Leases
The Company leases certain office space, construction and office equipment, vehicles and temporary housing generally under non-cancelable operating leases. Leases with an initial term of one year or less are not recorded on the balance sheet, and the Company generally recognizes lease expense for these leases on a straight-line basis over the lease term. As of December 31, 2025, the Company’s operating leases have remaining lease terms ranging from less than one year to 13 years, some of which include options to renew the leases. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.
The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets are included in other assets, while current and long-term operating lease liabilities are included in accrued expenses and other current liabilities, and other long-term liabilities, respectively, on the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The present value of future lease payments are discounted using either the implicit rate in the lease, if known, or the Company’s incremental borrowing rate for the specific lease as of the lease commencement date. The ROU asset is also adjusted for any prepayments made or incentives received. The lease terms include options to extend or terminate the lease only to the extent it is reasonably certain any of those options will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease components (e.g., fixed payments) separate from the non-lease components (e.g., common-area maintenance costs). The Company does not have any material financing leases.
The following table presents components of lease expense for the years ended December 31, 2025 and 2024:
| | | | | | | | | | | |
| | For the year ended December 31, |
| (in thousands) | | 2025 | 2024 |
| Operating lease expense | | $ | 15,313 | | $ | 13,524 | |
Short-term lease expense(a) | | 54,772 | | 55,425 | |
| | 70,085 | | 68,949 | |
| Less: Sublease income | | 1,152 | | 897 | |
| Total lease expense | | $ | 68,933 | | $ | 68,052 | |
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(a)Short-term lease expense includes all leases with lease terms ranging from less than one month to one year. Short-term leases include, among other things, construction equipment rented on an as-needed basis as well as temporary housing.
The following table presents supplemental balance sheet information related to operating leases:
| | | | | | | | | | | |
| | As of December 31, |
| (dollars in thousands) | Balance Sheet Line Item | 2025 | 2024 |
| Assets | | | |
| ROU assets | Other assets | $ | 58,608 | $ | 41,695 |
| Total lease assets | | $ | 58,608 | $ | 41,695 |
| Liabilities | | | |
| Current lease liabilities | Accrued expenses and other current liabilities | $ | 11,763 | $ | 7,066 |
| Long-term lease liabilities | Other long-term liabilities | 51,783 | 38,630 |
| Total lease liabilities | | $ | 63,546 | $ | 45,696 |
| Weighted-average remaining lease term | | 6.4 years | 8.0 years |
| Weighted-average discount rate | | 8.04 | % | 9.73 | % |
The following table presents supplemental cash flow information and non-cash activity related to operating leases:
| | | | | | | | |
| As of December 31, |
| (in thousands) | 2025 | 2024 |
| Operating cash flow information: | | |
| Cash paid for amounts included in the measurement of lease liabilities | $ | (14,383) | | $ | (13,013) | |
| Non-cash activity: | | |
| ROU assets obtained in exchange for lease liabilities | $ | 27,236 | | $ | 10,817 | |
The following table presents maturities of operating lease liabilities on an undiscounted basis as of December 31, 2025:
| | | | | |
Year (in thousands) | Operating Leases |
| 2026 | $ | 16,529 | |
| 2027 | 14,822 | |
| 2028 | 13,346 | |
| 2029 | 10,842 | |
| 2030 | 7,016 | |
| Thereafter | 22,310 | |
| Total lease payments | 84,865 | |
| Less: Imputed interest | 21,319 | |
| Total | $ | 63,546 | |