Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.1
Leases
 3 Months Ended
Mar. 31, 2026
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.
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 unaudited 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 March 31, 2026, operating lease liabilities related to the master lease agreement with Store Capital totaled $11.6 million, or 89% of the total lease liabilities on the consolidated balance sheet.
During the three months ended March 31, 2026, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheets are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2026 December 31, 2025
Long-term Assets Right-of-use assets, operating leases $ 9,221  $ 9,368 
Long-term Assets Property, plant and equipment 978  1,060 
Current liabilities Current portion of lease liabilities, operating leases 733  712 
Current liabilities Current portion of lease liabilities, finance leases 335  331 
Non-current liabilities Non-current portion of lease liabilities, operating leases 11,301  11,496 
Non-current liabilities Non-current portion of lease liabilities, finance leases 722  808 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended March 31,
(in thousands) 2026 2025
Operating lease cost1
$ 359  $ 957 
Finance lease cost:
Amortization of right-of-use assets 82  75 
Interest on finance lease liabilities 16  18 
Sublease income (211) (147)
Total lease cost $ 246  $ 903 
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 unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of March 31, 2026 are as follows:
(in thousands) Sublease Receipts
Remainder of 2026 $ 446 
2027 606 
2028 618 
2029 631 
2030 643 
Thereafter 3,954 
Total sublease receipts $ 6,898 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2026 are as follows:
(in thousands) Operating Finance
Remainder of 2026 $ 1,170  $ 291 
2027 1,589  387 
2028 1,622  387 
2029 1,655  86 
2030 1,589  64 
Thereafter 9,566  — 
Total undiscounted minimum future lease payments 17,191  1,215 
Imputed interest (5,157) (158)
Present value of lease liabilities $ 12,034  $ 1,057 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2026 December 31, 2025
Operating leases 10.26 years 10.50 years
Finance leases 2.98 years 3.23 years
Weighted-average discount rate
Operating leases 7.18  % 7.18  %
Finance leases 5.94  % 5.94  %
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.
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 unaudited 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 March 31, 2026, operating lease liabilities related to the master lease agreement with Store Capital totaled $11.6 million, or 89% of the total lease liabilities on the consolidated balance sheet.
During the three months ended March 31, 2026, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheets are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2026 December 31, 2025
Long-term Assets Right-of-use assets, operating leases $ 9,221  $ 9,368 
Long-term Assets Property, plant and equipment 978  1,060 
Current liabilities Current portion of lease liabilities, operating leases 733  712 
Current liabilities Current portion of lease liabilities, finance leases 335  331 
Non-current liabilities Non-current portion of lease liabilities, operating leases 11,301  11,496 
Non-current liabilities Non-current portion of lease liabilities, finance leases 722  808 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended March 31,
(in thousands) 2026 2025
Operating lease cost1
$ 359  $ 957 
Finance lease cost:
Amortization of right-of-use assets 82  75 
Interest on finance lease liabilities 16  18 
Sublease income (211) (147)
Total lease cost $ 246  $ 903 
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 unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of March 31, 2026 are as follows:
(in thousands) Sublease Receipts
Remainder of 2026 $ 446 
2027 606 
2028 618 
2029 631 
2030 643 
Thereafter 3,954 
Total sublease receipts $ 6,898 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2026 are as follows:
(in thousands) Operating Finance
Remainder of 2026 $ 1,170  $ 291 
2027 1,589  387 
2028 1,622  387 
2029 1,655  86 
2030 1,589  64 
Thereafter 9,566  — 
Total undiscounted minimum future lease payments 17,191  1,215 
Imputed interest (5,157) (158)
Present value of lease liabilities $ 12,034  $ 1,057 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2026 December 31, 2025
Operating leases 10.26 years 10.50 years
Finance leases 2.98 years 3.23 years
Weighted-average discount rate
Operating leases 7.18  % 7.18  %
Finance leases 5.94  % 5.94  %
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.
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 unaudited 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 March 31, 2026, operating lease liabilities related to the master lease agreement with Store Capital totaled $11.6 million, or 89% of the total lease liabilities on the consolidated balance sheet.
During the three months ended March 31, 2026, the Company did not enter into any new finance lease agreements.
Operating and finance lease amounts from continuing operations included in the unaudited condensed consolidated balance sheets are as follows (in thousands):
Classification Financial Statement Line Item March 31, 2026 December 31, 2025
Long-term Assets Right-of-use assets, operating leases $ 9,221  $ 9,368 
Long-term Assets Property, plant and equipment 978  1,060 
Current liabilities Current portion of lease liabilities, operating leases 733  712 
Current liabilities Current portion of lease liabilities, finance leases 335  331 
Non-current liabilities Non-current portion of lease liabilities, operating leases 11,301  11,496 
Non-current liabilities Non-current portion of lease liabilities, finance leases 722  808 
Total Lease Cost
Individual components of the total lease cost incurred by the Company are as follows:
Three Months Ended March 31,
(in thousands) 2026 2025
Operating lease cost1
$ 359  $ 957 
Finance lease cost:
Amortization of right-of-use assets 82  75 
Interest on finance lease liabilities 16  18 
Sublease income (211) (147)
Total lease cost $ 246  $ 903 
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 unaudited condensed consolidated statements of income (loss).
The Company currently subleases the former Palmer and Specialty Pipe & Tube ("SPT") facilities and records cash receipts related to the subleases in other expense (income) on the unaudited condensed consolidated statements of income (loss).
Future expected cash receipts from the Company's sublease as of March 31, 2026 are as follows:
(in thousands) Sublease Receipts
Remainder of 2026 $ 446 
2027 606 
2028 618 
2029 631 
2030 643 
Thereafter 3,954 
Total sublease receipts $ 6,898 
Maturity of Leases
The amounts of undiscounted future minimum lease payments under leases in continuing operations as of March 31, 2026 are as follows:
(in thousands) Operating Finance
Remainder of 2026 $ 1,170  $ 291 
2027 1,589  387 
2028 1,622  387 
2029 1,655  86 
2030 1,589  64 
Thereafter 9,566  — 
Total undiscounted minimum future lease payments 17,191  1,215 
Imputed interest (5,157) (158)
Present value of lease liabilities $ 12,034  $ 1,057 
Lease Term and Discount Rate
Weighted-average remaining lease term March 31, 2026 December 31, 2025
Operating leases 10.26 years 10.50 years
Finance leases 2.98 years 3.23 years
Weighted-average discount rate
Operating leases 7.18  % 7.18  %
Finance leases 5.94  % 5.94  %