INNOVATE Corp. Reports $1.107 Billion Revenue Decline and $34.6 Million Net Loss for Fiscal Year 2024

INNOVATE Corp. reported a total revenue of $1.107 billion for the fiscal year ending December 31, 2024, a decrease of $315.9 million compared to $1.423 billion in 2023. The decline was primarily attributed to the Infrastructure segment, which saw a revenue drop from $1.397 billion to $1.072 billion, largely due to the completion of several large commercial construction projects. In contrast, the Life Sciences segment experienced a revenue increase from $3.3 million to $9.8 million, driven by higher sales of R2 Technologies' products, while the Spectrum segment's revenue rose from $22.5 million to $25.7 million, benefiting from network launches and expanded coverage.

The company's net loss attributable to INNOVATE Corp. was $34.6 million, a slight improvement from a loss of $35.2 million in the previous year. This was supported by an increase in income from operations, which rose to $40 million from $26.5 million in 2023. The improvement was driven by a reduction in selling, general, and administrative expenses, alongside a decrease in depreciation and amortization costs. However, interest expenses increased to $74.5 million from $68.2 million, reflecting higher outstanding principal balances and additional exit fees.

Strategically, INNOVATE engaged in a rights offering and concurrent private placement, raising $35 million to support general corporate purposes, including debt service and working capital. The company also executed a reverse stock split to regain compliance with NYSE listing requirements. As of December 31, 2024, INNOVATE's total principal indebtedness was $668.3 million, down from $722.8 million in 2023, primarily due to a reduction in debt at the Infrastructure segment.

Operationally, INNOVATE's Infrastructure segment reported a backlog of $957.2 million, with approximately 48.2% of this backlog attributable to five major contracts. The Life Sciences segment's performance was bolstered by R2 Technologies, which launched new products and expanded its market presence. The Spectrum segment operated 256 broadcast stations, reaching 113 markets across the U.S. and Puerto Rico, and is exploring new revenue streams through advanced broadcasting technologies.

Looking ahead, INNOVATE faces substantial challenges, including the need to refinance upcoming debt maturities and address ongoing liquidity concerns. The company is exploring various initiatives to improve its financial position, including potential asset sales and capital raising efforts. However, there remains significant uncertainty regarding its ability to continue as a going concern, as highlighted in its financial statements.