INNOVATE : Earnings Presentation (Q1 2026 Earnings Webcast FINAL)

Published: 2026-05-14 16:14:24 ET VATE

Published on 05/14/2026 at 04:14 pm EDT

May 14, 2026

Non-GAAP Financial Measures

In this earnings release supplement, 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.

Third Party Sources

Third party information presented in this earnings release supplement is based on sources we believe to be reliable; however, there can be no assurance information so presented will prove accurate in whole or in part.

DBMG delivered a strong first quarter; MediBeacon receives the CE mark for the

Transdermal GFR Monitor and Reusable Sensor; R2 grew gross system sales outside North America; Spectrum filed more than 60 new license applications to expand national footprint

DBM Global Inc.'s ("DBMG") adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.8 billion in the first quarter.

MediBeacon received the CE mark under European medical device regulation for the Transdermal GFR Monitor and Reusable Sensor.

R2 Technologies, Inc. ("R2") grew gross system sales outside of North America by 58.6% over the prior

year quarter, illustrating strong demand for R2's technology in international markets.

Spectrum reported first quarter revenue of $5.3 million and Adjusted EBITDA of $0.7 million.

Infrastructure Highlights

Reported backlog of $1.6B and total

Life Sciences Highlights Spectrum Highlights

Collaborative project with major

adjusted backlog(1) of $1.8B.

Solid backlog visibility supporting the 2026 plan and underpins confidence into 2027.

Year-to-date revenue of $357.9M.

MediBeacon received the CE mark under European medical device regulation for the Transdermal GFR Monitor and Reusable Sensor.

Reported 1Q26 revenue of $1.6 million.

Demand for R2's technology continues to grow across international markets.

Backlog of ~160 units globally.

mobile wireless carrier continues

with successful trials.

Petition filed with the FCC proposing 5G Broadcast conversions for Low Power TV continues to gain support.

Revenue

($ millions) 1Q26 1Q25

$ 357.9

$ 264.9

1.6

3.1

5.3

6.2

Infrastructure Life Sciences Spectrum

Net income (loss) Attrib. to INNOVATE Corp. & Adjusted EBITDA

Consolidated INNOVATE $ 364.8 $ 274.2

1Q26 1Q25

NI(1) Adjusted EBITDA(2)

$ 9.3 $

23.0

$ 4.6 $

16.7

(3.3) (2.0)

(7.6) (8.7)

(6.5)

0.7

(5.4)

1.4

(16.3) (2.0)

(16.1) (2.2)

($ millions) Infrastructure Life Sciences Spectrum

Non-Operating Corporate

Other & Eliminations

Consolidated INNOVATE $ (16.8) $ 19.7 $ (24.5) $ 7.2

Net income (loss) attributable to INNOVATE Corp.

See Appendix for reconciliation of Non-GAAP to U.S. GAAP.

Adjusted backlog takes into consideration awarded, but not yet signed contracts.

Consolidated Q1 Results

Revenue increased $90.6M or 33.0% 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, which 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 Technologies, 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 attributable to INNOVATE Corp. of $16.8M

Adjusted EBITDA(2) increased by $12.5M to $19.7M primarily driven by our Life Sciences and Infrastructure segments, which was partially offset by a decrease at our Spectrum segment.

Infrastructure

Net Income of $9.3M(1)

Adjusted EBITDA(2) up $6.3M over the prior year quarter 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.

Reported backlog and adjusted(3) backlog of $1.6B and $1.8B, respectively, compared to reported backlog and adjusted(3) backlog of $1.7B and

$1.8B, respectively, at December 31, 2025.

Life Sciences

Revenue of $1.6M attributable to R2, which decreased $1.5M or 48.4%, 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.

Adjusted EBITDA(2) losses down $6.7M from the prior year quarter 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.

Spectrum

Net loss of $6.5M(1)

Adjusted EBITDA(2) decreased by $0.7M from the prior year quarter, primarily driven by the termination of a few networks and individual markets subsequent to the comparable period.

Non-Operating Corporate

First Quarter Consolidated Revenue and Adjusted EBITDA(2) of $364.8 million and $19.7 million, respectively

Adjusted EBITDA(2) losses decreased slightly by $0.2M year-over-year.

INNOVATE Corp. 2026 6

Segment Highlights - Infrastructure

DBM Global ("DBMG")

Overview

Financials

($ millions)

1Q26

1Q25

business, which had increased activity subsequent to the comparable

period on certain large construction projects, which was partially offset by

Revenue

$ 357.9

$ 264.9

a decrease at the industrial maintenance and repair business due to the

timing and size of projects, which had increased activity in the

Net Income(1)

$ 9.3

$ 4.6

comparable period on certain large construction projects that have since

Adjusted EBITDA (2)

$ 23.0

$ 16.7

35.1% revenue increase primarily driven by the timing and size of projects at DBMG's commercial structural steel fabrication and erection

been completed.

Adjusted EBITDA(2) increase 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. This 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.

Reported backlog and adjusted backlog, which takes into consideration awarded but not yet signed contracts, of $1.6B and $1.8B, respectively.

Near-Term Focus

Trending Backlog

($ millions)

~$1,787.2

Convert backlog to revenue while assessing additional opportunities to add to backlog in the commercial and industrial sectors as they come to market.

Maintain strong momentum with the robust and improving pipeline throughout 2026.

Net income attributable to INNOVATE Corp.

See Appendix for reconciliation of Non-GAAP to U.S. GAAP.

Adjusted backlog takes into consideration awarded, but not yet signed contracts. All data as of March 31, 2026 unless otherwise noted.

INNOVATE Corp. 2026 7

Segment Highlights - Life Sciences

Pansend Life Sciences ("Pansend")

MediBeacon

R2 Technologies, Inc. ("R2")

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 gross system sales outside North America increased 58.6% over the prior year quarter, reflecting strong demand for R2's technology across international markets.

Continues to make steady traction in exploring the potential application for transdermal GFR monitoring system with clinicians in hospitals and other settings.

MediBeacon received the CE mark under European medical device regulation for the Transdermal GFR Monitor and Reusable Sensor.

R2 Trending Revenue ($ millions) Summary of Investments(1)

Company

Investment to Date

Equity %

Fully Diluted %

R2 Technologies(2)

$72.3M

80.8%

73.0%

MediBeacon

$38.0M

44.6%

39.4%

Genovel

$4.2M

80.0%

75.2%

Triple Ring

$0.9M

7.2%

1.6%

Scaled Cell Solutions

$0.9M

20.1%

Investment-to-date totals and equity ownership percentages are as of March 31, 2026.

R2 fully diluted ownership percentage does not take into account the potential conversion of notes into Series E or F preferred shares.

INNOVATE Corp. 2026 8

Segment Highlights - Spectrum

HC2 Broadcasting ("Broadcasting")

Overview

Financials

($ millions)

1Q26

1Q25

opportunities, supported by strong industry interest following NAB and ongoing collaboration with a major mobile wireless partner.

Revenue

$ 5.3

$ 6.2

Net Loss(1)

$ (6.5)

$ (5.4)

and optimize its footprint, including applications for 60+ new LPTV

licenses and strategic repositioning of over 25 Class A stations.

Adjusted EBITDA (2)

$ 0.7

$ 1.4

Spectrum continues to drive engagement and expand commercial

Recent FCC tailwinds have enabled Spectrum to actively grow

Spectrum's filed petition with the FCC to enable voluntary 5G Broadcast conversion continues to gain traction, reinforcing its leadership in next-gen broadcast technology and supporting a path toward improved performance as market conditions normalize, however, no formal action has been taken by the FCC.

Near-Term Focus

Continue to make progress with commercial opportunities.

Operating Stations Mix

1Q26

Build on momentum toward recovery by expanding spectrum footprint and leveraging regulatory tailwinds.

Low Power Television ("LPTV") 202

Class A stations 53

Full-Power stations 3

Total Operating Stations 258

Approximate MHz POPs 2.7 Billion

Net loss attributable to INNOVATE Corp.

See Appendix for reconciliation of Non-GAAP to U.S. GAAP.

INNOVATE Corp. 2026 9

Debt Summary(1)

(2)

($ millions)

$ millions) Maturity

Mar-26

Dec-25

10.50% Senior Secured Notes

2027

$ 379.3

$ 360.4

9.50% Convertible Senior Notes

2027

56.0

53.5

CGIC Promissory Note

2027

47.8

45.9

Revolving Line of Credit

2026

20.0

8.50% Senior Secured Notes

2026

1.9

7.50% Convertible Senior Notes

2026

0.2

Infrastructure Debt

2030

76.6

87.7

Spectrum Debt

2026

69.7

Life Sciences Debt

2026

49.4

47.9

Total Principal Outstanding

$ 699.0

$ 687.2

Unamortized OID and DFC

(19.4)

(25.5)

Total Debt

$ 679.6

$ 661.7

Cash & Cash Equivalents(3)

134.6

112.1

Net Debt

$ 545.0

$ 549.6

(

Debt Maturity Profile excludes Preferred Stock and operating leases

Debt Amortization and Maturity Profile chart presents debt annual amortization and maturity payments, excluding exit fees and interest payments.

Excludes restricted cash

INNOVATE Selected GAAP Financials

Income Statement - Unaudited

(in millions) Three Months Ended March 31,

2026

2025

Revenue

364.8

274.2

Cost of revenue

311.3

228.7

Gross profit

53.5

45.5

Operating expenses:

Selling, general and administrative

39.4

37.8

Depreciation and amortization

4.2

4.4

Other operating income

(0.1)

Income from operations

10.0

3.4

Other (expense) income:

Interest expense

(24.5)

(20.2)

Loss from equity investees

(5.9)

Other income, net

0.3

4.0

Loss from operations before income taxes

(14.2)

(18.7)

Income tax expense

(2.9)

(7.1)

Net loss

(17.1)

(25.8)

Net loss attributable to non-controlling interests and redeemable non-controlling interests

0.3

1.3

Net loss attributable to INNOVATE Corp.

(16.8)

(24.5)

Less: Preferred stock dividends

0.4

0.3

Net loss attributable to common stockholders and participating preferred stockholders

$ (17.2)

(24.8)

Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA

(in millions) Three Months Ended March 31, 2026

Infrastructure

Life Sciences

Spectrum

Corporate

Eliminations

INNOVATE

Net income (loss) attributable to INNOVATE Corp.

$ 9.3

$ (3.3)

$ (6.5)

$ (16.3)

$ - $

(16.8)

Adjustments to reconcile net income (loss) to Adjusted EBITDA:

Depreciation and amortization

2.9

0.1

1.2

4.2

Depreciation and amortization (included in cost of revenue)

3.2

Other operating income

(0.1)

Interest expense

1.8

1.9

4.0

16.8

24.5

Other (income) expense, net

(0.1)

2.5

(2.7)

(0.3)

Income tax expense (benefit)

4.1

(1.2)

2.9

Non-controlling interests

0.9

(0.8)

(0.4)

(0.3)

Share-based compensation expense

0.1

0.5

0.6

Realignment and exit costs

0.3

Facility commissioning costs

0.6

Acquisition and disposition costs

0.9

Adjusted EBITDA

$ 23.0

$ (2.0)

$ 0.7

$ (2.0)

$ - $

19.7

Non-Operating

Other and

Reconciliation of U.S. GAAP Income (Loss) to Adjusted EBITDA

(in millions) Three Months Ended March 31, 2025

Infrastructure

Life Sciences

Spectrum

Corporate

Eliminations

INNOVATE

Net income (loss) attributable to INNOVATE Corp.

$ 4.6

$ (7.6)

$ (5.4)

$ (16.1)

$ - $

(24.5)

Adjustments to reconcile net income (loss) to Adjusted EBITDA:

Depreciation and amortization

3.1

0.1

1.2

4.4

Depreciation and amortization (included in cost of revenue)

3.5

Other operating income

(0.1)

Interest expense

2.1

4.5

3.7

9.9

20.2

Other (income) expense, net

(0.3)

(4.5)

2.2

(1.4)

(4.0)

Income tax expense

2.3

4.8

7.1

Non-controlling interests

0.4

(1.4)

(0.3)

(1.3)

Share-based compensation expense

0.2

0.6

0.8

Realignment and exit costs

1.1

Adjusted EBITDA

$ 16.7

$ (8.7)

$ 1.4

$ (2.2)

$ - $

7.2

Non-Operating

Other and

INNOVATE Corp. 2026

Disclaimer

Innovate Corporation published this content on May 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2026 at 20:13 UTC.