Q2 2026 Icahn Enterprises LP Earnings Call Transcript
Key Points
- Icahn Enterprises LP (IEP) expects to close the sale of Pep Boys for $700 million in Q3 2026, which will significantly enhance liquidity and provide financial flexibility to address upcoming debt maturities.
- The Energy segment showed strong operational performance with crude utilization over 98% in Q2, and adjusted EBITDA attributable to IEP increased to $102 million from $40 million in the prior year quarter.
- CVI declared a $0.10 per share dividend, reflecting confidence in its asset base and positioning to benefit from global tightness in refined products and nitrogen fertilizer.
- The real estate segment saw a $9 million increase in adjusted EBITDA, driven by income from assets transferred from the automotive segment, including intercompany rent from Pep Boys.
- Several key fund positions performed well in Q2, with JetBlue up 30%, Caesars up 14%, and IFF up 9%, contributing positively to the investment portfolio.
- The holding company maintains substantial liquidity of $2.4 billion in cash and fund investments, with additional subsidiary liquidity of $1.4 billion, providing ample capacity for future opportunities.
- Icahn Enterprises LP (IEP) reported a net loss attributable to IEP of $355 million in Q2 2026, a significant increase from the $165 million loss in the prior year quarter.
- The investment funds delivered a negative return of 10.9% for the quarter, including refining hedges, with short positions contributing a negative performance attribution of 15.5%.
- Q2 NAV decreased by $765 million, primarily driven by losses in the funds ($243 million) and CVI ($435 million), reflecting challenging market conditions.
- The Pharma segment saw adjusted EBITDA decrease by $14 million year-over-year due to generic competition in the anti-obesity drug therapy and increased R&D expenses for pivotal drug trials.
- Home Fashions adjusted EBITDA declined by $1 million due to softening demand in the hospitality business and continued supply chain disruptions in the Strait of Hormuz.
- Food packaging adjusted EBITDA decreased by $2 million, impacted by lower volume and ongoing disruptive headwinds from the restructuring plan.
Good morning, and welcome to the Icahn Enterprises LP Second Quarter 2026 Earnings Call with Ted Papapostolo, President and CEO Robert Flint, Chief Financial Officer and Joseph Pasetti, Director of SEC Reporting. I would now like to hand the call over to Joseph Pasetti, who will read the opening statement.
Thank you, operator. The Private Securities Litigation Reform Act of 1,995 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 and include, but are not limited to, statements about the expected future business and financial performance of Icon Enterprises LP and its subsidiaries.
Actual events, results, and outcomes may differ materially from our expectations due to a variety
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