INNOVATE Corp. (NYSE: VATE), formerly HC2 Holdings, Inc., is a New York-based public company founded in 1994. It manages a diverse portfolio of subsidiaries across three key sectors: Infrastructure, Life Sciences, and Spectrum. The Infrastructure segment is a major contributor, offering services such as industrial construction, structural steel fabrication, and ...INNOVATE Corp. (NYSE: VATE), formerly HC2 Holdings, Inc., is a New York-based public company founded in 1994. It manages a diverse portfolio of subsidiaries across three key sectors: Infrastructure, Life Sciences, and Spectrum. The Infrastructure segment is a major contributor, offering services such as industrial construction, structural steel fabrication, and facility maintenance for projects including commercial buildings, industrial plants, and civic infrastructure like bridges and dams. It also manufactures specialized components like trusses, water pipes, and pressure vessels. The Life Sciences segment focuses on developing products for early osteoarthritis of the knee and aesthetic medical technologies for skin care. The Spectrum segment operates over-the-air broadcasting stations and the Spanish-language network Azteca America. As of the latest data, INNOVATE employs approximately 3,587 full-time employees. The company is led by Paul K. Voigt as Interim CEO. Financially, INNOVATE has a market cap of around $100.5 million, with a revenue per share of $113.36, but it has experienced net losses, reflected in negative profit margins. Key financial metrics include a debt-to-equity ratio of 3.114, indicating high leverage, and an enterprise value of $205 million. The company's stock trades on the NYSE with a beta of 2.368, showing higher volatility than the market. Despite challenges, INNOVATE remains committed to stakeholder capitalism and aims to grow its diverse business lines.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.2B
+12.5%
+15.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-60.6M
-75.1%
+163.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+14.6%
-22.5%
+39.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.7%
-24.0%
+168.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-4.9%
-55.6%
+155.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$120.5M
+1317.2%
-97.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.7%
+1181.5%
-97.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-310.9%
+22.0%
+5.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.44x
-46.0%
+11.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, and welcome to INNOVATE Corp. First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to your host, Anthony Rozmus, with Investor Relations. Please go ahead.
Anthony Rozmus: Good afternoon. Thank you for being with us to review INNOVATE's first quarter 2026 earnings results. We are joined today by Paul Voigt, INNOVATE's Interim CEO, and Mike Sena, INNOVATE's CFO. We have posted our earnings release and our slide presentation on our website at innovatecorp.com. We will begin our call with prepared remarks to be followed by a Q&A session. This call is also being simulcast and will be archived on our website. During the call, management may make certain statements and assumptions, which are not historical facts, will be forward-looking and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks, assumptions and uncertainties, and are subject to certain assumptions and risk factors that could cause INNOVATE's actual results to differ materially from these forward-looking statements. The risk factors that could cause these differences are more fully disclosed in the cautionary statement that is included in our earnings release and the slide presentation and further detailed in our 10-K and other filings with the SEC. In addition, the forward-looking statements included in this conference call are only made as of this date of the call, and as stated in our SEC reports. INNOVATE disclaims any intent or obligation to update or revise these forward-looking statements, except as expressly required by law. Management will also refer to non-GAAP financial measures such as adjusted EBITDA. We believe that these measures provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. At this point, it is my pleasure to turn things over to Paul Voigt.
Paul Voigt: Good afternoon. We are pleased to report our first quarter 2026 financial results and we'll provide you with an update on our 3 operating segments. For the first quarter, INNOVATE delivered consolidated revenues of $364.8 million and adjusted EBITDA of $19.7 million. INNOVATE delivered a strong start to the year with solid execution across the portfolio and improving visibility into 2026. Infrastructure exited the quarter with strong momentum and a healthy backlog, while life science, advanced key regulatory and commercial milestones -- at Spectrum, we continue to make progress on strategic initiatives that position the business for improved performance ahead. To start the review of the subs at infrastructure, DBM Global achieved the first quarter revenue of $357.9 million and adjusted EBITDA of $23 million. During the quarter, DBM has seen gross margin compression …
