities4,386 5,356 14,142 15,446 
Operating lease cost7,197 9,204 23,045 26,938 
Variable lease cost1,825 1,567 5,623 4,612 
Short-term lease cost772 790 2,279 2,570 
Total lease cost, net$27,625 $31,610 $85,591 $91,664 

Supplemental cash flow and other information related to leases for the three and nine months ended September 30, 2026 and 2025 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2026202520262025
Cash paid for amounts included in measurement of liabilities:
Operating leases$7,521 $9,809 $24,128 $27,072 
Finance leases27,148 25,223 82,380 69,509 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases9,913 8,765 18,211 23,071 
Finance leases15,013 37,261 22,791 87,885 
Lease terms and discount rates as of September 30, 2026 and December 31, 2025 were as follows:
September 30, 2026December 31, 2025
Weighted-average remaining lease term:
Operating leases4.04.1
Finance leases2.42.9
Weighted-average discount rate:
Operating leases8.4 %7.6 %
Finance leases6.7 %6.9 %
Future minimum lease commitments as of September 30, 2026 are as follows:
($ in thousands)FinanceOperating
Remainder of 2026$28,724 $6,462 
202791,237 22,323 
202896,095 14,924 
202957,030 11,269 
20305,194 5,995 
Thereafter— 7,972 
Total lease payments278,280 68,945 
Less imputed interest25,217 9,046 
Total$253,063 $59,899 
The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of September 30, 2026 is $13.4 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability.
Lessor Arrangements
The Company leases dry and wet sand containers, conveyor belts, and other equipment to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. The majority of the lease agreements are short-term in nature and contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items.
The carrying amount of lease equipment, included in property, plant and equipment, that are leased to others under an operating lease or are available to lease as of September 30, 2026 and December 31, 2025 were as follows:
($ in thousands)September 30, 2026December 31, 2025
Equipment leased to others - at original cost$158,329 $158,716 
Less: Accumulated depreciation(70,992)(59,299)
Equipment leased to others - net$87,337 $99,417 
Future payments receivable for long-term non-cancelable operating leases as of September 30, 2026 are as follows:
($ in thousands)
Remainder of 2026$130 
2027— 
2028— 
2029— 
2030— 
Thereafter— 
Total$130 
Revenues from operating leases for the three and nine months ended September 30, 2026 were $4.4 million and $13.7 million, respectively. Revenues from operating leases for the three and nine months ended September 30, 2025 were $11.3 million and $39.4 million, respectively.