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.
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.
Infrastructure Sets Records as Backlog Expands
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.
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.
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.
Broadcasting Refinancing and CONX Transaction
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 Declines, While Commercial Efforts Continue
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.
Cash and Debt Position
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.
About INNOVATE (NYSE:VATE)
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 contact@marketbeat.com.
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