Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Note 4 — Leases

Cleco maintains operating leases in its ordinary course of business activities.

Operating Leases

Cleco Power leases utility systems from two municipalities and one non-municipal public body. One municipal lease has a term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions.

During 2024, Cleco Power renewed its lease for 111 railcars for coal transportation which expires on March 31,

2027. Cleco Power reassesses its need for the railcars upon the expiration of each term. Cleco Power pays a monthly rental fee per car. The railcar lease does not contain contingent rent payments.

Cleco Power had leases for three towboats in order to transport petroleum coke to Madison Unit 3. During 2024, Cleco Power modified its agreement to reduce the number of towboats to two with an expiration date of April 2025 due to a change in fuel strategy. As a result of a cancellation notice and two amendments, Cleco Power reclassified its barge finance lease to an operating lease for 20 barges through April 15, 2025. For more information on the barge lease see “— Finance Lease.”

Cleco’s and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals.

The following is a schedule by year of future minimum lease payments due under Cleco’s and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of December 31, 2025:

(THOUSANDS)
Years ending Dec. 31,
2026	$	2,763
2027	2,482
2028	2,275
2029	2,205
2030	2,205
Thereafter	3,165
Total minimum lease payments	15,095
Less: amount representing interest	1,903
Present value of net minimum operating lease payments	$	13,192
Current liabilities	$	2,404
Non-current liabilities	$	10,788

Finance Lease

In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of barges used to transport solid fuel to Madison Unit 3 through March 2033. Upon commencement, Cleco Power loaned Savage Inland Marine $16.8 million to purchase the barges and a receivable was established. At December 31, 2024, this receivable was satisfied as part of the termination of the finance lease discussed below. The agreement met the accounting definition of a finance lease at inception.

The barge lease rate contained both a fixed and variable component, of which the latter was adjusted periodically for associated executory costs. If the barges were idle, the lessor was required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment.

In October 2024, pursuant to a provision for early termination in accordance with the terms of the agreement, Cleco Power notified Savage Inland Marine that Cleco Power would be terminating the lease agreement effective April 15, 2025. This resulted in the lease being classified as an operating lease. Consequently, the net finance lease asset and finance lease obligation were derecognized and a $2.2 million gain was recorded in Accumulated deferred fuel on Cleco’s and Cleco Power’s Consolidated Balance Sheets at December 31, 2024. In addition, an operating lease obligation of $0.4 million was recognized.

For the years ended December 31, 2024, and 2023, Cleco Power paid $2.0 million, and $2.2 million, respectively, in lease payments. For the years ended December 31, 2024, and 2023, Cleco Power received $0.7 million, and $2.6 million, respectively, of revenue from subleases.

Additional Lessee Disclosures

Cleco’s and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the years ended December 31, 2025, and 2024:

	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2025		2024
Finance lease cost
Amortization of ROU assets	$	—	$	1,027
Interest on lease liabilities	—		1,175
Operating lease cost	2,733		3,772
Variable lease cost	877		737
Total lease cost	$	3,610	$	6,711

The following tables present additional information related to Cleco’s and Cleco Power’s leases as of and for the years ended December 31, 2025, and 2024:

		AT DEC. 31,
(THOUSANDS)	BALANCE SHEET LINE ITEM	2025		2024
Supplemental balance sheet information
ROU assets
Operating	Operating lease right of use assets	$	12,858	$	14,905
Total ROU assets		$	12,858	$	14,905
Current lease liabilities
Operating	Other current liabilities	$	2,404	$	2,754
Non-current lease liabilities
Operating	Operating lease liabilities	10,788		12,788
Total lease liabilities		$	13,192	$	15,542

	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2025		2024
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,711	$	3,663
Operating cash flows from finance leases	$	—	$	1,175
Financing cash flows from finance leases	$	—	$	844

	AT DEC. 31,
(THOUSANDS)	2025		2024
Other supplemental information
Operating leases
Weighted-average remaining lease term	13.2 years		11.7 years
Weighted-average discount rate	4.01	%	4.16	%

Leases

Note 4 — Leases

Cleco maintains operating leases in its ordinary course of business activities.

Operating Leases

Cleco Power leases utility systems from two municipalities and one non-municipal public body. One municipal lease has a term of 10 years and expires on August 11, 2031. The second municipal lease has a term of 10 years and expires on May 13, 2028. The non-municipal lease has a term of 27 years and expires on July 31, 2039. Each utility system lease contains fixed and variable components, as well as provisions for extensions.

During 2024, Cleco Power renewed its lease for 111 railcars for coal transportation which expires on March 31,

2027. Cleco Power reassesses its need for the railcars upon the expiration of each term. Cleco Power pays a monthly rental fee per car. The railcar lease does not contain contingent rent payments.

Cleco Power had leases for three towboats in order to transport petroleum coke to Madison Unit 3. During 2024, Cleco Power modified its agreement to reduce the number of towboats to two with an expiration date of April 2025 due to a change in fuel strategy. As a result of a cancellation notice and two amendments, Cleco Power reclassified its barge finance lease to an operating lease for 20 barges through April 15, 2025. For more information on the barge lease see “— Finance Lease.”

Cleco’s and Cleco Power’s remaining operating leases provide for office and operating facilities, office equipment, and tower rentals.

The following is a schedule by year of future minimum lease payments due under Cleco’s and Cleco Power’s long-term operating leases together with the present value of the net minimum lease payments as of December 31, 2025:

(THOUSANDS)
Years ending Dec. 31,
2026	$	2,763
2027	2,482
2028	2,275
2029	2,205
2030	2,205
Thereafter	3,165
Total minimum lease payments	15,095
Less: amount representing interest	1,903
Present value of net minimum operating lease payments	$	13,192
Current liabilities	$	2,404
Non-current liabilities	$	10,788

Finance Lease

In April 2018, Cleco Power entered into an agreement with Savage Inland Marine for continued use of barges used to transport solid fuel to Madison Unit 3 through March 2033. Upon commencement, Cleco Power loaned Savage Inland Marine $16.8 million to purchase the barges and a receivable was established. At December 31, 2024, this receivable was satisfied as part of the termination of the finance lease discussed below. The agreement met the accounting definition of a finance lease at inception.

The barge lease rate contained both a fixed and variable component, of which the latter was adjusted periodically for associated executory costs. If the barges were idle, the lessor was required to attempt to sublease the barges to third parties with the revenue reducing Cleco Power’s lease payment.

In October 2024, pursuant to a provision for early termination in accordance with the terms of the agreement, Cleco Power notified Savage Inland Marine that Cleco Power would be terminating the lease agreement effective April 15, 2025. This resulted in the lease being classified as an operating lease. Consequently, the net finance lease asset and finance lease obligation were derecognized and a $2.2 million gain was recorded in Accumulated deferred fuel on Cleco’s and Cleco Power’s Consolidated Balance Sheets at December 31, 2024. In addition, an operating lease obligation of $0.4 million was recognized.

For the years ended December 31, 2024, and 2023, Cleco Power paid $2.0 million, and $2.2 million, respectively, in lease payments. For the years ended December 31, 2024, and 2023, Cleco Power received $0.7 million, and $2.6 million, respectively, of revenue from subleases.

Additional Lessee Disclosures

Cleco’s and Cleco Power’s total lease cost includes amounts on the income statement, as well as amounts capitalized as part of property, plant, or equipment or inventory. The following tables reflect total lease costs for Cleco and Cleco Power for the years ended December 31, 2025, and 2024:

	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2025		2024
Finance lease cost
Amortization of ROU assets	$	—	$	1,027
Interest on lease liabilities	—		1,175
Operating lease cost	2,733		3,772
Variable lease cost	877		737
Total lease cost	$	3,610	$	6,711

The following tables present additional information related to Cleco’s and Cleco Power’s leases as of and for the years ended December 31, 2025, and 2024:

		AT DEC. 31,
(THOUSANDS)	BALANCE SHEET LINE ITEM	2025		2024
Supplemental balance sheet information
ROU assets
Operating	Operating lease right of use assets	$	12,858	$	14,905
Total ROU assets		$	12,858	$	14,905
Current lease liabilities
Operating	Other current liabilities	$	2,404	$	2,754
Non-current lease liabilities
Operating	Operating lease liabilities	10,788		12,788
Total lease liabilities		$	13,192	$	15,542

	FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)	2025		2024
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,711	$	3,663
Operating cash flows from finance leases	$	—	$	1,175
Financing cash flows from finance leases	$	—	$	844

	AT DEC. 31,
(THOUSANDS)	2025		2024
Other supplemental information
Operating leases
Weighted-average remaining lease term	13.2 years		11.7 years
Weighted-average discount rate	4.01	%	4.16	%