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    IEP
    Earnings call· Dec 2025(Q4 FY25)

    ICAHN ENTERPRISES Q4 FY25 earnings call IEP

    Feb 25, 2026 Source

    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

    7
    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

    6
    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

    Operational metrics

    15
    Net Asset Value (NAV)
    $654 million decreasevs Q3 FY25
    Q4 FY25

    Decrease in NAV compared to the prior quarter.

    Funds Performance (including refining hedges)
    11%
    Q4 FY25

    Performance of investment funds for the quarter.

    Funds Performance (excluding refining hedges)
    9%
    Q4 FY25

    Performance of investment funds for the quarter, excluding refining hedges.

    Funds Performance (full year, including refining hedges)
    flat
    FY25

    Full year performance of investment funds.

    Funds Performance (full year, excluding refining hedges)
    7%
    FY25

    Full year performance of investment funds, excluding refining hedges.

    Centuri Base Revenue Growth
    25%
    Q3 FY25

    Growth for portfolio company Centuri.

    Centuri EBITDA Growth
    28%
    Q3 FY25

    Growth for portfolio company Centuri.

    Centuri Leverage
    mid-2x
    Q3 FY25

    Leverage ratio for portfolio company Centuri.

    Caesars Free Cash Flow Yield
    20%
    current

    Free cash flow yield for portfolio company Caesars, expected to be used for share repurchases and debt paydown.

    Funds Cash Balance (year-end)
    $750 million
    year-end FY25

    Cash balance held at the investment funds as of year-end.

    Funds Cash Balance (recent)
    >$1.2 billion
    recent

    Increased cash balance at the investment funds subsequent to quarter end.

    Holding Company Cash and Investment in Funds
    $3.5 billion
    quarter end FY25

    Total liquidity at the holding company level.

    Subsidiaries Cash and Revolver Availability
    $913 million
    quarter end FY25

    Liquidity available at the operating subsidiaries.

    Distribution per Depositary Unit
    $0.50unchanged
    Q4 FY25

    Quarterly distribution declared by the Board.

    Corporate Debt Reduction
    —
    subsequent to Q4 FY25

    Steps taken to reduce IEP corporate debt balance, including calling in the remaining balance of 2026 maturities.

    Industry KPIs

    2
    MetricValueDetails
    Segment organic growth margin5%%
    Spin stranded cost portfolio movesFormal sale process

    Product announcements

    1
    ProductTypeDetails
    PAH drug (TRANSCEND trial)milestone

    Deals & partnerships

    3
    SpaceXEchoStar sold additional spectrum to SpaceX in exchange for additional SpaceX common equity.

    EchoStar exchanged spectrum for common equity in SpaceX.

    Southwest GasIcahn 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.

    IFFIFF 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

    1
    AEP CapEx planunderway$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

    7
    CVI share price declinesQ4 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 issuesQ4 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 challengesQ4 FY25

    $8 million decrease in Adjusted EBITDA YoY

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

    Home Fashions softening demandQ4 FY25

    $5 million decrease in Adjusted EBITDA YoY

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

    Pharma generic competitionQ4 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 underperformanceQ4 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 cautionnear-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

    5

    CVI Capture Rates and Regional Profitability

    next quarter
    CurrentFocus on improving capture rates
    TargetImproved 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.

    2 min read4 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

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