INNOVATE Corp. Q4 FY2025 earnings call

• Paul Voigt reported fourth quarter and full year 2025 financial results, and provided update on three operating segments.
• DBM Global had fourth quarter revenues of $373.9 million and adjusted EBITDA of $28 million, full year 2025 revenue of $1.2 billion and adjusted EBITDA of $87.5 million, with backlog increase and positive momentum in New York City market.
• MetaBeacon had FDA approval of next gen TGFR system, peer-reviewed article selected as Editor's Choice, and early commercialization in China and launch of Center of Excellence Sales Initiative in U.S.
• R2 had fourth quarter 2025 revenues of $3.1 million (vs $4.1 million prior year), full year 2025 revenue of $12.5 million (28% increase y-o-y), with international market progress including restructured distribution agreement in China and regained distribution rights in Asian Pacific markets.
• Spectrum had fourth quarter 2025 revenue of $5.7 million and adjusted EBITDA of $1 million, with new network launches like RAV en Español and Heartland Network, joint venture trials, and FCC developments for Spectrum expansion.

For the fourth quarter, Innovate delivered consolidated revenues of $382.7 million and adjusted EBITDA of $24.5 million. For the full year 2025, consolidated revenues were $1.2 billion and adjusted EBITDA of $67.2 million.

Infrastructure (DBM Global): Fourth quarter revenues of $373.9 million and adjusted EBITDA of $28 million. Full year 2025 revenue of $1.2 billion and adjusted EBITDA of $87.5 million. Gross margin compression of approximately 350 basis points to 14.7% and adjusted EBITDA margin compression of approximately 20 basis points to 7.5% year-over-year. Adjusted backlog increased by approximately $700 million to just over $1.8 billion since end of 2024.

Life Sciences: MetaBeacon achieved FDA approval of next generation TGFR system, had peer-reviewed article selected as 2025 Editor's Choice. R2 reported fourth quarter 2025 revenues of $3.1 million (vs $4.1 million prior year), full year 2025 revenue of $12.5 million (28% increase y-o-y). International markets saw 123% top-line revenue increase and 187% gross system unit sales increase. Backlog of approximately 80 units globally.

Spectrum: Fourth quarter revenue of $5.7 million and adjusted EBITDA of $1 million. Year-over-year revenue decreased $1.1 million and adjusted EBITDA decreased $1.3 million. Soft advertising environment, but new network launches starting, joint venture with mobile wireless carrier, FCC developments creating opportunity to expand U.S. Spectrum footprint.

Forward-looking statements involve risks, assumptions, and uncertainties, subject to risk factors that could cause actual results to differ materially from forward-looking statements. Risk factors more fully discussed in earnings release, slide presentation, 10-K and other SEC filings.

There are no questions in the question and answer session as indicated by 'There are no questions at this time'