Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Leases

We recognize right-of-use assets (ROU assets) and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2036. The majority of our leases are operating leases. NACCO does not recognize leases with a term of 12 months or less on the balance sheet. Instead, we recognize the related lease expense on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component. Our lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments.

Leased assets and liabilities include the following at December 31:

Description	Location	2025		2024
Assets
Operating	Operating lease right-of-use assets	$	9,595	$	9,661
Finance	Property, plant and equipment, net (a)	52		79
Liabilities
Current
Operating	Other current liabilities	$	2,470	$	1,973
Finance	Current maturities of long-term debt	29		27
Non-current
Operating	Operating lease liabilities	$	7,950	$	9,042
Finance	Long-term debt	28		57

(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million as of December 31, 2025 and December 31, 2024.

The components of lease expense for the years ended December 31 are as follows:

Description	Location	2025		2024
Lease expense
Operating lease cost	Selling, general and administrative expenses	$	2,357	$	2,191
Finance lease cost:
Amortization of leased assets	Cost of sales	28		28
Interest on lease liabilities	Interest expense	6		8
Variable lease expense	Selling, general and administrative expenses	1,989		955
Short-term lease expense	Selling, general and administrative expenses	4,136		5,808
Total lease expense		$	8,516	$	8,990

Future minimum finance and operating lease payments were as follows at December 31, 2025:

	Finance Leases		Operating Leases		Total
2026	$	33	$	3,202	$	3,235
2027	21		2,529		2,550
2028	9		1,821		1,830
2029	—		1,536		1,536
2030	—		1,383		1,383
Subsequent to 2030	—		2,557		2,557
Total minimum lease payments	63		13,028		$	13,091
Amounts representing interest	6		2,608
Present value of net minimum lease payments	$	57	$	10,420

As most of our leases do not provide an implicit rate, we determine the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We consider our credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 for the years ended December 31 are as follows:

	2025		2024
Weighted average remaining lease term (years)
Operating	5.42		6.70
Finance	2.10		3.01
Weighted average discount rate
Operating	8.19	%	8.26	%
Finance	8.99	%	8.80	%

The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31:

	2025		2024
Operating cash flows from operating leases	$	2,887	$	2,509
Operating cash flows from finance leases	6		8
Financing cash flows from finance leases	27		25

Leases

Leases

We recognize right-of-use assets (ROU assets) and lease liabilities for operating leases of real estate, mining and other equipment that expire at various dates through 2036. The majority of our leases are operating leases. NACCO does not recognize leases with a term of 12 months or less on the balance sheet. Instead, we recognize the related lease expense on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component. Our lease agreements do not contain lease payments that depend on an index or a rate, as such, minimum lease payments do not include variable lease payments.

Leased assets and liabilities include the following at December 31:

Description	Location	2025		2024
Assets
Operating	Operating lease right-of-use assets	$	9,595	$	9,661
Finance	Property, plant and equipment, net (a)	52		79
Liabilities
Current
Operating	Other current liabilities	$	2,470	$	1,973
Finance	Current maturities of long-term debt	29		27
Non-current
Operating	Operating lease liabilities	$	7,950	$	9,042
Finance	Long-term debt	28		57

(a) Finance leased assets are recorded net of accumulated amortization of less than $0.1 million as of December 31, 2025 and December 31, 2024.

The components of lease expense for the years ended December 31 are as follows:

Description	Location	2025		2024
Lease expense
Operating lease cost	Selling, general and administrative expenses	$	2,357	$	2,191
Finance lease cost:
Amortization of leased assets	Cost of sales	28		28
Interest on lease liabilities	Interest expense	6		8
Variable lease expense	Selling, general and administrative expenses	1,989		955
Short-term lease expense	Selling, general and administrative expenses	4,136		5,808
Total lease expense		$	8,516	$	8,990

Future minimum finance and operating lease payments were as follows at December 31, 2025:

	Finance Leases		Operating Leases		Total
2026	$	33	$	3,202	$	3,235
2027	21		2,529		2,550
2028	9		1,821		1,830
2029	—		1,536		1,536
2030	—		1,383		1,383
Subsequent to 2030	—		2,557		2,557
Total minimum lease payments	63		13,028		$	13,091
Amounts representing interest	6		2,608
Present value of net minimum lease payments	$	57	$	10,420

As most of our leases do not provide an implicit rate, we determine the incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We consider our credit rating and the current economic environment in determining this collateralized rate. The assumptions used in accounting for ASC 842 for the years ended December 31 are as follows:

	2025		2024
Weighted average remaining lease term (years)
Operating	5.42		6.70
Finance	2.10		3.01
Weighted average discount rate
Operating	8.19	%	8.26	%
Finance	8.99	%	8.80	%

The following table details cash paid for amounts included in the measurement of lease liabilities for the years ended December 31:

	2025		2024
Operating cash flows from operating leases	$	2,887	$	2,509
Operating cash flows from finance leases	6		8
Financing cash flows from finance leases	27		25