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Leases | 9 Months Ended
--- | ---
Sep. 30, 2025
Leases [Abstract] |
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025. On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss). On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI. As of September 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.1 million, or 92% of the total lease liabilities on the consolidated balance sheet. During the three and nine months ended September 30, 2025, the Company did not enter into any new finance lease agreements. Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification |  | Financial Statement Line Item |  | September 30, 2025 |  | December 31, 2024
Long-term Assets |  | Right-of-use assets, operating leases |  | $ | 15,075 |  |  | $ | 28,140 |
Long-term Assets |  | Property, plant and equipment |  | 1,001 |  |  | 1,227 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,035 |  |  | 1,495 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 306 |  |  | 293 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 18,563 |  |  | 29,972 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | 784 |  |  | 1,015 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost 1 | $ | 702 |  |  | $ | 1,002 |  |  | $ | 2,423 |  |  | $ | 2,963 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | 75 |  |  | 78 |  |  | 226 |  |  | 235 |
Interest on finance lease liabilities | 17 |  |  | 22 |  |  | 53 |  |  | 65 |
Sublease income | (145) |  |  | (92) |  |  | (406) |  |  | (276) |
Total lease cost | $ | 649 |  |  | $ | 1,010 |  |  | $ | 2,296 |  |  | $ | 2,987 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss). The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of September 30, 2025 are as follows:
(in thousands) | Sublease Receipts
Remainder of 2025 | $ | 148 |
2026 | 594 |
2027 | 606 |
2028 | 618 |
2029 | 631 |
Thereafter | 4,597 |
Total sublease receipts | $ | 7,194 |
Maturity of Leases The amounts of undiscounted future minimum lease payments under leases in continuing operations as of September 30, 2025 are as follows:
(in thousands) | Operating |  | Finance
Remainder of 2025 | $ | 630 |  |  | $ | 90 |
2026 | 2,481 |  |  | 361 |
2027 | 2,532 |  |  | 361 |
2028 | 2,584 |  |  | 303 |
2029 | 2,637 |  |  | 85 |
Thereafter | 18,310 |  |  | — |
Total undiscounted minimum future lease payments | 29,174 |  |  | 1,200 |
Imputed interest | (9,576) |  |  | (110) |
Present value of lease liabilities | $ | 19,598 |  |  | $ | 1,090 |
Lease Term and Discount Rate
Weighted-average remaining lease term | September 30, 2025 |  | December 31, 2024
Operating leases | 10.83 years |  | 11.59 years
Finance leases | 3.39 years |  | 4.13 years
Weighted-average discount rate |  |  |
Operating leases | 7.64 | % |  | 7.15 | %
Finance leases | 5.93 | % |  | 5.75 | %
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025. On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss). On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI. As of September 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.1 million, or 92% of the total lease liabilities on the consolidated balance sheet. During the three and nine months ended September 30, 2025, the Company did not enter into any new finance lease agreements. Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification |  | Financial Statement Line Item |  | September 30, 2025 |  | December 31, 2024
Long-term Assets |  | Right-of-use assets, operating leases |  | $ | 15,075 |  |  | $ | 28,140 |
Long-term Assets |  | Property, plant and equipment |  | 1,001 |  |  | 1,227 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,035 |  |  | 1,495 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 306 |  |  | 293 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 18,563 |  |  | 29,972 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | 784 |  |  | 1,015 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost 1 | $ | 702 |  |  | $ | 1,002 |  |  | $ | 2,423 |  |  | $ | 2,963 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | 75 |  |  | 78 |  |  | 226 |  |  | 235 |
Interest on finance lease liabilities | 17 |  |  | 22 |  |  | 53 |  |  | 65 |
Sublease income | (145) |  |  | (92) |  |  | (406) |  |  | (276) |
Total lease cost | $ | 649 |  |  | $ | 1,010 |  |  | $ | 2,296 |  |  | $ | 2,987 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss). The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of September 30, 2025 are as follows:
(in thousands) | Sublease Receipts
Remainder of 2025 | $ | 148 |
2026 | 594 |
2027 | 606 |
2028 | 618 |
2029 | 631 |
Thereafter | 4,597 |
Total sublease receipts | $ | 7,194 |
Maturity of Leases The amounts of undiscounted future minimum lease payments under leases in continuing operations as of September 30, 2025 are as follows:
(in thousands) | Operating |  | Finance
Remainder of 2025 | $ | 630 |  |  | $ | 90 |
2026 | 2,481 |  |  | 361 |
2027 | 2,532 |  |  | 361 |
2028 | 2,584 |  |  | 303 |
2029 | 2,637 |  |  | 85 |
Thereafter | 18,310 |  |  | — |
Total undiscounted minimum future lease payments | 29,174 |  |  | 1,200 |
Imputed interest | (9,576) |  |  | (110) |
Present value of lease liabilities | $ | 19,598 |  |  | $ | 1,090 |
Lease Term and Discount Rate
Weighted-average remaining lease term | September 30, 2025 |  | December 31, 2024
Operating leases | 10.83 years |  | 11.59 years
Finance leases | 3.39 years |  | 4.13 years
Weighted-average discount rate |  |  |
Operating leases | 7.64 | % |  | 7.15 | %
Finance leases | 5.93 | % |  | 5.75 | %
Leases | Leases The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025. On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the unaudited consolidated statements of income (loss). On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI. As of September 30, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $19.1 million, or 92% of the total lease liabilities on the consolidated balance sheet. During the three and nine months ended September 30, 2025, the Company did not enter into any new finance lease agreements. Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheet are as follows (in thousands):
Classification |  | Financial Statement Line Item |  | September 30, 2025 |  | December 31, 2024
Long-term Assets |  | Right-of-use assets, operating leases |  | $ | 15,075 |  |  | $ | 28,140 |
Long-term Assets |  | Property, plant and equipment |  | 1,001 |  |  | 1,227 |
Current liabilities |  | Current portion of lease liabilities, operating leases |  | 1,035 |  |  | 1,495 |
Current liabilities |  | Current portion of lease liabilities, finance leases |  | 306 |  |  | 293 |
Non-current liabilities |  | Non-current portion of lease liabilities, operating leases |  | 18,563 |  |  | 29,972 |
Non-current liabilities |  | Non-current portion of lease liabilities, finance leases |  | 784 |  |  | 1,015 |
Total Lease Cost Individual components of the total lease cost incurred by the Company are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost 1 | $ | 702 |  |  | $ | 1,002 |  |  | $ | 2,423 |  |  | $ | 2,963 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | 75 |  |  | 78 |  |  | 226 |  |  | 235 |
Interest on finance lease liabilities | 17 |  |  | 22 |  |  | 53 |  |  | 65 |
Sublease income | (145) |  |  | (92) |  |  | (406) |  |  | (276) |
Total lease cost | $ | 649 |  |  | $ | 1,010 |  |  | $ | 2,296 |  |  | $ | 2,987 |
1 Includes short term leases, which are immaterial Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the unaudited condensed consolidated statements of income (loss). The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss). Future expected cash receipts from the Company's sublease as of September 30, 2025 are as follows:
(in thousands) | Sublease Receipts
Remainder of 2025 | $ | 148 |
2026 | 594 |
2027 | 606 |
2028 | 618 |
2029 | 631 |
Thereafter | 4,597 |
Total sublease receipts | $ | 7,194 |
Maturity of Leases The amounts of undiscounted future minimum lease payments under leases in continuing operations as of September 30, 2025 are as follows:
(in thousands) | Operating |  | Finance
Remainder of 2025 | $ | 630 |  |  | $ | 90 |
2026 | 2,481 |  |  | 361 |
2027 | 2,532 |  |  | 361 |
2028 | 2,584 |  |  | 303 |
2029 | 2,637 |  |  | 85 |
Thereafter | 18,310 |  |  | — |
Total undiscounted minimum future lease payments | 29,174 |  |  | 1,200 |
Imputed interest | (9,576) |  |  | (110) |
Present value of lease liabilities | $ | 19,598 |  |  | $ | 1,090 |
Lease Term and Discount Rate
Weighted-average remaining lease term | September 30, 2025 |  | December 31, 2024
Operating leases | 10.83 years |  | 11.59 years
Finance leases | 3.39 years |  | 4.13 years
Weighted-average discount rate |  |  |
Operating leases | 7.64 | % |  | 7.15 | %
Finance leases | 5.93 | % |  | 5.75 | %

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