How are energy investors positioned?
Icahn Enterprises LP (NASDAQ:IEP) reported a substantial increase in quarterly losses and a continued decline in net asset value, according to its Q1 2025 earnings presentation released on May 7. The diversified holding company maintained its dividend despite deteriorating financial performance across most segments.
Quarterly Performance Highlights
Icahn Enterprises reported a net loss attributable to IEP of $422 million ($0.79 loss per depositary unit) for Q1 2025, significantly worse than the $38 million loss reported in the same period last year. Adjusted EBITDA swung to a loss of $287 million compared to positive Adjusted EBITDA of $134 million in Q1 2024.
The company’s indicative net asset value declined to approximately $3 billion as of March 31, 2025, representing a decrease of $336 million from December 31, 2024. Despite these challenges, IEP declared a first-quarter distribution of $0.50 per depositary unit.
As shown in the following financial performance breakdown, nearly all segments experienced deterioration in both net income and adjusted EBITDA:
Detailed Financial Analysis
The Investment segment, which comprises various private investment funds in which IEP has general partner interests, posted negative returns of 8.4% for Q1 2025. The fair value of IEP’s investment in these funds was approximately $2.5 billion as of March 31, 2025, with significant holdings in companies like American Electric Power (NASDAQ:AEP), Southwest Gas (NYSE:SWX), and Caesars (NASDAQ:CZR) Entertainment.
The following slide details the Investment segment’s performance and major holdings:
The Energy segment, represented by CVR Energy (NYSE:CVI), reported a substantial decline in performance. Consolidated Adjusted EBITDA decreased by $264 million to a loss of $61 million for Q1 2025 compared to $203 million in Q1 2024. This decline was primarily attributed to downtime related to the turnaround of the Coffeyville refinery, which was completed in April 2025.
The refining margin for Q1 2025 was a loss of $0.42 per throughput barrel, compared to $16.29 during Q1 2024, as illustrated in the following segment breakdown:
The Automotive segment also faced challenges, with net sales and other revenues decreasing 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. The company completed its exit from the Aftermarket Parts business in Q1 2025, which contributed to an $11 million revenue decline in that area.
Strategic Initiatives and Liquidity Position
Despite operational challenges, Icahn Enterprises maintained a strong liquidity position with total liquidity of $5.036 billion as of March 31, 2025. This includes $1.318 billion in holding company cash and cash equivalents and $2.463 billion in holding company investment in investment funds.
The following chart details the company’s liquidity position:
The company’s indicative net asset value has shown a consistent downward trend over the past year, declining from $4.952 billion as of March 31, 2024, to $3.001 billion as of March 31, 2025. This represents a decrease of approximately 39% year-over-year, as illustrated in the following trend analysis:
Forward-Looking Statements
The continued decline in Icahn Enterprises’ financial performance raises questions about the sustainability of its current dividend policy. With a closing price of $8.72 as of May 6, 2025, and a pre-market decline of 0.23% to $8.70 on May 7, the stock has fallen significantly from its 52-week high of $19.10.
The company’s stock has been under pressure since its Q4 2024 earnings release, which showed an unexpected EPS loss of $0.19 against analyst expectations of a $0.18 gain. The Q1 2025 results indicate a further deterioration in performance, with losses widening across most segments.
While Icahn Enterprises maintains a strong liquidity position, the continued decline in net asset value and operational performance may pose challenges for the company’s long-term strategy. The completion of the Coffeyville refinery turnaround in April 2025 could potentially lead to improved performance in the Energy segment in future quarters, but significant challenges remain across the portfolio.
Full presentation:
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