Icahn Enterprises Swings to Q3 Profit, Energy Unit Shifts Strategy

TL;DR

**IEP's Q3 profit is a head fake; the nine-month loss and strategic energy pivot show underlying weakness and a retreat from green initiatives.**

AI Summary

ICAHN ENTERPRISES L.P. (IEP) reported a net income attributable to Icahn Enterprises of $287 million for the three months ended September 30, 2025, a significant increase from $22 million in the prior-year quarter. However, for the nine months ended September 30, 2025, the company posted a net loss attributable to Icahn Enterprises of $300 million, an improvement from a $347 million loss in the same period of 2024. Total revenues for the three months ended September 30, 2025, were $2.725 billion, down from $2.791 billion in the prior-year quarter, primarily due to a net loss from investment activities of $48 million compared to a $257 million gain. Net sales for the nine-month period decreased to $6.461 billion from $6.855 billion. The Energy segment made a strategic decision to revert its renewable diesel unit back to hydrocarbon processing service by December 2025 due to unfavorable economics, while increasing its ownership in CVR Energy by acquiring 3,726,090 shares for approximately $65 million. The company's total assets decreased to $14.826 billion as of September 30, 2025, from $16.279 billion at December 31, 2024, and total equity declined to $3.419 billion from $4.621 billion over the same period.

Why It Matters

This filing reveals a mixed financial picture for IEP, with a strong Q3 net income but continued nine-month losses, impacting investor confidence. The strategic pivot in the Energy segment, reverting the renewable diesel unit to hydrocarbon processing, signals a pragmatic response to market conditions, potentially affecting future environmental initiatives and competitive positioning against peers investing heavily in renewables. For employees in the Energy segment, this could mean a shift in operational focus. Customers of CVR Energy may see changes in product offerings, while the broader market watches how this diversified holding company navigates volatile commodity prices and investment performance.

Risk Assessment

Risk Level: high — The company reported a net loss attributable to Icahn Enterprises of $300 million for the nine months ended September 30, 2025, and total equity decreased significantly from $4.621 billion at December 31, 2024, to $3.419 billion at September 30, 2025. Furthermore, the Investment segment recorded a net loss of $516 million for the nine months ended September 30, 2025, indicating substantial volatility and risk in its core investment activities.

Analyst Insight

Investors should exercise caution and thoroughly evaluate IEP's long-term strategy, particularly given the significant decline in total equity and the ongoing losses in the Investment segment. Consider the implications of the Energy segment's pivot away from renewable diesel and its potential impact on future earnings and environmental, social, and governance (ESG) considerations.

Financial Highlights

debt To Equity

1.96

revenue

$2.725B

operating Margin

N/A

total Assets

$14.826B

total Debt

$6.688B

net Income

$411M

eps

N/A

gross Margin

N/A

cash Position

$1.787B

revenue Growth

-2.4%

Revenue Breakdown

Key Numbers

• $287M — Net Income Attributable to Icahn Enterprises (Q3 2025) (Increased significantly from $22 million in Q3 2024.)
• ($300M) — Net Loss Attributable to Icahn Enterprises (9M 2025) (Improved from a $347 million loss in 9M 2024.)
• $2.725B — Total Revenues (Q3 2025) (Decreased from $2.791 billion in Q3 2024.)
• $6.461B — Net Sales (9M 2025) (Decreased from $6.855 billion in 9M 2024.)
• $14.826B — Total Assets (Sept 30, 2025) (Decreased from $16.279 billion at Dec 31, 2024.)
• $3.419B — Total Equity (Sept 30, 2025) (Decreased from $4.621 billion at Dec 31, 2024.)
• ($516M) — Net Loss from Investment Activities (9M 2025) (Worsened from a $318 million loss in 9M 2024.)
• 600,208,517 — Depositary Units Outstanding (Sept 30, 2025) (Increased from 522,736,315 units at Dec 31, 2024.)
• $0.50 — Distributions Declared per LP unit (Q3 2025) (Reduced from $1.00 in Q3 2024.)
• 86% — Ownership by Carl C. Icahn and affiliates (Percentage of outstanding depositary units as of September 30, 2025.)

Key Players & Entities

• ICAHN ENTERPRISES L.P. (company) — Registrant
• Carl C. Icahn (person) — Indirectly owns and controls Icahn Enterprises G.P. Inc., which holds a 1% general partner interest and affiliates own approximately 86% of outstanding depositary units.
• CVR Energy, Inc. (company) — Majority-owned subsidiary in the Energy segment; IEP increased ownership by 3,726,090 shares for approximately $65 million.
• CVR Partners, LP (company) — Publicly traded limited partnership and subsidiary of CVR Energy; IEP increased ownership by 98,082 units for approximately $7 million.
• Nasdaq Global Select Market (regulator) — Exchange where IEP depositary units are registered.
• $287 million (dollar_amount) — Net income attributable to Icahn Enterprises for the three months ended September 30, 2025.
• $300 million (dollar_amount) — Net loss attributable to Icahn Enterprises for the nine months ended September 30, 2025.
• $14.826 billion (dollar_amount) — Total Assets as of September 30, 2025.
• $3.419 billion (dollar_amount) — Total Equity as of September 30, 2025.
• $516 million (dollar_amount) — Net loss from investment activities for the nine months ended September 30, 2025.

FAQ

Risk Factors

• Investment Activity Volatility [high — market]: The company experienced a significant swing in net gain from investment activities, moving from a $257 million gain in Q3 2024 to a $48 million loss in Q3 2025. For the nine-month period, this segment reported a $516 million loss, a deterioration from a $318 million loss in the prior year. This volatility directly impacts overall financial performance and revenue.
• Energy Segment Strategic Shift [medium — operational]: The Energy segment's decision to revert its renewable diesel unit back to hydrocarbon processing by December 2025 due to unfavorable economics indicates operational challenges and potential shifts in business strategy. This move suggests current market conditions are not supporting the renewable diesel venture.
• Declining Asset and Equity Base [medium — financial]: Total assets decreased to $14.826 billion as of September 30, 2025, from $16.279 billion at year-end 2024. Concurrently, total equity declined to $3.419 billion from $4.621 billion. This contraction in the balance sheet could signal deleveraging or asset sales.
• Increased Outstanding Units [medium — financial]: The number of depositary units outstanding increased to 600,208,517 as of September 30, 2025, from 522,736,315 at December 31, 2024. This increase, coupled with reduced distributions per unit, could impact per-unit profitability and shareholder returns.
• Reduced Distributions [medium — financial]: Distributions declared per LP unit were reduced to $0.50 in Q3 2025 from $1.00 in Q3 2024. This reduction may reflect a strategy to conserve cash, manage debt, or reinvest in the business, but could be viewed negatively by income-focused investors.
• Derivative Liabilities Increase [medium — financial]: Derivative liabilities, net, increased to $989 million from $756 million at year-end 2024. This rise suggests increased hedging activity or unfavorable movements in underlying market variables impacting derivative positions.

Industry Context

Icahn Enterprises operates as a diversified conglomerate with significant holdings in various sectors, including energy, automotive, and real estate. The energy sector, particularly with its focus on refining and renewable fuels, is subject to volatile commodity prices, evolving environmental regulations, and shifts in consumer demand. The company's strategic decision to exit renewable diesel processing highlights the challenging economics and competitive pressures within this segment.

Regulatory Implications

The company's operations, especially within the energy sector, are subject to environmental regulations and compliance requirements. Changes in energy policy, emissions standards, or sustainability mandates could impact operational costs and strategic decisions, such as the recent shift away from renewable diesel processing.

What Investors Should Do

1. Monitor Investment Activity Performance
2. Analyze Energy Segment Strategy
3. Evaluate Balance Sheet Changes
4. Assess Distribution Policy

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the condensed consolidated financial statements, showing a significant increase in net income attributable to Icahn Enterprises for the quarter but a net loss for the nine-month period.
• 2025-12-31: Planned reversion of renewable diesel unit — The Energy segment plans to revert its renewable diesel unit back to hydrocarbon processing due to unfavorable economics, indicating a strategic shift.
• 2024-12-31: End of Fiscal Year 2024 — Balance sheet comparison point, showing higher total assets ($16.279B) and equity ($4.621B) compared to September 30, 2025.
• 2024-09-30: End of Q3 2024 — Prior year comparison period, showing a net income of $80M and a net gain from investment activities of $257M.

Glossary

Depositary Units

Units representing ownership in Icahn Enterprises L.P., similar to shares of stock in a corporation. (Key metric for tracking ownership and per-unit financial performance. The increase in outstanding units is noted.)

Net income (loss) attributable to non-controlling interests

The portion of net income or loss that belongs to owners of subsidiaries that are not wholly owned by Icahn Enterprises. (Important for calculating the net income or loss actually attributable to Icahn Enterprises' limited partners.)

Net gain (loss) from investment activities

The profit or loss generated from the company's investments in securities and other financial instruments. (A significant driver of quarterly and year-to-date results, showing substantial volatility and a negative impact in the current period.)

Assets held for sale

Assets that management has committed to selling and are expected to be sold within one year. (The absence of these assets ($0M in Q3 2025 vs $25M in FY2024) suggests prior disposals or reclassification.)

Derivative assets/liabilities, net

The net fair value of financial instruments (like options or futures) used to manage risk or speculate on market movements. (An increase in derivative liabilities suggests potential increased hedging or unfavorable market movements affecting these instruments.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Icahn Enterprises L.P. reported a substantial increase in net income attributable to Icahn Enterprises, rising to $287 million from $22 million. However, total revenues saw a slight decrease to $2.725 billion from $2.791 billion, primarily driven by a significant negative swing in investment activities from a $257 million gain to a $48 million loss. While the nine-month net loss improved to $300 million from $347 million, total assets and equity have declined, and the number of outstanding depositary units has increased, alongside a reduction in quarterly distributions per unit.

Filing Documents

• tmb-20250930x10q.htm (10-Q) — 3850KB
• tmb-20250930xex31d1.htm (EX-31.1) — 10KB
• tmb-20250930xex31d2.htm (EX-31.2) — 10KB
• tmb-20250930xex32d1.htm (EX-32.1) — 8KB
• 0001104659-25-107057.txt ( ) — 16735KB
• tmb-20250930.xsd (EX-101.SCH) — 68KB
• tmb-20250930_cal.xml (EX-101.CAL) — 56KB
• tmb-20250930_def.xml (EX-101.DEF) — 306KB
• tmb-20250930_lab.xml (EX-101.LAB) — 560KB
• tmb-20250930_pre.xml (EX-101.PRE) — 461KB
• tmb-20250930x10q_htm.xml (XML) — 4633KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 57 Item 4 .

Controls and Procedures

Controls and Procedures 58

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 59 Item 1A.

Risk Factors

Risk Factors 59 Item 2. Unregistered Sales of Equity Securities and Use or Proceeds 60 Item 5. Other Information 60 Item 6. Exhibits 60 i Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Report contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or by the Private Securities Litigation Reform Act. All statements included in this Report, other than statements that relate solely to historical fact, are "forward-looking statements." Such statements include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events, or any statement that may relate to strategies, plans or objectives for, or potential results of, future operations, financial results, financial condition, business prospects, growth strategy or liquidity, and market conditions, and are based upon management's current plans and beliefs or current estimates of future results or trends. Forward-looking statements can generally be identified by phrases such as "believes," "expects," "potential," "continues," "may," "should," "seeks," "predicts," "anticipates," "intends," "projects," "estimates," "plans," "could," "designed," "should be" and other similar expressions that denote expectations of future or conditional events rather than statements of fact. Forward-looking statements include certain statements made under the caption, "Management's Discussion and Analysis of Financial Condition and Results of Operations," under Part I, Item 2 of this Report, but also forward-looking statements that appear in other parts of this Report. Forward-looking statements reflect our current views with respect to future events and are based on certain assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from trends, plans, or expectations set forth in the forward-looking statements. These include risks related to economic downturns, substan

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ICAHN ENTERPRISES L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, December 31, 2025 2024 (in millions, except unit amounts) ASSETS Cash and cash equivalents $ 1,787 $ 2,603 Cash held at consolidated affiliated partnerships and restricted cash 2,238 2,636 Investments 2,037 2,310 Due from brokers 1,724 1,624 Accounts receivable, net 418 479 Related party notes receivable, net 124 7 Inventories, net 892 897 Property, plant and equipment, net 3,742 3,843 Deferred tax asset 143 160 Derivative assets, net 3 22 Goodwill 290 288 Intangible assets, net 368 409 Assets held for sale 0 25 Other assets 1,060 976 Total Assets $ 14,826 $ 16,279 LIABILITIES AND EQUITY Accounts payable $ 673 $ 802 Accrued expenses and other liabilities 1,292 1,547 Deferred tax liabilities 317 331 Derivative liabilities, net 989 756 Securities sold, not yet purchased, at fair value 1,434 1,373 Due to brokers 14 40 Debt 6,688 6,809 Total liabilities 11,407 11,658 Commitments and contingencies (Note 16) Equity: Limited partners: Depositary units: 600,208,517 units issued and outstanding at September 30, 2025 and 522,736,315 units issued and outstanding at December 31, 2024 2,735 3,241 General partner ( 785 ) ( 775 ) Equity attributable to Icahn Enterprises 1,950 2,466 Equity attributable to non-controlling interests 1,469 2,155 Total equity 3,419 4,621 Total Liabilities and Equity $ 14,826 $ 16,279 See notes to condensed consolidated financial statements. 2 Table of Contents ICAHN ENTERPRISES L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in millions, except per unit amounts) Revenues: Net sales $ 2,316 $ 2,231 $ 6,461

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