Eagle Materials Inc. (EXP) presents a negative liquidation recovery posture at December 31, 2025, consistent with its prior filings and the MFFAIS-reported CLV of -$1.60B / OLV of -$1.01B. The balance sheet carries $3.84B in total assets against $2.35B in total liabilities, yielding $1.49B in book equity. Under liquidation haircuts, however, recoverable asset value falls well short of face-value liabilities. Key drivers of the deficit: PP&E at $1.98B net book value recovers at roughly $990M-$1.39B at 50-70% haircut; goodwill and intangibles aggregate to $588M and receive zero recovery; inventory of $385M recovers at approximately $231M at 60%; and cash of $419M is the only full-recovery asset. Total haircutted asset pool is roughly $1.9B-$2.1B against $2.35B in liabilities at face value, producing a liquidation deficit in the range of $250M-$450M before considering additional wind-down costs, lease obligations ($37.6M face, 11.8-year average life), and performance bond contingencies ($48.5M). The most significant change from the prior filing (Q2 FY2026, period ended September 30, 2025) is a material increase in long-term debt. The company issued $750M in 5.000% Senior Unsecured Notes (due March 2036) in November 2025, adding approximately $742M in net proceeds (after $6.9M issuance costs). Simultaneously, the prior $255M revolving credit draw was repaid and the Term Loan declined to $285M from $288.8M. Net debt increased substantially: total gross debt rose to $1.785B vs. a prior period where the revolving credit carried $255M and no senior notes had been added in Q3. The debt-to-capitalization ratio moved from 46.1% at March 31, 2025 to 54.4% at December 31, 2025. The proceeds appear largely held as cash ($419M vs. $20.4M implied at prior year-end based on $398.6M YTD increase), providing interim liquidity cushion but not altering the structural liability excess. Capital expenditure guidance for fiscal 2026 was revised down from $475M-$500M to $430M-$450M, reducing near-term cash drain slightly. PP&E additions of $294.7M YTD (vs. $184.6M in the comparable six-month period) are being capitalized and will expand the PP&E base further but remain subject to the 50-70% liquidation haircut. Deferred tax liabilities of $261M and other noncurrent liabilities of $66M are carried at face value on the liability side under the liquidation lens, deepening the deficit. No pension obligation is separately disclosed in XBRL; the filing discusses an Amended Retirement Plan as an exhibit but does not separately tag a pension liability. Operating lease liability of $37.6M is confirmed tagged. Filing does not separately disclose asset retirement obligations in XBRL tags, though mining operations create contingent closure exposure referenced in the performance bond disclosure.
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