NACCO Industries (NC) presents a mixed liquidation posture as of March 31, 2026. Total reported assets are $685.7M against total liabilities of $248.5M, yielding book equity of $437.1M. Under liquidation haircuts, the recovery picture deteriorates materially. Cash of $53.2M recovers at par. Current AR and other current assets of approximately $150M (estimated from AssetsCurrent of $203.2M less cash and inventories) recover at 90-95%, contributing roughly $135-143M. Inventories (coal $25.9M, supplies $75.7M, other inventory $58.8M, noncurrent inventory $42.8M) aggregate roughly $203M book but recover at 50-60%, yielding $100-120M. Net PP&E of $309.9M recovers at 50-70%, or $155-217M, though mining equipment and reclaimed land are difficult to monetize quickly. Intangibles of $4.6M are zeroed. Equity method investment in Eiger Resources of $33.7M and equity securities of $18.2M (Level 1, mark-to-market) recover near carrying value, though Eiger is illiquid. Assets held for sale of $12.2M recover at or near carrying value given impairment already recognized in Q1 2026. On the liability side, total debt of $126.4M (including $100M revolving facility drawn and $9.0M current LTD) faces at face value. Mine reclamation and closing liabilities of $37.6M, Bellaire closed-mine obligations of $24.7M (noted in MD&A capital structure table but not separately tagged in XBRL), operating lease noncurrent of $7.5M, pension noncurrent of $4.4M, deferred revenue noncurrent of $11.7M, and other noncurrent liabilities of $20.2M all sit at face value. The Coyote Creek make-whole guarantee (discussed in Note 6, not separately XBRL-tagged) represents a contingent off-balance-sheet liability that could materialize on windup. The VIE unconsolidated subsidiaries are capitalized with customer-supported debt without NACCO recourse; maximum loss exposure at invested capital is $5.6M, down from $6.7M at year-end 2025. The MFFAIS CLV estimate of negative $15.8M and LLV of negative $15.1M indicate that after applying standard liquidation haircuts the recovery to equity is negative, consistent with heavy PP&E, reclamation obligations, and face-value debt stack. The OLV of $43.7M reflects modest value only under an orderly going-concern sale. Key changes from December 31, 2025: total debt increased $25.5M (revolving credit draws to fund $33.4M Q1 capex), PP&E increased materially (Contract Mining dragline, Mitigation Resources land in Tennessee), and a $0.5M long-lived asset impairment charge was recognized on a North Dakota office building held for sale. The depreciation method change for Contract Mining draglines from straight-line to units-of-production, effective January 1, 2026, is disclosed in MD&A but no separate XBRL tag for the cumulative adjustment appears in the TAG_CONTEXT. The Bellaire closed-mine obligation quantum ($24.7M) is discussed in the MD&A capital structure table but is not separately tagged in XBRL.
▼ Community Notes