Arcosa (ACA) as of March 31, 2026 presents a deeply negative liquidation posture consistent with a capital-intensive infrastructure manufacturer that has accumulated significant goodwill and intangibles through acquisition-led growth. Total assets of $5.0B carry a heavily intangible-weighted composition: goodwill of $1.34B and net intangibles of $304.5M receive zero recovery under the liquidation lens, collectively destroying $1.65B of stated book value. Net PP&E of $2.10B (gross $3.10B, accumulated D&D&A of $994.9M) receives a 50-70% haircut, yielding estimated recoverable value of $1.05-1.47B versus book. Cash of $153.2M recovers at par; AR of $413.9M recovers at 90-95% ($372-393M); inventory of $350.0M recovers at 60% ($210M). Assets held for sale (barge business, $164.1M current) closed April 1, 2026 at $450M—a transaction that post-dates the balance sheet but is material: proceeds exceeded carrying value by approximately $286M and the company disclosed intent to use after-tax proceeds to repay debt, including an $83M prepayment of the 2025 Refinancing Term Loan in April 2026. Total liabilities of $2.35B are taken at face value. Funded debt (DebtAndCapitalLeaseObligations) is $1.52B, comprising the 2025 Refinancing Term Loan (~$535M remaining at Q1-end before April prepayment), 4.375% Senior Notes due 2029 ($400M), and 6.875% Senior Notes due 2032 ($600M). Long-term debt maturities are heavily back-loaded: $400M due 2029, $600M due 2032, and the balance of the term loan due 2031, with only ~$5.2M due in the remainder of 2026. Operating lease obligations add $58.6M present value (undiscounted $91.8M, with $52.9M beyond 2030). Other current and noncurrent liabilities total $347.5M combined. The MFFAIS CLV of -$4.97B and LLV of -$4.55B reflect the scale of this negative recovery posture. The barge divestiture (completed post-period) modestly improves the forward picture through debt reduction and removes $83.1M of discontinued-operation liabilities from the stack, but does not alter the fundamental conclusion: goodwill ($1.34B) and intangibles ($304.5M) together exceed total net recoverable value from tangible assets under stress liquidation assumptions, leaving equity with zero liquidation recovery. The prior filing (10-K, December 31, 2025) showed a comparable liability structure; the primary change in this period is the reclassification of barge assets/liabilities to held-for-sale, a $60M acquisition payment, and incremental CapEx of $43.5M. Surety bonds of $222.1M (up from $198.0M at year-end 2025) represent contingent off-balance-sheet obligations that would not extinguish in liquidation. The filing does not separately XBRL-tag the specific surety bond increase, but the $24.1M rise quarter-over-quarter is noted in the commitments footnote and referenced here.
▼ Community Notes