Gross margins have trended downward from a peak of 21.0% in 2024Q2 to 13.5% in 2026Q1, reflecting persistent challenges in passing inflationary cost pressures to customers.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.34B | 1.25B | 1.11B | 1.42B | 1.64B | 1.21B | 716.9M | 1.08B | 1.98B | 1.63B | 1.56B | 1.12B | 543.2M | 230.69M | 260.55M | 989.26M | 764.95M | 815.55M | 895.86M | 902.18M | 1.01B | 1.19B | 1.35B | 1.29B | 1.02B | 1.08B | 1.2B | 832.74M | 421.63M | 280.2M | 172.97M |
| Revenue Growth % | 25.37% | 12.55% | -22.2% | -13.09% | 35.85% | 68.11% | -33.44% | -45.52% | 20.96% | 4.88% | 39.02% | 106.33% | 135.47% | -11.46% | -73.66% | 29.32% | -6.2% | -8.96% | -0.7% | -10.8% | -14.82% | -12.1% | 4.9% | 25.75% | -5.4% | -9.75% | 44.03% | 97.51% | 50.48% | 61.99% | - |
| Cost of Goods Sold | 1.14B | 1.06B | 898.3M | 1.21B | 1.42B | 1.02B | 588.5M | 830.5M | 1.78B | 1.42B | 1.38B | 984.87M | 471.49M | 220.31M | 125.26M | 695.74M | 488.61M | 533.71M | 569.87M | 554.89M | 663.83M | 784.83M | 821.46M | 786.31M | 668.64M | 767.84M | 861.18M | 624.6M | 353.02M | 252.73M | 158.84M |
| COGS % of Revenue | - | 85.38% | 81.14% | 84.82% | 86.48% | 84.76% | 82.09% | 77.11% | 90.18% | 87% | 88.39% | 87.87% | 86.8% | 95.5% | 48.08% | 70.33% | 63.88% | 65.44% | 63.61% | 61.5% | 65.63% | 66.1% | 60.81% | 61.06% | 65.29% | 70.93% | 71.8% | 75.01% | 83.73% | 90.2% | 91.83% |
| Gross Profit | 194.8M | 182.2M | 208.8M | 216M | 221.4M | 183.7M | 128.4M | 246.5M | 194.2M | 212.36M | 180.9M | 135.94M | 71.72M | 10.37M | 135.29M | 293.52M | 276.33M | 281.85M | 326M | 347.3M | 347.64M | 402.57M | 529.42M | 501.47M | 355.41M | 314.63M | 338.24M | 208.14M | 68.61M | 27.47M | 14.13M |
| Gross Margin % | 14.57% | 14.62% | 18.86% | 15.18% | 13.52% | 15.24% | 17.91% | 22.89% | 9.82% | 13% | 11.61% | 12.13% | 13.2% | 4.5% | 51.92% | 29.67% | 36.12% | 34.56% | 36.39% | 38.5% | 34.37% | 33.9% | 39.19% | 38.94% | 34.71% | 29.07% | 28.2% | 24.99% | 16.27% | 9.8% | 8.17% |
| Gross Profit Growth % | - | -12.74% | -3.33% | -2.44% | 20.52% | 43.07% | -47.91% | 26.93% | -8.55% | 17.39% | 33.08% | 89.55% | 591.51% | -92.33% | -53.91% | 6.22% | -1.96% | -13.54% | -6.13% | -0.1% | -13.65% | -23.96% | 5.57% | 41.1% | 12.96% | -6.98% | 62.51% | 203.36% | 149.81% | 94.42% | - |
| Operating Expenses | 156.5M | 148M | 168.8M | 189.5M | 208M | 194.3M | 156.7M | 221.2M | 250M | 213.49M | 177.38M | 131.81M | 86.01M | 46.72M | 133.78M | 266.09M | 263.48M | 250.62M | 287.19M | 307.91M | 362.29M | 469.11M | 486.79M | 364.75M | 336.39M | 460.62M | 451.11M | 254.54M | 103.72M | 57.35M | 22.28M |
| OpEx % of Revenue | - | 11.88% | 15.25% | 13.32% | 12.7% | 16.12% | 21.86% | 20.54% | 12.65% | 13.06% | 11.38% | 11.76% | 15.83% | 20.25% | 51.35% | 26.9% | 34.44% | 30.73% | 32.06% | 34.13% | 35.82% | 39.51% | 36.04% | 28.32% | 32.85% | 42.55% | 37.61% | 30.57% | 24.6% | 20.47% | 12.88% |
| Selling, General & Admin | 115.8M | 148M | 0 | 0 | 0 | 0 | 145.5M | 177.3M | 218.4M | 182.88M | 152.89M | 108.53M | 81.4M | 34.69M | 102.76M | 214.59M | 198.2M | 198.75M | 260.43M | 284.02M | 287.61M | 381.38M | 394.05M | 342.35M | 254.15M | 303.03M | 330.41M | 199.58M | 79.53M | 50.62M | 20.11M |
| SG&A % of Revenue | - | 11.88% | - | - | - | - | 20.3% | 16.46% | 11.05% | 11.19% | 9.81% | 9.68% | 14.98% | 15.04% | 39.44% | 21.69% | 25.91% | 24.37% | 29.07% | 31.48% | 28.43% | 32.12% | 29.17% | 26.58% | 24.82% | 27.99% | 27.55% | 23.97% | 18.86% | 18.07% | 11.63% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 168.8M | 189.5M | 208M | 194.3M | 11.2M | 43.9M | 78.7M | -12.77M | -2.84M | -6.82M | 4.62M | 12.03M | 31.02M | 51.51M | 65.28M | 51.88M | 26.76M | 23.9M | 74.68M | 87.73M | 92.74M | 22.4M | 82.24M | 157.6M | 120.69M | 54.96M | 24.18M | 6.73M | 2.16M |
| Operating Income | 38.3M | 34.2M | 40M | 26.5M | 13.4M | -10.6M | -28.3M | 25.3M | -55.8M | -1.13M | -1.42M | 2.23M | -14.43M | -39.14M | -8.66M | 12.75M | 12.66M | 31.08M | 38.8M | 31.28M | -212.85M | -79.92M | 39.06M | 69.63M | -3.31M | -672.3M | -112.86M | -46.4M | -35.1M | -29.89M | -8.15M |
| Operating Margin % | 2.87% | 2.74% | 3.61% | 1.86% | 0.82% | -0.88% | -3.95% | 2.35% | -2.82% | -0.07% | -0.09% | 0.2% | -2.66% | -16.97% | -3.32% | 1.29% | 1.65% | 3.81% | 4.33% | 3.47% | -21.04% | -6.73% | 2.89% | 5.41% | -0.32% | -62.11% | -9.41% | -5.57% | -8.33% | -10.67% | -4.71% |
| Operating Income Growth % | - | -14.5% | 50.94% | 97.76% | 226.42% | 62.54% | -211.86% | 145.34% | -4829.33% | 20.34% | -163.75% | 115.45% | 63.14% | -351.76% | -167.94% | 0.73% | -59.27% | -19.9% | 24.04% | 114.7% | -166.33% | -304.62% | -43.91% | 2200.57% | 99.51% | -495.66% | -143.25% | -32.17% | -17.45% | -266.69% | - |
| EBITDA | 68.2M | 64.6M | 72.9M | 62.5M | 55.6M | 27M | -1.5M | 33.5M | -4.3M | 35.44M | 27.44M | 33.17M | -5.46M | -15.17M | 22.36M | 77.9M | 81.06M | 82.77M | 71.6M | 61.88M | -164.7M | 7.81M | 131.8M | 155.7M | 79.06M | -514.5M | 8.19M | 8.92M | -10.56M | -23.16M | -5.99M |
| EBITDA Margin % | 5.1% | 5.18% | 6.58% | 4.39% | 3.4% | 2.24% | -0.21% | 3.11% | -0.22% | 2.17% | 1.76% | 2.96% | -1% | -6.58% | 8.58% | 7.87% | 10.6% | 10.15% | 7.99% | 6.86% | -16.28% | 0.66% | 9.76% | 12.09% | 7.72% | -47.53% | 0.68% | 1.07% | -2.5% | -8.26% | -3.46% |
| EBITDA Growth % | -7.84% | -11.39% | 16.64% | 12.41% | 105.93% | 1900% | -104.48% | 879.07% | -112.13% | 29.13% | -17.26% | 707.58% | 64.02% | -167.85% | -71.3% | -3.9% | -2.07% | 15.6% | 15.72% | 137.57% | -2209.34% | -94.08% | -15.35% | 96.93% | 115.37% | -6379.76% | -8.16% | 184.5% | 54.4% | -286.77% | - |
| D&A (Non-Cash Add-back) | 29.9M | 30.4M | 32.9M | 36M | 42.2M | 37.6M | 26.8M | 8.2M | 51.5M | 36.57M | 28.86M | 30.94M | 8.97M | 23.96M | 31.02M | 65.15M | 68.4M | 51.69M | 32.8M | 30.59M | 48.16M | 87.73M | 92.74M | 86.07M | 82.38M | 157.8M | 121.06M | 55.32M | 24.55M | 6.73M | 2.16M |
| EBIT | 38M | 34.2M | 40M | 27.1M | 20.6M | -5.8M | 28.1M | 34.3M | 258M | 15.3M | -2.4M | -7.61M | -22.21M | -25.05M | -47.98M | 5.52M | -12.87M | 492.28M | 28.82M | 61.99M | -214.13M | -81.4M | 48.45M | 69.14M | -3.86M | -672.3M | -112.86M | -46.4M | -35.1M | -29.8M | -8.15M |
| Net Interest Income | -92.7M | -88.3M | -71.9M | -68.2M | -52M | -59.1M | -74.8M | -76.1M | -75.7M | -55.1M | -43.4M | -39.02M | -12.35M | -8K | 63K | 75K | -35.68M | -30.5M | -53.77M | -55.68M | -50.48M | -50.83M | -38.91M | -59.66M | -65.85M | -120.65M | -102.75M | 0 | -28.54M | 0 | -72K |
| Interest Income | 600K | 700K | 2.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8K | 90K | 169K | 741K | 960K | 120K | 5.7M | 3.69M | 2.61M | 11.62M | 1.07M | 2.45M | -19.95M | 29.39M | 0 | 11.5M | 0 | 785K |
| Interest Expense | 93.3M | 89M | 74.5M | 68.2M | 52M | 59.1M | 74.8M | 76.1M | 75.7M | 55.1M | 43.38M | 39.02M | 12.35M | 234K | 27K | 32.51M | 35.49M | 31.46M | 53.89M | 61.35M | 54.17M | 53.44M | 50.53M | 60.73M | 68.3M | 100.7M | 132.14M | 0 | 40.05M | 0 | 857K |
| Other Income/Expense | -95.3M | -95.7M | -73.4M | -60.9M | -54.5M | -70.1M | -18.4M | -67.1M | 238.1M | -38.65M | -44.37M | -47.34M | -20.56M | 14.08M | -19.29M | -39.95M | -13.57M | 427.04M | -63.88M | -31.5M | -27.51M | -68.48M | -43.74M | -10.55M | -23.93M | -120.65M | -102.75M | -66.34M | -28.54M | -6.21M | -417K |
| Pretax Income | -57M | -61.5M | -33.4M | -34.4M | -41.1M | -80.7M | -46.7M | -41.8M | 182.3M | -39.75M | -45.79M | -46.62M | -33.89M | -25.05M | -50.36M | -27.2M | -19.43M | 472.86M | -25.07M | 229K | -241.65M | -150.38M | -4.68M | 59.64M | -63.9M | -792.95M | -215.62M | -112.74M | -63.65M | -36.16M | -8.57M |
| Pretax Margin % | -4.26% | -4.94% | -3.02% | -2.42% | -2.51% | -6.7% | -6.51% | -3.88% | 9.22% | -2.43% | -2.94% | -4.16% | -6.24% | -10.86% | -19.33% | -2.75% | -2.54% | 57.98% | -2.8% | 0.03% | -23.89% | -12.66% | -0.35% | 4.63% | -6.24% | -73.25% | -17.98% | -13.54% | -15.1% | -12.9% | -4.95% |
| Income Tax | -1.7M | 2.5M | 6.3M | 4.5M | 900K | 5.6M | 7M | -19.6M | 2.4M | 10.74M | 51.64M | -10.88M | -24.48M | -7.44M | -4.52M | 869K | -9.09M | 6.13M | -366K | -9.23M | 4.87M | 4M | 5.9M | 5.77M | -3.6M | -486.77M | 0 | 0 | 0 | 81K | 196K |
| Effective Tax Rate % | 2.98% | -4.07% | -18.86% | -13.08% | -2.19% | -6.94% | -14.99% | 46.89% | 1.32% | -27.02% | -112.76% | 23.34% | 72.25% | 29.7% | 8.97% | -3.19% | 46.75% | 1.3% | 1.46% | -4030.57% | -2.01% | -2.66% | -125.99% | 9.67% | 5.63% | 61.39% | 0% | 0% | 0% | -0.22% | -2.29% |
| Net Income | -52.9M | -60.6M | -34.6M | -35.2M | -35.9M | -227.5M | -92M | -31.5M | 139M | -49.7M | -105.4M | -39.83M | -16.29M | -17.61M | -44.85M | -38.73M | -19.09M | 477.89M | -25.03M | 15.74M | -237.96M | -154.38M | -10.58M | 54.76M | -34.6M | -306.18M | -174.66M | -112.74M | -63.65M | -36.24M | -8.76M |
| Net Margin % | -3.96% | -4.86% | -3.13% | -2.47% | -2.19% | -18.88% | -12.83% | -2.92% | 7.03% | -3.04% | -6.76% | -3.55% | -3% | -7.63% | -17.21% | -3.92% | -2.5% | 58.6% | -2.79% | 1.74% | -23.53% | -13% | -0.78% | 4.25% | -3.38% | -28.28% | -14.56% | -13.54% | -15.1% | -12.93% | -5.07% |
| Net Income Growth % | -26.86% | -75.14% | 1.7% | 1.95% | 84.22% | -147.28% | -192.06% | -122.66% | 379.68% | 52.85% | -164.63% | -144.44% | 7.48% | 60.73% | -15.81% | -102.91% | -103.99% | 2009.18% | -259.07% | 106.61% | -54.14% | -1359.03% | -119.32% | 258.24% | 88.7% | -75.29% | -54.93% | -77.12% | -75.63% | -313.5% | - |
| Net Income (Continuing) | -55.3M | -64M | -39.7M | -38.9M | -42M | -86.3M | -53.7M | -22.2M | 179.9M | -50.5M | -97.4M | -35.74M | -11.69M | -17.61M | -45.84M | -28.07M | -10.35M | 467.01M | -24.7M | 9.46M | -246.51M | -156.46M | -10.58M | 53.38M | -24.19M | -306.18M | -215.62M | -112.74M | -63.6M | -36.2M | -8.76M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -149.9M | -48.4M | -13.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 14.6M | 15.5M | 20.6M | 12.8M | 74.1M | 77.4M | 45.7M | 105.1M | 113.6M | 116.56M | 25.75M | 26.62M | 23.16M | 0 | 0 | 7.94M | 3.64M | 3.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.96 | -4.84 | -2.73 | -4.78 | -5.26 | -10.35 | -9.22 | -3.93 | 29.70 | -11.61 | -28.26 | -15.04 | -8.26 | -2.10 | -3.24 | -2.98 | -1.96 | 49.47 | -0.40 | 0.25 | -3.77 | -2.45 | -0.17 | 0.54 | -0.54 | -5.72 | -4.39 | -3.71 | -2.60 | -1.99 | -0.63 |
| EPS Growth % | -26.49% | -77.29% | 42.89% | 9.13% | 49.18% | -12.26% | -134.61% | -113.23% | 355.81% | 58.92% | -87.9% | -82.08% | -293.33% | 35.19% | -8.72% | -52.04% | -103.96% | 12467.5% | -260% | 106.63% | -53.88% | -1341.18% | -131.48% | 200% | 90.56% | -30.3% | -18.33% | -42.69% | -30.65% | -215.87% | - |
| EPS (Basic) | - | -4.84 | -2.73 | -4.78 | -5.26 | -10.35 | -9.22 | -3.93 | 29.00 | -7.50 | -15.91 | -6.01 | -2.46 | -2.08 | -3.24 | -2.98 | -1.96 | 49.59 | -0.18 | 0.12 | -2.11 | -1.62 | -0.12 | 0.77 | -0.54 | -5.72 | -4.39 | -3.71 | -2.60 | -1.99 | -0.63 |
| Diluted Shares Outstanding | 13.34M | 13.22M | 13.1M | 7.87M | 7.75M | 7.71M | 5.03M | 4.48M | 4.68M | 4.28M | 3.73M | 2.65M | 1.97M | 8.39M | 13.84M | 13.01M | 9.74M | 9.66M | 61.96M | 61.96M | 63.07M | 63.07M | 63.07M | 63.07M | 64.18M | 53.51M | 39.75M | 30.37M | 24.47M | 18.22M | 13.89M |
| Basic Shares Outstanding | 13.34M | 13.22M | 13.1M | 7.87M | 7.75M | 7.71M | 5.03M | 4.48M | 4.79M | 6.62M | 6.62M | 6.62M | 6.62M | 8.46M | 13.84M | 13.01M | 9.74M | 9.64M | 142.86M | 128.97M | 112.54M | 95.53M | 89.68M | 69.04M | 64.18M | 53.51M | 39.75M | 30.37M | 24.47M | 18.22M | 13.89M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 1.44% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High debt service burden
According to recent financial filings, VATE's revenue growth has exhibited extreme volatility, swinging from a 34.5% contraction in 2024Q4 to a 61.7% expansion by 2025Q4, suggesting that the company's project-based revenue model remains highly susceptible to the timing of large-scale infrastructure contract completions and recognition.
The erratic revenue trajectory appears to be a function of the company's reliance on lumpy, multi-year infrastructure projects rather than consistent organic demand. Investors should monitor whether the recent growth acceleration is sustainable or merely a reflection of project-specific accounting milestones that may not repeat in subsequent quarters.
As reported in quarterly income statements, VATE's gross margin has trended downward from a peak of 21.0% in 2024Q2 to 13.5% in 2026Q1, indicating that inflationary pressures in steel and labor costs are likely outpacing the company's ability to pass price increases through to its customers.
The consistent erosion of gross margins suggests a lack of pricing power within the competitive infrastructure construction sector. This compression is particularly concerning given the company's high variable cost structure, which leaves little room for operational error when commodity prices or labor costs spike unexpectedly.
Based on the provided income statement data, operating margins have remained consistently thin, peaking at only 9.2% in 2024Q2 and falling to 3.0% in 2026Q1, which implies that the company struggles to achieve meaningful operating leverage despite significant fluctuations in top-line revenue performance.
The inability to scale operating income in proportion to revenue suggests that corporate overhead and the costs associated with non-performing segments continue to act as a drag on profitability. This lack of operating efficiency warrants further investigation into whether the current management structure is optimized for the company's core infrastructure business.
As evidenced by the historical income statements, VATE has reported negative net income in nine of the last ten quarters, with a net margin of -4.6% in 2026Q1, suggesting that non-operating items and high interest expenses continue to overwhelm the company's core operational output.
The recurring net losses indicate that the company's current capital structure may be fundamentally misaligned with its operational cash generation capabilities. Investors should be wary of relying on headline EPS figures, as the persistent bottom-line deficits suggest that the company is not yet generating sustainable value for shareholders.
Based on the reported figures, the market's persistent valuation of VATE at a discount to its peers appears justified by the company's inability to monetize its Life Sciences and Spectrum assets, which continue to consume capital without providing a clear path to meaningful, consolidated profitability.
Short-sellers would likely focus on the company's reliance on 'Percentage of Completion' accounting, which may be masking underlying project execution risks. The failure to simplify the portfolio suggests that the 'conglomerate discount' may persist until management demonstrates a successful exit from its non-core, cash-burning business units.
Quick answers to the most common questions about buying VATE stock.
For fiscal year 2025, INNOVATE Corp. (VATE) reported total revenue of $1.25B. This represents a 620.3% increase compared to $173.0M in 1996.
INNOVATE Corp. (VATE) reported a net loss of $60.6M for the fiscal year ending 2025.
INNOVATE Corp. (VATE) reported an operating income of $34.2M, resulting in an operating profit margin of 2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
INNOVATE Corp. (VATE) generated $182.2M in gross profit for the year, representing a gross profit margin of 14.6%. This demonstrates the company's core pricing power and production efficiency.