Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Leases

Lease Policies

The Company determines if an arrangement contains a lease in whole or in part at the inception of the contract. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term while lease liabilities represent the obligation to make lease payments arising from the lease. All leases with an expected term greater than twelve months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the lease commencement date to determine the present value of the lease payments unless the implicit rate in the lease is readily determinable. The incremental borrowing rate is determined considering factors such as the lease term, the Company’s credit standing and the economic environment of the location of the lease.

The lease term includes all non-cancellable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that the Company will exercise the option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of a ROU asset or lease liability.

The Company classifies leases as finance leases when (i) there is a transfer of ownership of the underlying asset by the end of the lease term, (ii) the lease contains an option to purchase the asset that the Company is reasonably certain will be exercised, (iii) the lease term is for the majority of the remaining economic life of the asset, or (iv) the present value of the lease payments and any residual value guarantee equals or substantially exceeds the fair value of the asset.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases is generally front-loaded as the finance lease ROU asset is depreciated on a straight-line basis, but interest expense on the lease liability is recognized using the interest method which results in more expense during the early years of the lease. Variable lease payments are expensed in the period in which the obligation for those payments is incurred. The Company has elected to combine lease and non-lease components, such as fixed maintenance costs, as a single lease component in calculating ROU assets and lease liabilities for all classes of leased assets.

Leases

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between March 2026 and March 2036. The following table summarizes the lease expense by category in the Consolidated Statements of Income:

(in thousands)	For the Year Ended December 31,
	2025		2024
Cost of sales	$	11,082	$	7,603
Research, development and engineering expenses	318		326
Selling, general and administrative expenses	279		266
Interest expense	100		8
Total	$	11,779	$	8,203

The following table summarizes the components of lease expense and income:

(in thousands)	For the Year Ended December 31,
	2025		2024
Operating lease cost	$	8,789	$	6,126
Finance lease cost:
Amortization of ROU asset	367		66
Interest expense	100		8
Short-term lease cost	744		861
Variable lease cost	1,779		1,142
Sublease income	—		—
Total lease cost, net	$	11,779	$	8,203

The following table presents supplemental cash flow information related to leases:

(in thousands)	For the Year Ended December 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	7,887	$	6,063
Operating cash flows paid for interest portion of finance leases	100		8
Financing cash flows paid for principal portion of finance leases	339		76
Right-of-use assets obtained in exchange for lease obligations
Operating leases	35,709		1,139
Finance leases	1,840		—

As of December 31, 2025 and 2024, the weighted-average remaining lease term was 8.0 years and 5.3 years for operating leases and 4.2 years and 1.2 years for finance leases, respectively. As of December 31, 2025 and 2024, the weighted-average discount rate was 7.1% and 7.5% for operating leases, respectively, and 6.9% and 6.5% for finance leases, respectively.

The following table presents supplemental balance sheet information related to leases:

(in thousands)	As of December 31,
	2025		2024
Operating lease ROU assets, net	$	52,911	$	23,275
Operating lease liabilities, current	6,346		4,503
Operating lease liabilities, non-current	49,397		20,663
Total operating lease liabilities	$	55,743	$	25,166
Finance lease ROU assets, net 1	$	1,533	$	78
Finance lease liabilities, current	355		78
Finance lease liabilities, non-current	1,224		16
Total finance lease liabilities	$	1,579	$	94

1.    Included in Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of December 31, 2025:

(in thousands)
Year Ending December 31,	Operating Leases		Finance Leases
2026	$	10,104	$	451
2027	10,331		434
2028	9,489		434
2029	8,652		415
2030	7,262		75
Thereafter	28,104		—
Total undiscounted lease payments	73,942		1,809
Less: imputed interest	18,199		230
Total lease liabilities	$	55,743	$	1,579

Leases

Leases

Lease Policies

The Company determines if an arrangement contains a lease in whole or in part at the inception of the contract. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term while lease liabilities represent the obligation to make lease payments arising from the lease. All leases with an expected term greater than twelve months result in the recognition of a ROU asset and a liability at the lease commencement date based on the present value of the lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the lease commencement date to determine the present value of the lease payments unless the implicit rate in the lease is readily determinable. The incremental borrowing rate is determined considering factors such as the lease term, the Company’s credit standing and the economic environment of the location of the lease.

The lease term includes all non-cancellable periods and may include options to extend (or to not terminate) the lease when it is reasonably certain that the Company will exercise the option. Leases that have a term of 12 months or less at the commencement date are expensed on a straight-line basis over the lease term and do not result in the recognition of a ROU asset or lease liability.

The Company classifies leases as finance leases when (i) there is a transfer of ownership of the underlying asset by the end of the lease term, (ii) the lease contains an option to purchase the asset that the Company is reasonably certain will be exercised, (iii) the lease term is for the majority of the remaining economic life of the asset, or (iv) the present value of the lease payments and any residual value guarantee equals or substantially exceeds the fair value of the asset.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for finance leases is generally front-loaded as the finance lease ROU asset is depreciated on a straight-line basis, but interest expense on the lease liability is recognized using the interest method which results in more expense during the early years of the lease. Variable lease payments are expensed in the period in which the obligation for those payments is incurred. The Company has elected to combine lease and non-lease components, such as fixed maintenance costs, as a single lease component in calculating ROU assets and lease liabilities for all classes of leased assets.

Leases

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between March 2026 and March 2036. The following table summarizes the lease expense by category in the Consolidated Statements of Income:

(in thousands)	For the Year Ended December 31,
	2025		2024
Cost of sales	$	11,082	$	7,603
Research, development and engineering expenses	318		326
Selling, general and administrative expenses	279		266
Interest expense	100		8
Total	$	11,779	$	8,203

The following table summarizes the components of lease expense and income:

(in thousands)	For the Year Ended December 31,
	2025		2024
Operating lease cost	$	8,789	$	6,126
Finance lease cost:
Amortization of ROU asset	367		66
Interest expense	100		8
Short-term lease cost	744		861
Variable lease cost	1,779		1,142
Sublease income	—		—
Total lease cost, net	$	11,779	$	8,203

The following table presents supplemental cash flow information related to leases:

(in thousands)	For the Year Ended December 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	7,887	$	6,063
Operating cash flows paid for interest portion of finance leases	100		8
Financing cash flows paid for principal portion of finance leases	339		76
Right-of-use assets obtained in exchange for lease obligations
Operating leases	35,709		1,139
Finance leases	1,840		—

As of December 31, 2025 and 2024, the weighted-average remaining lease term was 8.0 years and 5.3 years for operating leases and 4.2 years and 1.2 years for finance leases, respectively. As of December 31, 2025 and 2024, the weighted-average discount rate was 7.1% and 7.5% for operating leases, respectively, and 6.9% and 6.5% for finance leases, respectively.

The following table presents supplemental balance sheet information related to leases:

(in thousands)	As of December 31,
	2025		2024
Operating lease ROU assets, net	$	52,911	$	23,275
Operating lease liabilities, current	6,346		4,503
Operating lease liabilities, non-current	49,397		20,663
Total operating lease liabilities	$	55,743	$	25,166
Finance lease ROU assets, net 1	$	1,533	$	78
Finance lease liabilities, current	355		78
Finance lease liabilities, non-current	1,224		16
Total finance lease liabilities	$	1,579	$	94

1.    Included in Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of December 31, 2025:

(in thousands)
Year Ending December 31,	Operating Leases		Finance Leases
2026	$	10,104	$	451
2027	10,331		434
2028	9,489		434
2029	8,652		415
2030	7,262		75
Thereafter	28,104		—
Total undiscounted lease payments	73,942		1,809
Less: imputed interest	18,199		230
Total lease liabilities	$	55,743	$	1,579