INNOVATE Corp.VATE
INNOVATE Corp. Segments Disclosure
18. Segments and Related Information
The Company currently operates in one primary geography - United States, and substantially all revenue is derived in the United States, and substantially all PP&E and intangible assets reside in the United States. The Company's 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. As of December 31, 2025, the Company had three 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 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):
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |||||||||||||||||||||||||||||||||
| Revenue | $ | 1,210.3 | $ | 12.5 | $ | 23.2 | $ | — | $ | — | $ | 1,246.0 | ||||||||||||||||||||||||||
| Cost of revenue | 1,026.2 | 8.4 | 11.7 | — | — | 1,046.3 | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 115.2 | 14.6 | 7.6 | 15.6 | 0.1 | 153.1 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 12.1 | 0.4 | 5.0 | — | — | 17.5 | ||||||||||||||||||||||||||||||||
Other operating loss (income) (1) | 1.4 | — | (1.0) | — | — | 0.4 | ||||||||||||||||||||||||||||||||
| Income (loss) from operations | $ | 55.4 | $ | (10.9) | $ | (0.1) | $ | (15.6) | $ | (0.1) | $ | 28.7 | ||||||||||||||||||||||||||
| Other data: | ||||||||||||||||||||||||||||||||||||||
Capital cash expenditures | $ | 23.4 | $ | — | $ | 2.7 | $ | — | $ | — | $ | 26.1 | ||||||||||||||||||||||||||
(1) Other operating loss for the year ended December 31, 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 primarily by a gain on legal settlement at the Company's Spectrum Segment.
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |||||||||||||||||||||||||||||||||
| Revenue | $ | 1,071.6 | $ | 9.8 | $ | 25.7 | $ | — | $ | — | $ | 1,107.1 | ||||||||||||||||||||||||||
| Cost of revenue | 880.4 | 6.4 | 11.5 | — | — | 898.3 | ||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 123.1 | 17.1 | 7.3 | 12.7 | — | 160.2 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 12.0 | 0.4 | 5.1 | 0.1 | — | 17.6 | ||||||||||||||||||||||||||||||||
Other operating (income) loss (1) | (9.6) | — | 0.4 | 0.2 | — | (9.0) | ||||||||||||||||||||||||||||||||
Income (loss) from operations | $ | 65.7 | $ | (14.1) | $ | 1.4 | $ | (13.0) | $ | — | $ | 40.0 | ||||||||||||||||||||||||||
| Other data: | ||||||||||||||||||||||||||||||||||||||
Capital cash expenditures | $ | 17.6 | $ | — | $ | 1.4 | $ | — | $ | — | $ | 19.0 | ||||||||||||||||||||||||||
(1) Other operating income at the Company's Infrastructure segment for the year ended December 31, 2024, related mainly to a gain on a lease modification and a net gain on the sale and disposal of various properties. | ||||||||||||||||||||||||||||||||||||||
Certain balance sheet data: | ||||||||||||||||||||||||||||||||||||||
December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Infrastructure | Life Sciences | Spectrum | Non-Operating Corporate | Other and Eliminations | INNOVATE | |||||||||||||||||||||||||||||||||
Investments (1) | $ | — | $ | 1.8 | $ | — | $ | — | $ | — | $ | 1.8 | ||||||||||||||||||||||||||
Total assets | $ | 758.9 | $ | 9.6 | $ | 174.5 | $ | 7.1 | $ | — | $ | 950.1 | ||||||||||||||||||||||||||
December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| 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 December 31, 2025 and 2024.
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
Reconciliation of the consolidated segment income from operations to consolidated loss from operations before income taxes: | ||||||||||||||
| Income from operations | $ | 28.7 | $ | 40.0 | ||||||||||
| Interest expense | (89.0) | (74.5) | ||||||||||||
| Loss from equity investees | (5.9) | (2.3) | ||||||||||||
| Other income, net | 4.7 | 3.4 | ||||||||||||
| Loss from operations before income taxes | $ | (61.5) | $ | (33.4) | ||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 12, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 9, 2017 | |
| 2015 | Mar 15, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.