INNOVATE Corp (VATE)
NYSE:VATE
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INNOVATE Corp
(NYSE:VATE)
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Rating:54Neutral
Price Target:
$13.50
▲(167.33% Upside)
Action:Reiterated
Date:05/15/26
The score is held back mainly by weak financial quality—persistent losses and very high leverage with thin equity—despite strong recent cash generation. Technicals are comparatively supportive with a clear longer-term uptrend and moderate momentum, while valuation is hard to assess due to negative earnings. The latest earnings call was directionally positive on revenue/EBITDA improvement, but leverage and segment funding needs remain key overhangs.
Positive Factors
Cash generation strength
Sustained OCF and FCF at the TTM scale provide a durable liquidity buffer to fund operations, capex and interest while management works on deleveraging. Over the next 2–6 months strong cash generation materially reduces near‑term refinancing pressure and funds segment investments despite accounting losses.
Negative Factors
Extremely high leverage
Debt relative to a very thin equity base creates a structural overhang: limited absorptive capacity for shocks, higher refinancing and covenant risk, and constrained strategic optionality. Over the next 2–6 months this elevates default or restructuring risk if cash generation falters or markets tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Sustained OCF and FCF at the TTM scale provide a durable liquidity buffer to fund operations, capex and interest while management works on deleveraging. Over the next 2–6 months strong cash generation materially reduces near‑term refinancing pressure and funds segment investments despite accounting losses.
Read all positive factors
INNOVATE Corp (VATE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$178.71M
Dividend YieldN/A
Average Volume (3M)26.90K
Price to Earnings (P/E)―
Beta (1Y)2.60
Revenue Growth25.37%
EPS Growth-52.95%
CountryUS
Employees3,135
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-4.25
Shares Outstanding13,641,866
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 Cap4.53
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit4.16
Enterprise Value/Ebitda11.92
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:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call reflects a predominantly positive operational story driven by a strong Infrastructure / DBMG performance that delivered outsized revenue (up 33% consolidated) and adjusted EBITDA improvement. Significant regulatory and clinical milestones at MediBeacon and international growth at R2 are constructive. However, meaningful challenges remain in smaller but important areas: Life Sciences revenues fell sharply (-48.4%), R2 is seeking external capital, Spectrum experienced advertising weakness and cancellations, DBMG saw ~140 bps gross margin compression, and consolidated debt increased due to PIK interest. Overall, the positive momentum in the company’s largest revenue driver and improved overall profitability outweighs the segment‑level headwinds, but capital structure and segment weaknesses warrant continued attention.Positive Updates
Consolidated Revenue Growth
Consolidated revenues of $364.8 million in Q1 2026, an increase of 33% versus $274.2 million in Q1 2025, driven primarily by Infrastructure.
Negative Updates
Life Sciences Revenue Decline
Life Sciences revenue decreased 48.4% to $1.6 million from $3.1 million in Q1 2025, largely due to lower R2 Glacial FX and Glacial Rx unit sales in North America—necessitating capital raises to continue progression.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenues of $364.8 million in Q1 2026, an increase of 33% versus $274.2 million in Q1 2025, driven primarily by Infrastructure.
Read all positive updates
Company Guidance
Management’s guidance was largely qualitative and focused on improving 2026 visibility, continued Infrastructure momentum and pipeline-driven backlog growth, while they work on capital‑structure alternatives; key Q1 metrics referenced include consolidated revenue $364.8M (up 33% YoY), total adjusted EBITDA $19.7M (vs. $7.2M), net loss $17.2M or $1.29 per diluted share (vs. $24.8M, $1.89), cash $134.6M, and total debt $699M (up $11.8M); Infrastructure/DBMG exited Q1 with revenue $357.9M (up 35.1% YoY), adjusted EBITDA $23.0M, gross margin 14.2% (≈140 bps compression YoY), reported backlog $1.6B and adjusted backlog $1.8B; Life Sciences/R2 reported Q1 revenue $1.6M (down 48.4%), total demand $2.2M and a backlog of ≈160 systems (~$2M) and is seeking external capital; Spectrum had Q1 revenue $5.3M and adjusted EBITDA $0.7M but cited near‑term softness offset by regulatory tailwinds (applications for >60 LPT licenses, >25 Class A relocations) and potential commercial opportunities.INNOVATE Corp Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
18
Very Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.34B | 1.25B | 1.11B | 1.42B | 1.64B | 1.21B |
| Gross Profit | 194.80M | 182.20M | 208.80M | 216.00M | 221.40M | 183.70M |
| EBITDA | 67.90M | 64.60M | 72.90M | 63.10M | 62.80M | 31.80M |
| Net Income | -52.90M | -60.60M | -34.60M | -35.20M | -35.90M | -227.50M |
Balance Sheet | ||||||
| Total Assets | 936.80M | 950.10M | 891.10M | 1.04B | 1.15B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 134.60M | 112.10M | 48.80M | 80.80M | 80.40M | 45.50M |
| Total Debt | 765.50M | 717.50M | 719.20M | 771.90M | 785.30M | 684.80M |
| Total Liabilities | 1.17B | 1.17B | 1.05B | 1.20B | 1.18B | 1.09B |
| Stockholders Equity | -246.80M | -230.80M | -180.40M | -165.50M | -103.70M | -84.30M |
Cash Flow | ||||||
| Free Cash Flow | 175.30M | 120.50M | -9.90M | 8.10M | -30.20M | 65.40M |
| Operating Cash Flow | 206.20M | 146.60M | 9.10M | 26.50M | -9.50M | 89.50M |
| Investing Cash Flow | -28.30M | -22.60M | -13.90M | 23.20M | -22.50M | -299.20M |
| Financing Cash Flow | -77.10M | -61.20M | -26.50M | -49.40M | 68.10M | 17.80M |
INNOVATE Corp Technical Analysis
Positive
5.05
Price Trends
9.30
Positive
7.27
Positive
6.12
Positive
Market Momentum
0.78
Positive
63.30
Neutral
93.20
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 12.16, below the 50-day MA of 9.30, and below the 200-day MA of 6.12, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 93.20 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $329.34M | 266.90 | 14.45% | 1.11% | 19.86% | -49.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $178.71M | -1.13 | 22.84% | ― | 25.37% | -52.95% | |
53 Neutral | $135.78M | -7.46 | 37.16% | ― | -4.88% | 82.47% | |
47 Neutral | $17.52M | ― | -578.91% | ― | -21.47% | -541.99% | |
45 Neutral | $5.07M | ― | -51.96% | ― | 18.10% | 99.97% |
* Industrials Sector Average
VATE
INNOVATE Corp
13.10
6.78
107.28%
SUNE
SUNation Energy
1.23
-0.36
-22.64%
ESOA
Energy Services of America
17.47
6.91
65.40%
SHIM
Shimmick Corporation
3.70
1.94
110.23%
SKK
SKK Holdings Limited
3.97
-2.43
-37.96%
MSW
Ming Shing Group Holdings Limited
1.35
-3.33
-71.13%
INNOVATE Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
INNOVATE Corp Posts Strong Q1 2026 Revenue Growth
Positive
May 14, 2026
On May 14, 2026, INNOVATE Corp. reported first-quarter 2026 consolidated revenue of $364.8 million, up 33% year over year, driven largely by a 35.1% revenue jump at infrastructure unit DBM Global to $357.9 million. The company narrowed its net los...
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...
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.