LEASES
Lessee Arrangements
We lease real estate, including land, buildings and warehouses, machinery/equipment, vessels, vehicles, and various types of manufacturing and data processing equipment, from a lessee perspective. Leases of real estate generally provide for payment of property taxes, insurance, and repairs by us. The majority of our leases are classified as operating leases.
The following table is a summary of the Company’s components of net lease cost for the years ended December 31, 2025, 2024, and 2023:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (In millions) | 2025 | | 2024 | | 2023 |
| Operating and Finance lease costs | $ | 231.6 | | | $ | 218.7 | | | $ | 201.9 | |
| Short-term lease costs | 37.0 | | | 44.8 | | | 45.7 | |
| | | | | |
Less: sublease income(a) | 4.1 | | | 14.8 | | | 5.7 | |
| Net lease cost | $ | 264.5 | | | $ | 248.7 | | | $ | 241.9 | |
(a) TechnipFMC currently subleases certain of its leased real estate and vessels to third parties.
Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024, and 2023 is as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (In millions) | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | |
| Cash outflows from operating and finance leases | $ | 232.5 | | | $ | 216.9 | | | $ | 197.2 | |
| Right-of-use assets obtained in exchange for lease liabilities | | | | | |
| Operating leases | $ | 172.2 | | | $ | 174.9 | | | $ | 67.1 | |
| Finance leases | $ | 12.6 | | | $ | 41.7 | | | $ | 48.8 | |
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 is as follows:
| | | | | | | | | | | |
| December 31, |
| (In millions, except lease term and discount rate) | 2025 | | 2024 |
| Weighted average remaining lease term | | | |
| Operating leases | 9.6 years | | 10.5 years |
| Finance leases | 3.1 years | | 2.2 years |
| | | |
| Weighted average discount rate | | | |
| Operating leases | 6.0 | % | | 6.1 | % |
| Finance leases | 15.2 | % | | 16.5 | % |
Maturities of operating and finance lease liabilities as of December 31, 2025 are as follows:
| | | | | | | | | | | |
| (In millions) | Maturity of Operating Lease Liabilities | | Maturity of Finance Lease Liabilities |
| 2026 | $ | 199.8 | | | $ | 33.5 | |
| 2027 | 174.2 | | | 24.4 | |
| 2028 | 134.6 | | | 17.3 | |
| 2029 | 72.9 | | | 3.3 | |
| 2030 | 61.9 | | | 26.3 | |
| Thereafter | 482.3 | | | — | |
| Total lease payments | 1,125.7 | | | 104.8 | |
| Less: Imputed interest | 305.3 | | | 12.6 | |
Total lease liabilities (a) | $ | 820.4 | | | $ | 92.2 | |
(a) Includes the current portion of $177.7 million.
Lessor Arrangements
The majority of our leases are operating leases, as opposed to sales-type or direct financing leases. Our operating lease revenue, including variable revenue, was $292.1 million, $242.7 million, and $273.5 million for the years ended December 31, 2025, 2024, and 2023, respectively. During the term of the leases, we expect to receive committed revenues of $18.0 million in total undiscounted cash flows, of which $6.6 million is expected to be received in 2026 and $5.4 million is expected to be received in 2027.