DBM Global Inc

IES Holdings, Inc. has announced a definitive agreement to acquire DBM Global from INNOVATE Corp. for approximately $650 million in combined cash and stock, with total consideration reaching $685 million including minority interest buyouts and tax election payments. IES Holdings reported stellar fiscal Q3 2026 results, with revenue surging 40% year-over-year to $1.24 billion and net income nearly doubling to $153.0 million, while ending the quarter debt-free with $77.3 million in cash and $310.6 million in marketable securities. The company's backlog reached a record $4.5 billion, and its board authorized a two-for-one stock split. INNOVATE Corp.'s Q2 2026 results showed consolidated revenue climbing 74.2% to $421.6 million, but DBM Global accounted for $414.0 million of that revenue and $48.7 million of total Adjusted EBITDA, highlighting its dependence on the unit being sold. The $545 million cash proceeds from the sale will allow INNOVATE to de-lever its balance sheet, but its remaining operations, Spectrum and Life Sciences, remain unprofitable or cash-starved. Hedge fund data shows stronger conviction in IES Holdings, with ownership increasing from 34 to 39 funds, while INNOVATE saw a rise from five to eight funds.

INNOVATE Corp. reported second-quarter 2026 revenue of $421.6 million, a 74.2% increase from a year earlier, driven by record results in its Infrastructure segment. Net income attributable to common and participating preferred stockholders reached $10.4 million, or $0.71 per fully diluted share, compared with a net loss of $22 million, or $1.67 per share, in the prior-year quarter. Consolidated adjusted EBITDA rose to $46.3 million from $15.7 million. The Infrastructure segment, led by DBM Global, posted record quarterly revenue of $414 million and adjusted EBITDA of $48.7 million, with reported backlog growing to $1.9 billion and adjusted backlog reaching $2.7 billion. Broadcasting entered a definitive agreement for CONX Corp. to acquire a controlling interest of about 75%, while Life Sciences revenue fell 31.3% to $2.2 million amid weaker R2 sales and liquidity constraints.