Leases

12 Months Ended

Sep. 30, 2025

Leases [Abstract]

Leases

Note 5:    Leases

The following table details the Company's right of use assets and lease liabilities as of September 30, 2025 and 2024, respectively (in $000’s):

	September 30, 2025		September 30, 2024
Right of use asset - operating leases	$	53,097	$	55,701
Lease liabilities:
Current - operating	11,495		12,885
Current - finance	573		368
Long term - operating	46,375		50,111
Long term - finance	42,269		41,677

As discussed in Note 3, on May 15, 2024, Precision Marshall acquired Central Steel Fabricators (“Central Steel”), a Chicago-based manufacturer of specialized fabricated metal products primarily for data centers and the communications industry. As of the date of execution, Central Steel sold the acquired real property in exchange for which Central Steel entered into a 20-year lease, with two options to renew for an additional five years each, which the Company is reasonably certain to exercise. This transaction is being treated as a failed sales and leaseback for accounting purposes, as described in ASC 842 “Leases”.

The weighted average remaining lease term for operating leases is 9.7 years. The Company’s weighted average discount rate for operating leases is 9.71%. Total cash payments for operating leases for the year ended September 30, 2025 were approximately $18.5 million.

Total present value of future lease payments of operating leases as of September 30, 2025 (in 000’s):

Twelve months ended September 30,
2026	$	16,163
2027	13,569
2028	11,047
2029	8,383
2030	5,633
Thereafter	28,790
Total	83,585
Less implied interest	(25,715)
Present value of payments	$	57,870

The weighted average remaining lease term for finance leases is 26.2 years. The Company’s weighted average discount rate for finance leases is 11.33%. Total cash payments for finance leases for the year ended September 30, 2025 were approximately $4.2 million.

The Company records finance lease right-of-use assets as property and equipment. The balance, as of September 30, 2025 and 2024 is as follows (in $000’s):

	September 30, 2025		September 30, 2024
Property and equipment, at cost	$	27,102	$	26,495
Accumulated depreciation	(2,250)		(1,662)
Property and equipment, net	$	24,852	$	24,833

Total present value of future lease payments of finance leases as of September 30, 2025 (in 000’s):

Twelve months ended September 30,
2026	$	4,193
2027	4,275
2028	4,394
2029	4,529
2030	4,535
Thereafter	121,669
Total	143,595
Less implied interest	(100,753)
Present value of payments	$	42,842

Leases

Note 5:    Leases

The following table details the Company's right of use assets and lease liabilities as of September 30, 2025 and 2024, respectively (in $000’s):

	September 30, 2025		September 30, 2024
Right of use asset - operating leases	$	53,097	$	55,701
Lease liabilities:
Current - operating	11,495		12,885
Current - finance	573		368
Long term - operating	46,375		50,111
Long term - finance	42,269		41,677

As discussed in Note 3, on May 15, 2024, Precision Marshall acquired Central Steel Fabricators (“Central Steel”), a Chicago-based manufacturer of specialized fabricated metal products primarily for data centers and the communications industry. As of the date of execution, Central Steel sold the acquired real property in exchange for which Central Steel entered into a 20-year lease, with two options to renew for an additional five years each, which the Company is reasonably certain to exercise. This transaction is being treated as a failed sales and leaseback for accounting purposes, as described in ASC 842 “Leases”.

The weighted average remaining lease term for operating leases is 9.7 years. The Company’s weighted average discount rate for operating leases is 9.71%. Total cash payments for operating leases for the year ended September 30, 2025 were approximately $18.5 million.

Total present value of future lease payments of operating leases as of September 30, 2025 (in 000’s):

Twelve months ended September 30,
2026	$	16,163
2027	13,569
2028	11,047
2029	8,383
2030	5,633
Thereafter	28,790
Total	83,585
Less implied interest	(25,715)
Present value of payments	$	57,870

The weighted average remaining lease term for finance leases is 26.2 years. The Company’s weighted average discount rate for finance leases is 11.33%. Total cash payments for finance leases for the year ended September 30, 2025 were approximately $4.2 million.

The Company records finance lease right-of-use assets as property and equipment. The balance, as of September 30, 2025 and 2024 is as follows (in $000’s):

	September 30, 2025		September 30, 2024
Property and equipment, at cost	$	27,102	$	26,495
Accumulated depreciation	(2,250)		(1,662)
Property and equipment, net	$	24,852	$	24,833

Total present value of future lease payments of finance leases as of September 30, 2025 (in 000’s):

Twelve months ended September 30,
2026	$	4,193
2027	4,275
2028	4,394
2029	4,529
2030	4,535
Thereafter	121,669
Total	143,595
Less implied interest	(100,753)
Present value of payments	$	42,842