LEASES

12 Months Ended

Dec. 31, 2025

We lease certain buildings and equipment under both operating and finance leases. Certain lease agreements provide for renewal options, fair value purchase options, and payment of property taxes, maintenance, and insurance by the Company. Under ASC 842, Leases, the Company made an accounting policy election, by class of underlying asset, not to separate non-lease components such as those previously stated from lease components and instead will treat the lease agreement as a single lease component for all asset classes. Operating right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent Titan's obligations to make lease payments arising from the lease. The majority of Titan's leases are operating leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of Titan's leases do not provide an implicit interest rate, the Company used its incremental borrowing rate (7.27%), based on the information available at the lease commencement date, in determining the present value of lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and selling, general and administrative expenses on the consolidated statement of operations. Amortization expense associated with finance leases is included in cost of sales and selling, general and administrative expenses, and interest expense associated with finance leases is included in interest expense in the consolidated statement of operations. For the years ended December 31, 2025, 2024, and 2023, operating lease expense was $27.2 million, $24.5 million, and $5.6 million, respectively, and finance lease amortization expense was $2.6 million, $2.5 million, and $3.0 million, respectively.

Supplemental balance sheet information related to leases was as follows as of the dates set forth below (amounts in thousands):


	Balance Sheet Classification	December 31, 2025		December 31, 2024
Operating lease ROU assets	Operating lease assets	$	119,225	$	117,027

Operating lease current liabilities	Operating leases current liabilities	$	13,830	$	11,999
Operating lease long-term liabilities	Operating leases long-term liabilities	111,054		106,020
Total operating lease liabilities		$	124,884	$	118,019

Finance lease, gross	Property, plant & equipment, net	$	8,024	$	6,801
Finance lease accumulated depreciation	Property, plant & equipment, net	(4,611)		(4,442)
Finance lease, net		$	3,413	$	2,359

Finance lease current liabilities	Other current liabilities	$	1,511	$	986
Finance lease long-term liabilities	Other long-term liabilities	2,038		1,483
Total finance lease liabilities		$	3,549	$	2,469

At December 31, 2025, maturities of lease liabilities were as follows (amounts in thousands):


	Operating Leases			Finance Leases
2026	$	22,530		$	1,694
2027	19,646			1,266
2028	17,491			659
2029	15,732			174
2030	14,569			77
Thereafter	106,949			10
Total future minimum lease payments	$	196,917		$	3,880
Less imputed interest	72,033			331
	$	124,884		$	3,549

Weighted average remaining lease term (in years)	12.28			2.64
Weighted average discount rate	7.27		%	7.26		%

Supplemental cash flow information related to leases for the year ended December 31, 2025 were as follows: operating cash flows for operating leases were $21.7 million and operating cash flows for finance leases were $0.2 million.

Supplemental cash flow information related to leases for the year ended December 31, 2024 were as follows: operating cash flows for operating leases were $39.8 million and operating cash flows for finance leases were $0.4 million.

LEASES

Supplemental balance sheet information related to leases was as follows as of the dates set forth below (amounts in thousands):


	Balance Sheet Classification	December 31, 2025		December 31, 2024
Operating lease ROU assets	Operating lease assets	$	119,225	$	117,027

Operating lease current liabilities	Operating leases current liabilities	$	13,830	$	11,999
Operating lease long-term liabilities	Operating leases long-term liabilities	111,054		106,020
Total operating lease liabilities		$	124,884	$	118,019

Finance lease, gross	Property, plant & equipment, net	$	8,024	$	6,801
Finance lease accumulated depreciation	Property, plant & equipment, net	(4,611)		(4,442)
Finance lease, net		$	3,413	$	2,359

Finance lease current liabilities	Other current liabilities	$	1,511	$	986
Finance lease long-term liabilities	Other long-term liabilities	2,038		1,483
Total finance lease liabilities		$	3,549	$	2,469

At December 31, 2025, maturities of lease liabilities were as follows (amounts in thousands):


	Operating Leases			Finance Leases
2026	$	22,530		$	1,694
2027	19,646			1,266
2028	17,491			659
2029	15,732			174
2030	14,569			77
Thereafter	106,949			10
Total future minimum lease payments	$	196,917		$	3,880
Less imputed interest	72,033			331
	$	124,884		$	3,549

Weighted average remaining lease term (in years)	12.28			2.64
Weighted average discount rate	7.27		%	7.26		%