Q1 2025 Icahn Enterprises LP Earnings Call

May 7, 2025

Ted that's a plus.

Speaker Change: <unk>, Chief Financial Officer, and Robert Flip Chip financing, Chief Accounting Officer, I would now like to.

Speaker Change: I'll hand, the call over to Robert Clint who will read the opening statements. Please go ahead.

Speaker Change: Thank you operator.

Operator: President and CEO, Ted Papapostolou, Chief Financial Officer, and Robert Flint, Chief Accounting Officer. I would now like to hand the call over to Robert Flint who will read the opening statement. Please go ahead. Thank you, operator. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forwarding 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 and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises LP and its subsidiaries.

Speaker Change: Private Securities Litigation Reform Act of $19 95 provides a safe harbor.

and CEO , Ted Papapostolou, Chief Financial Officer, and Robert Flint, Chief Accounting Officer. I would now like to hand a call over to Robert Flint, who will read the opening statement. Please go ahead.

Speaker Change: Statements, we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions.

Speaker Change: Forward looking statements maybe identified by words, such as expects anticipates intends plans believes seeks estimates will or words of similar meaning and include but are not limited to statements about the expected future business and financial performance of Icahn Enterprises L P and its subsidiaries.

Speaker Change: 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.

Speaker Change: Forward-looking statements may be identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, will, or words of similar meaning, and include, but are not limited to statements about the expected future business and financial performance of Icahn Enterprises LP and its subsidiaries.

Speaker Change: Accordingly, there is no assurance that our expectations will be realized.

Speaker Change: We assume no obligation to update or revise any forward looking statements should circumstances change, except as otherwise required by law.

Robert Flint: 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. Accordingly, there is no assurance that our expectations will be realized. 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.

Speaker Change: 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.

Speaker Change: This presentation also includes certain non-GAAP financial measures, including adjusted EBITDA.

Speaker Change: 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.

Speaker Change: Accordingly, there's no assurance that our expectations will be realized.

Speaker Change: We also present indicative net asset value indicative.

Speaker Change: We assume no obligation to update or revise any forward looking statements should circumstances change, except as otherwise required by law.

Speaker Change: Indicative net asset value includes among other things changes in the fair value of certain subsidiaries, which are not included in our GAAP earnings.

Speaker Change: 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.

Speaker Change: All net income and EBITDA amounts, we will discuss our attributable to icahn enterprises unless otherwise specified.

I'll now turn it over to Andrew <unk>, our Chief Executive Officer.

Robert Flint: 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. All net income and EBITDA amounts we will discuss are attributable to Icahn Enterprises, unless otherwise specified.

Speaker Change: Yeah.

Speaker Change: We also present indicative met-asset value. Indicative met-asset value includes, among other things, changes in the fair value of certain subsidiaries which are not included in our gap earnings.

Andrew: Thank you, Rob and good morning, everyone.

Andrew: Now I have decreased $336 million from the fourth quarter of 2024, driven primarily by negative performance in the funds and the accrual for the distribution, which was partially offset by increases in CVI and auto service.

Speaker Change: All net income and EBITDA amounts we will discuss are attributable to Icahn Enterprises unless otherwise specified.

Andrew Teno: I'll now turn it over to Andrew Teno, our Chief Executive Officer. Thank you, Rob, and good morning, everyone. NAV decreased $336 million from the fourth quarter of 2024, driven primarily by negative performance in the funds and the accrual for the distribution, which was partially offset by increases in CVI and auto. CVI share price increased by 3%, which when combined with additional share purchases of $33 million led to an increase of $80 million from the fourth quarter. The improvement in crack spreads that we discussed last quarter has continued and now that Coffeyville's turnaround is complete, we look forward to getting back to business and generating cash.

Speaker Change: I'll now turn it over to Andrew Teno, our chief executive officer.

Andrew: Cvs share price increased by 3%, which when combined with additional share purchases of $33 million.

Thank you Rob, and good morning everyone.

Speaker Change: Nav decreased $336 million from the fourth quarter of 2024, driven primarily by negative performance in the funds and the accrual for the distribution, which was partially offset by increases in CBI and auto service.

Andrew: Led to an increase of $80 million from the fourth quarter the.

Andrew: The improvement in crack spreads that we discussed last quarter has continued and now the coffeyville turnaround is complete we look forward to getting back to business and generating cash flow.

Andrew: Regarding <unk>, we remain hopeful that the new administration may lead to the resolution of our outstanding litigation regarding small refinery exemptions.

Speaker Change: CVI share price increased by 3%, which when combined with additional share purchases of $33 million led to an increase of $80 million from the fourth quarter.

Andrew: Which has the potential to remove the $438 million liability that was recorded as of <unk> 2025, and potentially provide clarity to future years.

Speaker Change: The improvement in crack spreads that we discussed last quarter has continued and now that coffee those turn around is complete. We look forward to getting back to business and generating cashflow.

Andrew: As a reminder, during the last Trump administration when he would received small refinery exemptions.

Andrew Teno: Regarding RINs, we remain hopeful that the new administration may lead to the resolution of our outstanding litigation regarding small refinery exemptions. which has the potential to remove the $438 million liability that was recorded as of 1Q 2025 and potentially provide clarity to future users. As a reminder, during the last Trump administration, Winnie Wood received small refinery. The investment funds ended down approximately 8.4% for the quarter, primarily driven by our healthcare investment. Given the recent market volatility, we thought it would be helpful to provide an update as to performance through the end of last year. If you were to mark to market the funds and add in CVI and UAN, we would be modestly positive quarter to day.

Speaker Change: Regarding Rins, we remain hopeful that the new administration may lead to the resolution of our outstanding litigation regarding small refinery exemptions.

Andrew: The investment funds ended down approximately eight 4% for the quarter, primarily driven by our healthcare investments.

Speaker Change: which had the potential to remove the $438 million liability that was recorded as of 1 Q2 025, and potentially provide clarity to future years. As a reminder during the last Trump administration, when he would receive small refinery exemptions.

Andrew: Given the recent market volatility we thought it would be helpful to provide an update as to performance through the end of last week.

Andrew: Were to Mark to market the funds in that in CVI, and UA and we would be modestly positive quarter to date.

Andrew: We ended the quarter with $1 3 billion of cash and cash equivalents at the holding company, an additional $900 million of cash at the funds. So as Carl likes to say, we have a significant war chest to take advantage of opportunities as they arise.

Speaker Change: The investment funds ended down approximately 8.4% for the quarter, primarily driven by our healthcare investments.

Speaker Change: Given the recent market volatility, we thought it would be helpful to provide an update as to performance through the end of last week. If you were to mark a market of funds and add in CVI and UIN, we would be modestly positive quarter to date.

Andrew: Lastly, the board has maintained our quarterly distribution at <unk> 50 per Depositary unit.

Andrew: Now turning to our investment segment.

Andrew Teno: We ended the quarter with $1.3 billion of cash and cash equivalents at the holding company, an additional $900 million of cash. So as Carl likes to say, we have a significant war chest to take advantage of opportunities as they arise. Lastly, the board has maintained a quarterly distribution at $0.50 per depository.

Speaker Change: We ended the quarter with $1.3 billion of cash and cash equivalence at the holding company and additional $900 million of cash at the funds. So as Carl likes to say, we have a significant war chest to take advantage of opportunities as they arise.

Andrew: Despite the market volatility, we see considerable value creation potential in our portfolio.

Andrew: At ADP, we see new management closing its ROE gap, improving regulatory outcomes solidifying its balance sheet through accretive asset sales and benefiting from tremendous electricity load growth due to AI driven data center demand.

Speaker Change: Lastly, the board has maintained a quarterly distribution at 50 cents per depository unit.

Andrew Teno: Now turning to our investors. Despite the market volatility, we see considerable value creation potential in our portfolio. At AEP, we see new management closing its ROE gap, improving regulatory outcomes, solidifying its balance sheet through accretive asset sales, and benefiting from tremendous electricity load growth due to AI-driven data center demand. We think AI growth is real, and electric utilities, particularly AEP, are an excellent way to benefit in the picks and shovels of AI. At SWCCS, we see a gas utility that is closing its ROE gap to peers and separating a utility services business with significant growth opportunities.

Now turning to our investment segment.

Andrew: We think AI growth, Israel, and electric utilities, particularly AEP are an excellent way to benefit in the picks and shovels of AI.

Speaker Change: Despite the market volatility, we see considerable value creation potential in our portfolio.

Speaker Change: At AEP, we see new management closing authority gap, improving regulatory outcomes, solidifying its balance sheet through accretive asset sales, and benefiting from tremendous electricity and the load growth due to AI-driven data center demand.

Andrew: At <unk>, we see a gas utility that is closing its ROE gap to peers and separating a utility services business with significant growth opportunity.

Andrew: We see upside in both the gas utility and the services business.

Speaker Change: We think AI growth is real and electric utilities, particularly AEP, are an excellent way to benefit in the picks and shovels of AI.

Andrew: In particular <unk>.

Andrew: You should see increasing growth trends as utility customers need to spend additional capex to improve and build out both the electrical grid and natural gas networks to support increasing power demands.

Speaker Change: X-Wix, we see a gas utility that is closing its R-O-E gap to peers and separating the utility services business with significant growth opportunity.

Speaker Change: At Caesars, we recently had two employees joined the company's board of Directors. We think Caesars has an excellent management team with tremendous real estate value our growing digital business that is deploying its greater than 15% free cash flow yield to repurchase shares and repay debt.

Andrew Teno: We see upside in both the gas utility and the services. In particular, centuries should see increasing growth trends as utility customers need to spend additional CapEx to improve and build out both the electrical grid and natural gas networks to support increasing power demand. At Caesars, we recently had two employees join the company's board of directors. We think Caesars has an excellent management team with tremendous real estate value, a growing digital business that is deploying its greater than 15% free cash flow yield to repurchase shares and repay debt. In time, we would expect Caesars' digital business to be unlocked from its current structure.

Speaker Change: We see upside on both the gas utility and the services business. In particular, Tentries should see increasing growth trends as utility customers need to spend additional capex to improve and build out both the electrical grid and natural gas networks to support increasing power demands.

Speaker Change: In time, we would expect Caesars digital business to be unlocked from its current structure.

Speaker Change: The funds ended the quarter approximately 20% net long adjusting for our refining hedges. The fund was 35% net long and now I will pass it on to Ted to cover our control businesses.

Speaker Change: At Caesars, we recently had two employees join the company's board of directors.

Speaker Change: We think teasers has an excellent management team with tremendous real estate value, a growing digital business that is deploying its greater than 15% free cash well yield to repurchase shares and repay debt. In time, we would expect teasers' digital business to be unlocked from its current structure.

Ted: Thank you Andrew I will start at our energy segment Energy segment consolidated EBITDA was negative 61 million for Q1 dollars 25 compared to $203 million in Q1, 'twenty for CVR refining business was negatively impacted by the turnaround at the Coffeyville refinery and <unk>.

Andrew Teno: The funds ended the quarter approximately 20% net long. Adjusting for our refining hedges, the fund was 35% net long.

Speaker Change: The funds ended the quarter approximately 20% net long. Adjusting for our finding hedges, the fund was 35% net long, and now I will pass it on the Ted to cover our controlled businesses.

Ted Papapostolou: And now I will pass it on to Ted to cover our controlled Thank you, Andrew. I will start at our energy. Energy segment consolidated EBITDA was negative $61 million for Q125 compared to $203 million in Q124.

Ted: Unfavorable mark to market returns valuation offset in part by positive performance in the fertilizer business due to continued higher prices and strong utilization.

Thank you, Andrew. I will start at our energy segment.

Energy segment consolidated even though was negative 61 million for Q1 25.

Ted: Turning to our automotive segment.

compared to 203 million in Q124.

Ted: Our automotive segment continues to underperform compared to prior year period.

Ted Papapostolou: TVR's refining business was negatively impacted by the turnaround at the Coffeyville Refinery and unfavorable mark-to-market RINs valuation, all set in part by positive performance in the fertilizer business due to continued higher prices and strong utilization.

Speaker Change: TBR's refining business was negatively impacted by the turnaround at the coffee villa refinery, an unfavorable market to market rims valuation, offset in part by positive performance in the fertilizer business due to continued higher prices and strong utilization.

Ted: Sales were down 9% year over year, excluding the wind down of the parts business, which is now complete sales were down 6%.

In order to give the business the resources it needs to succeed we are investing in labor inventory equipment facilities marketing and adjusting our distribution footprint.

Ted Papapostolou: Turning to our automotive segment. Our automotive segment continues to underperform compared to prior year period. Sales were down 9% year over year. Excluding the wind down of the parts business, which is now complete, sales were down 6%. In order to give the business the resources it needs to succeed, we are investing in labor, inventory, equipment, facilities, marketing, and adjusting our distribution footprint. We saw early signs of top-line improvement as we have experienced positive trends in car count, tire volumes, and revenue as we move through the quarter. Adjusted EBITDA in the quarter was negative six million.

Speaker Change: Turning to our Automotive Segment Our Automotive Segment continues to underperform compared to prior year period. Fails were down 9% year over year, excluding the wind down of the parts business, which is now complete. Fails were down 6%.

Ted: We saw early signs of top line improvement as we've experienced positive trends in car count tire volumes and revenue as we move through the quarter.

Ted: Adjusted EBITDA in the quarter was negative $6 million profitability suffered as we work to get the labor hired optimized and trained the inventory in the right place at the right margin and upgrade the facilities and equipment early in the year. So that we can benefit as the year progresses.

Speaker Change: In order to give the business the resources it needs to succeed, we are investing in labor, inventory, equipment, facilities, marketing, and adjusting our distribution footprint.

Speaker Change: We saw early signs of type wine improvement as we have experienced positive trends in car count, tire volumes, and revenue as we move through the quarter.

Ted: We believe that while painful in the short term. These are the right investments to improve long term profitability.

Speaker Change: Adjusted EBITDA in the quarter was negative six million. Profitability suffered as we worked to get the labor hired, optimized and trained, the inventory in the right place at the right margin, and upgrade the facilities and equipment earlier in the year so that we can benefit it as a year progressives.

Ted: The store portfolio is also going through significant changes were.

Ted Papapostolou: Profitability suffered as we worked to get the labor hired, optimized, and trained, the inventory in the right place at the right margin, and upgrade the facilities and equipment earlier in the year so that we can benefit as the year progressed. We believe that while painful in the short term, these are the right investments to improve long-term profitability.

Ted: We are closing money, losing locations and growing in areas, we have historically generated strong profitability.

Ted: During the quarter, we closed 24 underperforming locations.

Ted: We're awarded a contract to operate approximately 15 locations on military basis that allow us to grow in a capital light manner.

Ted Papapostolou: The store portfolio is also going through significant change. We are closing money-losing locations and growing in areas we have historically generated strong profitability. During the quarter, we closed 24 underperforming locations. We were awarded a contract to operate approximately 15 locations on military bases that allow us to grow in a capital light. We have been adding additional locations to our greenfield pipeline and our leasing efforts for the excess and available space continue to bear fruit as we have approximately 60 properties under LOI.

Speaker Change: The store portfolio is also going through significant changes We are closing money losing locations and growing in areas we have historically generated strong profitability.

Ted: We have been adding additional locations to our greenfield pipeline and our leasing efforts for the excess and available space continue to bear fruit as we have.

Ted: Approximately 60 properties under LOI.

Speaker Change: During the quarter, we closed 24 underperforming locations. We were awarded a contract to operate approximately 15 locations on military bases that allow us to grow in a capital light manner.

Ted: We continue to believe that our auto segment will see increasing sales profitability and cash flows over the coming quarters.

Ted: Now turning to the other segments.

Ted: Real estate is Q1 25, adjusted EBITDA decreased by $1 million compared to the prior year quarter.

Speaker Change: We have been adding additional locations to our Greenfield Pipeline and our leasing efforts for the excess and available space continue to bear fruit as we have approximately 60 properties under LLI. We continue to believe that our auto segment will see increasing sales, profitability and cash flows over the coming quarters.

Ted: As a reminder, we have limited inventory at our legacy country club and expect to be sold out during 2027th we are expecting to see increased single family home sales from our newest country club, which has recently cleared the permitting process and we expect again, taking home sale of reservations by the end of 2025.

Ted Papapostolou: We continue to believe that our auto segment will see increasing sales, profitability, and cash flows over the coming Now turning to the other segment.

now turning to the other segments.

Ted Papapostolou: Real estate's Q125 adjusted EBITDA decreased by one million compared to the prior year quarter. As a reminder, we have limited inventory at our legacy country club and expect to be sold out during 2027. We are expecting to see increased single family home sales from our newest country club, which has recently cleared the permitting process and we expect to begin taking home sale reservations by the end of 2025. In addition, our resort property continues to perform at high level. On our last call, we discussed a potential sale of certain properties, which was expected to be complete during Q1.

Speaker Change: Real estate Q-125, adjusted EBITDA, decreased by 1 million compared to the prior year quarter.

Ted: In addition, our resort property continues to perform at high levels.

Speaker Change: As a reminder, we have limited inventory at our Legacy Country Club and expect to be sold out during 2027.

Ted: On our last call we discussed the potential sale of certain properties, which was expected to be complete during Q1. This is now expected to close during this quarter.

Speaker Change: We are expecting to see increased single family home sales from our newest country club which has recently cleared the permitting process and we expect again taking home sale reservations by the end of 2025. In addition, our resort property continues to perform at high levels.

Ted: We are also exploring the sale of additional properties in our portfolio, which if successful could close later this year.

Ted: In addition, we are actively seeking new opportunities that fit our investment strategy.

Ted: Food packaging adjusted EBITDA decreased by $6 million for Q1, 25 as compared to the prior year quarter. The decrease was primarily due to lower price higher manufacturing inefficiencies and higher material costs.

Speaker Change: On our last call, we discuss a potential sale of certain properties which was expected to be complete during Q1. This is now expected to close during this quarter.

Ted Papapostolou: This is now expected to close during this quarter. We are also exploring the sale of additional properties in our portfolio, which, if successful, could close later this year. In addition, we are actively seeking new opportunities that fit our investment strategy.

Speaker Change: We are also exploring the sale of additional properties in our portfolio, which is successful to close later this year. In addition, we are actively seeking new opportunities that fit our investment strategy.

Ted: During the quarter the business commenced a restructuring plan, which includes consolidating two north American facilities into one and adding a state of the art manufacturing line.

Ted Papapostolou: Food packagings addressed CD EBITDA decreased by $6 million for Q125 as compared to the prior year quarter. The decrease is primarily due to lower price, higher manufacturing inefficiencies, and higher material costs. During the quarter, the business commenced a restructuring plan which includes consolidating two North American facilities into one and adding a state-of-the-art manufacturing facility. We anticipate this plan will increase operational efficiency and drive margins while maintaining volumes and is expected to be completed during the second half of 2020.

Speaker Change: Food Packaging is a dress city but a decrease by 6 million for Q1 25 as compared to the prior year quarter The decreases primarily due to lower price, higher manufacturing inefficiencies, and higher material costs.

Ted: We anticipate this plan will increase operational efficiency and drive margins, while maintaining volumes and is expected to be completed during the second half of 2025.

Ted: Home fashions, adjusted EBITDA decreased by $1 million as compared to the prior year quarter, mainly driven by product mix.

Speaker Change: During the quarter, the business commenced a restructuring plan which includes consolidating two North American facilities into one and adding a state-of-the-art manufacturing

Ted: Pharma is adjusted EBITDA for Q1, 'twenty five came in lower by $3 million as compared to the prior year quarter.

Speaker Change: We anticipate this final will increase operational efficiency and drive margins while maintaining volumes and is expected to be completed during the second half of 2025.

Ted: The decrease was primarily due to higher R&D spend for the therapies in clinical development and increased sales and marketing expenses due to the recent global product launch of <unk>.

Ted Papapostolou: Home fashions adjusted EBITDA decreased by $1 million as compared to the prior year quarter, mainly driven by product.

Speaker Change: Home Fashion's Adjusted EBITDA decreased by $1 million as compared to prior year quarter mainly driven by product mix.

Ted: And now turning to our liquidity.

Ted: We maintain liquidity at the holding company and at each of our operating subsidiaries to take advantage of attractive opportunities.

Ted Papapostolou: PhRMA's adjusted EBITDA for Q125 came in lower by $3 million as compared to the prior year quarter. The decrease is primarily due to higher R&D spend for the therapies and clinical development and increased sales and marketing expenses due to the recent global product launch of and now Training Charlie.

Speaker Change: Farmers adjusted EBITF for Q125 came in lower by 3 million as compared to prior year quarter. The decrease is primarily due to higher R&D spend for the therapies and clinical development, and increased sales and marketing expenses due to the recent global product launch of Lucifer.

Ted: As of quarter end, the holding company had cash and investment in the funds of $3 8 billion and our subsidiaries had cash and revolver availability of $1 3 billion.

Ted: 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.

and now turning to our liquidity.

Ted Papapostolou: We maintain liquidity at the holding company and at each of our operating subsidiaries to take advantage of attractive opportunities. As of quarter end, the holding company had cash and investment in the funds of $3.8 billion, and our subsidiaries had cash and revolver availability of $1.3 billion. We continue to focus on building asset value and maintaining liquidity to enable us to capitalize on opportunities within and outside our existing operating systems. Thank you.

Speaker Change: We maintain liquidity at the holding company and at each of our operating subsidiaries to take advantage of attractive opportunities.

Ted: Thank you operator can you please open up the call for questions.

Speaker Change: As of quarter end, the holding company had cash and investment in the funds of 3.8 billion and our subsidiaries had cash and revolver availability of 1.3 billion.

Ted: At this time I would like to remind everyone to ask.

Ted: Ask a question press Star then the number one on your telephone keypad.

Speaker Change: 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.

Ted: We'll pause for just a moment to compile the Q&A roster.

Ted: Yeah.

Operator: Operator, can you please open up the call? At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster.

Speaker Change: Thank you. Operator, can you please open up the call for questions?

Speaker Change: At this time, I would like to remind everyone in order to ask a question, press stars in the number one on your telephone keypad.

Speaker Change: We will pause for just a moment to compile the Q&A roster.

Speaker Change: Your first question comes from the line of anecdote.

Ted: Think of post Advisory group. Please go ahead.

Speaker Change: Thanks, guys I appreciate all the information if I can just go back to the automotive segment for a second can you give us some idea.

Speaker Change: With respect to store closures right now how many stores are four wall EBIT Don negative.

Andrew Berg: Your first question comes from the line of Andrew Berg of Post's Advisory Group. Please go ahead. Thanks, guys. I appreciate all the information.

Andrew Brick: Your first question comes from the line of Andrew Berg of Post's Advisory Group, please go ahead.

Speaker Change: If possible what the aggregate EBITDA losses for those stores.

Speaker Change: And the expected timing to get out of any of the money losing stores.

Speaker Change: Thanks, guys appreciate all the information. If we can just go back to the automotive segment for a second.

Andrew Berg: If we can just go back to the automotive segment for a second, can you give us some idea with respect to the store closures? Right now, how many stores are four-wall EBITDA negative? If possible, what the aggregate EBITDA loss is for those stores and the expected timing to get out of any of the money-losing stores?

Speaker Change: Hey, Andrew So we're not going to talk about the aggregate amount of store closures just because it impacts the.

Speaker Change: Can you give us some idea with respect to store closures? Right now, how many stores are?

Speaker Change: The business and the employees.

Speaker Change: I would say that we have.

Speaker Change: Four-Wall EBIT Dawn Negative. If possible, what the aggregate EBIT Dawn losses for those stores and the expected time when you get out of any of the money losing stores.

Speaker Change: There's a good amount of stores.

Speaker Change: Where they used to make significant money and call back in 'twenty, two or 'twenty three.

Speaker Change: Which are currently money, losing today.

Ted Papapostolou: Hey, Andrew. So we're not going to talk about the aggregate amount of store closures just because it impacts the, you know, the business and the employees. I would say that we have There's a good amount of stores where they used to make significant money, call it back in 22 or 23, which are currently money losing today. And those stores, I think we're taking a hard look at what caused them to decline and how do we make them better. And then there's a whole host of other stores where profitability has suffered for some time and those will be closing.

Speaker Change: Andrew, so we're not going to talk about the aggregate amount of store closures just because it impacts the you know the business and the employees. I would say that we have

Speaker Change: And those stores I think.

Speaker Change: We're taking a hard look at what caused them to decline and how do we make them better.

Speaker Change: And then there's a whole host of other stores, where profitability has suffered for some time and those will be closing so we will be closing them.

You know, they're the good amount of stores.

Speaker Change: where they used to make significant money called back in 22 or 23, which are currently money losing today.

Speaker Change: Money, losing stores that we want to close in relatively short order, we've been averaging something like eight a month.

Speaker Change: and those stories I think you know we're taking a hard look at what caused them to decline and how do we make them better and then there's a whole list of other stories where you know profitability has suffered for you know sometime

Speaker Change: And I think it also depends on whether we own the location or that at least right. So if landlords are reasonable or if they feel like they can release the box.

Speaker Change: Attractive rate and we hope to get out of those pretty quickly and we'll exit in other situations. We may just wait until the lease terms out.

Ted Papapostolou: So we will be closing them. The money losing stores that we want to close in relatively short order, we've been averaging something like eight a month. And I think it also depends on whether we own the location or whether they're leased. So if landlords are reasonable or if they feel like they can release the box at an attractive rate, we hope to get out of those pretty quickly and we'll exit. In other situations, we may just wait until the lease terms end.

Speaker Change: and those will be closing. So we will be closing them, you know, the money losing stores that we want to close and relatively short order. We've been averaging something like

Speaker Change: Yeah.

Speaker Change: Okay, and the ones Youre getting out of where you're getting stuck with any dark store lease expense are for the most part when youre getting out of them, we're able to close in on that.

Eight a month

Speaker Change: and I think it also depends on, you know, whether we own the location or whether the least, right? So if landlords are reasonable or if they feel like they can release the box at a attractive rate. And we hope to get out of those pretty quickly and we'll exit in other situations we may just wait until the least turns out.

Speaker Change: That liability.

Speaker Change: Yes.

Speaker Change: Some of them are actually opportunities so.

We actually had one of our worst performing stores.

Speaker Change: Was money, losing in the box in an area that we thought.

Ted Papapostolou: Okay and the ones you're getting out of, are you getting stuck with any dark store lease expense or for the most part when you're getting out of them are you able to close and not have that liability as a tail? Yeah so you know some of them are actually opportunities so we've we actually had one of our worst performing stores that was money losing in the box in an area that we thought you know it would be a liability and turned out to be a bit of a bidding war and we sold it for four million dollars and it was on a real estate value I think closer to two million but on the opco you would have seen it as a negative value.

Icahn Enterprises LP

Speaker Change: It would be a liability and turned out to be a bit of a bidding war and we sold it for $4 million and it was on a real estate value I think closer to $2 million, but on the Opco you would've seen it as a negative value.

Speaker Change: Okay, and the ones you're getting out of, or you're getting stuck with any dark-store lease expense, or for the most part, when you're getting out of them, we're able to close and have that liability as a tale.

Speaker Change: Yeah, so you know some of them are actually opportunities so we've actually had one of our worst performing stores

Speaker Change: So there's a whole host of.

Speaker Change: Boxes, each one's different some.

Speaker Change: We would expect.

Speaker Change: that was money losing in the box in an area that we thought, you know, it would be a liability and turned out to be a bit of a bidding war and we sold it for, you know, four million dollars and it was on our real estate value, I think closer to two million but on the opco you would have seen it as a negative value.

Speaker Change: Boys exits their box, we may actually lease it to one of the competitors, if it's far enough away not impact our own operations.

Speaker Change: So I think a large part of the portfolio should not really be considered a liability it's more of.

Ted Papapostolou: So there's a whole host of boxes. Each one's different. Some, we'd expect if Pep Boys exits their box, we may actually lease it to one of the competitors if it's far enough away not to impact our own operation. So I think a large part of the portfolio should not really be considered a liability. It's more of... an opportunity to make much more.

Speaker Change: An opportunity to make much more money.

Speaker Change: So there's a whole host of boxes, each one is different. Some, you know, we'd expect if Papapost exits their box, we may actually lease it to one of the competitors if it's, you know, far enough away, not impact our own operations.

Yeah.

Okay, and then just sorry going back to the update you said Youre up would you say a couple of hundred million dollars.

Speaker Change: The indicative net asset value quarter to date.

Speaker Change: I don't think we said that I think if if you were to look at our public portfolio. So everything in the funds and then publicly marked investment CVI and you and so we were modestly positive as of last Friday.

Speaker Change: So I think a large part of the portfolio should not really be considered a liability, it's more of...

an opportunity to make much more money.

Andrew Teno: Okay and then sorry going back to the update you said you're up what did you say a couple hundred million in uh indicative net asset value quarter to date? I don't think we said that. I think if you were to look at our public portfolio, so everything in the funds and then the publicly marked investments, CVI and UAN, so we were modestly positive as of last year. Okay, perfect. Thank you. You got it.

Icahn Enterprises LP

Speaker Change: Okay, and then just start to go back to the update you said you're up. What do you say a couple hundred million in Indicator of NASA by quarter date?

Speaker Change: Okay perfect. Thank you.

Speaker Change: Got it.

Speaker Change: Again, if you would like to ask a question press star one on your telephone keypad.

Speaker Change: I don't think we said that. I think if you were to look at our public portfolio, so everything in the funds and then the publicly marked investment CVI and UAN, so we were modestly positive as of last Friday.

Andrew: That's all part of like Q&A session and we appreciate your participation I will now turn the call back over to Andrew <unk>, President and CEO for closing remarks. Please go ahead.

Okay, perfect, thank you.

Speaker Change: Okay.

You got it.

Operator: Again, if you would like to ask a question, press star 1 on your telephone keypad.

Speaker Change: Thank you everyone for joining today's call will speak to you in a few months.

Speaker Change: Again, if you would like to ask a question, press star 1 on your telephone keypad.

Speaker Change: Yeah.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Operator: That's all for our Q&A session and we appreciate your participation.

Speaker Change: That's all for our Q&A session and we appreciate your participation. I will now turn the call back over to Andrew Teno, President and CEO for closing remarks. Please go ahead.

Andrew Teno: I will now turn the call back over to Andrew Teno, President and CEO, for closing remarks. Please go ahead. Well, thank you everyone for joining today's call.

Speaker Change: All right. Well, thank you everyone for joining today's call. We'll speak to you in a few months.

Andrew Teno: We'll speak to you in a few months.

Icahn Enterprises LP

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining.

Speaker Change: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Operator: You may now disconnect.

Speaker Change: and Andrew Berg, Andrew Berg, Robert Flint, Ted Papapostolou

Speaker Change: Hey, did you make it back home? Yep, I made it. Are you prepared? Yes, my turn. Oh, she's playing the music box all over the place salmon. Wake up!

Speaker Change: Daniel Fannon, Bruce Monrad, Robert Flint, Ted Papapostolou, Andrew Berg

Icahn Enterprises

Dr. Daniel Fannon, Bruce Monrad, Robert Flint, Ted Papapostolou

Icahn Enterprises LP

Good morning and welcome!

Speaker Change: to the Icahn Enterprises LP first quarter 2025 earnings call with Andrew Teno, President and CEO , Ted Papapostolou, Chief Financial Officer, and Robert Flint, Chief Accounting Officer. I would now like...

Speaker Change: To add a call over to Robert Flint, call read the opening statement. Please go ahead.

Speaker Change: Thank you, operator. The Private Security's Litigation Reform Act of 1995 provides a safe harbor for four fucking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions.

Speaker Change: Forward-looking statements may be identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates, will, or words of similar meaning and include but are not limited to statements about the expected future business and financial performance of Icahn Enterprises LP and its subsidiaries.

Speaker Change: Accordingly, there is no assurance that our expectations will be realized.

Speaker Change: We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law.

Speaker Change: This presentation also includes certain non-GAAP financial measures, including Adjusted

Speaker Change: 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.

Speaker Change: 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 gap earnings.

Speaker Change: All net income and EBITDA amounts we will discuss are attributable to Icahn Enterprises unless otherwise specified.

Speaker Change: I'll now turn it over to Andrew Teno, our chief executive officer.

Thank you, Rob, and good morning everyone.

Speaker Change: CVI share price increased by 3%, which when combined with additional share purchases of $33 million led to an increase of $80 million from the fourth quarter.

Speaker Change: The improvement in crack spreads that we discussed last quarter has continued and now that coffee those turnaround is complete, we look forward to getting back to business and generating cash flow.

Speaker Change: Regarding Rins, we remain hopeful that the new administration may lead to the resolution of our outstanding litigation regarding small refinery exemptions.

Speaker Change: which has the potential to remove the $438 million liability that was recorded as of 1 Q2 025 and potentially provide clarity to future years.

Speaker Change: As a reminder during the last Trump administration, Winnie would receive small refinery exemptions.

Speaker Change: The investment funds ended down approximately 8.4% for the quarter, primarily driven by our healthcare investments.

Speaker Change: Given the recent market volatility, we thought it would be helpful to provide an update as to performance for the end of last week.

Speaker Change: If you were to mark a mark at the funds and add in CVI and UAN, we would be modestly positive of a quarter to date.

Speaker Change: We ended the quarter with $1.3 billion of cash and cash equivalent at the holding company an additional $900 million of cash at the funds. So as Carl likes to say, we have a significant war chest to take advantage of opportunities

Speaker Change: Lastly, the board has maintained the quarterly distribution at 50 cents per depository unit.

Now turning to our investment segment.

Speaker Change: Despite the market volatility, we see considerable value creation potential in our portfolio.

Speaker Change: At AEP, we see new management closing at R-O-E gap, improving regulatory outcomes, solidifying its balance sheet through accretive asset sales, and benefiting from tremendous electricity low growth due to AI-driven data center demand.

Speaker Change: We think AI growth is real, and electric utilities, particularly AEP, are an excellent way to benefit in the picks and shovels of AI.

Speaker Change: X-Wix, we see a gas utility that is closing at the ROE gap to peers, and separating a utility services business with significant growth opportunity.

Speaker Change: We see upside on both the gas utility and the services business.

Speaker Change: In particular, Tenturies should see increasing growth trends as utility customers need to spend additional capex to improve and build out both the electrical grid and natural gas networks to support increasing power demands.

Speaker Change: At Caesars, we recently had two employees join the company's board of directors.

Speaker Change: We think Caesars has an excellent management team with tremendous real estate value, a growing digital business that is deploying its greater than 15% free cash will yield to repurchase shares and repay debt. In time, we would expect Caesars' digital business to be unlocked from its current structure.

Thank you, Andrew. I will start at our energy segment.

Energy Segment, Convalidated Evita, was negative $61 million for Q1 25.

compared to 203 million in Q124.

Speaker Change: TBR's refining business was negatively impacted by the turnaround at the coffee villa refinery, an unfavorable market to market ridden's valuation, all set in part by positive performance in the fertilizer business due to continued higher prices and strong utilization.

Speaker Change: Turning to our automotive segment. Our automotive segment continues to underperform compared to prior year period. Fails were down 9% year over year, excluding the line down of the parts business, which is now complete. Fails were down 6%.

Speaker Change: In order to give the business the resources it needs to succeed we are investing in labor inventory equipment facilities marketing and adjusting our distribution footprint

Speaker Change: We saw early signs of type wine improvement as we have experienced positive trends in car count, tire volumes, and revenue as we move through the quarter.

Speaker Change: Adjusted EBITDA in the quarter was negative 6 million. Profitability suffered as we work to get the labor hired, optimized and trained, the inventory in the right place at the right margin, and upgrade the facilities and equipment earlier in the year so that we can benefit as the year progresses.

Speaker Change: We believe that while painful in the short term, these are the right investments to improve long-term profitability.

The store portfolio is also going through significant changes.

Speaker Change: We are closing money-losing locations and growing in areas we have historically generated strong profitability.

Speaker Change: We have been adding additional locations to our Greenfield Pipeline and our leasing efforts to the excess and available space continue to bear fruit as we have approximately 60 properties under L.O.I.

Speaker Change: We continue to believe that our auto segment will see increasing sales, profitability, and cash flows over the coming quarters.

Now turning to the other segments.

Speaker Change: Real estate to Q-125, adjusted EBITDA, decreased by 1 million compared to the prior year quarter.

Speaker Change: As a reminder, we have limited inventory at our Legacy Country Club and expect to be sold out during 2027.

Speaker Change: We are expecting to see increased single family home sales from our newest country club, which has recently cleared the permitting process and we expect again taking home sale reservations by the end of 2025.

Speaker Change: In addition, our resort property continues to perform at high levels

Speaker Change: On our last call, we discuss a potential sale of certain properties which was expected to be complete during Q1. This is now expected to close during this quarter.

Speaker Change: We are also exploring the sale of additional properties in our portfolio which is successful to close later this year. In addition, we are actively seeking new opportunities that fit our investment strategy.

Speaker Change: Food Packaging is a dress city but a decrease by 6 million for Q1 25 as compared to the prior year quarter. The decreases primarily due to lower price, higher manufacturing inefficiencies and higher material costs.

Speaker Change: During the quarter, the business commenced a structuring plan which includes consolidating two North American facilities into one and adding a state-of-the-art manufacturing

Speaker Change: We anticipate this plan will increase operational efficiency and drive margins while maintaining volumes and is expected to be completed during the second half of 2025.

Icahn Enterprises LP

Speaker Change: Home Fashion's Adjusted EBITDA decreased by 1 million S. Comparison prior to your quarter, mainly driven by product myths.

Speaker Change: Farm was adjusted even after Q125 came in lower by 3 million as compared to prior year quarter. The decrease is primarily due to higher R&D spend for the therapies and clinical development and increased sales and marketing expenses due to the recent global product launch of QCIVA.

and now turning to our liquidity.

Q1 2025 Icahn Enterprises LP Earnings Call

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