Innovate Third-Quarter Revenue Rises 42.8% Ahead of DBM Global Sale

The Tip Desk · November 12, 2026 · 3 min read

The holding company booked $495.5 million of third-quarter revenue and $1.10 a share of diluted earnings before closing the sale of its steel-fabrication unit.

INNOVATE Corp. (VATE) reported third-quarter 2026 revenue of $495.5 million, up 42.8% from a year earlier. The holding company completed the sale of DBM Global to IES Holdings on October 5, 2026, shortly after the third quarter ended, and said it intends to use all net proceeds to reduce outstanding debt.

Sellers received about $413 million in cash at closing, including $35 million to cover costs tied to a Section 338 joint tax election, plus 430,974 shares of IES common stock. The purchase price remains subject to post-closing adjustments. The transaction triggered repayment or other payment obligations under the company’s revolving line of credit, 10.50% senior secured notes due 2027 and 9.50% convertible senior secured notes due 2027.

Consolidated revenue for the three months ended September 30, 2026 was $495.5 million, up 42.8% from $347.1 million a year earlier. Year-over-year growth slowed from the second quarter, when revenue rose 74.2% to $421.6 million. Net income attributable to common stockholders and participating preferred stockholders was $15.8 million, or $1.10 a share on a diluted basis, compared with a $9.4 million loss, or $0.71 a share, a year earlier. Total Adjusted EBITDA was $40.5 million.

Infrastructure, which was effectively DBM Global, generated $490.6 million of revenue, up 45.0% from $338.4 million a year earlier, after a 77.6% year-over-year increase to $414.0 million in the second quarter. Infrastructure Adjusted EBITDA was $43.6 million. The company said the increase was driven primarily by the timing and size of projects at DBM Global’s commercial structural steel fabrication and erection business, which had increased activity on certain large construction projects, as well as an increase at its industrial maintenance and repair business. Infrastructure net income attributable to INNOVATE was $25.2 million.

The company attributed the swing to a $32.9 million gain on sale of the controlling interest in Broadcasting, a $27.2 million net increase in gross profit, primarily at Infrastructure, and a $3.1 million decrease in depreciation and amortization after Infrastructure and Spectrum were classified as held for sale. Those items were partially offset by a $10.3 million deemed dividend on R2’s preferred stock, a $10.0 million increase in tax expense, a $7.7 million increase in interest expense and a $5.8 million net increase in selling, general and administrative expenses.

On September 1, 2026, INNOVATE completed the sale of its controlling interest in HC2 Broadcasting to CONX Corp. CONX now owns 75% of HC2 Broadcasting; INNOVATE retains 25%. Spectrum reported $3.7 million of revenue, reflecting two months of consolidated Spectrum activity versus three months a year earlier. Spectrum net income attributable to INNOVATE was $25.9 million, including the $32.9 million gain on sale. Spectrum Adjusted EBITDA was $0.3 million.

Life Sciences revenue was $1.2 million. The company attributed the decline to R2, citing decreases in unit sales across all product lines and regions due to liquidity constraints. R2’s demand for the quarter reached $3.1 million, with backlog of 116 systems globally at quarter-end. MediBeacon expanded engagement to more than 120 U.S. medical institutions and ordered 600 TGFR Monitors for China, with shipments planned from the fourth quarter of 2026 through the second quarter of 2027.

DBM Global’s reported backlog was $2.6 billion and adjusted backlog $2.7 billion as of September 30, 2026. Cash and cash equivalents, excluding restricted cash and cash held for sale, were $4.9 million as of September 30, 2026.

Chairman Avie Glazer said the transactions mark progress in efforts to unlock asset value, generate funds to help address coming debt repayment and redemption obligations, and simplify the portfolio. Interim CEO Paul Voigt said the company’s focus now turns to opportunities within the remaining portfolio, addressing liquidity and maximizing value for shareholders.