H.B. Fuller (FUL) presents a deeply negative liquidation posture as of February 28, 2026, consistent with the prior period. MFFAIS reports a cash liquidation value of -$2.63B, liquid liquidation value of -$2.10B, and operating liquidation value of -$1.60B. The asset base is dominated by goodwill ($1.70B) and other intangibles ($791M net), which carry zero recovery under liquidation assumptions. Combined, these intangible assets represent approximately 47% of total assets of $5.22B and are entirely subordinated to $3.15B of liabilities carried at face value. Tangible assets recoverable under the lens include cash ($108M at 100%), net AR ($532M at 90-95% = ~$480-505M), inventory ($507M at 60% = ~$304M), and net PP&E ($957M at 50-70% = ~$478-669M). Gross tangible asset recovery is thus approximately $1.37-1.59B against liabilities of $3.15B, producing an equity recovery deficit of approximately $1.56-1.78B before considering pension and other noncurrent obligations. Total long-term debt (noncurrent) stands at $2.076B, down from $2.18B a year earlier as of March 1, 2025, reflecting modest deleveraging progress. The total debt-to-capital ratio of 50.1% as of February 28, 2026 is improved from 55.1% a year prior but remains elevated. The $360.9M in other noncurrent liabilities, which includes pension ($52.1M separately tagged) and deferred compensation obligations, does not extinguish on windup and adds to the face-value liability stack. Goodwill increased slightly QoQ (FX-driven $17.1M translation gain), and intangible amortization continues at ~$22M/quarter (~$88M annualized). Inventory days on hand increased to 90 from 79 YoY, indicating a build; at a 60% haircut this represents additional erosion versus prior year. CapEx accelerated to $57.7M in Q1 FY2026 versus $33.0M in Q1 FY2025, adding to the PP&E base but at uncertain liquidation recovery. The organizational realignment charge of $10.0M (tagged as OtherRestructuringCosts) is flowing through the period but does not materially alter the tangible asset base. The filing does not separately disclose the split between operating lease ROU assets and finance lease ROU assets in XBRL tags visible here, though the $499.8M in OtherAssetsNoncurrent likely includes significant lease-related assets. Pension obligations ($52.1M noncurrent, separately tagged) are modest relative to the overall liability stack.
▼ Community Notes