Innovate Corp (VATE)
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symbol.quality_heading
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Red here is about the capital structure, not the operating business. The Infrastructure segment is healthy and growing: $1,210.3 million of segment revenue, $55.4 million of operating income, and consolidated revenue up 33 percent in the first quarter of 2026. Above it, however, sits a holding company that consumes all of it. Interest expense of $89.0 million is more than three times consolidated operating income of $28.7 million and rose $14.5 million within a year. Equity attributable to INNOVATE shareholders stands at minus $240.1 million and has deteriorated by nearly $60 million. Interest is largely not paid in cash but capitalized — in the first quarter of 2026 alone that lifted holding company debt from $481.9 million to $503.3 million, while the main subsidiary's annual dividend amounts to roughly $11 million. In 2027, $489.4 million falls due, and $610.8 million of $699.0 million of total debt is already reported as current because mandatory prepayment clauses could be triggered by asset sales. The Altman Z score of -3.10 in our data set (recomputed -0.11) sits far below the Z-double-prime distress threshold of 1.1, but mainly reflects the negative equity and is only a rough pointer at a holding company with separated financing levels. What matters are the three documented relationships: interest against operating income, dividend inflow against debt growth, and the 2027 maturity wall against a market capitalization of $113.8 million.
symbol.quality_note
INNOVATE Corp. is a holding company with three very different segments and sits in our price-to-free-cash-flow ranking at 1.46 (data as of July 27, 2026). We read the 2025 annual report (10-K), the quarterly report (10-Q) for the period ended March 31, 2026 and every filing through July 2026, and computed the market capitalization ourselves. The result: 97 percent of revenue comes from structural steel, $89 million of interest buries $28.7 million of operating income, and shareholders' equity stands at minus $240 million. Here is why, at a holding company, the sum is never the whole.
Read the analysis
Stock Watch
This analysis is as of July 27, 2026. Stock Watch will tell you what's changed at VATE since then.
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Appears in These Scanners
This stock currently matches 9 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 8.10 $ — 26% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
ThreatenedINNOVATE nennt kuenstliche Intelligenz im Geschaeftsbericht 2025 ausschliesslich als Risiko: ein Zurueckbleiben hinter dem KI-Einsatz der Wettbewerber koenne die eigene Wettbewerbsfaehigkeit beeintraechtigen, verschaerfte Regulierung zusaetzliche Kosten verursachen, und ein unsachgemaesser KI-Einsatz durch Personal oder Partner die eigenen Schutzrechte gefaehrden. Es gibt keinen KI-Umsatz und keinen Beleg fuer nennenswerten eigenen operativen Einsatz.
View the full file — quotes, sources, reviewed filings
„Failure to keep up with the potential increased use of AI by competitors could have adverse effects on our competitiveness in the markets that we operate, and heightened government scrutiny and regulation surrounding AI, including generative AI, could lead to increased or added compliance and regulatory costs."
Ein Zurueckbleiben hinter dem moeglicherweise zunehmenden KI-Einsatz unserer Wettbewerber koennte sich nachteilig auf unsere Wettbewerbsfaehigkeit in den Maerkten auswirken, in denen wir taetig sind, und eine verschaerfte staatliche Aufsicht und Regulierung rund um KI, einschliesslich generativer KI, koennte zu erhoehten oder zusaetzlichen Compliance- und Regulierungskosten fuehren.
„Increased adoption of artificial intelligence and government regulation could create additional costs ."
Eine zunehmende Verbreitung kuenstlicher Intelligenz und staatliche Regulierung koennten zusaetzliche Kosten verursachen.
„If we and our investees fail to protect our intellectual property rights adequately, including through the improper use of AI by our personnel or business partners, our competitors might gain access to our or our investees' technology, and our business might be harmed."
Wenn wir und unsere Beteiligungen unsere Schutzrechte nicht ausreichend schuetzen, unter anderem durch unsachgemaessen KI-Einsatz unseres Personals oder unserer Geschaeftspartner, koennten unsere Wettbewerber Zugang zu unserer Technologie oder der unserer Beteiligungen erlangen, und unser Geschaeft koennte Schaden nehmen.
Filings Reviewed: 10-K 2026-03-26 · 10-Q 2026-05-14 · 10-Q 2025-11-12 · 10-Q 2025-08-05 · 10-Q 2025-05-06 · 10-K 2025-03-31
Rated on July 27, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Next Reporting Date
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -1.22 | – | 237 | -34.50 | -7.00 | 41 | 34 |
| 2025: Q1 | -1.80 | – | 274 | -13.00 | -8.90 | -14 | -19 |
| 2025: Q2 | -1.45 | -237.50 | 242 | -22.70 | -8.20 | 40 | 34 |
| 2025: Q3 | -0.65 | – | 347 | 43.30 | -2.60 | 19 | 11 |
| 2025: Q4 | -0.54 | – | 383 | 61.70 | -1.90 | 101 | 94 |
| 2026: Q1 | -1.23 | – | 365 | 33.00 | -4.60 | 46 | 36 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
The stored P/FCF of 1.4604 rests on a market capitalization of $256 million; computed independently it is $113.8 million (13,641,866 shares × $8.34). More importantly the cash flow figure does not hold: of $146.6 million of operating cash flow, $151.2 million came from working capital swings, ongoing operations delivered minus $4.6 million, and minus $30.7 million after capital spending.
DBM Global is a real, growing structural steel business: $1,210.3 million of segment revenue and $55.4 million of operating income in 2025, with consolidated revenue up 33 percent to $364.8 million in the first quarter of 2026 and operating income up from $3.4 million to $10.0 million. This segment's debt ($76.6 million) does not mature until 2030.
Interest expense of $89.0 million exceeds consolidated operating income of $28.7 million by more than three times and rose $14.5 million year over year. Equity attributable to INNOVATE shareholders stands at minus $240.1 million and deteriorated by nearly $60 million within a year. Of $699.0 million of total debt, $610.8 million counts as current.
The holding company lives on distributions from its subsidiaries. The DBM Global dividend announced in July 2026 brings it roughly $11 million. Over the same period, parent-level debt grew from $481.9 million to $503.3 million purely through capitalized interest — $21.4 million in a single quarter. One note carries 16.0 percent, and nothing was paid on it in cash during the quarter.
$489.4 million falls due in 2027 — the 10.50 percent notes on February 1, the 9.50 percent convertible notes on March 1, the CGIC note on April 30. Against that stands a market capitalization of $113.8 million and consolidated operating income of $28.7 million. Proceeds from asset sales flow contractually to creditors first.
The merger agreement of May 29, 2026 hands the loss-making broadcasting segment to CONX Corp.; INNOVATE keeps 25 percent of the surviving entity and CONX commits $75 million of equity. That is strategically sound but depends on FCC approvals. If closing fails, the $105 million bridge facility must be repaid at a minimum return of 1.50 to 1.00 — roughly $158 million.
INNOVATE is a holding company whose consolidated figures say almost nothing about the value of the stock: 97 percent of revenue comes from structural steel, operating income of $28.7 million is buried under $89.0 million of interest expense, and shareholders' equity stands at minus $240.1 million. The scanner hook fails twice over — the underlying market capitalization is more than double the real one, and the cash flow comes almost entirely from working capital swings. $489.4 million falls due in 2027. Not investment advice.
- Hook: price-to-free-cash-flow ranking, stored P/FCF 1.4604 → rank 27 of 545 U.S. hits, data as of July 27, 2026. Only the 25 strongest hits are visible; the last displayed row carries 1.4, and INNOVATE sits two rows behind it, findable through the screener. On the German brand the same scanner additionally covers European names (836 hits in total), which does not change its U.S. position. No tie at the rank position. All lists are recomputed daily.
- Identity: verified through company_tickers.json and the 10-Q cover page, not through the company name. CIK 0001006837. Former names: Primus Telecommunications Group (until 2013), PTGi Holding (2013–2014), HC2 Holdings (2016–2021); filings still carry the "hchc" prefix. Our data set stores a different identifier (0001652226), which was not used for this research.
- Market capitalization computed independently rather than taken from the data set: 13,641,866 common shares (10-Q cover page, May 11, 2026) × $8.34 (close of July 24, 2026) = $113.8 million. The data set holds $256 million. Cross-check: $256.0 million divided by trailing four-quarter free cash flow ($175.3 million) gives exactly 1.4604 — the stored scanner value. With the independently computed market capitalization it would be 0.65; the data error therefore makes the stock look more expensive, not cheaper.
- Reverse split: 1-for-10 in August 2024 following the NYSE minimum price notice of February 26, 2024. The price history available to us is NOT adjusted (August 8, 2024: $0.53; August 9, 2024: $4.79). We therefore deliberately make no claim about all-time highs and quote only the 52-week range of $3.98 to $20.06, which lies entirely after the split.
- Further discrepancies against the data set: Piotroski 7 stored against 4 recomputed; Altman Z -3.10 against -0.11; equity ratio empty in the data set, recomputed at -24.3 percent; price-to-earnings, price-to-book, interest coverage and debt-to-equity likewise empty. All statements in this analysis rest on the original figures in the SEC filings.
- Recency gate: the most recent periodic report is the 10-Q for the period ended March 31, 2026 (filed May 14, 2026). All 3 filings after it were read in full — 8-K dated June 1, 2026 (CONX merger agreement, $105 million bridge facility, supplemental indentures, option agreements), 8-K dated June 11, 2026 (annual meeting) and 8-K dated July 8, 2026 (DBM Global dividend). No current Form 25, no Form 15, no NT 10-K; the 2013 to 2020 items concern predecessor entities.
About the Company
INNOVATE Corp. ist über seine Tochtergesellschaften in den Bereichen Infrastruktur, Life Sciences und Spektrum in den USA tätig.
| Employees | 3,700 |
|---|---|
| Headquarters | New York, NY |
| Website | innovatecorp.com |
| IPO Date | 13. Jul 2009 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Paul Kenneth Voigt | Interim Chief Executive Officer | 1959 |
| Michael J. Sena CPA | CFO, Treasurer & Corporate Secretary | 1973 |
| Anthony Rozmus | Investor Relations Officer | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.