Construction Partners, Inc.ROAD

Construction Partners, Inc. Leases Disclosure

10-KFiled Nov 25, 20252 min read
Leases
The Company leases certain facilities, office space, vehicles and equipment. As of September 30, 2025, operating leases under Topic 842 were included in (i) operating lease right-of use assets, (ii) current portion of operating lease liabilities and (iii) operating lease liabilities, net of current portion on the Consolidated Balance Sheets in the amounts of $76.4 million, $19.9 million and $57.2 million, respectively. As of September 30, 2025, the Company did not have any lease contracts that had not yet commenced but had created significant rights and obligations.

The components of lease expense were as follows for the periods presented (in thousands):

For the Fiscal Year Ended September 30,
202520242023
Operating lease cost$17,830 $7,069 $3,150 
Short-term lease cost29,801 24,538 22,631 
Total lease expense$47,631 $31,607 $25,781 

Short-term leases (those with terms of 12 months or less) are not capitalized but are expensed on a straight-line basis over the lease term. The majority of the Company’s short-term leases relate to equipment used on construction projects. These leases are entered into at periodic rental rates for an unspecified duration and typically have a termination for convenience provision.

As of September 30, 2025, the weighted-average remaining term of the Company’s operating leases was 4.2 years, and the weighted-average discount rate was 6.08%. As of September 30, 2025, the lease liability was equal to the present value of the remaining lease payments, discounted using the incremental borrowing rate on the Company’s secured debt using a single maturity discount rate, as such rate is not materially different from the discount rate applied to each of the leases in the portfolio.
The following table summarizes the Company’s undiscounted operating lease liabilities outstanding as of September 30, 2025 (in thousands):
Fiscal YearAmount
2026$23,030 
202723,325 
202818,977 
202912,241 
20305,515 
Thereafter4,165 
Total future minimum lease payments$87,253 
Less: imputed interest10,185 
Total$77,068 
Free Sentinel

Want the next Construction Partners, Inc. leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Construction Partners, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2024Nov 25, 2024
2023Nov 29, 2023
2022Nov 22, 2022
2021Nov 29, 2021
2020Dec 11, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesDebtCommitmentsStock CompensationNew StandardsPay vs PerformanceNEO Compensation Adjustments