Icahn Enterprises(IEP) - 2025 Q2 - Quarterly Results

Financial Highlights Second Quarter 2025 Performance The company's Q2 2025 results show improved revenue and a significantly narrowed net loss compared to the prior year | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :----- | :----------------- | :----------------- | :----------- | | Revenues | $2,400 | $2,200 | +$200 | | Net Loss | $(165) | $(331) | +$166 (Improvement) | | Loss per Depositary Unit | $(0.30) | $(0.72) | +$0.42 (Improvement) | | Adjusted EBITDA Loss | $(43) | $(155) | +$112 (Improvement) | Six Months Ended June 30, 2025 Performance First-half 2025 performance saw decreased revenues and a wider net loss compared to the same period in 2024 | Metric | YTD 2025 (Millions) | YTD 2024 (Millions) | Change (YoY) | | :----- | :------------------ | :------------------ | :----------- | | Revenues | $4,200 | $4,700 | $(500) | | Net Loss | $(587) | $(369) | $(218) (Worsening) | | Loss per Depositary Unit | $(1.08) | $(0.82) | $(0.26) (Worsening) | | Adjusted EBITDA Loss | $(330) | $(21) | $(309) (Worsening) | Indicative Net Asset Value Update Indicative net asset value increased by $252 million to approximately $3.3 billion during the second quarter of 2025 | Metric | June 30, 2025 (Millions) | March 31, 2025 (Millions) | Change (QoQ) | | :----- | :----------------------- | :------------------------ | :----------- | | Indicative Net Asset Value | $3,300 | $3,048 | +$252 | Quarterly Distribution Declaration A quarterly distribution of $0.50 per depositary unit was declared for Q2 2025 - Distribution Amount: $0.50 per depositary unit[4][5] - Payment Date: On or about September 24, 2025[4] - Record Date: Close of business on August 18, 2025[4] - Election Deadline: September 12, 2025, for cash or additional units, with additional units as the default[4] Company Information Business Description Icahn Enterprises L.P. is a diversified holding company with subsidiaries in sectors like Investment and Energy - Operating Businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma[6] Caution Concerning Forward-Looking Statements The report contains forward-looking statements subject to inherent risks and uncertainties - Forward-looking statements are identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning[7] - Risks include economic downturns, competition, rising operating costs, geopolitical conflicts, investment activities, debt compliance, fair value declines, short sellers, and political/regulatory uncertainty[7] - Past performance in the Investment segment is not indicative of future performance, and the company undertakes no obligation to publicly update or review any forward-looking information[7] Condensed Consolidated Financial Statements Condensed Consolidated Statements of Operations The statements of operations show improved Q2 2025 revenue but worsened year-to-date revenue and net loss | Metric (Millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------- | :------ | :------ | :------- | :------- | | Net sales | $2,143 | $2,371 | $4,145 | $4,624 | | Other revenues from operations | $172 | $182 | $340 | $356 | | Net loss from investment activities | $(74) | $(479) | $(468) | $(575) | | Interest and dividend income | $69 | $122 | $152 | $265 | | Gain (loss) on disposition of assets, net | $47 | $1 | $44 | $(5) | | Other income, net | $12 | $4 | $23 | $6 | | Total Revenues | $2,369 | $2,201 | $4,236 | $4,671 | | Cost of goods sold | $2,118 | $2,208 | $4,134 | $4,199 | | Other expenses from operations | $154 | $150 | $305 | $299 | | Selling, general and administrative | $207 | $183 | $408 | $376 | | Dividend expense | $7 | $13 | $15 | $33 | | Impairment | $2 | $— | $12 | $— | | Restructuring, net | $(2) | $1 | $5 | $1 | | Interest expense | $129 | $128 | $257 | $264 | | Total Expenses | $2,615 | $2,683 | $5,136 | $5,172 | | Loss before income tax expense | $(246) | $(482) | $(900) | $(501) | | Income tax benefit (expense) | $45 | $(4) | $119 | $(11) | | Net loss | $(201) | $(486) | $(781) | $(512) | | Less: net loss attributable to non-controlling interests | $(36) | $(155) | $(194) | $(143) | | Net loss attributable to Icahn Enterprises | $(165) | $(331) | $(587) | $(369) | | Basic and Diluted loss per LP unit | $(0.30) | $(0.72) | $(1.08) | $(0.82) | | Distributions declared per LP unit | $0.50 | $1.00 | $1.00 | $2.00 | Condensed Consolidated Balance Sheets The balance sheet shows a decrease in total assets and equity as of June 30, 2025, from year-end 2024 | Metric (Millions) | June 30, 2025 | December 31, 2024 | Change | | :---------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $1,804 | $2,603 | $(799) | | Cash held at consolidated affiliated partnerships and restricted cash | $2,672 | $2,636 | +$36 | | Investments | $1,972 | $2,310 | $(338) | | Due from brokers | $1,261 | $1,624 | $(363) | | Accounts receivable, net | $420 | $479 | $(59) | | Inventories, net | $905 | $897 | +$8 | | Property, plant and equipment, net | $3,786 | $3,843 | $(57) | | Deferred tax asset | $179 | $160 | +$19 | | Derivative assets, net | $8 | $22 | $(14) | | Goodwill | $290 | $288 | +$2 | | Intangible assets, net | $381 | $409 | $(28) | | Assets held for sale | $25 | $25 | $0 | | Other assets | $1,136 | $983 | +$153 | | Total Assets | $14,839 | $16,279 | $(1,440) | | Accounts payable | $690 | $802 | $(112) | | Accrued expenses and other liabilities | $1,698 | $1,547 | +$151 | | Deferred tax liabilities | $233 | $331 | $(98) | | Derivative liabilities, net | $1,062 | $756 | +$306 | | Securities sold, not yet purchased, at fair value | $996 | $1,373 | $(377) | | Due to brokers | $24 | $40 | $(16) | | Debt | $6,713 | $6,809 | $(96) | | Total Liabilities | $11,416 | $11,658 | $(242) | | Equity attributable to Icahn Enterprises | $1,743 | $2,466 | $(723) | | Equity attributable to non-controlling interests | $1,680 | $2,155 | $(475) | | Total Equity | $3,423 | $4,621 | $(1,198) | | Total Liabilities and Equity | $14,839 | $16,279 | $(1,440) | Non-GAAP Financial Measures & Reconciliation Use of Non-GAAP Financial Measures This section defines EBITDA and Adjusted EBITDA and explains their use and limitations as performance indicators - EBITDA Definition: Earnings from continuing operations before net interest expense (excluding Investment segment), income tax (benefit) expense, and depreciation and amortization[12] - Adjusted EBITDA Definition: EBITDA excluding certain effects of impairment, restructuring costs, transformation costs, certain pension plan expenses, and other non-operational charges[12] - Rationale for Use: Provides supplemental information for investors and management to evaluate core operating performance and aids in period-to-period and peer comparisons[13] - Limitations: These measures do not reflect cash expenditures, do not account for asset replacement, and are not substitutes for U.S. GAAP measures like net income[14][15][16] Adjusted EBITDA Reconciliation The reconciliation from net loss to Adjusted EBITDA shows improved Q2 2025 results but a worsened year-to-date figure | Metric (Millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------- | :------ | :------ | :------- | :------- | | Net loss attributable to Icahn Enterprises | $(165) | $(331) | $(587) | $(369) | | Interest expense, net | $88 | $65 | $171 | $128 | | Income tax (benefit) expense | $(30) | $16 | $(86) | $19 | | Depreciation and amortization | $90 | $84 | $169 | $170 | | EBITDA before non-controlling interests | $(17) | $(166) | $(333) | $(52) | | Impairment | $2 | $- | $11 | $- | | Restructuring costs | $(1) | $- | $5 | $- | | (Gain) loss on disposition of assets, net | $(46) | $(1) | $(44) | $4 | | Transformation costs | $12 | $11 | $20 | $22 | | (Gain) loss on extinguishment of debt, net | $(3) | $1 | $(3) | $1 | | Out of period adjustments | $- | $- | $- | $(2) | | Other adjustments | $10 | $- | $14 | $6 | | Adjusted EBITDA attributable to IEP | $(43) | $(155) | $(330) | $(21) | Indicative Net Asset Value Data Explanation of Use This section explains the purpose and limitations of indicative net asset value as a valuation metric - Purpose: Indicative net asset value is an additional method for considering the value of the Company's assets, believed to be helpful to investors[17] - Limitations: It does not represent the market price at which depositary units trade, nor are the units redeemable, and it excludes any value for the Investment Segment beyond its fund investments[17][18][20] Indicative Net Asset Value Calculation The calculation details the components of the indicative net asset value, including subsidiaries and holding company assets | Component (Millions) | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :------------------- | :------------ | :------------- | :---------------- | | Market-valued Subsidiaries and Investments | | Holding Company interest in Investment Funds | $2,464 | $2,479 | $2,703 | | CVR Energy | $1,891 | $1,330 | $1,250 | | CVR Partners LP | $24 | $16 | $13 | | Total market-valued subsidiaries and investments | $4,379 | $3,825 | $3,966 | | Other Subsidiaries | | Viskase | $71 | $159 | $197 | | Real Estate Segment | $715 | $728 | $743 | | WestPoint Home | $166 | $166 | $162 | | Vivus | $197 | $215 | $209 | | Automotive Services | $442 | $521 | $482 | | Automotive Parts | $- | $3 | $9 | | Automotive Owned Real Estate Assets | $752 | $768 | $768 | | Operating Business Indicative Gross Asset Value | $6,722 | $6,385 | $6,536 | | Add: Other Net Assets | $109 | $(3) | $103 | | Indicative Gross Asset Value | $6,831 | $6,382 | $6,639 | | Add: Holding Company cash and cash equivalents | $1,086 | $1,318 | $1,397 | | Less: Holding Company debt | $(4,664) | $(4,699) | $(4,699) | | Indicative Net Asset Value | $3,253 | $3,001 | $3,337 | Investor Contact Information Contact Details This section provides contact information for investor inquiries - Contact Person: Ted Papapostolou, Chief Financial Officer[23] - Email: IR@ielp.com[23] - Phone: (800) 255-2737[23]