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Here are a few brief analogies to describe Innovate (VATE):

• A mini-Berkshire Hathaway, holding diverse investments in heavy construction, life sciences, and broadcast media.

• Imagine a scaled-down 3M or General Electric, with a unique portfolio spanning heavy industrial construction, medical technology, and broadcast media.

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• Industrial and Infrastructure Construction Services: Provides comprehensive services including industrial construction, structural steel fabrication, facility maintenance, digital engineering, and BIM modeling for diverse projects.
• Specialized Fabrication: Fabricates large-scale components such as trusses, girders, water pipes, storage tanks, tunnel liners, and pressure vessels.
• Heavy Equipment & Industry Solutions: Supplies equipment and offers integrated solutions for the oil, gas, petrochemical, and pipeline industries.
• Life Sciences Products: Develops products for early osteoarthritis of the knee and offers aesthetic and medical technologies for skin treatment.
• Broadcasting and Media Services: Operates over-the-air broadcasting stations and manages Azteca America, a Spanish-language broadcast network.

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1. Commercial, Industrial, and Infrastructure Project Owners, Developers, and Contractors: This category includes various entities undertaking large-scale construction and infrastructure projects. Innovate provides services for projects such as:

• Buildings and office complexes, hotels, casinos, convention centers, sports arenas, stadiums, shopping malls, and hospitals.
• Dams, bridges, mines, metal processing facilities, refineries, pulp and paper mills, and power plants.
• Companies in the oil, gas, petrochemical, and pipeline industries.

2. Healthcare Providers and Distributors: For its life sciences segment, Innovate develops products for early osteoarthritis of the knee and aesthetic and medical technologies for the skin. These products are typically sold to:

• Hospitals, clinics, dermatologists, and other medical practices.
• Distributors of medical devices and aesthetic technologies.

3. Advertisers: Innovate's spectrum segment operates over-the-air broadcasting stations and the Azteca America Spanish-language broadcast network. The customers for this segment are businesses that purchase advertising time and services to reach their target audiences.

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Paul K. Voigt, Interim Chief Executive Officer

Paul K. Voigt was named Interim Chief Executive Officer of INNOVATE Corp. effective July 25, 2023. Prior to this role, he served as Senior Managing Director of Investments at Lancer Capital starting in 2019. From 2014 to 2018, Mr. Voigt was Senior Managing Director of Investments at INNOVATE (formerly HC2), where he was instrumental in capital raising and transaction sourcing. His earlier career includes serving as Executive Vice President on the sales and trading desk at Jefferies from 1996 to 2013 and as Managing Director on the high yield sales desk at Prudential Securities from 1988 to 1996. Mr. Voigt earned a B.S. in electrical engineering from the University of Virginia and an MBA from the University of Southern California.

Michael J. Sena, Chief Financial Officer, Corporate Secretary

Michael J. Sena serves as the Chief Financial Officer and Corporate Secretary for INNOVATE Corp. He has held the position of Director of Finance/CFO since May 31, 2015. Mr. Sena is actively involved in the company's financial operations, including discussions on earnings calls regarding revenue and adjusted EBITDA for segments like Infrastructure, and refinancing transactions to extend debt maturities.

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The key risks to Innovate (VATE) include significant liquidity concerns and upcoming debt maturities, the cyclical and margin-pressured nature of its infrastructure business, and challenges in divesting non-core assets and the declining performance of its spectrum segment.

1. Liquidity and Debt Maturity Risk: Innovate Corp. faces substantial liquidity challenges and a highly leveraged capital structure. S&P Global Ratings downgraded the company's credit rating, citing weak liquidity and concerns about its ability to fund interest payments on corporate debt, with significant maturities looming in 2025 and 2026. More recently, in March 2026, S&P Global Ratings further lowered Innovate's rating to 'CCC-', indicating an elevated risk of a near-term default or distressed exchange due to limited financial flexibility and insufficient liquidity to meet upcoming obligations. The company has initiated a formal sale process for DBM Global, its key operating subsidiary, to comply with debt covenants, and there is uncertainty whether the proceeds from this sale would be sufficient to cover all of Innovate's outstanding debt obligations.
2. Economic Sensitivity, Cyclicality, and Margin Compression in the Infrastructure Segment: Innovate's Infrastructure business, primarily DBM Global, is susceptible to revenue fluctuations influenced by project timing and broader economic cycles. This segment experienced revenue decreases in Q1 and Q2 2025. Despite a strong project backlog, the segment has reported gross margin compression, indicating pressure on profitability within its core operations.
3. Challenges in Divesting Non-Core Assets and Declining Performance in the Spectrum Segment: Innovate is actively pursuing an exit strategy for its Life Sciences segment, which, despite having FDA-approved products and growth from a small base, is considered a non-core asset. Regulatory and market pressures could potentially depress the sale price or prolong the divestiture process. Additionally, the Spectrum segment continues to grapple with a challenging advertising environment, impacting its financial performance.

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For Innovate's spectrum/media segment (over-the-air broadcasting stations and Azteca America, a Spanish-language broadcast network), the clearest emerging threat is the continued growth and dominance of digital streaming services and online content platforms. These services compete directly for viewers and advertising revenue, leading to cord-cutting and a fundamental shift in media consumption habits away from traditional linear television broadcasting.

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The addressable markets for INNOVATE Corp.'s main products and services are primarily within the U.S. and can be sized as follows:

Infrastructure

• Industrial Building Construction: The U.S. Industrial Building Construction Market was valued at approximately USD 43.8 billion in 2024.
• Commercial Construction: The U.S. commercial construction market size is estimated at USD 567.05 billion in 2026.
• Structural Steel Fabrication: The U.S. structural steel market generated a revenue of approximately USD 7.6 billion in 2024. The broader Fabricated Structural Metal Manufacturing market in the U.S. was approximately USD 65.4 billion in 2024.
• Facility Management Services: The United States facility management market was valued at approximately USD 365.93 billion in 2025.

Life Sciences

• Early Osteoarthritis of the Knee Treatments: The U.S. knee osteoarthritis market size reached approximately USD 4.7 billion in 2023.
• Aesthetic and Medical Technologies for the Skin: The U.S. medical aesthetics market is projected to reach USD 16.38 billion by 2030, growing from USD 7.62 billion in 2024.

Spectrum

• Over-the-Air Broadcasting Stations: The U.S. television broadcast industry, including networks and individual stations, had combined annual revenue of about USD 60 billion.
• Spanish-Language Broadcast Network (Azteca America): While a specific market size for Spanish-language broadcast networks is not distinctly separated from the broader broadcasting market, advertising revenue for linear Spanish-language networks in the U.S. reached approximately USD 1.5 billion between October 2021 and July 2022. The larger U.S. Television Services market was USD 117.68 billion in 2024.

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1. Continued Expansion of Life Sciences Segment through R2 Technologies' Glacial Systems

Growth in the Life Sciences segment is anticipated to be driven by the increasing sales and global expansion of R2 Technologies' Glacial systems, particularly the Glacial fx system. The company has reported strong increases in North American system sales, with significant year-over-year growth in 2023. Additionally, R2 Technologies is expanding its global reach, having received market approvals in new territories such as Saudi Arabia and the UAE. This expansion, coupled with a substantial increase in market awareness, social media impressions, provider location searches, and lead generation, is expected to fuel further sales of Glacial systems and consumables.

2. Conversion and Growth of Infrastructure Segment's Backlog and New Project Opportunities

The Infrastructure segment, primarily through DBM Global, is poised for revenue growth due to its expanding adjusted backlog. DBM Global's adjusted backlog, which includes awarded but not yet signed contracts, has shown significant growth, increasing by approximately $500 million to over $1.6 billion since the end of 2024. This substantial backlog indicates a pipeline of future revenue. The company also expects opportunities in industrial and modularization sectors of the market, as well as continued activity in large commercial construction projects and commercial structural steel fabrication and erection businesses.

3. Strategic Network Launches and Commercialization of ATSC 3.0 in the Spectrum Segment

The Spectrum segment is expected to contribute to revenue growth through strategic network launches and the commercial application of ATSC 3.0 technology. Recent initiatives include the January 1st network launches of The 365 and Outlaw, along with subsequent launches of new sports networks like Outdoor America, MTRSPT1, and SPEED SPORT TV. Furthermore, the company is engaging in operating and revenue share agreements with Public Broadcast stations to provide "lighthousing" and commercial applications for ATSC 3.0, driving increased network distribution revenues.

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Share Repurchases

• Innovate (VATE) reported no share buybacks for both 2025 and 2026.

Share Issuance

• Innovate Corp. conducted a $19.0 million rights offering for its common stock, announced in February 2024 and extended through April 2024.
• A 1-for-10 reverse stock split for Innovate's common stock became effective on August 2, 2024, reclassifying every ten shares into one new share.
• The number of outstanding shares decreased from approximately 77.8 million in early 2022 to about 13.3 million as of February 2026, primarily due to the reverse stock split.

Inbound Investments

• The company's $19.0 million rights offering in 2024 was backstopped by Lancer Capital LLC, an investment fund led by Avram A. Glazer, who is also the Chairman of Innovate's Board and its largest stockholder.

Outbound Investments

• Innovate operates as a diversified holding company with key segments including Infrastructure (DBM Global), Life Sciences (Pansend), and Spectrum (HC2 Broadcasting).
• In December 2025, MediBeacon® Next Generation TGFR™ System, a product from its Pansend Life Sciences segment, received FDA approval.
• Azteca América, part of Innovate's Spectrum segment, ceased operations in October 2022.

Capital Expenditures

• Innovate (VATE) reported $0 in Capital Expenditures for both 2025 and 2026.