VATE

Strategic Transaction & Capital Structure Update

• The Broadcasting (Spectrum) segment completed a $105 million refinancing in Q2 2026, with proceeds used to retire existing debt, repurchase equity interests from noteholders, and cover transaction costs, improving the segment's balance sheet.
• Innovate entered a definitive agreement to sell a 75% controlling stake in Broadcasting to Connex Corp., retaining a 25% stake with an option to increase ownership to 40% in the future. Connex has committed up to $75 million in post-closing equity capital to support the business, and the refinancing loan will be extinguished at closing. The transaction is currently awaiting FCC and other regulatory approvals.

Infrastructure Segment (DBM Global) Operational Highlights

• DBM Global delivered a record Q2 2026, with 60 basis points of year-over-year gross margin expansion to 18.5% and 350 basis points of year-over-year adjusted EBITDA margin expansion to 11.8%.
• Key end market drivers include data centers, artificial intelligence physical infrastructure, advanced manufacturing, semiconductor production, energy systems, digital connectivity, healthcare, and New York City commercial construction. New backlog growth in H1 2026 provides strong revenue visibility through 2027 and 2028.
• The business has shifted some focus from near-term execution to securing future backlog and aligning growth with available capacity, with new investments in planning tools and early customer engagement to improve visibility and preserve margins.

Life Sciences Segment (MetaBeacon) Operational Highlights

• MetaBeacon, the segment's TGFR kidney function monitoring platform, continued commercial rollout across the U.S. and now engages with over 100 healthcare institutions, with initial use cases in oncology therapy dosing, transplant donor evaluation, and kidney function assessment for cardiology patients.
• The business is actively pursuing reimbursement pathways with CMS and commercial payers, and advancing clinical development: IDE studies for heart failure and renal function reserve applications are ongoing, with growing clinical validation and community recognition particularly in nephrology.
• Globally, MetaBeacon holds CE mark approval for its TGFR system in Europe, with a Belumatrace marketing application targeted for 2027 filing. In China, it achieved ISO 13485 certification and advanced commercialization and deployment, with regulatory and commercial initiatives ongoing in Canada, multiple Asian markets, and other regions.

Life Sciences Segment (R2) Operational Highlights

• R2, which produces medical imaging systems, saw strong global demand in Q2, with a backlog of 110 systems representing $1.4 million in future revenue to support H2 2026 growth.
• The business secured Glacial RX product registrations in Thailand and Malaysia, initiated in-country testing for the Glacial FX launch in Korea, launched a virtual provider training program, and is advancing a manufacturing transfer to EIT that is expected to deliver first production units soon.
• R2 has reduced overhead costs significantly, improved sales productivity, and integrated AI across operations to support growth with lower operating expenses.

• Management maintained an increasingly favorable outlook for DBM Global (Infrastructure) for 2027 and 2028, noting a robust pipeline of large projects expected to be awarded in H2 2026 that will extend backlog into future years.
• No formal numerical full-year 2026 guidance was explicitly revised or maintained; management confirmed broad positive momentum across the portfolio following the Q2 2026 results and strategic transactions, positioning the company well for the remainder of 2026 and beyond.
• MetaBeacon's Belumatrace marketing authorization application in Europe is guided to be submitted in 2027, aligned with prior announced timelines.

1. Infrastructure Segment: Q2 2026 revenue was $414 million, representing a 77.6% year-over-year increase from $233.1 million in Q2 2025. It contributes 98.2% of Innovate Corp.'s total consolidated Q2 2026 revenue. Adjusted EBITDA for the segment was $48.7 million, up from $19.3 million year-over-year. As of quarter end, reported backlog was $1.9 billion and adjusted backlog (including awarded but unsigned contracts) was $2.7 billion, up from $1.8 billion adjusted backlog at end-2025. 2. Life Sciences Segment: Total Q2 2026 revenue decreased year-over-year, driven by lower unit sales at the R2 subsidiary. R2 recognized $2.2 million in revenue in the quarter, with total worldwide demand of $3.6 million and a backlog of $1.4 million in future revenue representing 110 systems. Adjusted EBITDA losses for the full Life Sciences segment decreased year-over-year due to reduced compensation-related SG&A expenses at R2 and PanSend. 3. Spectrum (Broadcasting) Segment: Q2 2026 revenue was $5.4 million, a $300,000 year-over-year decrease. Adjusted EBITDA was $400,000, a $600,000 year-over-year decrease. Revenue and EBITDA declines stem from the termination of a few small networks in individual markets after the prior year comparable period, partially offset by new network launches. The segment contributes 1.3% of total consolidated Q2 2026 revenue. 4. Net Operating Corporate Segment: Adjusted EBITDA losses stayed consistent year-over-year at $2 million for the quarter.

No specific discussion of new material risks, operational failures, or unanticipated headwinds was included in the prepared remarks of this earning call. Standard forward-looking statement risk disclosure was provided, noting that forward-looking assumptions and outcomes are subject to uncertainties that could cause actual results to differ materially, with detailed risk factors available in Innovate's SEC filings.

The Q&A session was not held on this call, as prepared remarks concluded and the call was adjourned immediately after.