NEW YORK, March 26, 2026 (GLOBE NEWSWIRE) -- INNOVATE Corp. ("INNOVATE" or the "Company") (NYSE:VATE) announced today its consolidated results for the fourth quarter and full year ended December 31, 2025.
Financial Summary
(in millions, except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
Increase / (Decrease)
2025
2024
Increase / (Decrease)
Revenue
$
382.7
$
236.6
61.7
%
$
1,246.0
$
1,107.1
12.5
%
Net loss attributable to common stockholders and participating preferred stockholders
$
(7.8
)
$
(16.9
)
53.8
%
$
(64.0
)
$
(35.8
)
(78.8
)%
Basic and Diluted loss per share attributable to common stockholders
$
(0.58
)
$
(1.29
)
55.0
%
$
(4.84
)
$
(3.08
)
(57.1
)%
Total Adjusted EBITDA(1)
$
24.5
$
15.0
63.3
%
$
67.2
$
71.3
(5.8
)%
(1) Reconciliation of GAAP to Non-GAAP measures follows
Commentary
"INNOVATE delivered strong results to close the year, delivering top line growth of 12.5% in 2025," said Avie Glazer, Chairman of INNOVATE. "Our Infrastructure segment, led by DBM Global, continues to gain momentum and is seeing meaningful activity ramp up in the New York City market. During the quarter, we added a significant amount to our backlog that now totals $1.8 billion, which further strengthens our visibility. Across Life Sciences, we continue to see consistent sales. As we announced in the fourth quarter, MediBeacon received approval from the U.S. Food and Drug Administration ("FDA") for the next generation MediBeacon® TGFRTM System and R2 continues to show accelerating international demand demonstrated by a large, multi-year minimum purchase commitment in China. And while we experienced a softened advertising market in 2025, Spectrum is poised for a more successful 2026 built on the foundation of favorable contracts with growing revenue opportunities."
"Across INNOVATE, we are advancing our strategic priorities and strengthening the foundation of the Company," said Paul Voigt, Interim CEO of INNOVATE. "DBM Global continues to demonstrate strong operation execution, translating strong 2025 bookings into a robust backlog, supporting a solid base of work for 2026. At the same time, MediBeacon officially initiated its Center of Excellence commercial rollout in the United States, which serves as a pivotal step in continuing our goal to improve kidney health. And at Spectrum, we remain encouraged by favorable FCC rulings for LPTV broadcasters and by the continued success of our collaborative trials with a major mobile wireless carrier in several major markets. These wins, combined with our continued emphasis on financial discipline and prudent capital allocation, position INNOVATE to build momentum into the coming year."
Fourth Quarter 2025 and Recent HighlightsInfrastructure
DBMG reported fourth quarter 2025 revenue of $373.9 million, an increase of 65.7%, compared to $225.7 million in the prior year quarter. Net income attributable to INNOVATE was $10.6 million, compared to $8.7 million for the prior year quarter. Adjusted EBITDA increased to $28.0 million from $17.4 million in the prior year quarter.
DBMG reported gross margin of 14.7% in the fourth quarter, a compression of approximately 350 basis points year-over-year and Adjusted EBITDA margin of 7.5% in the fourth quarter, a compression of approximately 20 basis points year-over-year.
DBMG's reported backlog and adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.7 billion and $1.8 billion respectively, as of December 31, 2025, compared to reported and adjusted backlog of $1.0 billion and $1.1 billion, respectively, as of December 31, 2024.
DBMG exited 2025 with strong operating momentum, driven by improving demand across markets and a growing backlog that reinforces visibility into future revenue.
Life Sciences
MediBeacon received approval from the U.S. FDA for the next generation MediBeacon® TGFRTM System including the latest TGFR Reusable Sensor.
MediBeacon has initiated its Center of Excellence commercial rollout, with initial TGFR system orders secured at a leading academic medical center and is expecting additional placements as inventory builds.
R2 reported fourth quarter 2025 revenue of $3.1 million, a 24.4% decrease compared to $4.1 million in the prior year quarter; however, reported full year 2025 revenue of $12.5 million, a 27.6% increase compared the prior year period.
R2's gross worldwide system unit sales decreased 19.5% in the fourth quarter of 2025 compared to the prior year quarter, however, full year 2025 gross worldwide system unit sales increased 38.2% over the prior year.
R2 restructured its distribution agreement with its China-based partner and secured a minimum purchase agreement of 600 systems over a 3-year period.
Spectrum
Broadcasting reported fourth quarter 2025 revenue of $5.7 million, compared to $6.8 million in the prior year quarter. Net loss attributable to INNOVATE was $6.1 million compared to $4.6 million in the prior year quarter. Adjusted EBITDA was $1.0 million, compared to $2.3 million in the prior year quarter.
The fourth quarter continued to see advertising revenue softness and was impacted by network cancellations.
Recent major network launches like Lionsgate's MovieSphere Gold should start to show favorable results in 2026.
Favorable FCC rulings in the last year for LPTV and Class A stations provided us with valuable UHF upgrades and major moves into new markets. Together with the new license filing window that opened on March 19th, we have sizable opportunities to expand our spectrum coverage in the US at marginal cost over the next 6-12 months. After our successful March 19th filings, we now have the opportunity to build out stations in over 40 new markets.
Joint venture underway with major mobile wireless carrier continues with successful trials in Atlanta, Las Vegas, and College Station, TX, for data delivery to smartphones over our stations.
Fourth Quarter 2025 Financial Highlights
Revenue: For the fourth quarter of 2025, INNOVATE's consolidated revenue was $382.7 million, an increase of 61.7%, compared to $236.6 million for the prior year quarter. The increase was driven primarily by our Infrastructure segment, which was partially offset by decreases at our Spectrum and Life Sciences 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, Banker Steel, and the construction modeling and detailing business, which had increased activity subsequent to the comparable period on certain large construction projects. The increases were partially offset by the timing and size of projects at the industrial maintenance and repair business, which had increased activity in the prior year on certain large commercial construction projects that were completed towards the end of 2024. The decrease at our Spectrum segment was primarily driven by the termination of certain customers. 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.
REVENUE by OPERATING SEGMENT
(in millions)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
Increase /(Decrease)
2025
2024
Increase/(Decrease)
Infrastructure
$
373.9
$
225.7
$
148.2
$
1,210.3
$
1,071.6
$
138.7
Life Sciences
3.1
4.1
(1.0
)
12.5
9.8
2.7
Spectrum
5.7
6.8
(1.1
)
23.2
25.7
(2.5
)
Consolidated INNOVATE
$
382.7
$
236.6
$
146.1
$
1,246.0
$
1,107.1
$
138.9
Net Loss: For the fourth quarter of 2025, INNOVATE reported a Net loss attributable to common stockholders and participating preferred stockholders of $7.8 million, or $0.58 per fully diluted share, compared to $16.9 million, or $1.29 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 $12.5 million and a $4.1 million decrease in tax expense, which was partially offset by a $4.4 million increase in interest expense, a $1.8 million decrease in other income, net and a net decrease in other operating income of $0.5 million. The net increase in gross profit was primarily driven by our Infrastructure segment due to timing and size of projects, which had increased activity subsequent to the comparable period on certain large construction projects, which was partially offset by our Spectrum segment due to the termination of certain customers. The decrease in tax expense was primarily driven by lower pre-tax results, as well as limitations on the utilization of net operating losses ("NOL") by INNOVATE's U.S. consolidated group in the comparable year 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 mainly due to the refinancing transactions that closed in the third quarter. The decrease in other income, net, was primarily driven by an increase in foreign currency translation losses from our Infrastructure segment. The net decrease in other operating income was primarily driven by our Infrastructure segment as a result of unrepeated gains on lease modifications.
NET INCOME (LOSS) by OPERATING SEGMENT
(in millions)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
Increase / (Decrease)
2025
2024
Increase / (Decrease)
Infrastructure
$
10.6
$
8.7
$
1.9
$
29.5
$
40.3
$
(10.8
)
Life Sciences
(3.5
)
(5.4
)
1.9
(22.2
)
(19.7
)
(2.5
)
Spectrum
(6.1
)
(4.6
)
(1.5
)
(23.5
)
(20.0
)
(3.5
)
Non-Operating Corporate
(8.3
)
(15.3
)
7.0
(44.3
)
(35.3
)
(9.0
)
Other and eliminations
(0.1
)
—
(0.1
)
(0.1
)
0.1
(0.2
)
Net loss attributable to INNOVATE Corp.
$
(7.4
)
$
(16.6
)
9.2
$
(60.6
)
$
(34.6
)
$
(26.0
)
Less: Preferred stock dividends
0.4
0.3
0.1
3.4
1.2
2.2
Net loss attributable to common stockholders and participating preferred stockholders
$
(7.8
)
$
(16.9
)
$
9.1
$
(64.0
)
$
(35.8
)
$
(28.2
)
Adjusted EBITDA: For the fourth quarter of 2025, Total Adjusted EBITDA was $24.5 million compared to Total Adjusted EBITDA of $15.0 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 at our Infrastructure segment was primarily driven by an increase in revenue and gross profit at DBMG's commercial structural steel fabrication and erection business and Banker Steel, which had increased activity subsequent to the comparable period on certain large construction projects. These increases were partially offset by the decrease in revenue and gross profit at the industrial maintenance and repair business, which had increased activity in the prior year on certain large construction projects that were completed towards the end of 2024 and an increase in recurring SG&A expenses, primarily driven by an increase in compensation-related expenses. The decrease in Adjusted EBITDA losses at our Life Sciences segment was primarily driven by a reduction in compensation-related expenses at Pansend. The decrease in Adjusted EBITDA at our Spectrum segment was primarily driven by the decrease in revenue.
ADJUSTED EBITDA by OPERATING SEGMENT
(in millions)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
Increase / (Decrease)
2025
2024
Increase/(Decrease)
Infrastructure
$
28.0
$
17.4
$
10.6
$
87.5
$
89.1
$
(1.6
)
Life Sciences
(2.2
)
(2.5
)
0.3
(16.1
)
(14.5
)
(1.6
)
Spectrum
1.0
2.3
(1.3
)
4.4
7.1
(2.7
)
Non-Operating Corporate
(2.2
)
(2.2
)
—
(8.5
)
(10.4
)
1.9
Other and eliminations
(0.1
)
—
(0.1
)
(0.1
)
—
(0.1
)
Total Adjusted EBITDA
$
24.5
$
15.0
$
9.5
$
67.2
$
71.3
$
(4.1
)
Balance Sheet: As of December 31, 2025, INNOVATE had cash and cash equivalents, excluding restricted cash, of $112.1 million compared to $48.8 million as of December 31, 2024. On a stand-alone basis, as of December 31, 2025, our Non-Operating Corporate segment had cash and cash equivalents of $4.2 million compared to $13.8 million as of December 31, 2024.
Conference Call
INNOVATE will host a live conference call to discuss its fourth quarter and full year 2025 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: 13758932
*Available approximately three hours after the end of the conference call through April 9, 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 Rozmus[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 ...
