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Icahn Enterprises (IEP) Q4 FY25 earnings call: guidance

Earnings call· Dec 2025 (Q4 FY25)· Feb 25, 2026

Source: earnings call transcript

Executive summary

Icahn Enterprises L.P. Q4 FY25 — Mixed Performance with Strong Fund Gains Offset by NAV Decline

Icahn Enterprises reported a mixed Q4 FY25, with strong performance in its investment funds, which were up 11%, largely offset by a $654 million decline in net asset value. The company is adopting a more cautious market view, focusing on defensive names and building a significant cash war chest. Operating segments faced headwinds, including lower utilization in Energy and softening demand in Home Fashions, while strategic portfolio adjustments and a focus on liquidity remain key priorities.

Highlights

5

  • Investment funds were up approximately 11% in Q4 FY25, and up 9% excluding refining hedges.

  • Centuri reported base revenue growth of 25% and EBITDA growth of 28% in Q3 FY25.

  • Automotive segment's same-store sales increased by 5% compared to the prior year quarter.

  • Real Estate adjusted EBITDA increased by $6 million compared to Q4 FY24.

  • Cash balance at the funds recently increased to greater than $1.2 billion.

Concerns

5

  • Fourth quarter NAV decreased by $654 million compared to the third quarter.

  • Energy segment's adjusted EBITDA was $51 million for Q4 FY25, down from $99 million in Q4 FY24.

  • Food Packaging's adjusted EBITDA decreased by $8 million for Q4 FY25 compared to the prior year quarter.

  • Home Fashions' adjusted EBITDA decreased by $5 million in Q4 FY25 due to softening demand.

  • Pharma's adjusted EBITDA decreased by $4 million in Q4 FY25 due to reduced sales from generic competition.

Guidance & targets

CategoryTargetConfidence
AEP Asset Base CAGR
10% CAGR
medium materiality
High
AEP EPS CAGR
9% CAGR
medium materiality
High
AEP Additional Projects
$5 billion to $8 billion
medium materiality
Medium
IFF Comparable EBITDA Growth
mid-single-digit growth
medium materiality
Medium
CVI Refining Outlook
optimistic
high materiality
High
Home Fashions New Business Impact
positive impact
low materiality
Medium
Pharma TRANSCEND Trial First Patient Dosing
next 60 to 90 days
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Energy
Adjusted EBITDA decreased from $99 million in Q4 FY24. Negatively impacted by low utilization due to a turnaround at the Coffeyville fertilizer facility and a 3-week downtime event caused by a third-party air separation plant. CVI completed the reversion of the RDU at the Wynnewood refinery back to hydrocarbon processing.
———$51 million Adjusted EBITDA
Automotive
Automotive service revenues decreased by $1 million compared to the prior year quarter, but same-store sales increased by 5%. The segment continues to focus on product, pricing, labor, and distribution strategy.
decreased by $1 million5% increase (same-store sales)——
Real Estate
Adjusted EBITDA increased by $6 million compared to the prior year quarter, primarily driven by income from assets transferred from the Auto segment ($9 million intercompany income) and $3 million from third-party tenants.
———increased by $6 million Adjusted EBITDA
Food Packaging
Adjusted EBITDA decreased by $8 million compared to the prior year quarter due to lower volume, higher manufacturing inefficiencies, and disruptive headwinds from the restructuring plan. Tom Davis was brought back as CEO during Q4.
———decreased by $8 million Adjusted EBITDA
Home Fashions
Adjusted EBITDA decreased by $5 million compared to the prior year quarter, primarily due to softening demand in U.S. retail and hospitality business. Tariff uncertainty has created new business opportunities for 2026.
———decreased by $5 million Adjusted EBITDA
Pharma
Adjusted EBITDA decreased by $4 million compared to the prior year quarter, primarily due to reduced sales resulting from generic competition in the anti-obesity market. The TRANSCEND trial preparation for its PAH drug is on schedule.
———decreased by $4 million Adjusted EBITDA

IEP operating KPIs by quarter

IEP operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Crude utilization rate Energy
97% The first quarter refining operations were solid with crude utilization of 97%, although margins were weighed down by higher RFS obligation costs and unrealized derivative losses. Source: earnings call transcript
98%+ The second quarter refining operations were solid with crude utilization over 98%, although margins were weighed down by higher RFS obligation costs. Source: earnings call transcript
—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
PAH drug (TRANSCEND trial)milestone

Deals & partnerships

SpaceX EchoStar sold additional spectrum to SpaceX in exchange for additional SpaceX common equity.

EchoStar exchanged spectrum for common equity in SpaceX.

Southwest Gas Icahn Enterprises exited its position in Southwest Gas.

Subsequent to the quarter, Icahn Enterprises exited its investment in Southwest Gas, noting the company is in a much better position due to the Great Basin pipeline expansion, improved return on equity, and a strong balance sheet.

IFF IFF announced a formal sale process for its food ingredients business.

Portfolio company IFF is undergoing a formal sale process for its food ingredients business.

Capital programs

AEP CapEx plan underway $72 billion

Benefit:10% asset base CAGR, 9% EPS CAGR

AEP disclosed a new $72 billion CapEx plan that would drive its asset base to grow at a 10% CAGR and its earnings per share to grow at a 9% CAGR through 2030. The company is already seeing opportunities to add an additional $5 billion to $8 billion of projects.

Risks & headwinds

CVI share price declines Q4 FY25

Offset excellent fund performance

Mitigation:Management believes there are no material changes to CVI's outlook and remains optimistic on medium-term refining outlook; CVI is focused on improving capture rates.

Energy segment operational issues Q4 FY25

$48 million decrease in Adjusted EBITDA YoY

Mitigation:CVI completed the reversion of the RDU at the Wynnewood refinery back to hydrocarbon processing.

Food Packaging business challenges Q4 FY25

$8 million decrease in Adjusted EBITDA YoY

Mitigation:New CEO, Tom Davis, brought back to lead through transformative period.

Home Fashions softening demand Q4 FY25

$5 million decrease in Adjusted EBITDA YoY

Mitigation:Tariff uncertainty has created new business opportunities for 2026.

Pharma generic competition Q4 FY25

$4 million decrease in Adjusted EBITDA YoY

Mitigation:Focus on TRANSCEND trial preparation for PAH drug with potential for disease-modifying designation.

Caesars stock underperformance Q4 FY25

Underperformed expectations

Mitigation:Management believes Caesars is undervalued due to real estate portfolio and growing digital business, trading at 20% FCF yield for share repurchases and debt paydown.

General market caution near-term

Slightly more cautious view

Mitigation:Focus on defensive names benefiting from AI build-out and maintaining a significant cash war chest.

What to watch in Q1 FY26

CVI Capture Rates and Regional Profitability

next quarter
Current Focus on improving capture rates
Target Improved regional profitability

Why it matters

Improved capture rates and regional profitability for CVI are key to realizing the optimistic medium-term refining outlook and offsetting share price declines.

On a company-specific level, CVI is focused on improving its capture rates, which should drive improved profitability even if industry crack spreads remain constant.

Find out whether IEP delivers this. Inve re-checks your case every morning.

2 min read 4 chapters

Detailed narrative

Investment Funds Performance and Strategy

Icahn Enterprises' investment funds delivered strong performance in Q4 FY25, rising approximately 11% (9% excluding refining hedges), driven by contributors like EchoStar, refining hedges, and Centuri, despite Caesars being a detractor. For the full year, the funds were flat including hedges and up 7% excluding them. Management is adopting a more cautious market stance, favoring defensive names that benefit from AI infrastructure build-out, and has increased its cash balance to over $1.2 billion to capitalize on future opportunities.

Portfolio Company Updates and Strategic Moves

Key portfolio companies saw significant developments. AEP unveiled a $72 billion CapEx plan through 2030, projecting 10% asset base and 9% EPS CAGRs, with potential for additional projects. Icahn Enterprises exited Southwest Gas after improving its position. EchoStar sold spectrum to SpaceX for equity, with a potential SpaceX IPO seen as a catalyst. Centuri demonstrated strong growth with 25% base revenue and 28% EBITDA growth in Q3, reducing leverage to mid-2x EBITDA. IFF initiated a formal sale process for its food ingredients business and provided 2026 comparable EBITDA growth guidance.

Operating Segment Performance and Challenges

Several operating segments experienced declines. The Energy segment's adjusted EBITDA fell to $51 million in Q4 FY25, impacted by low utilization and a turnaround at the Coffeyville facility. Food Packaging saw an $8 million decrease in adjusted EBITDA due to lower volume and manufacturing inefficiencies, prompting a CEO change. Home Fashions' adjusted EBITDA decreased by $5 million due to softening demand, though tariff uncertainty is creating new business opportunities for 2026. Pharma's adjusted EBITDA declined by $4 million due to generic competition in the anti-obesity market, but its TRANSCEND trial for a PAH drug is on schedule for first patient dosing soon.

Liquidity and Capital Allocation

The company maintains robust liquidity, with the holding company holding $3.5 billion in cash and fund investments at quarter-end, and subsidiaries having $913 million in cash and revolver availability. Subsequent to quarter-end, the cash balance at the funds increased to over $1.2 billion. Icahn Enterprises also took steps to reduce its corporate debt, calling in the remaining balance of its 2026 maturities. The Board declared an unchanged distribution of $0.50 per depositary unit.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.