Graham Corp (GHM) as of December 31, 2025 shows a negative liquidation recovery to equity under standard haircut assumptions, consistent with the MFFAIS-reported CLV of -$137.0M, LLV of -$105.3M, and OLV of -$56.8M. The balance sheet carries $292.9M in total assets against $161.6M in total liabilities at face value. Applying liquidation haircuts: cash of $22.3M recovers at 100%; AR of $31.7M (net) recovers at ~90-95% (~$28.5-30.1M); inventory of $48.5M recovers at 60% (~$29.1M); PP&E net of $57.3M recovers at 50-70% (~$28.7-40.1M); intangibles of $22.8M (finite-lived) and goodwill of $26.2M recover at 0%; operating lease ROU asset of $5.6M recovers at 0% in liquidation. The dominant liability drag is the current deferred revenue (customer deposits/advance billings) of $112.0M, which does not extinguish on windup — these are performance obligations that, if liquidated, would require cash settlement or contractual unwinding at face value. Combined with accrued employee liabilities of $18.5M, AP of $17.5M, and current operating lease liabilities of $1.5M, the current liability stack of $154.7M significantly exceeds recoverable current assets. The non-current liability stack is modest: pension liability $1.2M, operating lease non-current $4.5M, other non-current $1.1M. Since the prior filing (September 30, 2025 10-Q), the most notable balance sheet change is the FlackTek acquisition closing, which increased the revolving credit facility limit to $80M and added goodwill and intangible assets that carry zero liquidation value. The credit facility had no drawn balance as of December 31, 2025, and the revolving limit increase to $80M does not affect current liquidation posture but shifts the contingent liability ceiling. The OBBB tax legislation discussed in MD&A is income-statement in nature and does not affect balance-sheet recovery. Backlog of $515.6M and performance obligations are off-balance-sheet operational commitments; they do not appear on the balance sheet as assets but the $112M customer deposit liability does appear as a claim at face value. The pension plan is modestly overfunded ($6.1M non-current asset per DefinedBenefitPlanAssetsForPlanBenefitsNoncurrent vs. $1.2M non-current pension liability), which is a modest positive on the asset side under liquidation, though PBGC rules and plan termination costs would erode this. Filing discusses contingent earn-out liabilities for P3 and Xdot in MD&A but does not separately XBRL-tag the contingent consideration balance on the face of the balance sheet in TAG_CONTEXT — the liability is embedded in LiabilitiesCurrent or OtherLiabilitiesNoncurrent without discrete tagging.
▼ Community Notes