INNOVATE Corp. Q1 FY2025 earnings call

• Paul Voigt reported consolidated revenues of $274.2 million and adjusted EBITDA of $7.2 million for Q1 2025. - Actively working to address capital structure and near-term debt obligations. - DBM Global saw margin improvements, added over $500 million of new awards to backlog. - MediBeacon received FDA approval for transdermal GFR system, R2 had strong revenue growth and expanding global footprint. - Spectrum had revenues in line with expectations, with Broadcasting signing a contract and work on data casting. - Mike Sena discussed consolidated revenue decrease due to Infrastructure, Life Sciences revenue increase, net loss and adjusted EBITDA changes, backlog details, debt at DBMG, and cash position.

Infrastructure segment: DBM Global achieved revenues of $264.9 million and adjusted EBITDA of $16.7 million in the first quarter of 2025. Gross margin improved year-over-year by approximately 110 basis points to 15.6% and adjusted EBITDA margin improved by approximately 40 basis points to 6.3% year-over-year. Reported and adjusted backlog reached $1.4 billion. Life Sciences segment: R2 tripled its year-over-year revenue to $3.1 million in the first quarter of 2025, with patient treatments growing 136% in the quarter. Glacial skin devices saw patient treatments grow 136%, average monthly utilization per provider increase 42%, and social media engagement growth outperforming industry competitors by 774%. Spectrum segment: First quarter revenues were $6.2 million and adjusted EBITDA was $1.4 million, in line with expectations. Broadcasting signed a contract with Marathon Ventures, and the team is working on data casting opportunities.

• Working to leverage assets to achieve sustainable capital structure before debt maturities. - DBM remains well positioned in 2025 with strong backlog and pipeline. - MediBeacon's transdermal GFR kidney function technology expected to be commercially available in Q4 2025. - R2 continues to expand global footprint and expects continued growth with strong momentum. - Spectrum aims to have data casting opportunity revenue generating by end of the year.

• Uncertainty around tariff situation and its potential impact on material costs and project delays. - Policy evolution creates uncertainty regarding the full impact of tariffs on the business.

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