Icahn Enterprises L P : IEP Q1 2025 Earnings Webcast

Published: 2025-05-07 08:32:17 ET IEP

Published on 05/07/2025 at 08:32

Q1 2025 Earnings Presentation

May 7, 2025

L.P. UNITHOLDERS

FINANCIAL RESULTS

Q1 2025 net loss attributable to IEP of $422 million, or loss of $0.79 per depositary unit, compared to net loss attributable to IEP of $38 million, or a loss of $0.09 per depositary unit, for Q1 2024

Q1 2025 Adjusted EBITDA loss attributable to IEP (1)was $287 million compared to Adjusted EBITDA attributable to IEP of $134 million for Q1 2024

Indicative net asset value (2)as of March 31, 2025, was approximately $3 billion, a decrease of $336 compared to December 31, 2024

IEP declares first quarter distribution of $0.50 per depositary unit

Refer to the Non-GAAP Reconciliations in the Appendix

The change in indicative net asset value includes, among other things, changes in the fair value of certain subsidiaries which are not included in our GAAP earnings 3

($Millions)

Three Months Ended

March 31,

2025

2024

($Millions)

Three Months Ended

March 31,

2025

2024

Segments:

Energy

($86)

$49

Energy

($62)

$118

Automotive

(27)

(9)

Automotive

(6)

Food Packaging

(13)

Food Packaging

Real Estate

(4)

(2)

Real Estate

Home Fashion

(2)

(1)

Home Fashion

Pharma

(2)

Pharma

Subtotal

(134)

Subtotal

(56)

164

Investment

(224)

(23)

Investment

(224)

(23)

Holding Company

(64)

(55)

Holding Company

(7)

Consolidated

($422)

($38)

Consolidated

($287)

$134

Segment Description

Our Investment segment is comprised of various private investment funds ("Investment Funds") in which we have general partner interests and through which we invest our proprietary capital

We and Mr. Icahn and certain of his family members and affiliates are the only investors in the Investment Funds

Fair value of IEP's investment in the Funds was approximately $2.5 billion as of March 31, 2025

Highlights and Recent Developments

As of March 31, 2025, the Funds had a net long notional exposure of 20%

Returns of negative 8.4% for Q1 2025

Significant Holdings (1)

As of March 31, 2025

Summary Segment Financial Results

Selected Income Statement Data:

Adjusted EBITDA(2) ($350) ($40)

Net income (loss) (350) (40)

Adjusted EBITDA attributable to IEP(2) (224) (23) Net income (loss) attributable to IEP (224) (23)

Returns -8.4% -0.8%

Company

Mkt. Value ($mm)

% Ownership

$586 1%

$541 10%

$291 1%

$264 5%

$225 9%

Investment Segment

Three Months Ended

March 31,

($Millions)

2025

2024

Market value and percentage ownership are based on holdings and closing share price as of specified date and consist of shares owned and shares that may be acquired upon the exercise

of forward contracts, and excludes the impact of cash-settled equity swap agreements, which from time to time have the effect of significantly increasing the economic exposure of the 5

Investment Funds to particular portfolio investment positions.

Refer to the Non-GAAP Reconciliation in the Appendix

Segment Description

CVR Energy, Inc. (NYSE: CVI) is a diversified holding company primarily engaged in the petroleum refining, renewables, and nitrogen fertilizer manufacturing businesses through its interests in CVR Refining, LP and CVR Partners, LP (NYSE: UAN) CVR Refining is an independent petroleum refiner and marketer of high-value transportation fuels in the mid-continent of the United States

The Renewables Business refines feedstocks, including soybean oil, corn oil, and other related renewable feedstocks, into renewable diesel

CVR Partners is a manufacturer of ammonia and urea ammonium nitrate ("UAN") solution fertilizer products

Highlights and Recent Developments

CVR Energy Q1 2025 Highlights

Consolidated Adjusted EBITDA decreased by $264 million to a loss of $61 million for Q1 2025 compared to $203 million in Q1 2024

Petroleum Q1 2025 Results

Q1 2025 results were negatively impacted by downtime related to the turnaround of the Coffeyville refinery which was completed in April 2025

Processed approximately 120,000 barrels per day of total throughput in the quarter

Refining margin for Q1 2025 was a loss of $0.42 per throughput barrel, compared to $16.29 during Q1 2024

Renewables Q1 2025 Results

Total vegetable oil throughput was approximately 156,000 gallons per day in the quarter

Renewable margin for Q1 2025 was $1.13 per vegetable oil throughput gallon, compared to $0.65 in Q1 2024

Nitrogen Fertilizer Q1 2025 Results

Q1 2025 average realized gate prices for UAN declined by 4% percent to

$256 per ton and ammonia increased by 5% percent to $554 per ton when compared to Q1 2024

Summary Segment Financial Results

Selected Income Statement Data:

Net sales $1,646 $1,863

Adjusted EBITDA(1) (61) 203

Net income (loss) (117) 78

Adjusted EBITDA attributable to IEP(1) (62) 118

Net income (loss) attributable to IEP (86) 49

Capital Expenditures $51 $47

Energy Segment

Three Months Ended

March 31,

($Millions)

2025

2024

Segment Description

The Automotive segment is engaged in providing a full range of automotive repair and maintenance services, along with the sale of any installed parts or materials related to automotive services ("Automotive Services") to its customers, as well as sales of automotive aftermarket parts and retailed merchandise ("Aftermarket Parts"). In addition to its primary business, the Automotive segment leases available and excess real estate in certain locations under long-term operating leases

Highlights and Recent Developments

Net sales and other revenues, which include Automotive Services, Aftermarket Parts, and Leasing revenues, decreased by $35 million

Automotive Services revenue was $333 million, down $23 million primarily due to reduced pricing and a shift of consumer behavior toward lower priced offerings

Aftermarket Parts revenue was $2 million, down $11 million due to the exit of the Aftermarket Parts business which was completed in Q1 2025

Adjusted EBITDA decreased $29 million for Q1 2025 compared to Q1 2024

Summary Segment Financial Results

Selected Income Statement Data:

Net sales and other revenue from $349 $384 operations

Adjusted EBITDA(1) (6) 23

Net income (loss) (27) (9)

Capital Expenditures $24 $16

Automotive Segment

Three Months Ended

March 31,

($Millions)

2025

2024

All Other Segments Description

Real Estate: Our Real Estate segment consists of investment properties which includes land, retail, office and industrial properties leased to corporate tenants, the development and sale of single-family homes, and the operations of a resort and two country clubs

Food Packaging: We conduct our Food Packaging segment through our majority owned subsidiary, Viskase Companies, Inc. (OTCPK:VKSC), a producer of cellulosic, fibrous and plastic casings for the processed meat and poultry industry

Home Fashion: We conduct our Home Fashion segment through our wholly owned subsidiary, WestPoint Home LLC. WestPoint Home LLC is engaged in manufacturing, sourcing, marketing, distributing and selling home fashion consumer products

Pharma: We conduct our Pharma segment through our wholly owned subsidiary, Vivus LLC. Vivus is a specialty pharmaceutical company with two approved therapies, two product candidates in active clinical development and two product candidates in early-stage development

Highlights and Recent Developments

Q1 2025 Adjusted EBITDA attributable to IEP for all other segments was $12 million compared to $23 million for Q1 2024

Real Estate Results

Real Estate Q1 2025 Adjusted EBITDA decreased $1 million compared to Q1 2024

Food Packaging Results

Food Packaging Q1 2025 Adjusted EBITDA attributable to IEP decreased by

$6 million compared to prior year quarter primarily due to lower price and higher manufacturing inefficiencies

Home Fashion Results

Home Fashion Q1 2025 Adjusted EBITDA decreased by $1 million compared to Q1 2024

Pharma Results

Pharma Q1 2025 Adjusted EBITDA decreased by $3 million compared to Q1 2024 due to increased sales, marketing and R&D expense

Summary All Other Segments Financial Results

Selected Income Statement Data:

Net sales and other revenue from $175 $180 operations

Adjusted EBITDA(2) 13 24

Net income (loss) (22) -

Adjusted EBITDA attributable to IEP (2) 12 23

Net income (loss) attributable to IEP (21) -

Capital Expenditures $13 $5

All Other Operating Segments (1)

Three Months Ended

March 31,

($Millions)

2025

2024

All Other operating segments include Food Packaging, Real Estate, Home Fashion, and Pharma. Results for each of these separate segments can be found in our

Form 10-Q filed with the SEC 8

Refer to the Non-GAAP Reconciliations in the Appendix

Our operating subsidiaries and the Holding Company maintain liquidity to take advantage of attractive opportunities for their respective businesses

As of

($Millions)

3/31/2025

Liquid Assets:

Holding Company Cash & Cash Equivalents

$1,318

Holding Company Investment in Investment Funds

2,463

Total Holding Company Liquid Assets

$3,781

Subsidiary Liquidity:

Subsidiary Cash & Cash Equivalents

865

Subsidiary Revolver Availability

390

Total Subsidiary Liquidity

1,255

Total Liquidity

$5,036

($Millions)

As of

3/31/2024

6/30/2024

9/30/2024

12/31/2024

3/31/2025

Market-valued Subsidiaries and Investments:

Holding Company interest in Investment Funds(1)

$ 3,202

$ 2,946

$ 2,745

$ 2,703

$ 2,479

CVR Energy(2)

2,378

1,785

1,536

1,250

1,330

CVR Partners LP(2)

Total market-valued Subsidiaries and Investments:

$ 5,580

$ 4,731

$ 4,281

$ 3,966

$ 3,825

Other Subsidiaries:

Viskase(3)

333

298

254

197

159

Real Estate Segment(4)

440

434

442

743

728

WestPoint Home(1)

151

160

164

162

166

Vivus(1)

214

217

221

209

215

Automotive Services(5)

641

671

478

482

521

Automotive Parts(1)

Automotive Owned Real Estate Assets(6)

763

768

Icahn Automotive Group

1,423

1,448

1,251

1,259

1,292

Operating Business Indicative Gross Asset Value

$ 8,141

$ 7,288

$ 6,613

$ 6,536

$ 6,385

Add: Other Net Assets(7)

(34)

103

(3)

Indicative Gross Asset Value

$ 8,107

$ 7,373

$ 6,677

$ 6,639

$ 6,382

Add: Holding Company cash and cash equivalents(8)

1,692

1,470

1,566

1,397

1,318

Less: Holding Company debt(8)

(4,847)

(4,860)

(4,683)

(4,699)

Indicative Net Asset Value

$ 4,952

$ 3,983

$ 3,560

$ 3,337

$ 3,001

Note: Refer to Use of Indicative Net Asset Value Data page for footnotes and additional information.

Use of Indicative Net Asset Value Data

The Company uses indicative net asset value as an additional method for considering the value of the Company's assets, and we believe that this information can be helpful to investors. Please note, however, that the indicative net asset value does not represent the market price at which the depositary units trade. Accordingly, data regarding indicative net asset value is of limited use and should not be considered in isolation.

The Company's depositary units are not redeemable, which means that investors have no right or ability to obtain from the Company the indicative net asset value of units that they own. Units may be bought and sold on The Nasdaq Global Select Market at prevailing market prices. Those prices may be higher or lower than the indicative net asset value of the depositary units as calculated by management.

Prior to December 31, 2024, we used GAAP equity attributable to IEP for purposes of calculating our Real Estate segment indicative net asset value. During the fourth quarter of the year ended December 31, 2024, we signed an agreement to sell certain properties in our Real Estate segment, which is expected to close by the end of the second quarter of 2025, and which would have resulted in a fair value that would have significantly exceeded their GAAP equity attributable to IEP. As a result, in the view of management, this segment's GAAP equity attributable to IEP as of December 31, 2024 no longer reflected indicative net asset value. Accordingly, these properties were valued based on the anticipated sales price adjusted for customary closing costs. Additionally, management performed a valuation with the assistance of third-party consultants to estimate fair-market value for the remaining assets in the Real Estate segment. We believe these changes better reflect the value of our Real Estate segment's assets and provide a more useful measurement for management and investors.

Prior to December 31, 2024, we valued the Automotive Services business using the trailing twelve month Adjusted EBITDA. Management no longer believes that the trailing twelve month Adjusted EBITDA represents uniform performance and growth for the business. Accordingly, starting December 31, 2024 management performed a valuation of the business using discounted cash flow and guideline public company methodologies with the assistance of third-party consultants and will continue to use these forward looking methodologies in future periods.

Footnotes to Company's calculation of Indicative Net Asset Value:

Represents GAAP equity attributable to IEP as of each respective date.

Based on closing share price on each date (or if such date was not a trading day, the immediately preceding trading day) and the number of shares owned by us as of each respective date.

Amounts based on market comparables due to lack of material trading volume, valued at 9.0x Adjusted EBITDA for the trailing twelve months ended as of each respective date.

For periods March 31, 2024, June 30, 2024, and September 30, 2024, value represents GAAP equity attributable to IEP as of each respective date. During the fourth quarter of 2024, we signed an agreement to sell certain properties in our Real Estate segment, which is expected to close by the end of the second quarter of 2025, and which resulted in a fair value that significantly exceeded their GAAP equity attributable to IEP. The value for these properties as of December 31, 2024 and March 31, 2025 is based on the anticipated sales price adjusted for customary closing costs. Additionally, as of December 31, 2024 and March 31, 2025, for all other assets in the Real Estate segment, excluding a debt investment, management performed a valuation with the assistance of third-party consultants to estimate fair-market value, which utilized the results of discounted cashflow and sales comparison methodologies. Different judgments or assumptions would result in different estimates of the value of these holdings. The Real Estate segment's debt investment is fair valued in accordance with GAAP as it has been historically. For reference, the GAAP equity attributable to us for the Real Estate segment as of December 31, 2024 and March 31, 2025 was $447 million and $430 million, respectively.

For the periods March 31, 2024, June 30, 2024, and September 30, 2024 amounts based on market comparables, valued at 10.0x Adjusted EBITDA for the trailing twelve months ended as of each respective date. As of December 31, 2024 and March 31, 2025, management performed a valuation of the Automotive Services business with the assistance of third-party consultants to estimate fair-market value. This analysis utilized the average results of a discounted cashflow methodology and a guideline public company methodology. Different judgments or assumptions would result in different estimates of the value of the business.

Management performed a valuation on the owned real estate within the Automotive segment with the assistance of third-party consultants to estimate fair-market value. This analysis utilized property-level market rents, location level profitability, and utilized prevailing cap rates ranging from 7.0% to 9.25% as of December 31, 2024 and March 31, 2025, and 7.0% to 10.0% as of March 31, 2024, June 30, 2024, and September 30, 2024. The valuation assumed that triple net leases are in place for all the locations at rents estimated by management based on market conditions, except for 15 properties management has identified they will exit in the near term, which have been downward adjusted for costs required to reach stabilized rent. There is no assurance we would be able to sell the assets on the timeline or at the prices and lease terms we estimate. Different judgments or assumptions would result in different estimates of the value of these real estate assets. Moreover, although we evaluate and provide our indicative net asset value on a regular basis, the estimated values may fluctuate in the interim, so that any actual transaction could result in a higher or lower valuation.

Represents GAAP equity of the Holding Company Segment, excluding cash and cash equivalents, debt and non-cash deferred tax assets or liabilities. As of March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024, and March 31, 2025, Other Net Assets includes $17, $14, $13, $10, and $10, respectively, of Automotive Segment liabilities assumed from the Auto Plus bankruptcy. Furthermore, with respect to March 31, 2025, the distribution payable was adjusted to $75 million, which represents the actual distribution paid subsequent to March 31, 2025.

Holding Company's balance as of each respective date.

The Company uses certain non-GAAP financial measures in evaluating its performance. These include non-GAAP EBITDA and Adjusted EBITDA. EBITDA represents earnings from continuing operations before net interest expense (excluding our Investment Segment), income tax (benefit) expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding certain effects of impairment, restructuring costs, transformation costs, certain pension plan expenses, gains/losses on disposition of assets, gains/losses on extinguishment of debt and certain other non-operational charges. We present EBITDA and Adjusted EBITDA on a consolidated basis and on a basis attributable to Icahn Enterprises net of the effects of non-controlling interests. We conduct substantially all of our operations through subsidiaries. The operating results of our subsidiaries may not be sufficient to make distributions to us. In addition, our subsidiaries are not obligated to make funds available to us for payment of our indebtedness, payment of distributions on our depositary units or otherwise, and distributions and intercompany transfers from our subsidiaries to us may be restricted by applicable law or covenants contained in debt agreements and other agreements to which these subsidiaries currently may be subject or into which they may enter into in the future. The terms of any borrowings of our subsidiaries or other entities in which we own equity may restrict dividends, distributions or loans to us.

We believe that providing EBITDA and Adjusted EBITDA to investors has economic substance as these measures provide important supplemental information of our performance to investors and permits investors and management to evaluate the core operating performance of our business without regard to interest, taxes and depreciation and amortization and certain effects of impairment, restructuring costs, certain pension plan expenses, gains/losses on disposition of assets, gains/losses on extinguishment of debt and certain other non-operational charges. Additionally, we believe this information is frequently used by securities analysts, investors and other interested parties in the evaluation of companies that have issued debt. Management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results, as well as in planning, forecasting and analyzing future periods. Adjusting earnings for these charges allows investors to evaluate our performance from period to period, as well as our peers, without the effects of certain items that may vary depending on accounting methods and the book value of assets. Additionally, EBITDA and Adjusted EBITDA present meaningful measures of performance exclusive of our capital structure and the method by which assets were acquired and financed. EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under generally accepted accounting principles in the United States, or U.S. GAAP. For example, EBITDA and Adjusted EBITDA:

do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments;

do not reflect changes in, or cash requirements for, our working capital needs; and

do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments on our debt.

Although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. Other companies in the industries in which we operate may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures. In addition, EBITDA and Adjusted EBITDA do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations.

EBITDA and Adjusted EBITDA are not measurements of our financial performance under U.S. GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. Given these limitations, we rely primarily on our U.S. GAAP results and use EBITDA and Adjusted EBITDA only as a supplemental measure of our financial performance.

($Millions)

Investment

Energy

Automotive

Food

Packaging (1)

Real

Estate (1)

Home

Fashion (1)

Pharma (1)

Holding Company

Consolidated

Adjusted EBITDA:

Net loss

($350)

($117)

($27)

($14)

($4)

($2)

($64)

($580)

Interest expense, net

Income tax (benefit)

(53)

(10)

(2)

(9)

(74)

Depreciation and amortization

118

EBITDA before non-controlling interests

($350)

($61)

($20)

($8)

($1)

($7)

($442)

Impairment

Restructuring costs

Loss on disposition of assets, net

Transformation costs

Other

(1)

Adj. EBITDA before non-controlling interests

($350)

($61)

($6)

($7)

($411)

Adjusted EBITDA attributable to IEP:

Net loss

($224)

($86)

($27)

($13)

($4)

($2)

($64)

($422)

Interest expense, net

Income tax (benefit)

(35)

(10)

(2)

(9)

(56)

Depreciation and amortization

EBITDA attributable to IEP

($224)

($62)

($20)

($7)

($1)

($7)

($316)

Impairment

Restructuring costs

Loss on disposition of assets, net

Transformation costs

Other

(1)

Adjusted EBITDA attributable to IEP

($224)

($62)

($6)

($7)

($287)

($Millions)

Investment

Energy

Automotive

Food

Packaging (1)

Real

Estate (1)

Home

Fashion (1)

Pharma (1)

Holding Company

Consolidated

Adjusted EBITDA:

Net (loss) income

($40)

$78

($9)

($2)

($1)

($55)

($26)

Interest expense, net

(1)

Income tax expense (benefit)

(4)

(3)

Depreciation and amortization

129

EBITDA before non-controlling interests

($40)

$203

$12

($7)

$183

Loss on disposition of assets, net

Transformation costs

Out of period adjustments

(2)

Other

Adj. EBITDA before non-controlling interests

($40)

$203

$23

$14

($7)

$203

Adjusted EBITDA attributable to IEP:

Net (loss) income

($23)

$49

($9)

($2)

($1)

($55)

($38)

Interest expense, net

(1)

Income tax expense (benefit)

(4)

(3)

Depreciation and amortization

EBITDA attributable to IEP

($23)

$118

$11

($7)

$114

Loss on disposition of assets, net

Transformation costs

Out of period adjustments

(2)

Other

Adjusted EBITDA attributable to IEP

($23)

$118

$23

$13

($7)

$134

Disclaimer

Icahn Enterprises LP published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 12:31 UTC.