INNOVATE Corp.

INNOVATE reported first-quarter 2026 consolidated revenue of $364.8 million, up 33% from $274.2 million a year ago, and adjusted EBITDA of $19.7 million versus $7.2 million. Net loss attributable to common and participating preferred stockholders narrowed to $17.2 million, or $1.29 per fully diluted share, from $24.8 million, or $1.89 per share. Infrastructure revenue increased 35.1% to $357.9 million and adjusted EBITDA rose to $23 million; gross margin at DBM Global compressed about 140 basis points year over year to 14.2%, though adjusted EBITDA margin was 6.4%, roughly in line with last year. Life Sciences revenue fell 48.4% to $1.6 million, and Spectrum revenue declined to $5.3 million. For balance sheet items, cash and equivalents were $134.6 million at March 31, 2026, and total principal outstanding indebtedness was $699 million. Management did not provide explicit next-quarter or full-year financial guidance on the call; instead, it pointed to improving visibility into 2026, continued backlog momentum at Infrastructure, external capital needs at R2, and ongoing strategic alternatives for the overall capital structure.

Paul Voigt framed the quarter as a solid start to the year with improved visibility into 2026 and strength concentrated in Infrastructure. He emphasized DBM Global’s healthy backlog, strong sales activity, and growing opportunities tied to technology-related construction such as data centers, chipmakers, AI infrastructure, energy systems, advanced manufacturing, and digital connectivity. On Life Sciences, he highlighted continued progress across regulatory, clinical, and commercial fronts, including CE mark and multiple IDE approvals for MediBeacon. For Spectrum, he acknowledged near-term softness but pointed to regulatory tailwinds, license expansion opportunities, and carrier trial progress as reasons for longer-term optimism, while also saying the team is focused on fixing the capital structure.

Mike Sena detailed that consolidated revenue increased 33% to $364.8 million and adjusted EBITDA rose to $19.7 million, with the year-over-year improvement driven mainly by Infrastructure and Life Sciences, partly offset by Spectrum. He said Infrastructure revenue grew 35.1% to $357.9 million and adjusted EBITDA increased to $23 million, while reported backlog was $1.6 billion and adjusted backlog was $1.8 billion as of March 31, 2026. He also noted DBMG debt of $76.6 million, down $11.1 million from year-end 2025, but total company principal debt increased to $699 million, mainly from PIK interest at nonoperating and Life Sciences. Cash and equivalents were $134.6 million at quarter-end, up from $112.1 million at December 31, 2025.

No analyst questions were included in the transcript, so there was no Q&A content to summarize. The only notable management commentary outside prepared remarks was the reminder that the company is working with lenders on strategic alternatives and will provide more information as it executes that strategy. Management also reiterated that R2 is seeking external capital to continue its progress through the year.