Icahn Enterprises Q2 2026 Earnings Report

Icahn Enterprises EPS Results

• Actual EPS: -$0.52
• Consensus EPS: $0.11
• Beat/Miss: Missed by -$0.63
• One Year Ago EPS: N/A

Icahn Enterprises Revenue Results

• Actual Revenue: $2.98 billion
• Expected Revenue: $2.05 billion
• Beat/Miss: Beat by +$930.00 million
• YoY Revenue Growth: N/A

Icahn Enterprises Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 5, 2026
• Conference Call Time: 10:00AM ET

Icahn Enterprises (NASDAQ:IEP) (NASDAQ:IEP) is a diversified holding company controlled by investor Carl C. Icahn. The company manages investments and operating businesses across several industries, with its activities spanning energy, automotive, food packaging, metals, real estate, home fashion and other sectors.

Its operating interests include CVR Energy, which is involved in petroleum refining and the marketing of transportation fuels, and CVR Partners, a producer of nitrogen fertilizers. Icahn Enterprises also owns or invests in businesses involved in automotive parts distribution and service, food packaging products, textile and home-furnishing products, and metals recycling. Through Icahn Capital, it manages an investment portfolio that may include public and private companies across multiple industries.

Icahn Enterprises has roots in American Real Estate Partners, a company founded in the 1980s, and adopted its current name in 2007 as its business interests expanded beyond real estate. The company is headquartered in Sunny Isles Beach, Florida, and its businesses serve customers primarily in the United States, with certain operations and investments having international connections. Carl C. Icahn serves as chairman, while David Willetts serves as chief executive officer.

Icahn Enterprises Q2 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Indicative NAV fell $765 million in Q2, primarily due to a $243 million decline in the investment funds and a $435 million decline in CVI. The funds returned negative 7.7% excluding refining hedges and negative 10.9% including them.
• Positive Sentiment: IEP agreed to sell Pep Boys for $700 million, subject to customary adjustments, with closing expected in Q3. Proceeds are expected to provide financial flexibility, including for addressing upcoming 2027 debt maturities, while IEP will retain real estate, franchise businesses, and certain leases.
• Positive Sentiment: The Energy segment’s Adjusted EBITDA rose to $102 million from $40 million year over year, supported by refining utilization above 98% and strong fertilizer demand. CVR also declared a $0.10-per-share dividend.
• Negative Sentiment: IEP reported a Q2 net loss of $355 million, or $0.52 per unit, compared with a $165 million loss in the prior-year quarter, while Adjusted EBITDA shifted to a $134 million loss from $40 million of positive EBITDA.
• Negative Sentiment: Pharma Adjusted EBITDA declined by $14 million because of lower anti-obesity drug sales amid generic competition and higher pivotal-trial R&D costs; food packaging and home fashions also posted smaller EBITDA declines.

Presentation

[Operator]

Morning, welcome to the Icahn Enterprises L.P. second quarter 2026 earnings call with Ted Papapostolou, President and CEO, Robert Flint, Chief Financial Officer, and Joseph Pacetti, Director of SEC Reporting. I would now like to hand the call over to Joseph Pacetti, who will read the opening statement.

[Joseph Pacetti, Director of SEC Reporting at Icahn Enterprises]

Thank you, Operator. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. Forward-looking statements may be identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, will, or words of similar meaning, include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises L.P. and its subsidiaries. Actual events, results, and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties, and other factors that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal, and other factors. There is no assurance that our expectations will be realized.

[Joseph Pacetti, Director of SEC Reporting at Icahn Enterprises]

We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes certain non-GAAP financial measures, including adjusted EBITDA. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation. We also present indicative net asset value. Indicative net asset value includes, among other things, changes in the fair value of certain subsidiaries, which are not included in our GAAP earnings. All net income and EBITDA amounts we will discuss are attributable to Icahn Enterprises unless otherwise specified. I'll now turn it over to Ted.

[Ted Papapostolou, President and CEO at Icahn Enterprises]

Thank you, Joe. Q2 NAV decreased by $765 million compared to Q1. The decrease was primarily driven by the funds of $243 million and CVI of $435 million. Included in Q2 NAV is an estimated gain of approximately $100 million from the expected sale of Pep Boys. Updating just for market value subsidiaries and investments for the month of July, NAV increased by $268 million due to an increase from CVI of $575 million, the funds decreased by approximately $312 million. During the second quarter, CVI experienced a leadership transition following the departure of its CEO for personal reasons. CVI benefited from a deep bench of experienced leaders and the transition has been managed seamlessly. The company's strategic direction, operational priorities, and commitment to creating shareholder value remain firmly intact.

[Ted Papapostolou, President and CEO at Icahn Enterprises]

Looking ahead, major geopolitical developments continue to contribute to volatility across energy markets. While these dynamics can create near-term uncertainty, they have also established attractive market opportunities for the balance of 2026. We believe CVI is well-positioned to capitalize on these opportunities. We were pleased to see CVI declare a $0.10 per share dividend. We are also pleased to have entered into a definitive agreement in July to sell Pep Boys for $700 million, subject to customary closing and purchase price adjustments. This transaction represents the culmination of years of hard work and disciplined execution by our leadership team and thousands of dedicated employees across the organization. Through a multi-year transformation plan, we strengthened the business and positioned Pep Boys as a more profitable and valuable enterprise.

[Ted Papapostolou, President and CEO at Icahn Enterprises]

We believe this transaction validates the progress made over that period and represents the successful realization of our efforts to create value. As part of the transaction, IEP will retain the owned real estate previously transferred from Pep Boys, as well as the franchise businesses and certain retained liabilities, including Supercenter leases. Following the closing, Pep Boys is expected to continue leasing most of these locations from IEP, creating an ongoing landlord-tenant relationship. Importantly, the transaction is expected to provide significant financial flexibility. While we continue to evaluate the most effective use of proceeds, we currently anticipate that a portion will be used to address the upcoming debt maturities, further strengthening our balance sheet and enhancing our ability to capitalize on future opportunities. The board declared unchanged distribution at $0.50 per depositary unit.

[Ted Papapostolou, President and CEO at Icahn Enterprises]

In terms of our top positions within our funds, Centuri reported base revenue and gross profit growth of 36% and 21% in Q2. The company announced an acquisition of a premier provider of mechanical and electrical construction services. The stock was up approximately 4% for Q2. IFF continues to execute on its portfolio optimization, announcing it entered into an agreement to sell its food ingredients business and its portfolio of botanical extracts, vitamins and minerals, and food enhancement. IFF's stock was up approximately 9% for Q2.

[Ted Papapostolou, President and CEO at Icahn Enterprises]

Caesars reported Q2 results with strong regional and digital performance with high hold in Vegas. Caesars stock was up approximately 14% for Q2. EchoStar announced the completion of its license purchase agreement with AT&T. EchoStar stock was down approximately 13% for Q2. JetBlue reported solid Q2 results, growing revenue per available seat mile by approximately 11%, while operating expenses per available seat mile, excluding fuel, increased by approximately 2%. JetBlue's stock was up approximately 30% for Q2. I will now pass it to Rob to talk financial results.

[Robert Flint, CFO at Icahn Enterprises]

Thank you, Ted. For the second quarter of 2026, net loss attributable to IEP was $355 million, or a loss of $0.52 per unit. Net loss attributable to IEP was $165 million, or a loss of $0.30 per unit in the prior year quarter. Q2 2026 adjusted EBITDA loss attributable to IEP was $134 million, compared to adjusted EBITDA attributable to IEP of $40 million for the prior year quarter. I'll now provide more detail regarding the performance of our individual segments. The investment funds had a negative return of 7.7% for the quarter, excluding the refining hedges. Including the refining hedges, the funds had a negative return of 10.9% for the quarter.

[Robert Flint, CFO at Icahn Enterprises]

Long positions had a net positive performance attribution of 3.9%, and short positions had a negative performance attribution of 15.5%. The funds had a net short notional exposure of 30% at quarter end, compared to net short of 29% as of prior quarter end. Excluding our refining hedges, the funds had a net long notional exposure of 23% as of quarter end, compared to net short of 2% as of prior quarter end. Our investment in the funds was approximately $2 billion as of quarter end and had approximately $741 million in cash. Moving to our Energy segment. Energy segment adjusted EBITDA attributable to IEP was $102 million for Q2 2026, compared to $40 million in Q2 2025.

[Robert Flint, CFO at Icahn Enterprises]

The second quarter refining operations were solid, with crude utilization over 98%, although margins were weighed down by higher RFS obligation costs. The fertilizer segment had strong results driven by robust demand for the spring planting season. We are pleased with CVR's announcement of a $0.10 dividend and continue to believe that CVR's assets are well-positioned to benefit from the global tightness in refined product and nitrogen fertilizer. Now turning to our Automotive segment. Q2 2026 automotive service revenues decreased by $14 million compared to the prior year quarter, primarily driven by the closure of stores during the balance of 2025 and offset in part by improved pricing. Same-store sales were flat compared to the prior year quarter. Looking ahead, we anticipate the sale of Pep Boys will close during the third quarter.

[Robert Flint, CFO at Icahn Enterprises]

As part of the transaction, we will retain the AAMCO and Precision Tune Auto Care franchise businesses, which we believe have significant long-term value, as well as certain super center leases that we expect will become part of our real estate segment. For these assumed super center locations, Pep Boys will enter into subleases for the portion of the location in which it will operate, while we retain the ability to lease excess and available space to third-party tenants. Following the closing, our real estate segment is expected to include more than 400 owned and leased locations, with Pep Boys serving as the primary tenant. Now turning to all other operating segments. Real estate's Q2 2026 adjusted EBITDA increased by $9 million compared to the prior year quarter.

[Robert Flint, CFO at Icahn Enterprises]

The increase is primarily driven by income from the assets that were transferred from the automotive segment, of which $9 million is intercompany rent from Pep Boys and $2 million from third-party tenants. Food packaging's adjusted EBITDA attributable to IEP decreased by $2 million for Q2 2026 as compared to prior year quarter. The decrease is primarily due to lower volume and continued disruptive headwinds from the restructuring plan. Home fashions adjusted EBITDA decreased by $1 million when compared to the prior year quarter, primarily due to softening demand in our hospitality business and continued supply chain disruptions in the Strait of Hormuz. Pharma's adjusted EBITDA decreased by $14 million when compared to the prior year quarter, primarily due to reduced sales resulting from generic competition in our anti-obesity drug therapy and increased R&D expenses related to our ongoing pivotal drug trials.

[Robert Flint, CFO at Icahn Enterprises]

The TRANSCEND trial preparation for our PAH drug remains on schedule with one site active and patients qualified pending final consents, a second site in the patient pre-screening step, an additional 12 sites in contracting. Now turning to our liquidity. We maintain liquidity at the holding company and at our operating segments to take advantage of attractive opportunities. As of quarter end, the holding company had cash and investment in the funds of $2.4 billion, and our subsidiaries had cash and revolver availability of $1.4 billion. Subsequent to quarter end, our investment in the funds declined to approximately $1.7 billion as of the end of July, resulting in holding company liquidity of roughly $2 billion.

[Robert Flint, CFO at Icahn Enterprises]

Looking ahead, we expect the sale of Pep Boys to close during the third quarter, further enhancing our liquidity and providing flexibility to address our upcoming 2027 notes maturities and strengthen the balance sheet. We continue to focus on building asset value and maintaining liquidity to enable us to capitalize on opportunities within and outside our existing operating segments. This concludes our presentation of second quarter results, and we look forward to our update next quarter. Thank you.

[Operator]

Thank you all for participating. You may now disconnect.

Participants

Executives

• Joseph Pacetti, Director of SEC Reporting
• Ted Papapostolou, President and CEO
• Robert Flint, CFO