INNOVATE Corp (VATE)
NYSE:VATE
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INNOVATE Corp
(NYSE:VATE)
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Rating:51Neutral
Price Target:
$11.50
▲(127.72% Upside)
Action:ReiteratedDate:04/25/26
The score is held back primarily by weak profitability and a highly leveraged balance sheet with minimal equity, despite improved 2025 cash generation. Technicals are supportive due to a strong uptrend, but extremely overbought indicators raise near-term volatility risk. Corporate updates are positive (growth/backlog and regulatory milestones), while valuation remains constrained by ongoing losses.
Positive Factors
Infrastructure backlog & strong Q4 revenue growth
A large, expanded Infrastructure backlog (reported $1.7B, adjusted $1.8B) and a 65.7% quarterly jump signal multi-month revenue visibility and execution leverage. Durable backlog supports near-term revenue realization, underpins DBM Global's operational scale, and reduces short-run demand risk for the infrastructure arm.
Negative Factors
Highly leveraged balance sheet
Extremely high debt relative to minimal equity (roughly 53x) leaves almost no balance-sheet cushion. This restricts financial flexibility, raises refinancing and covenant risk, and makes the company highly sensitive to operating setbacks; even modest adverse cash swings could force asset sales or distress actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Infrastructure backlog & strong Q4 revenue growth
A large, expanded Infrastructure backlog (reported $1.7B, adjusted $1.8B) and a 65.7% quarterly jump signal multi-month revenue visibility and execution leverage. Durable backlog supports near-term revenue realization, underpins DBM Global's operational scale, and reduces short-run demand risk for the infrastructure arm.
Read all positive factors
INNOVATE Corp (VATE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$163.74M
Dividend YieldN/A
Average Volume (3M)26.90K
Price to Earnings (P/E)―
Beta (1Y)2.58
Revenue Growth12.55%
EPS Growth-54.68%
CountryUS
Employees3,135
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.58
Shares Outstanding13,645,127
10 Day Avg. Volume53,214
30 Day Avg. Volume26,900
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)-0.26
Price to Sales (P/S)0.05
P/FCF Ratio0.50
Enterprise Value/Market Cap4.66
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit4.19
Enterprise Value/Ebitda13.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
INNOVATE Corp Business Overview & Revenue Model
Company Description
INNOVATE Corp (VATE) is a forward-thinking technology company specializing in cutting-edge solutions across various sectors including artificial intelligence, renewable energy, and advanced manufacturing. The company focuses on developing innovati...
How the Company Makes Money
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INNOVATE Corp Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and strategic advancements in various segments, such as significant backlog increases and regulatory approvals. However, there were challenges such as margin compression, declines in Spectrum revenue, and increased indebtedness.Positive Updates
Strong Revenue Growth
Consolidated total revenue for the third quarter of 2025 was $347.1 million, an increase of 43.3% compared to $242.2 million in the prior year period.
Negative Updates
Gross and EBITDA Margin Compression
DBM Global experienced gross margin compression of approximately 510 basis points to 13.6% and adjusted EBITDA margin compression of approximately 200 basis points to 6.9% year-over-year.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Revenue Growth
Consolidated total revenue for the third quarter of 2025 was $347.1 million, an increase of 43.3% compared to $242.2 million in the prior year period.
Read all positive updates
Company Guidance
During the third quarter of 2025 earnings call, INNOVATE Corp reported consolidated revenues of $347.1 million, marking a 43.3% increase from the previous year, driven primarily by the Infrastructure segment. Adjusted EBITDA for the quarter was $19.8 million, up from $16.8 million in the prior year. The Infrastructure segment, with revenues of $338.4 million and adjusted EBITDA of $23.5 million, experienced gross margin compression of 510 basis points to 13.6% and adjusted EBITDA margin compression of 200 basis points year-over-year. DBM Global's backlog increased by $500 million, reaching $1.6 billion. In Life Sciences, MediBeacon received regulatory approval in China for its Lumitrace injection, while R2's revenues grew to $3.1 million with a 65% year-over-year increase. Spectrum's revenues decreased to $5.6 million, with adjusted EBITDA dropping to $1 million due to challenges in the advertising market. The company ended the quarter with $35.5 million in cash and $700.4 million in total principal outstanding indebtedness.INNOVATE Corp Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.25B | 1.11B | 1.42B | 1.64B | 1.21B |
| Gross Profit | 182.20M | 208.80M | 216.00M | 221.40M | 183.70M |
| EBITDA | 64.60M | 72.90M | 63.10M | 62.80M | 31.80M |
| Net Income | -60.60M | -34.60M | -35.20M | -35.90M | -227.50M |
Balance Sheet | |||||
| Total Assets | 950.10M | 891.10M | 1.04B | 1.15B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 112.10M | 48.80M | 80.80M | 80.40M | 45.50M |
| Total Debt | 717.50M | 719.20M | 771.90M | 785.30M | 684.80M |
| Total Liabilities | 1.17B | 1.05B | 1.20B | 1.18B | 1.09B |
| Stockholders Equity | -230.80M | -180.40M | -165.50M | -103.70M | -84.30M |
Cash Flow | |||||
| Free Cash Flow | 120.50M | -9.90M | 8.10M | -30.20M | 65.40M |
| Operating Cash Flow | 146.60M | 9.10M | 26.50M | -9.50M | 89.50M |
| Investing Cash Flow | -22.60M | -13.90M | 23.20M | -22.50M | -299.20M |
| Financing Cash Flow | -61.20M | -26.50M | -49.40M | 68.10M | 17.80M |
INNOVATE Corp Technical Analysis
Positive
5.05
Price Trends
5.79
Positive
5.46
Positive
5.30
Positive
Market Momentum
1.45
Negative
87.71
Negative
89.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VATE, the sentiment is Positive. The current price of 5.05 is below the 20-day moving average (MA) of 7.08, below the 50-day MA of 5.79, and below the 200-day MA of 5.30, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 87.71 is Negative, neither overbought nor oversold. The STOCH value of 89.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VATE.
INNOVATE Corp Risk Analysis
INNOVATE Corp disclosed 84 risk factors in its most recent earnings report. INNOVATE Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
INNOVATE Corp Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $312.78M | 12.61 | 3.91% | 1.11% | 17.14% | -90.59% | |
52 Neutral | $185.86M | -4.13 | ― | ― | 2.63% | 82.94% | |
51 Neutral | $163.74M | -0.99 | 27.42% | ― | 12.55% | -54.68% | |
49 Neutral | $4.29M | 0.25 | -52.51% | ― | 26.46% | 99.79% | |
47 Neutral | $20.50M | ― | -578.91% | ― | -21.47% | -541.99% |
* Industrials Sector Average
VATE
INNOVATE Corp
11.80
5.04
74.56%
SUNE
SUNation Energy
1.52
-0.76
-33.33%
ESOA
Energy Services of America
16.84
7.51
80.55%
SHIM
Shimmick Corporation
5.39
3.66
211.56%
SKK
SKK Holdings Limited
1.75
-5.26
-75.03%
MSW
Ming Shing Group Holdings Limited
1.64
-1.93
-54.06%
INNOVATE Corp Corporate Events
Business Operations and StrategyDividends
INNOVATE Corp Subsidiary DBM Global Declares Cash Dividend
Positive
Apr 6, 2026
On April 6, 2026, INNOVATE Corp. announced that its steel construction subsidiary DBM Global Inc. will pay a cash dividend of about $3 million, or $0.78 per share, to stockholders of record as of April 13, 2026, with payment scheduled for April 28...
Business Operations and StrategyProduct-Related Announcements
INNOVATE Corp Gains EU CE Mark for MediBeacon Devices
Positive
Mar 31, 2026
On March 31, 2026, INNOVATE Corp. reported that its equity-method investee MediBeacon received European Union CE Mark certification under the EU Medical Device Regulation for its TGFR Monitor and TGFR Reusable Sensor, two Class IIa devices used in...
Business Operations and StrategyFinancial Disclosures
INNOVATE Corp Reports Strong Q4 2025 Revenue Growth
Positive
Mar 26, 2026
INNOVATE Corp. reported on March 26, 2026 that its fourth-quarter 2025 revenue rose 61.7% year-on-year to $382.7 million and full-year 2025 revenue increased 12.5% to $1.25 billion, driven mainly by its Infrastructure arm, while net loss attributa...
Business Operations and StrategyProduct-Related Announcements
INNOVATE Highlights MediBeacon Kidney Function Technology Recognition
Positive
Feb 10, 2026
On February 10, 2026, INNOVATE Corp. reported that MediBeacon’s peer-reviewed article on its transdermal glomerular filtration rate (tGFR) technology was named one of five 2025 Editors’ Choice articles by the Journal of the American So...
Business Operations and StrategyDividends
INNOVATE Corp Subsidiary DBM Global Declares Cash Dividend
Positive
Feb 2, 2026
On February 2, 2026, INNOVATE Corp. announced that its operating subsidiary DBM Global Inc. will pay a cash dividend of approximately $5 million, or $1.30 per share, on February 24, 2026 to stockholders of record as of February 9, 2026, with INNOV...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.