Cummins Inc. (CMI) as of March 31, 2026 carries a deeply negative liquidation value under the defined lens, consistent with prior periods. Total assets of $34.4B are materially impaired under haircut assumptions. Cash and cash equivalents of $2.6B recover at 100%; marketable securities of $0.6B recover near par. Accounts receivable net of $6.5B recovers at 90-95%, yielding approximately $5.9-6.2B. Inventory of $6.1B (FIFO basis, with $217M LIFO reserve adjustment noted) recovers at 60%, or approximately $3.7B. PP&E gross of $13.0B less accumulated depreciation of $6.1B yields net book value of $6.9B, recovering at 50-70%, or $3.5-4.8B. Goodwill of $2.2B and other intangibles of $2.2B are zeroed. Equity method investments of $2.2B carry meaningful uncertainty in forced liquidation; recovery likely below book. Against these haircut assets, total liabilities of $21.1B are held at face value. The liability stack includes total debt of $7.7B (face value; fair value $7.4B), a warranty accrual of $2.8B (up from approximately $2.7B at December 31, 2025 per prior filing), deferred revenue of $2.6B, accrued liabilities of $2.0B, and operating lease liabilities of $0.6B combined current/noncurrent. Pension obligations show a net noncurrent asset of $1.0B against a noncurrent liability of $0.4B; plans were 112% funded at December 31, 2025, but investment losses in Q1 2026 (US: -0.3%, UK: -0.5%) modestly reduce funded status. The Accelera segment reported EBITDA of -$277M in Q1 2026 vs. -$86M in Q1 2025, a $191M deterioration. On March 31, 2026, the company sold its low-pressure fuel cell business and resolved customer claims for a net cash payment of $175M, recognizing a $199M net charge. This transaction removes a future commitment but crystallizes cash outflow on the balance sheet date. Emission compliance credits of $99M are disclosed in MD&A as potentially valueless depending on NHTSA rulemaking; these are not separately XBRL-tagged. The company's MFFAIS-computed cash liquidation value is -$8.1B and operating liquidation value is -$2.0B, consistent with this analysis. Working capital of $7.2B at March 31, 2026 compares to $7.3B at December 31, 2025, a modest decline. Total debt increased to $7.7B from $7.6B. The negative recovery posture is driven structurally by the intangible/goodwill stack ($4.4B zeroed), the face-value liability obligations including warranty and deferred revenue, and the pension and lease commitments that persist through liquidation.
▼ Community Notes