Icahn Enterprises L.P. (NASDAQ:IEP) is featured in Mad Money’s latest recap as Jim Cramer shared his buy, sell, or hold verdict. When a caller asked about the stock, Cramer said: No, I don’t want to touch that one. The bears have been so right on that one the whole way. I think they’re going to continue to be right. It’s one of the great bear calls I have seen in my life. Photo by AlphaTradeZone Icahn Enterprises L.P. (NASDAQ:IEP) is a diversified holding company that manages proprietary capital throu ...

Core Insights - The story of Carl Icahn illustrates the inefficiencies prevalent in some companies, leading to drastic changes by activist investors [1][6] - Icahn's experience highlights the lack of accountability and poor leadership in corporate America, which he believes necessitates activist intervention [6][7] Group 1: Corporate Inefficiency - Icahn's attempt to understand a newly acquired company's operations revealed significant inefficiencies, as he could not determine the purpose of entire departments [2][3] - Consultants hired to clarify the situation also failed to provide an explanation, indicating a deep-rooted issue within the organization [3] Group 2: Drastic Measures - Following advice from an operations leader, Icahn eliminated 12 floors of staff in one decision, which surprisingly resulted in no backlash or disruption to business operations [4] - This action underscores the notion that many employees may not contribute meaningfully to the company's success [4] Group 3: Activist Investing Perspective - Icahn argues that many companies suffer from weak leadership and boards that do not hold management accountable, creating opportunities for activist investors [6] - He emphasizes that while some companies are well-managed, many are not, often led by individuals who are ill-suited for their roles [7]

Group 1 - The article does not provide specific insights or analysis on any companies or industries, focusing instead on the author's personal disclosures and lack of investment positions [1][2]

Group 1: Investment Insights - Berkshire Hathaway's CEO Greg Abel discussed the resumption of the buyback program, indicating ongoing strategic discussions with Warren Buffett [1] - Stan Druckenmiller emphasized the importance of investing first and then conducting thorough investigations, highlighting a proactive investment approach [1] - Howard Marks from Oaktree stated that there are no systemic issues within the private credit market, suggesting stability in this sector [1] Group 2: Market Trends - The rise of Chinese biotech is noted as a significant trend, indicating potential growth opportunities in this sector [1] - The Fear & Greed Index indicates a strongly overvalued market, suggesting caution among investors [3] - The current market is described as 'out of gear', reflecting potential misalignments in valuations and investor sentiment [1] Group 3: Value Investing - Goldman Sachs raised the question of whether value stocks could benefit from the recent AI market rout, indicating a potential shift in investment strategies [1] - Historical valuation gaps are pointing towards a major market shift, as noted by Miller Value Partners, suggesting that investors should be attentive to changing dynamics [1] - Value investing is showing signs of resurgence, with predictable swings in performance between value and growth stocks [1]

Core Insights - Carl Icahn increased his stake in Icahn Enterprises by 30,467,595 shares during Q4, valued at approximately $245.63 million, raising the total position to 549,400,539 shares, although the total value decreased by $221.44 million compared to the previous filing [2] Company Overview - Icahn Enterprises reported a total revenue of $8.63 billion and a net income of -$299 million for the trailing twelve months [4] - The company offers a dividend yield of 25.02% and had a share price of $7.99 as of February 17, 2026, reflecting a decline of 0.62% over the prior year [4][7] Company Snapshot - Icahn Enterprises operates as a diversified conglomerate with significant activities in sectors such as energy, automotive, and real estate [6] - The company generates revenue through various operations, including investment management, energy refining, automotive parts, food packaging, and pharmaceuticals [8] Investment Implications - The increase in Icahn Enterprises shares represents 49.1% of the fund's reportable U.S. equity holdings, indicating a strong commitment from Carl Icahn [7] - The top five holdings of the fund include Icahn Enterprises at $4.15 billion (49.1% of AUM), CVI at $1.79 billion (21.2% of AUM), and others, highlighting the concentration of assets [7] - Despite the high dividend yield, concerns about sustainability arise, especially given the stock's 88% decline over the past five years [9][10]

Investment Risks - The company estimates that a 10% adverse change in the fair value of its investments would decrease the fair values of securities owned, sold, and derivatives by approximately $215 million, $138 million, and $423 million, respectively, as of December 31, 2025[396]. - The company has significant exposure to equity price risk primarily related to its Investment segment, which is regularly evaluated and managed on both a position and portfolio basis[395]. - The company’s investment in the Investment Funds was approximately 75% as of December 31, 2025, which affects the net gain or loss from investment activities reported in its consolidated statements[396]. - The Investment Funds and other entities hold derivative instruments that are subject to credit risk, monitored through public information on counterparties[407]. Foreign Currency Risks - Viskase recorded a translation loss of $7 million in accumulated other comprehensive loss for each of the years ended December 31, 2025, and 2024, indicating exposure to foreign currency risks[404]. - The company’s food packaging segment is exposed to foreign currency risks due to international operations, which can create volatility in financial results[404]. Interest Rate Risks - As of December 31, 2025, the company has variable rate debt aggregating $323 million, with a 1.0% increase in interest rates potentially increasing interest expense by approximately $3 million annually[402]. - The company’s operating segments have additional borrowing availability subject to variable interest rates aggregating $302 million, increasing exposure to interest rate changes[402]. Commodity Pricing Risks - The company’s Energy segment requires a positive spread between the cost of raw materials and the value of finished products to achieve gross margins, highlighting the importance of commodity pricing[398]. Compliance and Market Risks - The company may face risks related to compliance with covenants in its debt instruments, which could result in an event of default or foreclosure on collateral securing the notes[404]. - The company is subject to risks associated with short selling strategies that may drive down the market price of its depositary units, increasing market volatility[414]. - CVR Energy's subsidiaries are required to blend biofuels into transportation fuels or purchase RINs to comply with EPA mandates, exposing them to market risk from RIN price volatility[408].

PresentationGood morning, and welcome to the Icahn Enterprises L.P. Fourth Quarter 2025 Earnings Call with Andrew Teno, President and CEO, Ted Papapostolou, Chief Financial Officer; and Robert Flint, Chief Accounting Officer. I would now like to hand the call over to Robert Flint, who will read the opening statement.Robert FlintChief Accounting Officer & Principal Accounting Officer Thank you, operator. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement ...

Financial Data and Key Metrics Changes - The fourth quarter net asset value (NAV) decreased by $654 million compared to the third quarter, despite an 11% performance increase in funds for the quarter [4] - For the year, the funds were approximately flat including refining hedges and up 7% excluding refining hedges [5] Business Line Data and Key Metrics Changes - Energy segment's adjusted EBITDA was $51 million for Q4 2025, down from $99 million in Q4 2024, impacted by low utilization in the fertilizer business [11] - Automotive service revenues decreased by $1 million compared to the prior year quarter, but same-store sales increased by 5% [11] - Real Estate's Q4 2025 adjusted EBITDA increased by $6 million, driven by intercompany income from the auto segment [12] - Food Packaging's adjusted EBITDA decreased by $8 million due to lower volume and higher manufacturing inefficiencies [12] - Home Fashion's adjusted EBITDA decreased by $5 million due to softening demand in the U.S. retail and hospitality business [13] - Pharma's adjusted EBITDA decreased by $4 million due to reduced sales from generic competition [13] Market Data and Key Metrics Changes - The company remains optimistic about the medium-term refining outlook, citing limited global capacity expansions and new pipeline projects [4] - The company has approximately $750 million in cash at the funds, which has recently increased to over $1.2 billion [9] Company Strategy and Development Direction - The company is taking a more cautious view of the market, focusing on defensive names that benefit from AI build-out [9] - The board declared an unchanged distribution at $0.50 per depository unit [10] Management's Comments on Operating Environment and Future Outlook - Management believes there are no material changes to CVI's outlook and is optimistic about improving profitability through better capture rates [4] - The company is focused on maintaining liquidity to capitalize on opportunities within and outside existing operating segments [14] Other Important Information - The company has taken steps to reduce corporate debt by calling in the remaining balance of the 2026 maturities [10] - A new CEO was appointed for the Food Packaging segment to lead through a transformative period [12] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may have concluded without notable inquiries or responses [15]

Financial Data and Key Metrics Changes - The fourth quarter NAV decreased by $654 million compared to the third quarter, despite an 11% increase in fund performance for the quarter [4] - For the year, the company was approximately flat including refining hedges and up 7% excluding refining hedges [5] Business Line Data and Key Metrics Changes - Energy segment's Adjusted EBITDA was $51 million for Q4 2025, down from $99 million in Q4 2024, impacted by low utilization in the fertilizer business [11] - Automotive service revenues decreased by $1 million compared to the prior year quarter, but same-store sales increased by 5% [11] - Real Estate's Q4 2025 Adjusted EBITDA increased by $6 million, driven by intercompany income from the auto segment [12] - Food Packaging's Adjusted EBITDA decreased by $8 million due to lower volume and higher manufacturing inefficiencies [12] - Home Fashion's Adjusted EBITDA decreased by $5 million due to softening demand in the U.S. retail and hospitality business [13] - Pharma's Adjusted EBITDA decreased by $4 million due to reduced sales from generic competition [13] Market Data and Key Metrics Changes - The company remains optimistic about the medium-term refining outlook, citing limited capacity expansions globally and new pipeline projects [4] - The cash balance at the funds increased to greater than $1.2 billion as of year-end [9] Company Strategy and Development Direction - The company is taking a more cautious view of the market, focusing on defensive names that benefit from AI build-out [9] - The board declared an unchanged distribution at $0.50 per depository unit [10] Management's Comments on Operating Environment and Future Outlook - Management believes there are no material changes to CVI's outlook and remains optimistic about profitability improvements [4] - The company is focused on maintaining liquidity to capitalize on opportunities within and outside existing operating segments [14] Other Important Information - The company has taken steps to reduce corporate debt by calling in the remaining balance of the 2026 maturities [10] - The CEO position in Food Packaging was changed, bringing back Tom Davis to lead during a transformative period [12] Q&A Session Summary - The Q&A session was brief and concluded without specific questions being documented in the provided content [15][17]

Financial Data and Key Metrics Changes - The fourth quarter net asset value (NAV) decreased by $654 million compared to the third quarter, despite an 11% increase in fund performance for the quarter [4] - For the year, the funds were approximately flat including refining hedges and up 7% excluding refining hedges [5] - The company maintained a cash balance of approximately $750 million at year-end, which has since increased to over $1.2 billion [9] Business Line Data and Key Metrics Changes - Energy segment's adjusted EBITDA was $51 million for Q4 2025, down from $99 million in Q4 2024, primarily due to low utilization in the fertilizer business [11] - Automotive service revenues decreased by $1 million compared to the prior year quarter, but same-store sales increased by 5% [11] - Real Estate's Q4 2025 adjusted EBITDA increased by $6 million, driven by intercompany income from the auto segment [12] - Food Packaging's adjusted EBITDA decreased by $8 million due to lower volume and higher manufacturing inefficiencies [12] - Home Fashion's adjusted EBITDA decreased by $5 million due to softening demand in the U.S. retail and hospitality business [13] - Pharma's adjusted EBITDA decreased by $4 million due to reduced sales from generic competition [13] Market Data and Key Metrics Changes - The refining outlook remains optimistic due to limited global capacity expansions and new pipeline projects that should improve regional profitability [4] - The automotive segment is focusing on product, pricing, labor, and distribution strategy to enhance revenue [11] Company Strategy and Development Direction - The company is taking a more cautious view of the market, preferring defensive names that benefit from AI build-out [9] - The board declared an unchanged distribution at $0.50 per depository unit, indicating a stable approach to shareholder returns [10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the medium-term refining outlook despite share price declines in CVI [4] - The company is focused on building asset value and maintaining liquidity to capitalize on opportunities [14] Other Important Information - The company has taken steps to reduce corporate debt by calling in the remaining balance of the 2026 maturities [10] - A new CEO was appointed for the Food Packaging segment to lead through a transformative period [12] Q&A Session Summary - No specific questions or answers were recorded in the provided content, indicating a lack of engagement during the Q&A segment [15][16]