Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025. During the third quarter of 2024, the Company and Store closed on a transaction pursuant to which Store sold to a third party approximately 20,200 square feet of warehouse space located at Ascent’s facility in Cleveland, Tennessee. As a result of the sale, the Company and Store entered into a Fourth Amended and Restated Master Lease Agreement (the “Fourth Master Lease”) to reduce the Company's rent at the Cleveland facility pursuant to the terms and conditions of the Third Amended and Restated Master Lease Agreement between the parties dated September 10, 2020. The Fourth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fourth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized an increase in the right-of-use asset and operating lease liability related to the Fourth Master Lease of $1.3 million and recognized a gain on the modification of $0.1 million, which is reported within operating expenses on the consolidated statements of income (loss).
On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the consolidated statements of income (loss).
On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
In the fourth quarter of 2025, the Company and Store completed a lease assignment of the former Munhall facility to a unaffiliated third party. As a result, on November 14, 2025, Ascent and Store entered into a Seventh Amended and Restated Master Lease Agreement (the "Seventh Master Lease") to remove the former Munhall facility and reduce the Company's rent pursuant to the Sixth Amended and Restated Master Lease Agreement between the parties dated June 30, 2025. The Seventh Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Seventh Master Lease of $5.5 million and $7.2 million, respectively, resulting in a gain on modification of $1.7 million in the fourth quarter of 2025.
As of December 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $11.7 million, or 88% of the total lease liabilities on the consolidated balance sheet.
During the year ended December 31, 2025, the Company entered into new finance lease agreements resulting in an additional $0.3 million of finance lease assets and lease liabilities. The Company did not enter into any new operating lease agreements for the year ended December 31, 2025.
Balance Sheet Presentation
Operating and finance lease amounts from continuing operations are as follows (in thousands):
Year Ended December 31,
Classification Financial Statement Line Item 2025 2024
Operating lease assets Right-of-use assets, operating leases $ 9,368  $ 28,140 
Finance lease assets Property, plant and equipment, net 1,060  1,227 
Current liabilities Current portion of lease liabilities, operating leases 712  1,495 
Current liabilities Current portion of lease liabilities, finance leases 331  293 
Non-current liabilities Non-current portion of lease liabilities, operating leases 11,496  29,972 
Non-current liabilities Non-current portion of lease liabilities, finance leases $ 808  $ 1,015 

Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Year Ended December 31,
(in thousands) 2025 2024
Operating lease cost1
$ 2,423  $ 3,924 
Finance lease cost:
Reduction in carrying amount of right-of-use assets 226  311 
Interest on finance lease liabilities 53  85 
Sublease income (552) (419)
Total lease cost $ 2,150  $ 3,901 
1Includes short term leases, which are immaterial

Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the consolidated statements of income (loss).

Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of December 31, 2025 are as follows:
(in thousands) Operating Finance
2026 $ 1,557  $ 387 
2027 1,589  387 
2028 1,622  387 
2029 1,655  86 
2030 1,589  65 
Thereafter 9,566  — 
Total undiscounted minimum future lease payments 17,578  1,312 
Imputed Interest (5,370) (174)
Total lease liabilities $ 12,208  $ 1,138 
Lease Term and Discount Rate
Year Ended December 31,
2025 2024
Weighted-average discount rate
Operating leases 7.18  % 7.15  %
Finance leases 5.94  % 5.75  %
Weighted-average remaining lease term
Operating leases 10.50 years 11.59 years
Finance leases 3.23 years 4.03 years
Subleases
During the second quarter of 2024, the Company entered into a sublease agreement with a third party to sublease the former Specialty Pipe and Tube, Inc. facilities in Mineral Ridge, Ohio and Houston, Texas. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for taxes and all operating expenses related to the subleased space

The Company also currently subleases the former Palmer facility and records cash receipts related to the subleases in other expense (income) on the consolidated statements of income (loss). Sublease payments offset the amounts the Company incurs in the Master Lease related to sublet facilities.

Future expected cash receipts from the Company's subleases as of December 31, 2025 are as follows:
(in thousands) Sublease Receipts
2026 $ 594 
2027 606 
2028 618 
2029 631 
2030 643 
Thereafter 3,954 
Total sublease receipts $ 7,046 
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025. During the third quarter of 2024, the Company and Store closed on a transaction pursuant to which Store sold to a third party approximately 20,200 square feet of warehouse space located at Ascent’s facility in Cleveland, Tennessee. As a result of the sale, the Company and Store entered into a Fourth Amended and Restated Master Lease Agreement (the “Fourth Master Lease”) to reduce the Company's rent at the Cleveland facility pursuant to the terms and conditions of the Third Amended and Restated Master Lease Agreement between the parties dated September 10, 2020. The Fourth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fourth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized an increase in the right-of-use asset and operating lease liability related to the Fourth Master Lease of $1.3 million and recognized a gain on the modification of $0.1 million, which is reported within operating expenses on the consolidated statements of income (loss).
On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the consolidated statements of income (loss).
On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
In the fourth quarter of 2025, the Company and Store completed a lease assignment of the former Munhall facility to a unaffiliated third party. As a result, on November 14, 2025, Ascent and Store entered into a Seventh Amended and Restated Master Lease Agreement (the "Seventh Master Lease") to remove the former Munhall facility and reduce the Company's rent pursuant to the Sixth Amended and Restated Master Lease Agreement between the parties dated June 30, 2025. The Seventh Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Seventh Master Lease of $5.5 million and $7.2 million, respectively, resulting in a gain on modification of $1.7 million in the fourth quarter of 2025.
As of December 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $11.7 million, or 88% of the total lease liabilities on the consolidated balance sheet.
During the year ended December 31, 2025, the Company entered into new finance lease agreements resulting in an additional $0.3 million of finance lease assets and lease liabilities. The Company did not enter into any new operating lease agreements for the year ended December 31, 2025.
Balance Sheet Presentation
Operating and finance lease amounts from continuing operations are as follows (in thousands):
Year Ended December 31,
Classification Financial Statement Line Item 2025 2024
Operating lease assets Right-of-use assets, operating leases $ 9,368  $ 28,140 
Finance lease assets Property, plant and equipment, net 1,060  1,227 
Current liabilities Current portion of lease liabilities, operating leases 712  1,495 
Current liabilities Current portion of lease liabilities, finance leases 331  293 
Non-current liabilities Non-current portion of lease liabilities, operating leases 11,496  29,972 
Non-current liabilities Non-current portion of lease liabilities, finance leases $ 808  $ 1,015 

Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Year Ended December 31,
(in thousands) 2025 2024
Operating lease cost1
$ 2,423  $ 3,924 
Finance lease cost:
Reduction in carrying amount of right-of-use assets 226  311 
Interest on finance lease liabilities 53  85 
Sublease income (552) (419)
Total lease cost $ 2,150  $ 3,901 
1Includes short term leases, which are immaterial

Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the consolidated statements of income (loss).

Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of December 31, 2025 are as follows:
(in thousands) Operating Finance
2026 $ 1,557  $ 387 
2027 1,589  387 
2028 1,622  387 
2029 1,655  86 
2030 1,589  65 
Thereafter 9,566  — 
Total undiscounted minimum future lease payments 17,578  1,312 
Imputed Interest (5,370) (174)
Total lease liabilities $ 12,208  $ 1,138 
Lease Term and Discount Rate
Year Ended December 31,
2025 2024
Weighted-average discount rate
Operating leases 7.18  % 7.15  %
Finance leases 5.94  % 5.75  %
Weighted-average remaining lease term
Operating leases 10.50 years 11.59 years
Finance leases 3.23 years 4.03 years
Subleases
During the second quarter of 2024, the Company entered into a sublease agreement with a third party to sublease the former Specialty Pipe and Tube, Inc. facilities in Mineral Ridge, Ohio and Houston, Texas. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for taxes and all operating expenses related to the subleased space

The Company also currently subleases the former Palmer facility and records cash receipts related to the subleases in other expense (income) on the consolidated statements of income (loss). Sublease payments offset the amounts the Company incurs in the Master Lease related to sublet facilities.

Future expected cash receipts from the Company's subleases as of December 31, 2025 are as follows:
(in thousands) Sublease Receipts
2026 $ 594 
2027 606 
2028 618 
2029 631 
2030 643 
Thereafter 3,954 
Total sublease receipts $ 7,046 
Leases Leases
The Company's portfolio of leases contains both finance and operating leases that relate to real estate and manufacturing equipment. Substantially all of the value of the Company's leased plants and facilities relate to the Master Lease with Store Master Funding XII, LLC (“Store”), an affiliate of Store Capital Corporation ("Store Capital"), that was entered into in 2016 and since amended, with the latest amendment occurring in 2025. During the third quarter of 2024, the Company and Store closed on a transaction pursuant to which Store sold to a third party approximately 20,200 square feet of warehouse space located at Ascent’s facility in Cleveland, Tennessee. As a result of the sale, the Company and Store entered into a Fourth Amended and Restated Master Lease Agreement (the “Fourth Master Lease”) to reduce the Company's rent at the Cleveland facility pursuant to the terms and conditions of the Third Amended and Restated Master Lease Agreement between the parties dated September 10, 2020. The Fourth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fourth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized an increase in the right-of-use asset and operating lease liability related to the Fourth Master Lease of $1.3 million and recognized a gain on the modification of $0.1 million, which is reported within operating expenses on the consolidated statements of income (loss).
On April 4, 2025, Ascent and Store entered into a Fifth Amended and Restated Master Lease Agreement (the "Fifth Master Lease") to remove the BRISMET facility and reduce the Company's rent pursuant to the Fourth Amended and Restated Master Lease Agreement between the parties dated August 28, 2024. The Fifth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Fifth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $6.5 million and $7.0 million, respectively, and recognized a gain on the modification of $0.5 million, which is reported within operating expenses on the consolidated statements of income (loss).
On June 30, 2025, Ascent and Store entered into a Sixth Amended and Restated Master Lease Agreement (the "Sixth Master Lease") to remove the ASTI facility and reduce the Company's rent pursuant to the Fifth Amended and Restated Master Lease Agreement between the parties dated April 4, 2025. The Sixth Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Fifth Master Lease of $4.0 million. See Note 2 for additional information on the Company's divestitures of BRISMET and ASTI.
In the fourth quarter of 2025, the Company and Store completed a lease assignment of the former Munhall facility to a unaffiliated third party. As a result, on November 14, 2025, Ascent and Store entered into a Seventh Amended and Restated Master Lease Agreement (the "Seventh Master Lease") to remove the former Munhall facility and reduce the Company's rent pursuant to the Sixth Amended and Restated Master Lease Agreement between the parties dated June 30, 2025. The Seventh Master Lease was determined to be a lease modification that qualified for a remeasurement of the existing lease and not a separate contract. Upon modification of the Sixth Master Lease, the right-of-use asset and operating lease liability were remeasured using an incremental borrowing rate determined on the date of modification. As such, the Company recognized a decrease in the right-of-use asset and operating lease liability related to the Seventh Master Lease of $5.5 million and $7.2 million, respectively, resulting in a gain on modification of $1.7 million in the fourth quarter of 2025.
As of December 31, 2025, operating lease liabilities related to the master lease agreement with Store Capital totaled $11.7 million, or 88% of the total lease liabilities on the consolidated balance sheet.
During the year ended December 31, 2025, the Company entered into new finance lease agreements resulting in an additional $0.3 million of finance lease assets and lease liabilities. The Company did not enter into any new operating lease agreements for the year ended December 31, 2025.
Balance Sheet Presentation
Operating and finance lease amounts from continuing operations are as follows (in thousands):
Year Ended December 31,
Classification Financial Statement Line Item 2025 2024
Operating lease assets Right-of-use assets, operating leases $ 9,368  $ 28,140 
Finance lease assets Property, plant and equipment, net 1,060  1,227 
Current liabilities Current portion of lease liabilities, operating leases 712  1,495 
Current liabilities Current portion of lease liabilities, finance leases 331  293 
Non-current liabilities Non-current portion of lease liabilities, operating leases 11,496  29,972 
Non-current liabilities Non-current portion of lease liabilities, finance leases $ 808  $ 1,015 

Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Year Ended December 31,
(in thousands) 2025 2024
Operating lease cost1
$ 2,423  $ 3,924 
Finance lease cost:
Reduction in carrying amount of right-of-use assets 226  311 
Interest on finance lease liabilities 53  85 
Sublease income (552) (419)
Total lease cost $ 2,150  $ 3,901 
1Includes short term leases, which are immaterial

Reduction in carrying amounts of right-of-use assets held under finance leases is included in depreciation expense. Minimum rental payments under operating leases are recognized on a straight-line method over the term of the lease including any periods of free rent and are included in selling, general, and administrative expense on the consolidated statements of income (loss).

Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases as of December 31, 2025 are as follows:
(in thousands) Operating Finance
2026 $ 1,557  $ 387 
2027 1,589  387 
2028 1,622  387 
2029 1,655  86 
2030 1,589  65 
Thereafter 9,566  — 
Total undiscounted minimum future lease payments 17,578  1,312 
Imputed Interest (5,370) (174)
Total lease liabilities $ 12,208  $ 1,138 
Lease Term and Discount Rate
Year Ended December 31,
2025 2024
Weighted-average discount rate
Operating leases 7.18  % 7.15  %
Finance leases 5.94  % 5.75  %
Weighted-average remaining lease term
Operating leases 10.50 years 11.59 years
Finance leases 3.23 years 4.03 years
Subleases
During the second quarter of 2024, the Company entered into a sublease agreement with a third party to sublease the former Specialty Pipe and Tube, Inc. facilities in Mineral Ridge, Ohio and Houston, Texas. The sublease agreement continues through the remaining term of the Master Lease Agreement and will expire on September 30, 2036, unless terminated in accordance with the sublease agreement. The sublease provides for an annual base rent of approximately $0.1 million in the first year, which increases on an annual basis by 2.0%. The sublessee is responsible for taxes and all operating expenses related to the subleased space

The Company also currently subleases the former Palmer facility and records cash receipts related to the subleases in other expense (income) on the consolidated statements of income (loss). Sublease payments offset the amounts the Company incurs in the Master Lease related to sublet facilities.

Future expected cash receipts from the Company's subleases as of December 31, 2025 are as follows:
(in thousands) Sublease Receipts
2026 $ 594 
2027 606 
2028 618 
2029 631 
2030 643 
Thereafter 3,954 
Total sublease receipts $ 7,046