Leases

3 Months Ended

Mar. 31, 2026

NOTE 10 — LEASES

The Company primarily has third-party operating and finance leases for branch facilities, corporate office, service vehicle fleet, and certain equipment. The Company has one immaterial operating lease with a related party. The Company’s leases have remaining lease terms that range from less than one year to leases that mature through December 2039 and contain provisions to renew the leases for additional terms of up to 20 years.

The Company leases and subleases certain lift trucks to customers under short and long-term operating lease agreements. The sublease income is included in “Rental revenues” on our Condensed Consolidated Statements of Operations. Sublease income below primarily includes subleases of facilities that are not included in “Rental revenues” due to being outside our normal business operations. The costs of the head lease for these subleases are included in Operating lease expense below.

At March 31, 2026 and December 31, 2025, assets recorded under finance leases, net of accumulated depreciation, were $34.1 million and $36.1 million, respectively. The assets are depreciated over the lesser of their remaining lease terms or estimated useful lives.

The components of lease expense were as follows:


	Three Months Ended March 31,
	2026			2025
Operating lease expense	$	6.7		$	6.9
Short-term lease expense		0.8			0.9
Low-value lease expense		0.4			0.3
Variable lease expense		3.5			3.1
Finance lease expense:
Amortization of right-of-use assets		2.8			2.9
Interest on lease liabilities		0.8			1.0
Sublease income		(0.1	)		(0.1	)
Total lease expense	$	14.9		$	15.0

Additional information related to leases is presented in the table below:


	Three Months Ended March 31,
Supplemental Cash Flows Information	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6.6	$	6.7
Operating cash flows for finance leases		0.8		1.0
Financing cash flows for finance leases		2.7		2.7
Non-cash right-of-use assets obtained in exchange for lease obligations:
Operating leases		2.2		3.5
Finance leases		1.0		5.0
Weighted Average Remaining Lease Term (in years):
Operating leases		7.8		8.5
Finance leases		3.5		4.2
Weighted Average Discount Rate (in %):
Operating leases		11.0		10.6
Finance leases		9.2		8.9

Minimum future lease payments under non-cancellable operating and finance leases described above as of March 31, 2026 were as follows:


Years ending December 31,	Operating Leases			Finance Leases
Remainder of 2026	$	19.3		$	10.5
2027		25.0			12.5
2028		23.0			10.8
2029		17.4			7.1
2030		16.4			2.1
Thereafter		68.5			0.3
Total future minimum lease payments		169.6			43.3
Less: imputed interest		(56.9	)		(6.0	)
Total	$	112.7		$	37.3


Balance Sheet Location	March 31, 2026			December 31, 2025
Current portion of long-term debt	$	11.1		$	11.0
Current operating lease liabilities		15.0			15.0
Finance lease obligations, net of current portion		26.2			28.2
Long-term operating lease liabilities, net of current portion		97.7			100.1
Total	$	150.0		$	154.3

As of March 31, 2026, the Company had additional leases, substantially all real estate, that have not yet commenced with undiscounted lease payments of $14.5 million. These leases are expected to commence in 2026 with lease terms up to 15 years.

See Note 11, Contingencies, for more information on certain contracts where the Company guarantees the performance of the third-party lessee.