The Company has operating and finance leases primarily for construction and transportation equipment, as well as office space. The Company’s leases have remaining lease terms of one month to ten years, some of which include options to extend the leases for up to ten years.
The components of lease expense are as follows:
| | | | | | | | | | | |
| Years Ended December 31, |
| | 2025 | | 2024 |
| Operating lease cost | $ | 23,217 | | | $ | 22,824 | |
| Short-term lease cost | $ | 30,964 | | | $ | 27,038 | |
| | | |
| Finance lease cost: | | | |
| Amortization of right-of-use assets | $ | 127 | | | $ | 195 | |
| Interest on lease liabilities | 31 | | | 40 | |
| Total finance lease cost | $ | 158 | | | $ | 235 | |
Supplemental cash flow information related to leases is as follows:
| | | | | | | | | | | |
| Years Ended December 31, |
| | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 23,255 | | | $ | 22,472 | |
| Operating cash flows from finance leases | $ | 31 | | | $ | 40 | |
| Financing cash flows from finance leases | $ | 127 | | | $ | 195 | |
| | | |
| Right-of-use assets obtained in exchange for lease obligations (non-cash): | | | |
| Operating leases | $ | 3,606 | | | $ | 15,170 | |
| Finance leases | $ | — | | | $ | — | |
Supplemental balance sheet information related to leases is as follows:
| | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Operating Leases | | | |
| Operating lease right-of-use assets | $ | 58,167 | | | $ | 52,668 | |
| | | |
| Current portion of long-term lease obligations | $ | 18,679 | | | $ | 20,498 | |
| Long-term lease obligations | 40,186 | | | 32,455 | |
| Total operating lease liabilities | $ | 58,865 | | | $ | 52,953 | |
| | | |
| Finance Leases | | | |
| Property and equipment, at cost | $ | 1,428 | | | $ | 2,011 | |
| Accumulated depreciation | (1,067) | | | (1,445) | |
| Property and equipment, net | $ | 361 | | | $ | 566 | |
| | | |
| Current maturities of long-term debt | $ | 136 | | | $ | 127 | |
| Long-term debt | 236 | | | 372 | |
| Total finance lease liabilities | $ | 372 | | | $ | 499 | |
| | | |
| Weighted Average Remaining Lease Term | | | |
| Operating leases | 5.0 | | 4.3 |
| Finance leases | 2.6 | | 3.6 |
| | | |
| Weighted Average Discount Rate | | | |
| Operating leases | 5.9 | % | | 6.0 | % |
| Finance leases | 6.9 | % | | 6.9 | % |
Maturities of lease liabilities are as follows:
| | | | | | | | | | | |
| | Operating
Leases | | Finance
Leases |
| Year Ending December 31, | | | |
| 2026 | $ | 21,688 | | | $ | 158 | |
| 2027 | 11,597 | | | 157 | |
| 2028 | 8,583 | | | 92 | |
| 2029 | 7,484 | | | — | |
| 2030 | 8,872 | | | — | |
| Thereafter | 10,562 | | | — | |
| Total lease payments | 68,786 | | | 407 | |
| Less imputed interest | (9,921) | | | (35) | |
| Total | $ | 58,865 | | | $ | 372 | |
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.