Icahn Enterprises(US:IEP)2025-11-05 21:32Financial Performance - Net sales for the three months ended September 30, 2025, increased to $2,316 million, up 3.8% from $2,231 million in the same period of 2024[11]. - Net income attributable to Icahn Enterprises for the three months ended September 30, 2025, was $287 million, compared to $22 million in the same period of 2024, indicating a significant increase[11]. - Comprehensive income attributable to Icahn Enterprises for the three months ended September 30, 2025, was $284 million, compared to $28 million in the same period of 2024[12]. - The net loss attributable to Icahn Enterprises for Q3 2025 was $287 million, compared to a net income of $22 million in Q3 2024, marking a significant decline[132]. - For the nine months ended September 30, 2025, the company reported a pre-tax loss of $362 million with an income tax expense of $8 million, resulting in an effective tax rate of (2.2)%[142]. - The company reported a net loss from investment activities of $48 million for the three months ended September 30, 2025, compared to a gain of $257 million in the same period of 2024[11]. - The company incurred a restructuring expense of $7 million for the nine months ended September 30, 2025, compared to $1 million in 2024[133]. Assets and Liabilities - Total assets decreased from $16,279 million as of December 31, 2024, to $14,826 million as of September 30, 2025, representing a decline of approximately 8.9%[10]. - Total liabilities decreased from $11,658 million as of December 31, 2024, to $11,407 million as of September 30, 2025, a reduction of approximately 2.1%[10]. - The equity attributable to Icahn Enterprises decreased from $2,466 million as of December 31, 2024, to $1,950 million as of September 30, 2025, a decrease of approximately 21%[10]. - Cash and cash equivalents decreased from $2,603 million as of December 31, 2024, to $1,787 million as of September 30, 2025, a decline of approximately 31.3%[10]. - The carrying value of long-term debt as of September 30, 2025, was approximately $6.7 billion, with an estimated fair value of $6.6 billion[45]. - As of September 30, 2025, total debt amounted to $6,688 million, a decrease from $6,809 million as of December 31, 2024[116]. Segment Performance - The Energy segment recognized revenue of $49 million for the nine months ended September 30, 2025, compared to $14 million for the same period in 2024[59]. - The Energy segment generated revenues of $5,352 million for the nine months ended September 30, 2025, compared to $5,663 million in 2024, reflecting a decrease of about 5.5%[135]. - The Automotive segment reported net sales of $218 million in Q3 2025, slightly up from $216 million in Q3 2024, indicating a marginal increase of 0.9%[132]. - The Automotive segment's raw materials inventory was $294 million as of September 30, 2025, slightly up from $293 million as of December 31, 2024[104]. - The Real Estate segment sold properties for total consideration of $247 million, resulting in a pre-tax gain of $223 million in August 2025[32]. - The Energy segment's net sales increased by $111 million (6%) for the three months ended September 30, 2025, driven by higher sales volumes and prices in the petroleum business[200]. Cash Flow and Investments - The net cash provided by operating activities for the nine months ended September 30, 2025, was $108 million, down from $588 million in 2024[19]. - The total cash and cash equivalents at the end of the period was $4.025 billion, compared to $4.734 billion at the end of the previous year[19]. - The company recognized equity method investments of $74 million for the nine months ended September 30, 2025[163]. - The total fair market value of investments in the Investment Funds was approximately $2.4 billion as of September 30, 2025, down from $2.7 billion as of December 31, 2024[183]. - The Investment Funds' returns for the three months ended September 30, 2025, were (0.5)%, a significant decline from 7.6% in the same period of 2024[186]. Capital Expenditures - Capital expenditures for Q3 2025 totaled $82 million, compared to $58 million in Q3 2024, reflecting an increase of approximately 41.4%[132]. - Capital expenditures for the nine months ended September 30, 2025, amounted to $266 million, an increase from $192 million in 2024, representing an increase of approximately 38.5%[133]. Tax and Legal Matters - For the three months ended September 30, 2025, the company recorded a pre-tax income of $538 million and an income tax expense of $127 million, resulting in an effective tax rate of 23.7%[139]. - A lawsuit related to a 2023 fire at the Wynnewood Refinery has a settlement demand of $60 million, with trial set for January 6, 2026[155]. Strategic Initiatives - The company is considering potential strategic transactions involving CVR Energy, including acquisitions of refining assets[176]. - The merger agreement with Enzon Pharmaceuticals is expected to close in Q1 2026, with Icahn Enterprises anticipated to own between 92% and 93% of the combined company[174].