Icahn Enterprises(US:IEP)2025-02-26 22:27Financial Performance - Net sales for 2024 were $9,193 million, down 17% from $11,077 million in 2023[417]. - The net loss attributable to Icahn Enterprises for 2024 was $445 million, compared to a loss of $684 million in 2023, representing a 35% improvement[417]. - Basic and diluted loss per LP unit improved from $(1.75) in 2023 to $(0.94) in 2024[417]. - The comprehensive loss attributable to Icahn Enterprises was $451 million in 2024, compared to $669 million in 2023, indicating a 33% improvement[418]. - Net loss for the year ended December 31, 2024, was $542 million, compared to a loss of $1,012 million in 2023[422]. - Cash provided by operating activities for 2024 was $832 million, a decrease from $3,736 million in 2023[422]. - The company reported interest and dividend income of $477 million in 2024, down from $636 million in 2023[417]. - The company declared distributions of $3.50 per LP unit in 2024, down from $6.00 in 2023[417]. Assets and Liabilities - Total assets decreased from $20,858 million in 2023 to $16,279 million in 2024, a decline of approximately 22%[416]. - Total liabilities decreased from $14,785 million in 2023 to $11,658 million in 2024, a reduction of approximately 21%[416]. - Cash and cash equivalents decreased from $2,951 million in 2023 to $2,603 million in 2024, a decline of about 12%[416]. - Total equity attributable to Icahn Enterprises decreased to $4,621 million as of December 31, 2024, from $5,658 million in 2023[420]. - Cash and cash equivalents at the end of 2024 were $5,239 million, down from $5,946 million at the end of 2023[422]. - The carrying value of the company's long-term debt as of December 31, 2024, was approximately $6.8 billion, with an estimated fair value of $6.6 billion[449]. Investment Activities - The company has an investment of approximately 64% in the Investment Funds, which mitigates the impact of fair value changes on its net gain from investment activities[396]. - The total fair market value of investments in the Investment Funds by Mr. Icahn and his affiliates was approximately $1.5 billion as of December 31, 2024, down from $2.1 billion in 2023[532]. - The Investment Funds issued a pro-rata cash distribution of $650 million in 2024, including $256 million to Mr. Icahn and his affiliates[532]. - The Investment segment had a fair value of approximately $2.7 billion as of December 31, 2024, down from $3.2 billion in 2023[426]. - The carrying value of equity securities decreased from $2.61 billion in 2023 to $2.24 billion in 2024, with significant reductions in the Energy and Utilities sectors[544]. - Unrealized losses related to securities held by the Investment segment were $187 million in 2024, down from $302 million in 2023[544]. Segment Performance - The company’s Energy segment relies on a positive spread between the cost of raw materials and the value of finished products to achieve gross margin, indicating exposure to commodity price fluctuations[397]. - The Automotive segment provides a full range of automotive repair and maintenance services, contributing to the company's diversified operations[428]. - The Pharma segment operates through Vivus LLC, which has two approved therapies and two product candidates in active clinical development[433]. - The Real Estate segment includes investment properties such as land, retail, office, and industrial properties, along with the development and sale of single-family homes[431]. - The Energy segment recorded revenue of $16 million, $46 million, and $86 million for the years ended December 31, 2024, 2023, and 2022, respectively, from deferred revenue[510]. Risks and Challenges - The company faces risks related to economic downturns, competition, and rising operating costs, which could materially affect its financial condition[7]. - The company is subject to risks associated with its investment activities, including the potential for significant losses due to leverage and market volatility[7]. - The company’s food packaging segment is exposed to foreign currency risks, with recorded translation losses in earnings of $9 million for the year ended December 31, 2024[402]. Debt and Interest Rates - As of December 31, 2024, the company has variable rate debt aggregating $483 million, with a 1.0% increase in interest rates potentially increasing interest expense by approximately $5 million annually[400]. - The company’s operating segments have additional borrowing availability subject to variable interest rates aggregating $306 million, increasing exposure to interest rate changes[400]. Other Financial Metrics - The company recorded a translation loss of $7 million and a gain of $5 million in accumulated other comprehensive loss for the years ended December 31, 2024 and 2023 respectively[402]. - The cost of goods sold decreased from $9,327 million in 2023 to $8,619 million in 2024, a reduction of approximately 8%[417]. - The company reported capital expenditures of $280 million in 2024, compared to $303 million in 2023[422]. - Partnership distributions increased to $391 million in 2024 from $307 million in 2023[422]. Bankruptcy and Deconsolidation - On January 31, 2023, Auto Plus, a subsidiary of Icahn Automotive, filed for bankruptcy, leading to its deconsolidation from the company's financial statements[429]. - Auto Plus filed for Chapter 11 bankruptcy on January 31, 2023, leading to a non-cash charge of $246 million for the company due to deconsolidation[530]. - The company loaned $17 million to Auto Plus under a debtor-in-possession credit facility, with an estimated cash collection of $11 million as of December 31, 2024, resulting in a write-off of $127 million[537]. Derivative Instruments - The total collateral posted across all counterparties was $1.5 billion in 2024, down from $1.7 billion in 2023[576]. - The total net derivative assets after netting were $18 million in 2024, compared to $39 million in 2023[576]. - The total net derivative liabilities after netting were $756 million in 2024, down from $979 million in 2023[576].