VATE

Shares of INNOVATE Corp. VATE have gained 5.3% since reporting second-quarter 2026 results, outperforming the S&P 500 index’s 0.5% return. However, over the past month, the stock has declined 14.8%, while the index has advanced 4.1%. Second-quarter revenues rose 74.2% to $421.6 million from $242 million in the prior-year quarter. Net income attributable to common stockholders and participating preferred stockholders was $10.4 million, reversing a $22-million loss. At the same time, earnings were 71 cents per share against a loss of $1.67 per share in the prior-year quarter. Total adjusted EBITDA increased 194.9% to $46.3 million from $15.7 million. Gross profit climbed to $79.5 million from $45.6 million, and operating income increased to $34.5 million from $4.9 million. INNOVATE Corp. price-consensus-eps-surprise-chart | INNOVATE Corp. Quote Infrastructure revenues advanced 77.6% to $414 million from $233.1 million, with segment net income rising to $26.4 million from $5.5 million, and adjusted EBITDA to $48.7 million from $19.3 million. The gross margin improved about 60 basis points to 18.5%, while the adjusted EBITDA margin expanded about 350 basis points to 11.8%. As of June 30, reported backlog was $1.9 billion and adjusted backlog, including awarded but unsigned contracts, was $2.7 billion compared with $1.7 billion and $1.8 billion, respectively, as of Dec. 31, 2025. Life Sciences revenues fell 31.3% to $2.2 million from $3.2 million in the prior-year quarter, though its adjusted EBITDA loss narrowed to $0.8 million from $2.6 million. R2 Technologies generated $3.6 million in demand and ended with 110 systems in backlog, representing $1.4 million in future revenues. Spectrum revenues eased to $5.4 million from $5.7 million, and adjusted EBITDA declined to $0.4 million from $1 million. Excluding restricted and held-for-sale amounts, cash fell to $87.8 million from $108.2 million at the year-end, while total principal debt increased to $626.4 million from $617.5 million. Interim CEO Paul Voigt characterized DBM Global’s quarter as record-breaking, citing execution and backlog growth. Management identified data centers, technology, healthcare and New York City as activity drivers, alongside investment in artificial intelligence infrastructure, semiconductors, advanced manufacturing, energy systems and digital connectivity. Voigt said that MediBeacon was engaged with more than 100 healthcare institutions about its TGFR kidney-function system, while R2 was expanding and using lower costs to improve operating leverage. The revenue increase mainly reflected the timing and scale of large structural-steel projects at DBMG, together with revisions to cost-to-complete estimates arising from project efficiencies. Construction modeling, detailing and the new modular business also contributed, while industrial maintenance and repair activity declined as prior-year projects were completed. Life Sciences was pressured by fewer Glacial fx units in North America and Glacial Spa units internationally because of liquidity constraints. Spectrum was affected by terminated networks and markets, partly offset by launches. Net income benefited from a $33.9-million increase in gross profit and an $18.7-million year-over-year improvement in gains on debt extinguishment. Those benefits were partly offset by increases of $8.9 million in tax expenses, $6.4 million in selling, general and administrative expenses, and $6.2 million in interest expenses. Higher taxes reflected stronger pretax income and limits on use of net operating losses. Management said DBMG’s backlog supports visibility into 2027 and 2028 and pointed to a robust second-half project pipeline, while emphasizing capacity discipline and margin preservation. R2 entered the second half with strong demand but was seeking additional capital for inventory, manufacturing scale-up and commercial expansion. MediBeacon targets a pivotal study of its third-generation wireless TGFR sensor in 2027 and a European Lumitrace marketing-authorization filing that year. Broadcasting completed a $105-million refinancing used to retire 8.50% and 11.45% notes, repurchase certain equity interests and cover transaction costs. INNOVATE also agreed to sell CONX Corp. an approximately 75% controlling interest in Broadcasting, retaining about 25%, subject to FCC and other approvals. Management said that the refinancing loan is expected to be extinguished at closing and CONX has committed up to $75 million in post-closing equity. INNOVATE continued a sale process for substantially all DBMG assets or equity. After quarter-end, R2 extended a secured-note maturity from Aug. 1 to Dec. 31, 2026, and converted preferred equity to common equity. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report INNOVATE Corp. (VATE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in INNOVATE Corp.? Here are five stocks we like better. INNOVATE delivered a sharp year-over-year improvement: Second-quarter revenue rose 74.2% to $421.6 million, net income reached $10.4 million versus a prior-year loss, and adjusted EBITDA increased to $46.3 million. Infrastructure drove the results: DBM Global posted record $414 million revenue and $48.7 million adjusted EBITDA, while reported backlog grew to $1.9 billion and adjusted backlog reached $2.7 billion. Broadcasting is undergoing a major ownership transition, while Life Sciences remains pressured: CONX agreed to acquire about 75% of Broadcasting subject to regulatory approvals, whereas Life Sciences revenue fell 31.3% to $2.2 million amid weaker R2 sales and liquidity constraints. INNOVATE (NYSE:VATE) reported second-quarter 2026 revenue of $421.6 million, up 74.2% from $242 million a year earlier, as its Infrastructure segment delivered record revenue, wider margins and backlog growth. The company posted net income attributable to common and participating preferred stockholders of $10.4 million, or $0.71 per fully diluted share, compared with a net loss of $22 million, or $1.67 per fully diluted share, in the prior-year quarter. Consolidated adjusted EBITDA increased to $46.3 million from $15.7 million in the second quarter of 2025. CFO Mike Sena said the improvement was primarily driven by Infrastructure and Life Sciences, partly offset by Spectrum. → No Hangover: Revisiting Microsoft One Week After Earnings Interim CEO Paul Voigt said the quarter included strategic progress at Broadcasting, record performance at DBM Global in Infrastructure, and continued commercial and regulatory initiatives at the company’s Life Sciences businesses. INNOVATE’s Infrastructure segment, led by DBM Global, generated record quarterly revenue of $414 million, a 77.6% increase from $233.1 million a year earlier. Segment adjusted EBITDA rose to $48.7 million from $19.3 million. → MarketBeat Week in Review – 08/03 - 08/07 Sena attributed the revenue increase largely to timing and project size at DBM Global’s commercial structural-steel fabrication and erection business, including increased activity on certain large construction projects. The segment also benefited to a lesser degree from its construction modeling and detail business and its new modular business. Those gains were partly offset by lower activity in the industrial maintenance and repair business, where certain large projects from the comparable period had been completed. Voigt said DBM Global’s gross margin increased about 60 basis points year over year to 18.5%, while adjusted EBITDA margin rose approximately 350 basis points to 11.8%. Reported backlog was $1.9 billion as of June 30, up from $1.7 billion at the end of 2025. Adjusted backlog, including awarded but unsigned contracts, reached $2.7 billion, compared with $1.8 billion at year-end 2025. DBM Global’s principal debt declined by $17.4 million from year-end 2025 to $70.3 million. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Management cited data centers, technology, healthcare and New York City as key sources of activity. Voigt said the company is seeing infrastructure investment associated with computing, artificial intelligence, advanced manufacturing, semiconductor production, energy systems and digital connectivity. He said the business is building backlog into 2027 and 2028 and has opportunities expected to be awarded in the second half of 2026. During the quarter, Broadcasting completed a refinancing that provided $105 million of financing. According to Voigt, the proceeds were used to retire existing debt, repurchase certain equity interests from noteholders and cover transaction-related costs. The company also entered a definitive agreement for CONX Corp. to acquire a controlling interest in Broadcasting, subject to customary closing conditions, regulatory approvals and Federal Communications Commission-related approvals. CONX is expected to own approximately 75% of the business at closing, while INNOVATE would retain a 25% stake and an option to increase its ownership to 40% in the future. CONX has committed up to $75 million of post-closing equity capital for the business, and the refinancing loan is expected to be extinguished as part of the transaction, Voigt said. The company is awaiting completion of the FCC review process and other approvals. In the Spectrum segment, second-quarter revenue declined $300,000 year over year to $5.4 million, while adjusted EBITDA fell $600,000 to $400,000. Sena said the declines reflected the termination of several networks and individual markets after the comparable period, partly offset by new network launches. Life Sciences revenue fell 31.3% to $2.2 million from $3.2 million in the prior-year quarter. Sena said the decrease was attributable to R2, primarily due to lower Glacial fx unit sales in North America and lower Glacial Spa sales outside North America amid liquidity constraints. However, Life Sciences adjusted EBITDA losses narrowed, driven primarily by lower recurring selling, general and administrative expenses following reductions in compensation-related costs at R2 and Pansend. Voigt said MediBeacon continued to advance the commercial rollout of its transdermal GFR systems in the United States and internationally. The company expanded placements at healthcare institutions, completed training at several academic medical centers, and was working with more than 100 healthcare institutions, including key opinion leaders and value-analysis committees. MediBeacon’s initial use cases include therapy dosing, particularly for oncology drugs, transplant donor evaluation and kidney-function assessment in hospitalized cardiology patients. The company continued discussions with the Centers for Medicare & Medicaid Services and commercial payers regarding reimbursement pathways for hospital-based use of its TGFR system. Outside the U.S., MediBeacon has CE mark approval for TGFR monitors, sensors and rings in Europe, where it plans to file a Lumitrace marketing authorization application in 2027. In China, the company and Huadong continued commercialization and physician-education efforts and achieved ISO 13485 quality-system certification. R2 reported worldwide demand of $3.6 million during the quarter and recognized $2.2 million of revenue. It exited the period with a backlog of about 110 systems globally, representing approximately $1.4 million of future revenue. R2 also secured Glacial Rx registrations in Thailand and Malaysia, began in-country testing in Korea ahead of a planned Glacial fx launch, introduced a virtual provider-training program, and continued a manufacturing transfer to EIT. As of June 30, INNOVATE had $87.8 million in cash and cash equivalents, excluding held-for-sale assets and restricted cash, down from $108.2 million at Dec. 31, 2025. The non-operating corporate segment held $1.5 million in cash, compared with $4.2 million at year-end. Total principal indebtedness was $626.4 million, excluding held-for-sale liabilities, compared with $617.5 million at the end of 2025. Sena said the increase primarily reflected payment-in-kind interest in the company’s non-operating and Life Sciences segments, partly offset by lower Infrastructure debt. INNOVATE Corp., through its subsidiaries, operates in infrastructure, life sciences, and spectrum areas in the United States. The Infrastructure segment provides industrial construction, structural steel, and facility maintenance services, such as fabrication and erection of structural steel and heavy steel plate services, and large-diameter water pipes and water storage tanks; fabrication of trusses and girders; and 3-D building information modeling and detailing for commercial, industrial, and infrastructure construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills, and power plants. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "INNOVATE Q2 Earnings Call Highlights" was originally published by MarketBeat. 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This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Innovate Corp (NYSE:VATE) delivered a record second quarter at its infrastructure segment, DBMG, with revenue of $414 million and adjusted EBITDA of $48.7 million, driven by strong margin expansion and a 60 basis point improvement in gross margin to 18.5%. Adjusted backlog at DBMG grew significantly to $2.7 billion, up from $1.8 billion at the end of 2025, providing strong revenue visibility into 2027 and 2028, supported by secular demand in data centers, AI, and advanced manufacturing. The broadcasting segment completed a $105 million refinancing and entered a definitive agreement with Connex Corp, which is expected to acquire a 75% controlling interest, improving access to capital and allowing Innovate Corp (NYSE:VATE) to retain a 25% stake with an option to increase to 40%. Life sciences made progress at Metabeacon, with commercial engagement at over 100 healthcare institutions, CE mark approval in Europe, and ISO 13485 certification in China, advancing global commercialization and reimbursement initiatives. Consolidated net income improved dramatically to $10.4 million, or $0.71 per share, compared to a net loss of $22 million in the prior year period, while total adjusted EBITDA rose to $46.3 million from $15.7 million. R2 continued to expand its global footprint, securing registrations in Thailand and Malaysia, initiating testing in Korea, and building a backlog of approximately 110 systems, while reducing overhead through AI integration and a capital sales team. Life sciences revenue decreased 31.3% year-over-year to $2.2 million, primarily due to lower R2 unit sales in North America and glacial spa units outside North America, driven by liquidity constraints. The spectrum segment saw revenue decline by $300,000 to $5.4 million and adjusted EBITDA fall by $600,000 to $400,000, due to the termination of several networks and individual markets. Consolidated cash and cash equivalents decreased to $87.8 million from $108.2 million at the end of 2025, with the non-operating corporate segment holding only $1.5 million in cash, down from $4.2 million. Total principal indebtedness increased to $626.4 million from $617.5 million at the end of 2025, driven by PIK interest in non-operating and life sciences segments, adding financial pressure. The broadcasting sale to Connex Corp is still pending FCC and regulatory approvals, creating uncertainty around the closing timeline and the extinguishment of the refinancing loan. R2's revenue recognized during the quarter was only $2.2 million against total worldwide demand of 3.6 million, indicating a significant gap between demand and actual sales, partly due to liquidity constraints and the need for additional capital to support scaling. Warning! GuruFocus has detected 5 Warning Signs with VATE. Is VATE fairly valued? Test your thesis with our free DCF calculator. Q: What is the status of the Broadcasting refinancing and the Connex Corp transaction, and how will it impact Innovate's ownership and capital structure?A: Paul Voigt, Interim CEO: During Q2 2026, Broadcasting completed a refinancing that provided $105 million in financing, used to retire existing debt and repurchase certain equity interests. We also entered into a definitive agreement with Connex Corp, which is expected to acquire a controlling interest in Broadcasting, subject to FCC and regulatory approvals. Upon closing, Connex will own approximately 75% of the business, while Innovate retains a 25% stake with an option to increase to 40% in the future. The refinancing loan is expected to be extinguished as part of the transaction, which we believe unlocks shareholder value and enhances Broadcasting's access to capital. Q: Can you provide details on DBMG's record-breaking second quarter performance and its backlog growth?A: Paul Voigt, Interim CEO: DBMG achieved record second-quarter revenue of $414 million and adjusted EBITDA of $48.7 million. Gross margin improved by approximately 60 basis points year-over-year to 18.5%, and adjusted EBITDA margin improved by approximately 350 basis points to 11.8%. The adjusted backlog increased to $2.7 billion, up from $1.8 billion at the end of 2025, driven by contracted awards, negotiated work, and project scope expansion. We exited the quarter with strong momentum and a favorable outlook for 2027 and 2028, with data centers, technology, healthcare, and New York City as key demand drivers. Q: What were the key drivers behind the significant increase in consolidated revenue and adjusted EBITDA for Q2 2026?A: Mike Senna, CFO: Consolidated total revenue increased 74.2% to $421.6 million, primarily driven by the infrastructure segment, partially offset by decreases in life sciences and spectrum. Net income attributable to common stockholders increased to $10.4 million, or $0.71 per fully diluted share, compared to a net loss of $22 million in the prior year. Total adjusted EBITDA increased to $46.3 million from $15.7 million, driven by infrastructure and life sciences, partially offset by spectrum. Q: How is Metabeacon progressing with its commercial rollout and regulatory initiatives?A: Paul Voigt, Interim CEO: Metabeacon is actively working with more than 100 healthcare institutions, focusing on therapy dosing, oncology drugs, transplant donor evaluation, and kidney function assessment. We continued engagement with CMS and commercial payers for reimbursement pathways. In Europe, we have CE mark approval for TGFR monitors, sensors, and rings, with a LumiraDx marketing authorization application targeted for 2027. In China, we achieved ISO 13485 quality system certification and advanced commercialization with Wodong. Regulatory initiatives are also underway in Canada, Taiwan, Hong Kong, Singapore, and Thailand. Q: What is the current demand and revenue outlook for R2, and what steps are being taken to support its growth?A: Paul Voigt, Interim CEO: R2 demonstrated strong global demand with total worldwide demand reaching 3.6 million, while revenue recognized was $2.2 million. The company exited the quarter with a backlog of approximately 110 systems, representing roughly $1.4 million of future revenue. We secured registrations for Glacial RX in Thailand and Malaysia, initiated in-country testing in Korea, and launched a virtual training program. R2 is pursuing additional capital to support inventory, manufacturing scaling, and commercial expansion, while improving sales productivity through AI integration and reduced overhead. Q: Can you explain the revenue decline in the Life Sciences segment and the factors contributing to it?A: Mike Senna, CFO: Life Sciences revenue decreased 31.3% to $2.2 million from $3.2 million in the prior year quarter. The decrease was attributable to R2, primarily driven by decreases in Glacial FX unit sales in North America and Glacial Spa units outside North America due to liquidity constraints. However, adjusted EBITDA losses decreased for the quarter, driven by a reduction in compensation-related expenses at R2 and Pansend. Q: What were the main factors behind the Spectrum segment's year-over-year revenue and adjusted EBITDA decreases?A: Mike Senna, CFO: Spectrum revenue decreased $300,000 to $5.4 million, and adjusted EBITDA decreased $600,000 to $400,000. The decreases were primarily driven by the termination of a few networks and individual markets subsequent to the comparable period, which were partially offset by the launch of new networks. Q: How did the company's cash position and total indebtedness change during the quarter?A: Mike Senna, CFO: As of June 30, 2026, the company had $87.8 million in cash and cash equivalents, excluding held-for-sale assets and restricted cash, compared to $108.2 million at the end of 2025. Total principal outstanding indebtedness was $626.4 million, up from $617.5 million at the end of 2025, primarily driven by PIK interest in non-operating and life sciences segments, partially offset by a decrease in infrastructure's outstanding debt. Q: What is the outlook for DBMG's backlog and future project awards in the second half of 2026?A: Paul Voigt, Interim CEO: DBMG exited the quarter with substantial momentum and an increasing favorable outlook for 2027 and 2028. With a robust pipeline of opportunities expected to be awarded during the second half of the year, the organization's focus has shifted to securing future-year backlog and aligning growth with available capacity. Investments in planning tools, milestone management, and earlier customer engagement are driving greater visibility into future awards while supporting disciplined growth and margin preservation. Q: What are the key strategic priorities for Innovate moving forward?A: Paul Voigt, Interim CEO: We remain focused on executing our strategic priorities, including the sales process for DBMG, supporting growth across our operating businesses, and driving long-term value creation for shareholders. We believe the momentum demonstrated across the portfolio, coupled with strategic actions taken during the quarter, positions Innovate well for the remainder of 2026 and beyond. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Infrastructure: DBM Global delivered record results in the second quarter with year-over-year revenue growth of ~78%- Life Sciences: MediBeacon continued targeted introduction of TGFR system at centers of excellence in the U.S. and China- Spectrum: Successful closing of Broadcasting refinancing and INNOVATE agreed to partial sale of Broadcasting NEW YORK, Aug. 06, 2026 (GLOBE NEWSWIRE) -- INNOVATE CORP.® (“INNOVATE” or the “Company”) (NYSE: VATE) announced today its consolidated results for the second quarter. Financial Summary (1) Reconciliation of GAAP to Non-GAAP measures follows. Commentary "INNOVATE delivered a strong second quarter and continued to execute on several important strategic priorities across the portfolio," said Avie Glazer, Chairman of INNOVATE. “At Infrastructure, DBM Global delivered a record-breaking quarter, reflecting continued strong financial performance with margin expansion and backlog growth. During the quarter, Broadcasting strengthened its financial position through a refinancing transaction, and our Life Sciences businesses continued to advance key commercialization and regulatory initiatives." "We continue to make progress across our key strategic priorities and believe the momentum we saw during the second quarter reinforces the value and potential of our portfolio," said Paul Voigt, Interim CEO of INNOVATE. “DBM Global delivered exceptional results, supported by strong execution, robust backlog growth, and favorable end-market demand. At MediBeacon, we continue to focus on commercialization efforts, reimbursement initiatives, and global regulatory activities, while R2 exited the quarter with strong demand and an expanding international presence. We remain focused on strengthening our balance sheet, advancing growth initiatives and creating long-term value for our shareholders." Second Quarter 2026 and Recent Highlights As previously announced, HC2 Broadcasting Holdings Inc. (“Broadcasting”) closed on a refinancing transaction and Broadcasting and HC2 Broadcasting Holdco, LLC (“HC2 Holdco”), subsidiaries of INNOVATE, have entered into a definitive agreement pursuant to which INNOVATE will sell a controlling interest in Broadcasting to CONX CORP. (“CONX”), subject to the satisfaction of customary closing conditions, including the receipt of required regulatory approvals. After the closing of the transaction, it is expected that CONX will own approximately 75% of Broadcasting and INNOVATE will own approximately 25% of Broadcasting through HC2 Holdco. See INNOVATE's Form 8-K filed on June 1, 2026 for additional information. INNOVATE continues to pursue highly substantial asset dispositions, including a sales process for all or substantially all of DBMG's assets or equity interests, and the disposition of a majority interest in Broadcasting (as described above). INNOVATE has also made substantial changes to its debt arrangements and other liabilities, including following June 30, 2026, and expects to make further changes. Infrastructure DBMG reported second quarter 2026 revenue of $414.0 million, an increase of 77.6%, compared to $233.1 million in the prior year quarter. Net income attributable to INNOVATE was $26.4 million, compared to $5.5 million for the prior year quarter. Adjusted EBITDA increased to $48.7 million from $19.3 million in the prior year quarter. DBMG reported gross margin of 18.5% in the second quarter, an increase of approximately 60 basis points year-over-year and Adjusted EBITDA margin of 11.8% in the second quarter, an increase of approximately 350 basis points year-over-year. DBMG’s reported backlog and adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.9 billion and $2.7 billion respectively, as of June 30, 2026, compared to reported and adjusted backlog of $1.7 billion and $1.8 billion, respectively, as of December 31, 2025. DBMG delivered a record second quarter, highlighted by strong margin expansion, exceptional execution, and adjusted backlog growth to a record $2.7 billion. Healthy sales activity and strong conversion rates continue to drive backlog growth and visibility into 2027 and 2028, while sustained demand across technology, healthcare, AI infrastructure, and advanced manufacturing markets supports confidence in the business's long-term growth outlook. Life Sciences MediBeacon continued to build commercial momentum in the United States, putting the technology in the hands of the clinicians who need it most and building the evidence base that will drive long-term adoption. MediBeacon is now actively engaged with over 100 healthcare institutions who have expressed interest in the TGFR System. MediBeacon is poised to begin clinical studies of the third generation wireless TGFR Sensor under IDE approval. MediBeacon targets a pivotal study in 2027. The wireless wearable third generation product is anticipated to further expand the market for kidney function assessment in the outpatient setting. R2 Technologies, Inc. ("R2") reported second quarter 2026 revenue of $2.2 million. R2's demand for the second quarter reached $3.6 million, with backlog at approximately 110 systems globally at the end of the quarter. R2 reduced its operating expenditure by approximately 50% over the same period in 2025. Subsequent to quarter end, R2 extended the maturity of its secured promissory note with Lancer Capital from August 1, 2026 to December 31, 2026, and R2’s preferred equity was converted to common equity, simplifying its capital structure. Spectrum Broadcasting reported second quarter 2026 revenue of $5.4 million, compared to $5.7 million in the prior year quarter. Net income attributable to INNOVATE was $8.4 million compared to Net loss of $6.1 million in the prior year quarter. Adjusted EBITDA was $0.4 million, compared to $1.0 million in the prior year quarter. Broadcasting entered into a $105 million loan agreement (the “New Loan”) with HC2 Merger Sub, LLC, a subsidiary of CONX (“Merger Sub”). The proceeds of the New Loan were used to fully satisfy Broadcasting’s existing 8.50% and 11.45% notes, to fund the repurchase of certain equity interests held by Broadcasting’s note holders, and to pay related transaction costs. The New Loan and interest accrued thereon are expected to be extinguished as consideration in the merger and will not require cash repayment upon closing of the merger. The New Loan matures on May 29, 2027, subject to earlier acceleration in accordance with its terms. INNOVATE has entered into a merger agreement pursuant to which Merger Sub will merge with and into Broadcasting, with Broadcasting as the surviving corporation. As a result of the merger, after the closing it is expected that CONX will own approximately 75% of Broadcasting and INNOVATE will own approximately 25% of Broadcasting through HC2 Holdco. Second Quarter 2026 Financial Highlights Revenue: For the second quarter of 2026, INNOVATE's consolidated revenue was $421.6 million, an increase of 74.2%, compared to $242.0 million for the prior year quarter. The increase was driven primarily by our Infrastructure segment, which was partially offset by a decrease at our Life Sciences and Spectrum segments. The increase at our Infrastructure segment was primarily driven by the timing and size of projects at DBMG's commercial structural steel fabrication and erection business, which had increased activity subsequent to the comparable period on certain large construction projects, combined with changes in the estimate of the cost to complete those projects recognized in the ordinary course driven by efficiencies recognized around certain projects. This increase was partially offset by a decrease at the industrial maintenance and repair business due to the timing and size of projects, which had increased activity in the comparable period on certain large construction projects that have since been completed. The decrease at our Life Sciences segment was attributable to R2, primarily driven by decreases in Glacial fx unit sales in North America and Glacial Spa unit sales outside North America due to liquidity constraints. The decrease at our Spectrum segment was primarily driven by the termination of a few networks and individual markets subsequent to the comparable period, partially offset by the launch of new networks. Net Income (Loss): For the second quarter of 2026, INNOVATE reported Net income attributable to common stockholders and participating preferred stockholders of $10.4 million, or $0.71 per fully diluted share, compared to a Net loss of $22.0 million, or $1.67 per fully diluted share, for the prior year quarter. The increase in Net income was primarily driven by a net increase in gross profit of $33.9 million, and an $18.7 million increase in gain on extinguishment of debt, which was partially offset by an $8.9 million increase in tax expense, a net increase in selling, general and administrative (“SG&A”) expenses of $6.4 million and a $6.2 million increase in interest expense. The net increase in gross profit was primarily driven by our Infrastructure segment due to timing and size of projects in the current period, which had increased activity subsequent to the comparable period, combined with changes in the estimate of the cost to complete those projects recognized in the ordinary course driven by efficiencies recognized around certain projects. The increase in gain on extinguishment of debt was primarily driven by Spectrum's refinancing transaction during the current period. The increase in tax expense was primarily driven by higher pre-tax income combined with an increase in the annual effective tax rate, including as a result of limitations on the utilization of net operating losses (“NOL”) by INNOVATE's U.S. consolidated group under Internal Revenue Code Section 382 and the Tax Cuts and Jobs Act's 80 percent limitation on NOLs incurred after 2017. The net increase in SG&A was driven by our Infrastructure segment, primarily due to timing of compensation-related expenses, and an increase at our Spectrum segment primarily driven by transaction-related expenses in the current period. These increases in SG&A were partially offset by a decrease in SG&A at our Life Sciences segment due to a reduction in compensation-related expenses at R2 and Pansend. The net increase in interest expense was primarily driven by our Non-Operating Corporate segment, reflecting refinancing transactions that closed subsequent to the comparable period, and by our Spectrum segment, reflecting the accretion of the New Loan entered into in the current period, under which the effective interest rate includes the stated interest rate and accretion of a contractually specified minimum return on the New Loan through its stated maturity, which was partially offset by our Life Sciences segment, reflecting refinancing transactions that closed subsequent to the comparable period, and further offset by our Infrastructure segment due to a net decrease in principal balance. Adjusted EBITDA: For the second quarter of 2026, Total Adjusted EBITDA was $46.3 million compared to Total Adjusted EBITDA of $15.7 million for the prior year quarter. The increase in Adjusted EBITDA was primarily driven by our Infrastructure and Life Sciences segments, which was partially offset by a decrease at our Spectrum segment. The increase in Adjusted EBITDA was primarily driven by an increase in revenue and gross profit at DBMG's commercial structural steel fabrication and erection business, which had increased activity subsequent to the comparable period on certain large construction projects, combined with changes in the estimate of the cost to complete those projects recognized in the ordinary course driven by efficiencies recognized around certain projects, and, to a lesser extent, by an increase in revenue and gross profit at the construction modeling and detailing business. The increase was partially offset by an increase in recurring SG&A expenses, primarily driven by the timing of compensation-related expenses and a decrease in revenue and gross profit at our industrial maintenance and repair business due to timing of certain large construction projects in the comparable period that have since been completed. The increase at our Life Sciences segment was primarily driven by a decrease in recurring SG&A due to a reduction in compensation-related expenses at R2 and Pansend. The decrease in Adjusted EBITDA at our Spectrum segment was primarily driven by the decrease in revenue. (1) Reconciliation of GAAP to Non-GAAP measures follows. Balance Sheet: As of June 30, 2026, INNOVATE had cash and cash equivalents, excluding restricted cash and cash and cash equivalents held for sale, of $87.8 million compared to $108.2 million as of December 31, 2025. On a stand-alone basis, as of June 30, 2026, our Non-Operating Corporate segment had cash and cash equivalents of $1.5 million compared to $4.2 million as of December 31, 2025. Conference Call INNOVATE will host a live conference call to discuss its second quarter 2026 financial results and operations today at 4:30 p.m. ET. The Company will post an earnings supplemental presentation in the Investor Relations section of the INNOVATE website at innovate-ir.com to accompany the conference call. Dial-in instructions for the conference call and the replay follows. Live Webcast and Call. A live webcast of the conference call can be accessed by interested parties through the Investor Relations section of the INNOVATE website at innovate-ir.com. Conference Replay* *Available approximately three hours after the end of the conference call through August 20, 2026. About INNOVATE INNOVATE is a portfolio of best-in-class assets in three key areas of the new economy – Infrastructure, Life Sciences and Spectrum. Dedicated to stakeholder capitalism, INNOVATE employs approximately 3,700 people across its subsidiaries. For more information, please visit: www.INNOVATECorp.com. Contacts Investor Contact:Anthony [email protected](212) 235-2691 Non-GAAP Financial Measures In this press release, INNOVATE refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), including Total Adjusted EBITDA (excluding discontinued operations, if applicable) and Adjusted EBITDA for its operating segments. In addition, other companies may define Adjusted EBITDA differently than we do, which could limit its usefulness. Adjusted EBITDA Management believes that Adjusted EBITDA provides investors with meaningful information for gaining an understanding of our results as it is frequently used by the financial community to provide insight into an organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation, amortization and the other items listed in the definition of Adjusted EBITDA below can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA can also be a useful measure of a company’s ability to service debt. While management believes that non-U.S. GAAP measurements are useful supplemental information, such adjusted results are not intended to replace our U.S. GAAP financial results. Using Adjusted EBITDA as a performance measure has inherent limitations as an analytical tool as compared to net income (loss) or other U.S. GAAP financial measures, as this non-U.S. GAAP measure excludes certain items, including items that are recurring in nature, which may be meaningful to investors. As a result of the exclusions, Adjusted EBITDA should not be considered in isolation and does not purport to be an alternative to net income (loss) or other U.S. GAAP financial measures as a measure of our operating performance. The calculation of Adjusted EBITDA, as defined by us, consists of Net income (loss) attributable to INNOVATE Corp., excluding: discontinued operations, if applicable; depreciation and amortization; other operating (income) loss (which is inclusive of (gain) loss on sale or disposal of assets, lease termination costs, (gains) losses on lease modifications, and asset impairment expense); interest expense; (gain) loss on extinguishment of debt; other (income) expense, net; income tax expense (benefit); non-controlling interests; share-based compensation expense; realignment and exit costs; facility commissioning costs; debt refinancing costs and acquisition and disposition costs. Cautionary Statement Regarding Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, and certain oral statements made by our representatives from time to time may contain, “forward-looking statements.” Generally, forward-looking statements include information describing actions, events, results, strategies and expectations and are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions. Such forward-looking statements are based on current expectations and inherently involve certain risks, assumptions and uncertainties. The forward-looking statements in this press release include, without limitation, any statements regarding INNOVATE’s plans and expectations for future growth and ability to capitalize on potential opportunities, the achievement of INNOVATE’s strategic objectives, expectations for performance of new projects and realization of revenue from the backlog at DBMG and the Infrastructure segment, anticipated success from the continued sale of new products in the Life Sciences segment, expectations for advertising revenue growth, new technologies, networks and stations, and potential commercial opportunities in datacasting in the Spectrum segment. Such statements are based on the beliefs and assumptions of INNOVATE’s management and the management of INNOVATE’s subsidiaries and portfolio companies. The Company believes these judgments are reasonable, but these statements are not guarantees of performance, results or the creation of stockholder value and the Company’s actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of important factors, both positive and negative, including those that may be identified in subsequent statements and reports filed with the Securities and Exchange Commission (“SEC”), including in our reports on Forms 10-K, 10-Q, and 8-K. Such important factors include, without limitation: our dependence on distributions from our subsidiaries to fund our operations and payments on our obligations; substantial doubt about our ability to continue operating as a going concern; our expectations and timing with respect to any strategic dispositions and sales of our operating subsidiaries, or businesses, including, without limitation, the sales of DBMG and Broadcasting; obtaining FCC regulatory approval for the Broadcasting merger; the possibility of indemnification claims arising out of divestitures of businesses; the impact on our business and financial condition of our substantial indebtedness and any significant additional indebtedness and other financing obligations we may incur; our possible inability to raise additional capital when needed or refinance our existing debt, on attractive terms, or at all; our anticipated business profile following the highly substantial asset dispositions we are pursuing, including the potential absence of material operating revenue and uncertainty regarding the nature of any future operations; our dependence on the retaining and recruitment of key personnel; volatility in the trading price of our common stock; the impact of potential supply chain disruptions, labor shortages and increases in overall price levels, including in steel and transportation costs; interest rate environment; developments relating to the hostilities in Ukraine, the Middle East and Venezuela; increased competition in the markets in which our operating segments conduct their businesses; our ability to successfully identify any strategic acquisitions or business opportunities; uncertain global economic conditions in the markets in which our operating segments conduct their businesses; changes in regulations and tax laws; covenant noncompliance risk; tax consequences associated with our acquisitions, holding and disposition of target companies and assets; the ability of our operating segments to attract and retain customers; and our expectations regarding the timing, extent and effectiveness of any cost reduction initiatives and management’s ability to moderate or control discretionary spending. Although INNOVATE believes its expectations and assumptions regarding its future operating performance are reasonable, there can be no assurance that the expectations reflected herein will be achieved. These risks and other important factors discussed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to INNOVATE or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and unless legally required, INNOVATE undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Infrastructure growth was primarily driven by the timing and scale of large-scale commercial structural steel projects, offsetting declines in the industrial maintenance and repair business. Management attributes the robust $1.8 billion adjusted backlog to opportunities in technology (including AI infrastructure, energy systems, and advanced manufacturing), health care, and New York City. Life Sciences performance was characterized by significant regulatory progress, including a successful notified body audit and CE mark reception for MediBeacon's TGFR monitor. Spectrum segment results were negatively impacted by continued softness in advertising demand and specific network cancellations across individual markets. The company is shifting its infrastructure focus from near-term execution to capacity-aligned growth to preserve margins while visibility extends into 2027. R2's revenue decline was driven by lower unit sales in North America, though this was partially mitigated by a 58.6% increase in international system sales. Management is actively working with lenders on strategic alternatives to address the company's capital structure and total principal indebtedness of $699 million. Spectrum plans to expand its national footprint over the next 6 to 12 months by leveraging 60 new license applications and relocating Class A licenses to larger markets. The mobile wireless carrier collaboration continues to advance with successful trials completed, and discussions are underway regarding new market launches in the second half of 2026. R2 is seeking to raise external capital to sustain its commercial progress and global expansion through the remainder of the year. MediBeacon is targeting additional Asia Pacific market approvals in 2026 through ongoing collaborations with its regional partners. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Infrastructure gross margins compressed by approximately 140 basis points year-over-year to 14.2%, though adjusted EBITDA margins remained largely consistent. Total principal indebtedness increased by $11.8 million since year-end 2025, primarily due to PIK interest at the non-operating and Life Sciences segments, which was partially offset by a decrease in Infrastructure's outstanding debt. The Spectrum segment faces ongoing regulatory uncertainty as the FCC has yet to take formal action on the proposed 5G broadcast conversions. Corporate cash and cash equivalents on a stand-alone basis decreased to $2.5 million from $4.2 million at the end of 2025.

Interested in INNOVATE Corp.? Here are five stocks we like better. INNOVATE posted stronger first-quarter results, with revenue rising 33% to $364.8 million and net loss narrowing to $17.2 million as the Infrastructure segment drove most of the growth. The Infrastructure business continued to be the company’s standout, with revenue up 35.1% to $357.9 million and backlog holding near record levels at $1.8 billion adjusted, supported by demand in tech-related construction markets like AI infrastructure and data centers. Life Sciences and Spectrum both faced headwinds, but the company highlighted progress on MediBeacon regulatory approvals and Spectrum licensing initiatives, while cash rose to $134.6 million even as total debt increased to $699 million. INNOVATE (NYSE:VATE) reported higher first-quarter revenue and a narrower loss as growth in its infrastructure business offset weaker results in its Life Sciences and Spectrum segments, management said on the company’s first-quarter 2026 earnings call. Interim CEO Paul Voigt said the company delivered “a strong start to the year,” citing “solid execution across the portfolio and improving visibility into 2026.” Consolidated revenue for the quarter was $364.8 million, while adjusted EBITDA was $19.7 million. → Micron Investors Face a High-Stakes Moment After the Latest Rally CFO Mike Sena said total revenue rose 33% from $274.2 million in the prior-year period, primarily driven by the Infrastructure segment. Net loss attributable to common stockholders and participating preferred stockholders narrowed to $17.2 million, or $1.29 per fully diluted share, compared with a loss of $24.8 million, or $1.89 per fully diluted share, a year earlier. Adjusted EBITDA increased from $7.2 million in the prior-year quarter. INNOVATE’s Infrastructure segment, which includes DBM Global, generated first-quarter revenue of $357.9 million and adjusted EBITDA of $23 million. Sena said revenue increased 35.1% from $264.9 million in the prior-year quarter, driven by the timing and size of projects at DBM Global’s commercial structural steel fabrication and erection business. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? That increase was partially offset by lower activity in the industrial maintenance and repair business, where certain large construction projects active in the comparable period have since been completed. Voigt said DBM Global’s first-quarter performance reflected “consistent execution and continued strength,” with healthy sales activity, disciplined project selection and strong conversion rates. He said the company maintained adjusted backlog of $1.8 billion from the end of 2025 while increasing revenue compared with the prior-year quarter. → How Berkshire’s New York Times Bet Looks Today As of March 31, reported backlog was $1.6 billion, while adjusted backlog, including awarded but not yet signed contracts, was $1.8 billion. That compared with reported backlog of $1.7 billion and adjusted backlog of $1.8 billion at the end of 2025. Voigt said technology, healthcare and New York City opportunities were contributing to backlog levels near record highs. He also highlighted demand tied to technology-related construction markets, including artificial intelligence infrastructure, energy systems, advanced manufacturing and digital connectivity. “Technology companies are expected to continue spending at historic levels on computing infrastructure,” Voigt said, adding that DBM Global continues to see opportunities in data centers, chip makers and other specialty technology projects. DBM Global’s gross margin compressed by about 140 basis points year over year to 14.2%, while adjusted EBITDA margin was 6.4%, which Voigt said was largely consistent with the prior-year quarter. Life Sciences revenue declined 48.4% to $1.6 million from $3.1 million in the prior-year quarter. Sena said the decrease was attributable to R2, primarily due to lower Glacial FX and Glacial Rx unit sales in North America, partially offset by higher Glacial Spa unit sales outside North America. Despite the lower revenue, adjusted EBITDA losses in Life Sciences decreased. Sena said that was primarily due to fewer equity method losses recognized from MediBeacon and lower recurring selling, general and administrative expenses resulting from reduced compensation-related expenses at R2 and Pansend. The improvement was partially offset by lower gross profit at R2. Voigt said MediBeacon continued to make progress on regulatory, clinical and commercial initiatives. He said the company completed a week-long notified body quality systems audit with no observations, consistent with the Medical Device Single Audit Program. MediBeacon also received the CE mark under the European Medical Device Regulation for the TGFR Monitor and TGFR reusable sensor. MediBeacon is targeting additional approvals in Asia-Pacific markets this year in collaboration with its partner, Voigt said. He also said the company has received FDA Investigational Device Exemption approvals for several clinical efforts, including ocular angiography, the TGFR wireless sensor and a study focused on renal functional reserve. R2 reported worldwide revenue of $1.6 million in the quarter, while total demand reached $2.2 million. Voigt said the company had a backlog of approximately 160 systems globally, representing nearly $2 million in revenue, including orders received early in the second quarter. International gross system sales outside North America rose 58.6% compared with the first quarter of 2025, and R2 appointed a new distributor in South Korea, which Voigt described as an estimated $2 million opportunity. Voigt also noted that R2 is seeking external capital to continue its progress through the year. The Spectrum segment reported first-quarter revenue of $5.3 million and adjusted EBITDA of $700,000. Sena said revenue declined by $900,000 year over year and adjusted EBITDA fell by $700,000, primarily due to the termination of a few networks and individual markets after the comparable period. Voigt said Spectrum continued to face softness in advertising demand and network cancellations but added that the company was encouraged by progress on strategic initiatives. He said the NAB conference in Las Vegas produced “a meaningful number” of strategic and commercial opportunities that the company is following up on. Voigt also pointed to favorable Federal Communications Commission rulings related to low-power television and Class A stations. During an LPTV license window that opened March 19, INNOVATE filed applications for more than 60 new licenses to expand its national footprint and increase population coverage. The company also reallocated more than 25 Class A licenses from smaller markets to larger markets to improve spectrum protection and positioning for any future spectrum auctions. A collaborative project with a mobile wireless carrier continues to advance, Voigt said, with successful trials completed and discussions underway regarding new market launches in the second half of 2026. He added that a petition filed with the FCC in March proposing 5G Broadcast conversions to low-power television continues to gain industry support, though no formal FCC action has been taken. INNOVATE ended the quarter with $134.6 million in cash and cash equivalents, excluding restricted cash, compared with $112.1 million at the end of 2025. On a standalone basis, the non-operating corporate segment held $2.5 million in cash and cash equivalents, down from $4.2 million at year-end. Total principal outstanding indebtedness was $699 million as of March 31, up from $687.2 million at the end of 2025. Sena said the increase was primarily driven by payment-in-kind interest at the non-operating and Life Sciences segments, partially offset by lower debt at Infrastructure. DBM Global ended the quarter with $76.6 million in principal debt, down $11.1 million from year-end 2025, mainly due to a lower credit line balance. Voigt said INNOVATE continues to work with lenders on strategic alternatives as it focuses on addressing its capital structure. No analysts asked questions during the call’s question-and-answer session. INNOVATE Corp., through its subsidiaries, operates in infrastructure, life sciences, and spectrum areas in the United States. The Infrastructure segment provides industrial construction, structural steel, and facility maintenance services, such as fabrication and erection of structural steel and heavy steel plate services, and large-diameter water pipes and water storage tanks; fabrication of trusses and girders; and 3-D building information modeling and detailing for commercial, industrial, and infrastructure construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills, and power plants. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "INNOVATE Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Innovate Corp (NYSE:VATE) reported a 33% increase in consolidated total revenue for Q1 2026, reaching $364.8 million. The infrastructure segment showed strong performance with a 35.1% increase in revenue, driven by large construction projects. Adjusted EBITDA increased significantly to $19.7 million from $7.2 million in the prior year period. DBM Global maintained a robust backlog of $1.8 billion, indicating strong future revenue potential. MediBeacon achieved regulatory milestones, including CE mark approval for its TGFR monitor and sensor, enhancing its market access. Life Sciences segment experienced a 48.4% decrease in revenue, primarily due to lower unit sales in North America. Spectrum segment faced a decline in revenue and adjusted EBITDA due to network terminations and advertising demand softness. Net loss attributable to common stockholders was $17.2 million, though reduced from the previous year. The companys total principal outstanding indebtedness increased to $699 million, up from $687.2 million at the end of 2025. R2 is seeking external capital to continue its progress, indicating potential financial constraints. Warning! GuruFocus has detected 6 Warning Signs with VATE. Is VATE fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the performance of the Infrastructure segment, particularly DBM Global's results? A: Paul Voigt, Interim CEO, explained that DBM Global achieved first-quarter revenue of $357.9 million and adjusted EBITDA of $23 million. Despite a year-over-year gross margin compression of approximately 140 basis points to 14.2%, the adjusted EBITDA margin of 6.4% remained consistent with the prior year. The segment maintained an adjusted backlog of $1.8 billion, reflecting strong execution and a robust pipeline, particularly in technology-related construction markets such as AI infrastructure and digital connectivity. Q: How is the Life Sciences segment, specifically MediBeacon, progressing in terms of regulatory and commercial milestones? A: Paul Voigt highlighted that MediBeacon is making significant progress across regulatory, clinical, and commercial fronts. The company completed a Notified Body Quality Systems audit with no observations, received the CE mark for its TGFR monitor and sensor, and is targeting additional approvals in Asia-Pacific markets. Clinically, MediBeacon is advancing several studies, including those focused on surgical vigilance and renal functional reserve, with IDE approvals secured for various devices. Q: What are the key challenges and opportunities facing the Spectrum segment? A: Paul Voigt noted that Spectrum experienced softness in advertising demand and network cancellations, resulting in decreased revenue and adjusted EBITDA. However, strategic opportunities emerged from the NAB conference and favorable FCC rulings, allowing for expansion and optimization of the U.S. Spectrum footprint. The segment is also exploring 5G broadcast conversions and collaborating with a mobile wireless carrier for new market launches. Q: Can you elaborate on the financial performance and capital structure adjustments for the first quarter? A: Mike Sanaa, CFO, reported a consolidated total revenue increase of 33% to $364.8 million, driven by the Infrastructure segment. The net loss decreased to $17.2 million, and total adjusted EBITDA rose to $19.7 million. The company had $134.6 million in cash and cash equivalents, with total principal outstanding indebtedness of $699 million. Efforts are ongoing to work with lenders on strategic alternatives to improve the capital structure. Q: What are the future growth prospects for Innovate Corp across its segments? A: Paul Voigt expressed optimism about the company's growth prospects, citing strong momentum in Infrastructure with a focus on technology-related projects, ongoing regulatory and clinical advancements in Life Sciences, and strategic initiatives in Spectrum. The company aims to leverage these opportunities to drive long-term value creation and improve performance as market conditions stabilize. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Infrastructure: Strong first quarter results with revenue of $357.9 million - Life Sciences: MediBeacon receives the CE mark for the Transdermal GFR Monitor and Reusable Sensor- Spectrum: More than 60 new license applications filed to expand national footprint and increase population coverage NEW YORK, May 14, 2026 (GLOBE NEWSWIRE) -- INNOVATE Corp. (“INNOVATE” or the “Company”) (NYSE: VATE) announced today its consolidated results for the first quarter. Financial Summary Commentary "INNOVATE delivered a strong start to the year, with solid execution and improving visibility across the portfolio,” said Avie Glazer, Chairman of INNOVATE. “Infrastructure performed well in the first quarter, supported by healthy sales performance, strong backlog and pipeline, and continued opportunities in the technology-related construction markets that are concentrated around AI infrastructure, energy systems, advanced manufacturing, and digital connectivity. In Life Sciences, MediBeacon received CE mark approval for the Transdermal GFR Monitor and Reusable Sensor in Europe, while R2 continued to expand internationally. We also made progress in Spectrum through successful collaborative trials, supporting potential market launches in the second half of 2026." "We continue to advance our strategic priorities and strengthen the foundation of the Company,” said Paul Voigt, Interim CEO of INNOVATE. “DBM Global exited the quarter with strong momentum, supported by a robust pipeline and early progress building 2027 backlog, reinforcing confidence in sustained revenue and potential upside. In Life Sciences, MediBeacon achieved key regulatory and commercial milestones, including CE Mark approval of the Transdermal GFR Monitor and Reusable Sensor in Europe and growing momentum with key academic medical centers, while R2 continued to expand internationally. At Spectrum, despite near‑term advertising pressures, we are encouraged by progress on strategic opportunities that position the business for improved performance in 2026." First Quarter 2026 and Recent Highlights Infrastructure DBM Global Inc. ("DBMG") reported first quarter 2026 revenue of $357.9 million, an increase of 35.1%, compared to $264.9 million in the prior year quarter. Net income attributable to INNOVATE was $9.3 million, compared to $4.6 million for the prior year quarter. Adjusted EBITDA increased to $23.0 million from $16.7 million in the prior year quarter. DBMG reported gross margin of 14.2% in the first quarter, a compression of approximately 140 basis points year-over-year and Adjusted EBITDA margin of 6.4% in the first quarter, largely consistent with the prior year quarter. DBMG’s reported backlog and adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.6 billion and $1.8 billion respectively, as of March 31, 2026, compared to reported and adjusted backlog of $1.7 billion and $1.8 billion, respectively, as of December 31, 2025. DBMG delivered a strong first quarter with healthy sales execution, high conversion across active pursuits, and solid backlog visibility supporting the 2026 plan; momentum exiting the quarter, a robust and improving pipeline, and early progress building 2027 backlog underpin confidence in sustained revenue durability and potential upside, with focus now shifting from near‑term execution to disciplined capacity‑aligned growth. Life Sciences MediBeacon received the CE mark under European Medical Device Regulation for the Transdermal GFR ("TGFRTM") Monitor and TGFRTM Reusable Sensor. MediBeacon is building momentum in the United States with key academic medical centers who are beginning to bring the TGFR System into the clinic as part of the MediBeacon Centers of Excellence early access program. R2 Technologies, Inc. ("R2") reported first quarter 2026 revenue of $1.6 million. R2's demand for the first quarter reached $2.2 million, with backlog increasing to nearly 160 systems globally post quarter end. R2's gross system sales outside North America increased 58.6% over the prior year quarter, reflecting strong demand for R2's technology across international markets. Spectrum Broadcasting reported first quarter 2026 revenue of $5.3 million, compared to $6.2 million in the prior year quarter. Net loss attributable to INNOVATE was $6.5 million compared to $5.4 million in the prior year quarter. Adjusted EBITDA was $0.7 million, compared to $1.4 million in the prior year quarter. First quarter results reflect continued softness in advertising and network cancellations. Collaborative project underway with major mobile wireless carrier continues with successful trials and prospective funding for new market launches in the second half of 2026. March petition filed with the FCC proposing 5G Broadcast conversions for Low Power TV continues to gain support, but still waiting for FCC approvals. First Quarter 2026 Financial Highlights Revenue: For the first quarter of 2026, INNOVATE's consolidated revenue was $364.8 million, an increase of 33.0%, compared to $274.2 million for the prior year quarter. The increase was driven primarily by our Infrastructure segment, which was partially offset by decreases at our Life Sciences and Spectrum segments. The increase at our Infrastructure segment was primarily driven by the timing and size of projects at DBMG's commercial structural steel fabrication and erection business, which had increased activity subsequent to the comparable period on certain large construction projects. This increase was partially offset by a decrease at the industrial maintenance and repair business due to the timing and size of projects, which had increased activity in the comparable period on certain large construction projects that have since been completed. The decrease at our Life Sciences segment was attributable to R2, primarily driven by decreases in Glacial fx and Glacial Rx unit sales in North America, which were partially offset by an increase in Glacial Spa unit sales outside North America. The decrease at our Spectrum segment was primarily driven by the termination of a few networks and individual markets subsequent to the comparable period. Net Loss: For the first quarter of 2026, INNOVATE reported a Net loss attributable to common stockholders and participating preferred stockholders of $17.2 million, or $1.29 per fully diluted share, compared to $24.8 million, or $1.89 per fully diluted share, for the prior year quarter. The decrease in Net loss was primarily driven by a net increase in gross profit of $8.0 million, a decrease in loss from equity investees of $5.9 million and a $4.2 million decrease in tax expense, which was partially offset by a $4.3 million increase in interest expense, a $3.7 million decrease in other income, net and a net increase in selling, and general and administrative (“SG&A”) expenses of $1.6 million. The net increase in gross profit was primarily driven by our Infrastructure segment due to timing and size of projects in the current period, which had increased activity subsequent to the comparable period, which was partially offset by our Spectrum and Life Sciences segments due to the decreases in revenue. The decrease in loss from equity investees was due to a decrease in losses recognized from MediBeacon primarily as a result of unrepeated equity changes that resulted from the milestone payments received from Huadong following FDA approval in the comparable period. The decrease in tax expense was primarily driven by the impact of projected pre-tax results on the annual effective tax rate including as limitations on the utilization of net operating losses (“NOL”) by INNOVATE's U.S. consolidated group as a result of the Internal Revenue Code Section 382 and the Tax Cuts and Jobs Act's 80 percent limitation on NOLs incurred after 2017. The net increase in interest expense was primarily driven by our Non-Operating Corporate segment, partially offset by our Life Sciences segment, mainly due to the refinancing transactions that closed subsequent to the comparable period. The decrease in other income, net, was primarily driven by the unrepeated step-up gain following MediBeacon's FDA approval in the comparable period. The net increase in SG&A was primarily driven by our Infrastructure segment, primarily due to an increase in compensation-related expenses due to timing, as well as an increase at our Non-Operating Corporate segment primarily driven by expenses in the current period related to potential dispositions. These increases in SG&A were partially offset by a decrease in SG&A at our Life Sciences segment due to a reduction in compensation-related expenses at R2 and Pansend. Adjusted EBITDA: For the first quarter of 2026, Total Adjusted EBITDA was $19.7 million compared to Total Adjusted EBITDA of $7.2 million for the prior year quarter. The increase in Adjusted EBITDA was primarily driven by our Life Sciences and Infrastructure segments, which was partially offset by a decrease at our Spectrum segment. The increase at our Life Sciences segment was primarily driven by fewer equity method losses recognized from MediBeacon and a decrease in recurring SG&A due to a reduction in compensation-related expenses at R2 and Pansend, which was partially offset by a decrease in gross profit at R2 due to the decrease in revenue. The increase at our Infrastructure segment was primarily driven by an increase in gross profit at DBMG's commercial structural steel fabrication and erection business which had increased activity subsequent to the comparable period on certain large construction projects. The increase was partially offset by a decrease in revenue and gross profit at our industrial maintenance and repair business due to timing of certain large construction projects in the comparable period that have since been completed and an increase in recurring SG&A expenses, primarily driven by an increase in compensation-related expenses due to timing. The decrease in Adjusted EBITDA at our Spectrum segment was primarily driven by the decrease in revenue. Balance Sheet: As of March 31, 2026, INNOVATE had cash and cash equivalents, excluding restricted cash, of $134.6 million compared to $112.1 million as of December 31, 2025. On a stand-alone basis, as of March 31, 2026, our Non-Operating Corporate segment had cash and cash equivalents of $2.5 million compared to $4.2 million as of December 31, 2025. Conference Call INNOVATE will host a live conference call to discuss its first quarter 2026 financial results and operations today at 4:30 p.m. ET. The Company will post an earnings supplemental presentation in the Investor Relations section of the INNOVATE website at innovate-ir.com to accompany the conference call. Dial-in instructions for the conference call and the replay follows. Live Webcast and Call. A live webcast of the conference call can be accessed by interested parties through the Investor Relations section of the INNOVATE website at innovate-ir.com. Dial-in: 1-877-704-4453 (Domestic Toll Free) / 1-201-389-0920 (Toll/International) Conference Replay* Dial-in: 1-844-512-2921 (Domestic Toll Free) / 1-412-317-6671 (Toll/International) Conference Number: 13760214 *Available approximately three hours after the end of the conference call through May 28, 2026. About INNOVATE INNOVATE is a portfolio of best-in-class assets in three key areas of the new economy – Infrastructure, Life Sciences and Spectrum. Dedicated to stakeholder capitalism, INNOVATE employs approximately 3,700 people across its subsidiaries. For more information, please visit: www.INNOVATECorp.com. Contacts Investor Contact:Anthony [email protected](212) 235-2691 Non-GAAP Financial Measures In this press release, INNOVATE refers to certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), including Total Adjusted EBITDA (excluding discontinued operations, if applicable) and Adjusted EBITDA for its operating segments. In addition, other companies may define Adjusted EBITDA differently than we do, which could limit its usefulness. Adjusted EBITDA Management believes that Adjusted EBITDA provides investors with meaningful information for gaining an understanding of our results as it is frequently used by the financial community to provide insight into an organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation, amortization and the other items listed in the definition of Adjusted EBITDA below can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA can also be a useful measure of a company’s ability to service debt. While management believes that non-U.S. GAAP measurements are useful supplemental information, such adjusted results are not intended to replace our U.S. GAAP financial results. Using Adjusted EBITDA as a performance measure has inherent limitations as an analytical tool as compared to net income (loss) or other U.S. GAAP financial measures, as this non-U.S. GAAP measure excludes certain items, including items that are recurring in nature, which may be meaningful to investors. As a result of the exclusions, Adjusted EBITDA should not be considered in isolation and does not purport to be an alternative to net income (loss) or other U.S. GAAP financial measures as a measure of our operating performance. The calculation of Adjusted EBITDA, as defined by us, consists of Net income (loss) attributable to INNOVATE Corp., excluding: discontinued operations, if applicable; depreciation and amortization; other operating (income) loss (which is inclusive of (gain) loss on sale or disposal of assets, lease termination costs, (gains) losses on lease modifications, and asset impairment expense); interest expense; other (income) expense, net; income tax expense (benefit); non-controlling interests; share-based compensation expense; realignment and exit costs; facility commissioning costs and acquisition and disposition costs. Cautionary Statement Regarding Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, and certain oral statements made by our representatives from time to time may contain, “forward-looking statements.” Generally, forward-looking statements include information describing actions, events, results, strategies and expectations and are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions. Such forward-looking statements are based on current expectations and inherently involve certain risks, assumptions and uncertainties. The forward-looking statements in this press release include, without limitation, any statements regarding INNOVATE’s plans and expectations for future growth and ability to capitalize on potential opportunities, the achievement of INNOVATE’s strategic objectives, expectations for performance of new projects and realization of revenue from the backlog at DBMG and the Infrastructure segment, anticipated success from the continued sale of new products in the Life Sciences segment, expectations for advertising revenue growth, new technologies, networks and stations, and potential commercial opportunities in datacasting in the Spectrum segment. Such statements are based on the beliefs and assumptions of INNOVATE’s management and the management of INNOVATE’s subsidiaries and portfolio companies. The Company believes these judgments are reasonable, but these statements are not guarantees of performance, results or the creation of stockholder value and the Company’s actual results could differ materially from those expressed or implied in the forward-looking statements due to a variety of important factors, both positive and negative, including those that may be identified in subsequent statements and reports filed with the Securities and Exchange Commission (“SEC”), including in our reports on Forms 10-K, 10-Q, and 8-K. Such important factors include, without limitation: our dependence on distributions from our subsidiaries to fund our operations and payments on our obligations; our ability to continue operating as a going concern; our expectations and timing with respect to any strategic dispositions and sales of our operating subsidiaries, or businesses, including, without limitation, the sales of DBMG and HC2 Broadcasting Holdings Inc.; the possibility of indemnification claims arising out of divestitures of businesses; the impact on our business and financial condition of our substantial indebtedness and any significant additional indebtedness and other financing obligations we may incur; our possible inability to raise additional capital when needed or refinance our existing debt, on attractive terms, or at all; our dependence on the retaining and recruitment of key personnel; volatility in the trading price of our common stock; the impact of potential supply chain disruptions, labor shortages and increases in overall price levels, including in steel and transportation costs; interest rate environment; developments relating to the hostilities in Ukraine, the Middle East and Venezuela; increased competition in the markets in which our operating segments conduct their businesses; our ability to successfully identify any strategic acquisitions or business opportunities; uncertain global economic conditions in the markets in which our operating segments conduct their businesses; changes in regulations and tax laws; covenant noncompliance risk; tax consequences associated with our acquisitions, holding and disposition of target companies and assets; the ability of our operating segments to attract and retain customers; and our expectations regarding the timing, extent and effectiveness of any cost reduction initiatives and management’s ability to moderate or control discretionary spending. Although INNOVATE believes its expectations and assumptions regarding its future operating performance are reasonable, there can be no assurance that the expectations reflected herein will be achieved. These risks and other important factors discussed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. You should not place undue reliance on forward-looking statements. All forward-looking statements attributable to INNOVATE or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and unless legally required, INNOVATE undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.