INNOVATE Corp. Announces First Quarter 2025 Results

Core Insights - INNOVATE Corp. reported a consolidated revenue of $274.2 million for Q1 2025, a decrease of 13.0% compared to $315.2 million in Q1 2024, primarily driven by the Infrastructure segment [2][8] - The company experienced a net loss attributable to common stockholders of $24.8 million, or $1.89 per share, compared to a net loss of $17.7 million, or $2.21 per share, in the prior year [2][12] - Adjusted EBITDA for Q1 2025 was $7.2 million, down 43.8% from $12.8 million in Q1 2024, reflecting challenges in both the Life Sciences and Infrastructure segments [2][14] Infrastructure Segment - DBM Global reported Q1 2025 revenue of $264.9 million, a decrease of 14.0% from $307.9 million in the prior year [4][9] - The adjusted backlog for DBM Global increased to $1.4 billion, up from $1.0 billion as of December 31, 2024, indicating strong project acquisition [5][4] - Gross margin improved to 15.6%, an increase of approximately 110 basis points year-over-year, while adjusted EBITDA margin rose to 6.3%, an increase of approximately 40 basis points [4][5] Life Sciences Segment - MediBeacon's Transdermal GFR System received FDA approval, enhancing growth prospects in the Life Sciences segment [3][10] - R2 Technologies reported a revenue of $3.1 million, a 210% increase compared to $1.0 million in the prior year, driven by increased unit sales [10][3] - The Life Sciences segment's adjusted EBITDA was negative at $(8.7) million, a decrease from $(4.2) million in the prior year, primarily due to higher equity method losses from MediBeacon [14][12] Spectrum Segment - The Spectrum segment reported revenue of $6.2 million, slightly down from $6.3 million in the prior year [10][9] - The company is exploring commercial opportunities in datacasting, with expectations to generate revenue by the end of 2025 [10][3] Financial Performance - Total adjusted EBITDA for Q1 2025 was $7.2 million, down from $12.8 million in Q1 2024, primarily due to declines in the Life Sciences and Infrastructure segments [14][12] - The company had cash and cash equivalents of $33.3 million as of March 31, 2025, down from $48.8 million at the end of 2024 [14][30] - The total liabilities increased to $1,036.9 million as of March 31, 2025, compared to $1,034.8 million at the end of 2024 [30][31]