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    IEP
    Earnings call· Mar 2026(Q1 FY26)

    ICAHN ENTERPRISES Q1 FY26 earnings call IEP

    May 6, 2026 Source

    Executive summary

    Icahn Enterprises L.P. Q1 FY26 — NAV Increase and Portfolio Performance

    Icahn Enterprises reported a $201 million increase in Net Asset Value for Q1 FY26, driven by strong performance in its Investment segment's long positions, despite significant losses from refining hedges. While several portfolio companies showed robust stock performance and positive outlooks, the company faced operational headwinds in Food Packaging, Home Fashion, and Pharma segments. Management emphasized a continued focus on building asset value and maintaining liquidity to capitalize on future opportunities.

    Highlights

    5

    • Net Asset Value (NAV) increased by $201 million compared to year-end.

    • Investment segment had a positive return of 4.4% for the quarter, excluding refining hedges.

    • Real Estate adjusted EBITDA increased by $18 million compared to the prior year quarter.

    • Automotive Services same-store sales increased by approximately 2% compared to the prior year quarter.

    • CVI announced a $0.10 dividend, and AEP stock was up approximately 14% for Q1.

    Concerns

    5

    • Net loss attributable to IEP was $459 million, or a loss of $0.71 per unit.

    • Investment segment had a negative return of 8.2% for the quarter, including refining hedges, due to $320 million in refining hedge losses.

    • Energy segment included $158 million of unrealized derivative losses.

    • Food Packaging adjusted EBITDA decreased by $6 million due to lower volume and restructuring headwinds.

    • Pharma adjusted EBITDA decreased by $10 million due to reduced sales from anti-obesity prescriptions and increased R&D expenses.

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Investment Funds
    Performance was positive excluding refining hedges, but overall negative due to significant hedge losses. The fund shifted from net long to net short exposure excluding hedges.
    Positive return (excluding refining hedges): 4.4%Negative return (including refining hedges): 8.2%Long and other positions performance attribution: 4.1%Short positions performance attribution: -12.9%Net short notional exposure (quarter end): 29%Net short notional exposure (year-end): 13%Net short notional exposure (ex-refining hedges, quarter end): 2%Net long notional exposure (ex-refining hedges, year-end): 19%Investment in funds: $2.2 billion
    		————
    Energy
    Adjusted EBITDA improved slightly year-over-year. Refining operations were solid but margins were weighed down by RFS costs and unrealized derivative losses. Fertilizer segment had strong results.
    Crude utilization: 97%
    		———Adjusted EBITDA attributable to IEP: -$5 million
    Automotive Services
    Revenue decreased due to store closures in 2025, but same-store sales showed positive growth. Focus remains on product, pricing, labor, and distribution strategy.
    Same-store sales increase: 2%
    		Decreased by $9 million———
    Real Estate
    Adjusted EBITDA increased significantly, primarily driven by income from assets transferred from the Automotive segment.
    Intercompany income from auto segment: $9 millionIncome from third-party tenants: $2 million
    		———Adjusted EBITDA increase: $18 million
    Food Packaging
    Adjusted EBITDA decreased due to lower volume and disruptive headwinds from a restructuring plan.
    		———Adjusted EBITDA decrease: $6 million
    Home Fashion
    Adjusted EBITDA decreased due to softening demand in retail and hospitality, and supply chain disruptions in the Strait of Hormuz.
    		———Adjusted EBITDA decrease: $2 million
    Pharma
    Adjusted EBITDA decreased due to reduced sales from anti-obesity prescriptions and increased R&D expenses for disease-modifying designation.
    		———Adjusted EBITDA decrease: $10 million

    Operational metrics

    22
    Net Asset Value (NAV) increase
    $201 millioncompared to year-end
    Q1 FY26

    The increase was primarily driven by an increase of $605 million in our long position in CVI.

    CVI long position increase
    $605 million
    Q1 FY26

    Primary driver of the NAV increase.

    Refining hedges losses
    $320 million
    Q1 FY26

    Offset the increase in CVI long position, contributing to the Investment segment's negative return including hedges.

    CVI dividend
    $0.10
    Q1 FY26

    CVI's announced dividend, which IEP is pleased with.

    AEP stock performance
    14%up
    Q1 FY26

    AEP is an electric utility benefiting from AI infrastructure build.

    AEP long-term operating earnings CAGR
    >9%increased
    through 2030

    Supported by 63 gigawatt of incremental contracted load and 11% rate base growth.

    AEP rate base growth
    11%
    through 2030

    Supports AEP's long-term operating earnings CAGR.

    AEP incremental contracted load
    63 gigawatt
    through 2030

    Supports AEP's long-term operating earnings CAGR.

    Centuri stock performance
    16%up
    Q1 FY26

    Centuri reported strong base revenue and gross profit growth in Q4 and guided to strong double-digit growth for 2026.

    Centuri base revenue and gross profit growth
    strong double-digit
    2026

    Centuri continues to capture tailwinds from increased energy infrastructure investment.

    IFF stock performance
    8%up
    Q1 FY26

    IFF is executing on portfolio optimization, including a sale process for its food ingredients business and a completed divestiture.

    Caesars stock performance
    13%up
    Q1 FY26

    Caesars reported solid Q1 results with Vegas stabilizing, regional sales growing, and strong digital EBITDA growth.

    Caesars digital EBITDA growth
    61%
    Q1 FY26

    Caesars is expected to generate significant cash flow in 2026.

    Echostar stock performance
    8%up
    Q1 FY26

    Echostar lowered total expected tax and decommissioning costs related to divested assets.

    Cash at funds
    $782 millionas of quarter end
    Q1 FY26

    Represents cash held within the Investment Funds.

    Net loss attributable to IEP
    $459 million
    Q1 FY26

    Consolidated net loss for the quarter.

    Loss per unit
    $0.71
    Q1 FY26

    Net loss attributable to IEP on a per unit basis.

    Adjusted EBITDA loss attributable to IEP
    -$216 millioncompared to -$228 million for Q1 FY25
    Q1 FY26

    Improved slightly year-over-year.

    Unrealized derivative losses
    $158 million
    Q1 FY26

    Included in the consolidated results and impacted Energy segment margins.

    Holding company cash and investment in funds
    $2.8 billionas of quarter end
    Q1 FY26

    Maintained liquidity to take advantage of opportunities.

    Subsidiary cash and revolver availability
    $1.3 billionas of quarter end
    Q1 FY26

    Provides additional liquidity for operating segments.

    Distribution per depository unit
    $0.50unchanged
    Q1 FY26

    Declared by the Board.

    Deals & partnerships

    2
    IFFCompletion of divestiture of an [indiscernible] business.

    IFF completed the divestiture of an unspecified business as part of its portfolio optimization.

    IFFSale process for food ingredients business.

    IFF is running a sale process for its food ingredients business as part of its portfolio optimization.

    Risks & headwinds

    6
    Refining hedge lossesQ1 FY26

    $320 million

    Unrealized derivative losses in Energy segmentQ1 FY26

    $158 million

    Food Packaging lower volume and restructuring headwindsQ1 FY26

    Adjusted EBITDA decreased by $6 million

    Home Fashion softening demand and supply chain disruptionsQ1 FY26

    Adjusted EBITDA decreased by $2 million

    Pharma reduced sales from anti-obesity prescriptionsQ1 FY26

    Adjusted EBITDA decreased by $10 million

    Increased R&D expenses in PharmaQ1 FY26

    Contributed to $10 million Adjusted EBITDA decrease

    What to watch in Q2 FY26

    5

    CVI debt reductions and capital returns

    Balance of 2026
    CurrentCVI announced $0.10 dividend
    TargetPotential for further debt reductions and capital returns

    Why it matters

    CVI is a significant long position for IEP, and its capital allocation strategy impacts IEP's investment performance.

    We believe CVI is well positioned to allow for potential future debt reductions and capital returns to shareholders. We are pleased with CVI's announcement of a $0.10 dividend.

    2 min read6 chapters

    Detailed Narrative

    01

    Leadership Transition

    Andrew Teno concluded his tenure as CEO, expressing gratitude for his time with the company and confidence in its future. Ted Papapostolou assumed the role of CEO, highlighting the company's unique portfolio, disciplined capital allocation, and long-term thinking. Rob Flint also transitioned into the CFO role, signaling a new leadership team for Icahn Enterprises.

    02

    Investment Fund Performance and Portfolio Highlights

    The Investment segment saw its NAV increase by $201 million, primarily due to a $605 million increase in the long position in CVI, though this was partially offset by $320 million in refining hedge losses. Excluding these hedges, the Investment segment returned 4.4%. Key portfolio companies like AEP, Centuri, IFF, Caesars, and Echostar demonstrated strong stock performance and positive operational developments during the quarter, contributing to the fund's overall results.

    03

    Energy Segment Operations

    The Energy segment reported an adjusted EBITDA loss of $5 million for Q1 FY26, a slight improvement from the prior year. Refining operations achieved a 97% crude utilization rate, but margins were impacted by higher RFS obligation costs and $158 million in unrealized derivative losses. The fertilizer segment, however, delivered strong results driven by robust demand during the spring planting season, positioning CVI's assets favorably for global market tightness.

    04

    Automotive Services and Real Estate Performance

    Automotive Services revenues decreased by $9 million year-over-year, primarily due to store closures in 2025. Despite this, same-store sales increased by approximately 2%, indicating a positive revenue trajectory. The Real Estate segment's adjusted EBITDA increased by $18 million, largely driven by income from assets transferred from the Automotive segment, including $9 million in intercompany income and $2 million from third-party tenants.

    05

    Challenges in Other Operating Segments

    Food Packaging experienced a $6 million decrease in adjusted EBITDA due to lower volume and restructuring headwinds. Home Fashion's adjusted EBITDA declined by $2 million, affected by softening demand in retail and hospitality, as well as supply chain disruption🌐s in the Strait of Hormuz. The Pharma segment saw a $10 million decrease in adjusted EBITDA, attributed to reduced sales from anti-obesity prescriptions and increased R&D expenses for its disease-modifying designation efforts.

    06

    Liquidity and Capital Allocation Strategy

    Icahn Enterprises maintained significant liquidity, with the holding company possessing $2.8 billion in cash and investments in the funds as of quarter-end. Operating subsidiaries had an additional $1.3 billion in cash and revolver availability. The company continues to prioritize building asset value and maintaining this strong liquidity position to capitalize on attractive investment opportunities both within and outside its existing operating segments.

    AI-generated summary of the company’s earnings call. Not investment advice.