INNOVATE Corp.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
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Sep 30, 2025 · Filed Nov 12, 2025
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(17) Operating Segments and Related Information
- Operating Segments and Related Information
The Company currently hasone primary reportable geographic segment - United States, and primarily all revenue is derived in the United States, and primarily all PP&E and intangible assets reside in the United States. The reportable segments are identified based on the nature of the services and products provided, the organizational structure, and the internal reporting system used by the Chief Operating Decision Maker ("CODM") to assess performance and allocate resources. The Company hasthree reportable operating segments, plus the Other segment, based on management’s organization of the enterprise - Infrastructure, Life Sciences, Spectrum, and Other. The Company also has a Non-Operating Corporate segment. All inter-segment transactions are eliminated on consolidation. There are no inter-segment revenues. Refer to Note 1. Organization and Business for additional information on the organizational structure of the business and Note 3. Revenue and Contracts in Process for additional information on revenue by segment.
The Chief Operating Decision Maker ("CODM") for the Company is the Interim CEO, Paul Voigt. The CODM is primarily responsible for allocating resources at all levels that do not require board approval. The CODM monitors the performance of each segment and is responsible for making strategic decisions regarding capital and resource allocation. The CODM uses a combination of monthly reports, which detail revenue and income (loss) from operations, and quarterly summaries, which include detailed breakdowns of each segment's income (loss) from operations, to evaluate segment performance, allocate resources and make strategic decisions. These financial metrics are used to view operating trends, perform analytical comparisons and benchmark performance between periods and to monitor budget-to-actual variances on a monthly basis. The primary U.S. GAAP metric used by the CODM in assessing segment performance is income (loss) from operations.
Financial information, including revenue and expenses, with respect to the Company’s operating segments, is as follows (in millions):
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
|---|---|---|---|---|---|---|
| Revenue | $338.4 | $3.1 | $5.6 | $— | $— | $347.1 |
| Cost of revenue | 292.3 | 2.2 | 2.9 | — | — | 297.4 |
| Selling, general and administrative expenses | 27.0 | 3.6 | 2.0 | 7.0 | — | 39.6 |
| Depreciation and amortization | 3.0 | 0.1 | 1.2 | — | — | 4.3 |
| Other operating loss (income) (1) | 0.1 | — | (0.4) | — | — | (0.3) |
| Income (loss) from operations | $16.0 | $(2.8) | $(0.1) | $(7.0) | $— | $6.1 |
| Other data: | ||||||
| Capital cash expenditures | $7.0 | $— | $0.8 | $— | $— | $7.8 |
(1) Other operating income for the three months ended September 30, 2025, primarily consisted of a gain on legal settlement at the Company's Spectrum Segment.
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
|---|---|---|---|---|---|---|
| Revenue | $232.8 | $3.0 | $6.4 | $— | $— | $242.2 |
| Cost of revenue | 189.1 | 2.0 | 2.9 | — | — | 194.0 |
| Selling, general and administrative expenses | 28.3 | 4.2 | 1.9 | 3.0 | — | 37.4 |
| Depreciation and amortization | 3.0 | 0.1 | 1.3 | — | — | 4.4 |
| Other operating loss (1) | 0.1 | — | 0.4 | — | — | 0.5 |
| Income (loss) from operations | $12.3 | $(3.3) | $(0.1) | $(3.0) | $— | $5.9 |
| Other data: | ||||||
| Capital cash expenditures | $2.8 | $— | $0.3 | $— | $— | $3.1 |
(1) Other operating loss for the three months ended September 30, 2024, primarily comprised lease termination settlement costs at the Company's Spectrum Segment.
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
|---|---|---|---|---|---|---|
| Revenue | $836.4 | $9.4 | $17.5 | $— | $— | $863.3 |
| Cost of revenue | 707.2 | 6.6 | 8.7 | — | — | 722.5 |
| Selling, general and administrative expenses | 83.1 | 11.1 | 5.8 | 12.5 | — | 112.5 |
| Depreciation and amortization | 9.2 | 0.3 | 3.6 | — | — | 13.1 |
| Other operating loss (income) (1) | 1.2 | — | (0.4) | — | — | 0.8 |
| Income (loss) from operations | $35.7 | $(8.6) | $(0.2) | $(12.5) | $— | $14.4 |
| Other data: | ||||||
| Capital cash expenditures | $16.2 | $— | $2.4 | $— | $— | $18.6 |
(1) Other operating loss for the nine months ended September 30, 2025, primarily consisted of a loss on lease modification and losses on the sales of various properties at the Company's Infrastructure segment, partially offset by a gain on legal settlement at the Company's Spectrum Segment.
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
|---|---|---|---|---|---|---|
| Revenue | $845.9 | $5.7 | $18.9 | $— | $— | $870.5 |
| Cost of revenue | 695.7 | 3.7 | 8.7 | — | — | 708.1 |
| Selling, general and administrative expenses | 93.0 | 12.2 | 5.6 | 9.0 | — | 119.8 |
| Depreciation and amortization | 8.9 | 0.3 | 3.9 | 0.1 | — | 13.2 |
| Other operating (income) loss (1) | (8.8) | — | 0.5 | 0.2 | — | (8.1) |
| Income (loss) from operations | $57.1 | $(10.5) | $0.2 | $(9.3) | $— | $37.5 |
| Other data: | ||||||
| Capital cash expenditures | $10.7 | $0.1 | $1.0 | $— | $— | $11.8 |
| (1) Other operating income for the nine months ended September 30, 2024, primarily consisted of a gain on lease modification at the Company's Infrastructure segment, which was partially offset by lease termination settlement costs at the Company's Spectrum segment. | ||||||
| Certain balance sheet data: | ||||||
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
| Investments (1) | $— | $1.8 | $— | $— | $— | $1.8 |
| Total assets | $724.6 | $10.1 | $173.5 | $5.0 | $— | $913.2 |
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |
| Investments (1) | $— | $1.8 | $— | $1.8 | $— | $3.6 |
| Total assets | $683.6 | $11.9 | $178.9 | $16.7 | $— | $891.1 |
(1) The Company's equity method investments in its Life Sciences segment totaled $0.9 million as of both September 30, 2025 and December 31, 2024, respectively.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Reconciliation of the consolidated segment income from operations to consolidated loss from operations before income taxes: | ||||
| Income from operations | $6.1 | $5.9 | $14.4 | $37.5 |
| Interest expense | (23.4) | (21.2) | (65.0) | (54.9) |
| Loss from equity investees | — | — | (5.9) | (2.3) |
| Other income, net | 0.6 | 2.2 | 4.3 | 1.2 |
| Loss from operations before income taxes | $(16.7) | $(13.1) | $(52.2) | $(18.5) |
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