Ferguson Enterprises Inc. /DE/ (FERG) as of March 31, 2026 presents a deeply negative liquidation recovery posture, consistent with the MFFAIS-reported CLV of -$10.3B, LLV of -$6.7B, and OLV of -$2.0B. Total assets of $17.8B are substantially offset once standard haircuts are applied. The asset base is dominated by trade receivables ($3.7B, ~90-95% recoverable), inventory ($4.7B, ~60% recoverable), operating lease ROU assets ($1.9B, 0% under liquidation as they represent contractual obligations rather than recoverable assets), PP&E net ($1.9B as tagged under PropertyPlantAndEquipmentNet, coinciding with the NoncurrentAssets disclosure, 50-70% recoverable), goodwill ($2.5B, 0%), and acquired intangibles ($653M, 0%). Rough liquidation asset recovery: cash $820M at 100%, receivables $3.5-3.7B at 90-95%, inventory $2.8B at 60%, PP&E $1.0-1.4B at 50-70%, all other assets (prepaid, deferred tax, ROU, intangibles, goodwill) largely $0. Total recoverable asset pool approximates $8.1-9.0B. Against this, total liabilities stand at $11.9B at face value, comprising $5.7B current (including $3.7B AP, $465M current lease liability, $148M current debt, and $1.4B other current liabilities) and $6.2B non-current (including $3.98B long-term debt, $1.49B non-current lease liability, and $749M other non-current liabilities). The deficit to equity is structural: total liabilities exceed recoverable assets by approximately $3-4B, yielding zero recovery to equity. Compared to the prior filing (period ended October 31, 2025), the balance sheet is largely unchanged in its composition: total debt remains at $4.1B (face $4.15B gross), lease stack is similar, and goodwill is flat. No new debt was issued or repaid in Q1 2026. Cash increased from $557M at December 31, 2025 to $820M at March 31, 2026, improving the highest-quality liquid asset pool. The accumulated pension AOCI deficit stands at ($572M) at March 31, 2026, modestly improved from ($576M) at December 31, 2025. Pension obligations in AOCI represent embedded underfunding not separately tagged on the balance sheet in XBRL — the filing discusses pension plans in UK and Canada in Note 9 but does not separately tag the gross projected benefit obligation or plan assets in this 10-Q's XBRL. Filing discusses operating lease commitments (ASC 842 ROU asset $1.9B, current lease liability $465M, non-current lease liability $1.49B) which at face value represent $2.0B of obligations that do not extinguish on windup, worsening the liquidation deficit. A new $2B share repurchase authorization replaced the prior program in April 2026, representing a post-period commitment that further allocates cash toward equity holders rather than debt reduction. The $150M private placement note maturity in November 2026 is the nearest material debt event.
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