Limbach Holdings (LMB) as of March 31, 2026 presents a balance sheet where liquidation recovery to equity is positive under a going-concern book value view ($196.3M stated equity on $377.0M total assets vs. $180.6M total liabilities), but the liquidation lens erodes that materially. Applying standard haircuts: cash at 100% yields $15.8M; accounts receivable ($120.5M gross, $396K allowance) at 90-92% yields roughly $109-111M; contract assets ($46.5M) at 70-80% (construction WIP, collectability contingent on project completion) yields $33-37M; PP&E and finance lease ROU assets ($41.0M net) at 50-60% yields $20-25M; operating lease ROU assets ($19.3M) recover near zero in liquidation; goodwill ($70.7M) and finite intangibles ($37.5M net) and indefinite intangibles ($10.0M) recover $0. Against these haircut assets, liabilities remain at face: accounts payable $62.1M, accrued liabilities $21.5M, contract liabilities (billings in excess) $18.1M, current portion of finance leases $4.9M, operating lease liabilities $19.8M total, long-term debt including revolver and finance leases totaling $57.0M gross, plus self-insurance liabilities $2.0M, and other non-current liabilities. The MFFAIS CLV of negative $131.5M reflects the full zero-recovery treatment of goodwill and intangibles, which constitute $118.1M of book assets, plus ROU asset haircuts. The LLV and OLV of negative $11.0M reflect a tighter liquid asset base against current liabilities. Key developments since the prior filing (10-K for fiscal year 2025): revolving credit facility borrowings increased from $10.0M to $32.4M during Q1 2026, a $22.4M increase in funded debt, driven by operating cash outflows of $7.8M (versus inflow of $2.2M in Q1 2025) and $12.0M of tax payments on RSU settlements. Total debt increased from $35.9M to $57.0M. Goodwill is stable at $70.7M with no impairment recorded. Gross margin contracted sharply to 22.4% from 27.6%, driven by Pioneer Power integration dilution and absence of prior-year project write-ups. The company participates in approximately 70 multi-employer pension plans (MEPPs); withdrawal liability is unquantified and not separately tagged in XBRL — this represents an off-balance-sheet contingent liability that would become a claim on liquidation. Surety bonds outstanding were $119.8M at March 31, 2026, down from $156.6M at December 31, 2025; these are contingent obligations secured by indemnification. The financing liability of $5.4M (sale-leaseback with an 11.11% implicit rate, 25-year primary term) is a fixed obligation that does not extinguish on liquidation.
▼ Community Notes