INNOVATE Corp. Q3 2025 Earnings Release Supplement November 12, 2025 INNOVATE Corp. 2025 Safe Harbor Disclaimers Cautionary Statement Regarding Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and certain oral statements made by our representatives from time to time may contain, "forward-looking statements." Generally, forward-looking statements include information describing actions, events, results, strategies and expe ...

Financial Performance - INNOVATE Corp's Q2 2025 consolidated revenue was $242 million[16], a decrease of $71.1 million or 22.7% compared to Q2 2024[21] - The company reported a net loss attributable to INNOVATE Corp of $198 million in Q2 2025[17] - Adjusted EBITDA for Q2 2025 was $157 million[20], a decrease of $11 million compared to Q2 2024[21] Segment Performance - Infrastructure (DBMG) - Infrastructure segment revenue decreased to $2331 million in Q2 2025 from $3052 million in Q2 2024[16], a 236% decrease[25] - Infrastructure segment's adjusted EBITDA decreased by $132 million year-over-year[21] to $193 million[17] - DBMG's adjusted backlog remained strong at $13 billion in Q2 2025[12] Segment Performance - Life Sciences (R2 Technologies) - Life Sciences segment revenue increased to $32 million in Q2 2025 from $17 million in Q2 2024[16], an 882% increase[12, 21] - R2 Technologies experienced gross system unit sales growth of 1245% over the prior year quarter worldwide[30] Segment Performance - Spectrum - Spectrum segment revenue decreased to $57 million in Q2 2025 from $62 million in Q2 2024[16] - Spectrum segment reported adjusted EBITDA of $10 million in Q2 2025[12, 17] Debt and Refinancing - On August 4, 2025, INNOVATE closed a series of indebtedness refinancing transactions[12] - Total principal outstanding debt as of June 2025 was $6413 million[35]

Core Viewpoint - INNOVATE Corp. announced that its subsidiary DBM Global Inc. will pay a cash dividend of approximately $4.4 million, or $1.14 per share, to its stockholders on August 21, 2025, with INNOVATE expected to receive around $4 million of this payout [1] Company Overview - INNOVATE Corp. operates a portfolio of assets in three key areas: Infrastructure, Life Sciences, and Spectrum, employing approximately 3,100 people across its subsidiaries [2] - DBM Global Inc. specializes in integrated steel construction services and offers a range of professional services including design-assist, engineering, and project management, serving various market segments such as commercial, healthcare, and public works [3]

Core Points - DBM Global Inc. will pay a cash dividend of approximately $5.5 million, or $1.42 per share, on June 16, 2025, to stockholders of record as of June 2, 2025 [1] - DBM Global Inc. is a family of companies providing fully integrated steel construction services and is an operating subsidiary of INNOVATE Corp. [1][2] Company Overview - DBM Global Inc. focuses on delivering sustainable value through a collaborative portfolio of companies that offer better designs, efficient construction, and superior asset management solutions [2] - The company provides integrated steel construction services, including design-assist, design-build, engineering, detailing, BIM coordination, steel modeling/detailing, fabrication, rebar detailing, advanced field erection, project management, and steel management systems [2] - Major market segments for DBM Global Inc. include commercial, healthcare, convention centers, stadiums, gaming and hospitality, mixed-use and retail, industrial, public works, bridges, transportation, and international projects [2] - The company is headquartered in Phoenix, Arizona, and has operations in the United States, Australia, Canada, India, New Zealand, the Philippines, and the United Kingdom [2]

Core Points - INNOVATE Corp. announced that its subsidiary DBM Global Inc. will pay a cash dividend of approximately $5.5 million, or $1.42 per share, to stockholders on June 16, 2025 [1] - As the largest stockholder of DBMG, INNOVATE expects to receive around $5 million from the total dividend payout [1] - Individual stockholders of INNOVATE are not eligible to receive the cash dividend [1] Company Overview - INNOVATE Corp. operates in three key areas of the new economy: Infrastructure, Life Sciences, and Spectrum, employing approximately 3,100 people across its subsidiaries [2] - DBM Global Inc. focuses on delivering sustainable value through integrated steel construction services and professional services, with operations in multiple countries including the United States, Australia, Canada, India, New Zealand, the Philippines, and the United Kingdom [3]

Group 1 - DBM Global Inc. has entered into an amended and restated credit agreement providing for an $85 million term loan and a $135 million revolving credit facility, aimed at repaying existing debt and enhancing working capital capacity [1][2] - The total amount of the Credit Facility is $220 million, maturing on May 20, 2030, with an accordion feature allowing an increase of up to $50 million [2] - The CEO of DBMG expressed enthusiasm about the relationship with banking partners and highlighted the liquidity support for the company's working capital needs [3] Group 2 - DBM Global Inc. focuses on delivering sustainable value through a collaborative portfolio of companies, offering integrated steel construction services and professional services across various market segments [4] - The company operates in multiple countries, including the United States, Australia, Canada, India, New Zealand, the Philippines, and the United Kingdom [4]

Core Viewpoint - INNOVATE Corp. announced that DBM Global Inc. has secured an $85 million term loan and a $135 million revolving credit facility to repay existing debts and enhance working capital capacity [1][2]. Group 1: Credit Facility Details - The total amount of the Credit Facility is $220 million, maturing on May 20, 2030, with an accordion feature allowing an increase of up to $50 million [2]. - The Credit Facility is provided by a syndicate led by UMB Bank, N.A., and is classified as senior secured debt [2]. Group 2: Management Insights - Rustin Roach, Chairman and CEO of DBMG, expressed excitement about the relationship with banking partners and highlighted the liquidity support for working capital requirements [3]. - Paul Voigt, interim CEO of INNOVATE, noted that the Credit Facility will provide long-term flexibility and support continued growth, especially after DBMG added over $500 million in new awards to their adjusted backlog last quarter [4]. Group 3: Company Overview - INNOVATE Corp. operates in three key areas: Infrastructure, Life Sciences, and Spectrum, employing approximately 3,100 people across its subsidiaries [4]. - DBM Global Inc. focuses on delivering sustainable value through a collaborative portfolio, offering integrated steel construction services and professional services across various market segments, including commercial, healthcare, and public works [5].

Financial Performance - Consolidated INNOVATE reported Q1 2025 revenue of $274.2 million, a decrease of $41.0 million or 13% compared to $315.2 million in Q1 2024[17, 22] - Net loss attributable to INNOVATE Corp was $24.5 million in Q1 2025[18, 22, 41] - Adjusted EBITDA decreased by $5.6 million to $7.2 million in Q1 2025, compared to $12.8 million in Q1 2024[18, 22] Segment Highlights - Infrastructure (DBMG) - Infrastructure segment revenue decreased to $264.9 million in Q1 2025 from $307.9 million in Q1 2024, a 14% decrease[17, 25, 27] - Infrastructure segment Adjusted EBITDA decreased to $16.7 million in Q1 2025 from $18.3 million in Q1 2024[18, 25, 27] - DBMG's adjusted backlog ended the first quarter with $1.4 billion, including over $500 million in new awards[12, 15, 27] Segment Highlights - Life Sciences (R2 Technologies) - Life Sciences segment revenue increased to $3.1 million in Q1 2025 from $1.0 million in Q1 2024, a 210% increase[17, 22] - R2 Technologies experienced gross system unit sales growth of 109% over the prior year quarter in North America and 163% worldwide[32] Segment Highlights - Spectrum - Spectrum segment revenue was $6.2 million in Q1 2025, compared to $6.3 million in Q1 2024[17, 33] - Spectrum segment Adjusted EBITDA was $1.4 million in Q1 2025, compared to $1.6 million in Q1 2024[12, 18, 33] Debt - Total principal outstanding debt was $672.0 million as of March 2025[36]