Icahn Enterprises L.P. Aktie

Good morning, and 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 Passeri, Director of SEC Reporting.

I would now like to hand the call over to Joseph Passeri, who will read the opening statement.

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 and 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. 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.

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.

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 and 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.

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 multiyear transformation plan, we strengthened the business and positioned Pep Boys as a more profitable and valuable enterprise. 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 depository unit.

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 stock was up approximately 9% for Q2.

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's 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.

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 '26 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. 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 '26 compared to $40 million in Q2 '25. 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 CVI's assets are well positioned to benefit from the global tightness in refined product and nitrogen fertilizer.

Now turning to our Automotive segment. Q2 '26 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. 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 supercenter leases that we expect will become part of our Real Estate segment. For these assumed supercenter 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 '26 adjusted EBITDA increased by $9 million compared to the prior year quarter. 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 '26 as compared to prior year quarter. The decrease is primarily due to lower volume and continued disruptive headwinds from the restructuring plan.

Home Fashion's 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. 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-prescreening step and 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.

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.

Thank you all for participating. You may now disconnect.

Good morning, and welcome to the Icahn Enterprises L.P. First Quarter 2026 Earnings Call with Andrew Tino, President and CEO; Ted Papapostolou, Chief Financial Officer; Robert Flint, Chief Accounting Officer; and Joseph Passeri, Director of SEC Reporting.

I would now like to hand the call over to Joseph Passeri, who will read the opening statement.

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 and include, but are not limited to, statements about 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. 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.

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 Andrew Teno.

Thank you, Joe, and good morning, everyone. I wanted to say thank you to everyone, who I've worked with over the past few years, both before becoming CEO and after. It is an honor and privilege to work with and learn from the living legend of activism in our Chairman, Carl Icahn.

Over the past few years, we have worked hard to high-grade the Investment Fund portfolio and to get our controlled operations moving in the right direction. I leave the company knowing that it's in good hands with a significant war chest to take advantage of opportunities as they arise. It's been a pleasure and honor. And with that, I will hand it over to Ted, our new CEO. Congratulations, Ted.

Thank you, Andrew. Before turning to the work ahead, I want to begin by thanking Andrew for his leadership and service to Icahn Enterprises and wish him continued success in his next chapter. I am honored to take on the role of CEO and excited by the opportunity ahead. Icahn Enterprises has a unique portfolio, a strong heritage of disciplined capital allocation and a culture of accountability and long-term thinking.

I look forward to building on that foundation, working closely with Carl and our Board to continue strengthening the enterprise and executing on our priorities. I also look forward to working with Rob in his new role as CFO. With that, let's get into the results.

First quarter NAV increased by $201 million compared to year-end. The increase was primarily driven by an increase of $605 million in our long position in CVI, which was offset in part by losses on refining hedges of $320 million in our Investment segment, also known as the funds. Regarding CVI, major geopolitical events drove volatility, which have set up attractive market opportunities for the balance of 2026. We believe CVI is well positioned to allow for potential future debt reductions and capital returns to shareholders. We are pleased with CVI's announcement of a $0.10 dividend.

For Q1, the Investment segment was up approximately 4%, excluding the refining hedges. In terms of our top positions, AEP is an electric utility that benefits from the AI infrastructure build. In the first quarter, the company reaffirmed its 2026 operating EPS outlook and increased its long-term operating earnings CAGR to greater than 9%, supported by 63 gigawatt of incremental contracted load and 11% rate base growth through 2030. AEP stock was up approximately 14% for Q1.

Centuri reported strong base revenue and gross profit growth of 28% and 50% in Q4. The company also guided to strong double-digit base revenue and gross profit growth for 2026 as it continues to capture the tremendous tailwinds from increased energy infrastructure investment. The stock was up approximately 16% for Q1.

IFF continues to execute on its portfolio optimization, running a sale process for its food ingredients business and announcing the completion of its divestiture of the soy crush business. IFF stock was up approximately 8% for Q1.

Caesars reported solid Q1 results with Vegas stabilizing regional sales growing in the low single digits and digital posting strong EBITDA growth of 61%. Caesars is expected to generate significant cash flow in 2026, which we hope to fund meaningful share repurchases and debt paydown. Caesars' stock was up approximately 13% for Q1.

Echostar lowered its total expected tax and decommissioning costs related to its divested assets, which we believe meaningful upside remains for the position with the IPO of SpaceX potentially serving as a material positive catalyst. Echostar stock was up approximately 8% for Q1. As of quarter end, we had approximately $782 million in cash at the funds.

Lastly, the Board declared an unchanged distribution at $0.50 per depositary unit.

I will now pass it to Rob to discuss our financial results.

Thank you, Ted. For the first quarter of 2026, net loss attributable to IEP was $459 million, or a loss of $0.71 per unit. Our first quarter consolidated results include $425 million of losses on refining hedges in our Investment segment and $158 million of unrealized derivative losses in our Energy segment. Q1 '26 adjusted EBITDA loss attributable to IEP was $216 million compared to adjusted EBITDA loss attributable to IEP of $228 million for the prior year quarter.

I will now provide more detail regarding the performance of our individual segments. The Investment Funds had a positive return of 4.4% for the quarter, excluding refining hedges. Including the refining hedges, the funds had a negative return of 8.2% for the quarter. Long and other positions had a net positive performance attribution of 4.1% and short positions had a negative performance attribution of 12.9%. The investment funds had a net short notional exposure of 29% at the end of the quarter compared to net short of 13% at year-end.

Excluding our refining hedges, the funds had a net short notional exposure of 2% as of quarter end compared to net long of 19% at year-end. Our investment in the funds was approximately $2.2 billion as of quarter end.

Moving to our Energy segment. Energy segment adjusted EBITDA attributable to IEP was negative $5 million for Q1 '26 compared to negative $6 million for Q1 '25. The first quarter refining operations were solid with crude utilization of 97%, although margins were weighed down by higher RFS obligation costs and unrealized derivative losses. The Fertilizer segment had strong results driven by robust demand for the spring planting season.

We believe that CVI's assets are well positioned to benefit from the global tightness in refined product and nitrogen fertilizer.

Now turning to our Automotive segment. Q1 '26 Automotive Services revenues decreased by $9 million compared to the prior year quarter, primarily driven by closure of stores during the balance of 2025, offset in part by increased price. Same-store sales paints a better picture having increased by approximately 2% as compared to the prior year quarter. We are pleased with this positive revenue trajectory, but there's still a lot more work to be done. We continue to focus our efforts on product, pricing, labor and distribution strategy.

Now turning to all other operating segments. Real Estate's Q1 '26 adjusted EBITDA increased by $18 million compared to the prior year quarter. The increase is primarily driven by income from the assets that were transferred from the Automotive segment, of which $9 million is intercompany income from the auto segment and $2 million from third-party tenants. Food Packaging's adjusted EBITDA attributable to IEP decreased by $6 million for Q1 '26 as compared to the prior year quarter. The decrease is primarily due to lower volume and disruptive headwinds from the restructuring plan.

Home Fashion's adjusted EBITDA decreased by $2 million when compared to the prior year quarter primarily due to softening demand in retail and hospitality business and supply chain disruptions in the Strait of Hormuz.

Pharma's adjusted EBITDA decreased by $10 million when compared to the prior year quarter, primarily due to the reduced sales resulting from generic competition in the anti-obesity prescriptions and increased R&D expenses related to our ongoing pivotal drug trials. The Transocean trial preparation for our PAH drug is on schedule, and the first patient will be dosed in the next 60 to 90 days. The physician community remains excited by the potential for disease-modifying designation.

Now, turning to our Liquidity. We maintain Liquidity at the holding company and at our operating subsidiaries to take advantage of attractive opportunities. As of quarter end, the holding company had cash and investment in the funds of $2.8 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 segments.

Thank you. Operator, can you please open the call for questions?

[Operator Instructions] As I see no questions in the queue, I will pass it back to Ted Papapostolou for closing comments.

Thank you, everyone, and looking forward to our next update call.

This concludes our conference. Thank you for participating, and you may now disconnect.

Good morning, and welcome to the Icahn Enterprises L.P. Fourth 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 to hand the call over to Robert Flint, who will read the opening statement.

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 and 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. 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. 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 Andrew Teno, our Chief Executive Officer.

Thank you, Rob, and good morning to everyone on today's call. Fourth quarter NAV decreased by $654 million compared to the third quarter. The excellent performance in our funds, up 11% for the quarter, was offset by share price declines in CVI. Regarding CVI, we don't believe there are any material changes to CVI's outlook. Rather, we remain optimistic on the medium-term refining outlook. The two positive factors are: One, limited capacity expansions globally; and two, multiple new pipeline projects that will move Mid-Con and Gulf Coast barrels to the West Coast, which should help improve regional profitability for CVI.

On a company-specific level, CVI is focused on improving its capture rates, which should drive improved profitability even if industry crack spreads remain constant.

Now turning to the funds. In the fourth quarter, we were up approximately 11%, including refining hedges and up approximately 9%, excluding refining hedges. The big contributors for the quarter were EchoStar, the refining hedges in Centuri. Our lone big detractor was Caesars. For the year, we are about flat, including refining hedges and up 7%, excluding refining hedges.

In terms of our top positions, AEP is an electric utility that is benefiting from the AI infrastructure build-out and a new world-class management team. During their third quarter call, AEP disclosed a new $72 billion CapEx plan that would drive its asset base to grow at a 10% CAGR and its earnings per share to grow at a 9% CAGR through 2030. Already, after only a few months, the company is seeing opportunities to add an additional $5 billion to $8 billion of projects that would further grow its asset base and earnings per share.

Southwest Gas is a gas utility that we exited subsequent to the quarter. I am proud of the work that we did in collaboration with the Board and management team. The company is in a much better position today than when we first invested, given the Great Basin pipeline expansion project, path to improve return on equity and best-in-class balance sheet.

Turning to EchoStar. The company sold additional spectrum to SpaceX in exchange for additional SpaceX common equity, further demonstrating the value of EchoStar's spectrum portfolio. We believe meaningful upside remains and that the IPO of SpaceX could serve as a meaningful positive catalyst.

Centuri. A utility infrastructure services firm is firing on all cylinders, reporting base revenue and EBITDA growth of 25% and 28% in Q3. The combination of the organic growth and a recent equity offering has led to leverage decline to mid-2x EBITDA giving the company significant financial flexibility, further enabling it to continue capturing the tremendous growth in energy infrastructure investment.

IFF is a high-quality consumer staple company, where the refreshed management team continues to impress. IFF announced a formal sale process for its food ingredients business and gave 2026 guidance for mid-single-digit comparable EBITDA growth as portfolio optimization and investment in product innovation drive volume growth and performance.

One name that fell off the top 5 list is Caesars, where the stock has underperformed our expectations. We continue to believe that Caesars is undervalued given the significant owned real estate portfolio and the growing digital business powered by iCasino. Using consensus estimates, Caesars trades in approximately 20% free cash flow yield, which is expected to be used to repurchase shares and pay down debt.

If I step back and speak a bit more broadly, we are taking a slightly more cautious view of the market. With all the wild swings in sectors that are deemed at risk of AI, we are happy to be in defensive names that should benefit from the AI build-out with a significant war chest to take advantage of opportunities as they arise.

As of year-end, we had approximately $750 million in cash at the funds. More recently, our cash balance at the funds has increased and is greater than $1.2 billion. Subsequent to the quarter end, we have taken steps to reduce our IEP corporate debt balance and we called in the remaining balance of the 2026 maturities.

Lastly, the Board declared an unchanged distribution at $0.50 per depositary unit.

I will now pass it to Ted to talk about our controlled businesses.

Thank you, Andrew. Energy segment's adjusted EBITDA was $51 million for Q4 '25 compared to $99 million in Q4 '24. The fertilizer business was negatively impacted by low utilization caused by the turnaround at the Coffeyville's fertilizer facility and a 3-week downtime event caused by the facility's third-party air separation plant.

During December, CVI completed the reversion of the RDU at the Wynnewood refinery back to hydrocarbon processing.

And now turning to our Automotive segment. Q4 '25 automotive service revenues decreased by $1 million compared to the prior year quarter. Same-store sales paints a better picture having increased by 5% as compared to the prior year quarter. We are pleased with this positive revenue trajectory, but there's still a lot more work to be done. We continue to focus our efforts on product, pricing, labor and distribution strategy.

Now turning to our other operating segments. Real Estate's Q4 '25 adjusted EBITDA increased by $6 million compared to the prior year quarter. The increase is primarily driven by income from the assets that were transferred from the Auto segment of which $9 million is intercompany income from the Auto segment and $3 million from third-party tenants.

Food Packaging's adjusted EBITDA decreased by $8 million for Q4 '25 as compared to the prior year quarter. The decrease is primarily due to lower volume, higher manufacturing inefficiencies and disruptive headwinds from the restructuring plan. During Q4, we made a change to the CEO position and brought back Tom Davis, who was the CEO of this case previously and has a successful track record with the company. With his knowledge of the industry and the business, we feel he is the right person to lead this case through this transformative period.

Home Fashions' adjusted EBITDA decreased by $5 million when compared to the prior year quarter, primarily due to a softening demand in our U.S. retail and hospitality business. The tariff uncertainty has created opportunity for the company as new business has entered into the bidding pipeline and we are hopeful this will have a positive impact for the segment in 2026.

Pharma's adjusted EBITDA decreased by $4 million when compared to the prior year quarter, primarily due to reduced sales resulting from the generic competition in the anti-obesity market. The TRANSCEND trial preparation for our PAH drug is on schedule, and the first patient will be dosed in the next 60 to 90 days. The physician community is excited by the potential for a disease-modifying designation.

And now turning to our liquidity. We maintain liquidity at the holding company and at our operating subsidiaries to take advantage of attractive opportunities. As of quarter end, the holding company had cash and investment in the funds of $3.5 billion and our subsidiaries had cash and revolver availability of $913 million. 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.

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

[Operator Instructions] All right. Thank you so much. This concludes our Q&A. I will pass it back to Andrew Teno for final comments.

All right. Well, thank you, everyone, for joining today's call, and we'll speak to you next quarter.

Thank you. And this concludes our conference. Thank you for participating, and you may now disconnect.

Good morning, and welcome to the Icahn Enterprises L.P. Third 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 to hand the call over to Robert Flint, who will read the opening statement.

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 and include, but are not limited to, statements about 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. 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. 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 Andrew Teno, our Chief Executive Officer.

Thank you, Rob, and good morning, everyone. We had a good third quarter. NAV increased $567 million. CVI, net of refining hedges, increased NAV by $547 million, and the funds, excluding refining hedges were up approximately 5%. For CVI, the outperformance was driven by 3 factors: the continued conflict in Ukraine, increased crack spreads and most importantly, the resolution of our small refinery exemptions from 2019 to 2024 and which removed a $488 million liability from the CBI balance sheet. Going forward, our hope is that the Trump administration and the EPA will continue to grant small refineries, the exemptions they deserve. And to be clear, we believe that Wynnewood is entitled to receive 100% exemptions going forward.

Turning to the funds. We were up approximately 5%, excluding refining hedges. The big winner for the quarter was our investment in EchoStar and big detractors were the broad market and refining hedges. In terms of our top positions. AEP is an electric utility that is benefiting from the AI infrastructure buildout. Importantly, not all electric utilities will benefit the same from the AI build-out. In order to be a winner, you need to have 4 things: The right jurisdictions, the right assets, enough scale and a hungry management team. AEP checks all those boxes. AEP has sizable operations in the data center hotspots of Texas, Indiana, Oklahoma and Ohio, which have available land and low power prices.

AEP had the right assets given its 55% mix of earnings from transmission which enables timely recovery on investments and the ability to build new generation across multiple jurisdictions to support the increasing power needs. Scale is important because investments in new power generation are large dollars, a $3 billion investment can be too big for smaller entities to fund. With a greater than $60 billion market cap, AEP has the necessary scale. And lastly, you need to have a management team that is hungry that wants to win thinks creatively and matches the intensity of the customer base. Under the leadership of the new CEO and CFO at AEP, we believe we are in excellent hands.

Turning to Southwest Gas. SWX has recently completed its full separation from Centuri and now has an absolutely best-in-class balance sheet. The company should grow earnings faster than Peter gas utilities given recent legislation and policies in both of its key jurisdictions that enable more timely recovery on investments. Southwest Gas also has a potential significant pipeline expansion for data center, power gen and industrial users in Northern Nevada. With both growth drivers, 2 research analysts recently predicted that SWX could grow net income at a 14% CAGR between 2025 and 2029 when many peers will be in the 6% to 8% range.

For EchoStar, we were attracted to the asymmetric upside driven by the highly valuable spectrum assets. The recent deals to sell spectrum to AT&T and SpaceX highlight that value with the stock having increased from the teens in June to approximately $75 per share as of quarter end. We think there is still considerable upside remaining. IFF is a high-quality consumer staple company. The refreshed management team's focus on high-growth and innovation-led businesses has enabled IFF to streamline its portfolio rightsize its balance sheet and restore financial flexibility to invest in R&D and return cash to shareholders.

With the company continuing to drive improvement within the food ingredients business, IFF is near an inflection point that will enable it to close its discount to peers. For Caesars, no doubt we have been disappointed with the recent performance, but our thesis is unchanged. We see considerable owned real estate value a growing high-quality digital business at the early stages of an iCasino rollout across the country and significant free cash flow being used to repurchase shares. I would also like to mention our recent 13D filing related to an investment in Monroe, which has approximately 1,100 auto service locations across the U.S. We think Monroe is an attractive investment opportunity and look forward to discussing more in future calls. And now I would like to pass it on to Ted to discuss our controlled businesses.

Thank you, Andrew. I will start at our Energy segment. Andrew has already touched on the major highlights. I'll just add that the energy segment consolidated EBITDA was $625 million for Q3 '25, compared to a loss of $35 million in Q3 '24. Moving to our Automotive segment. Q3 '25 automotive service revenues increased by $11 million compared to the prior year quarter. We are pleased with the same-store sales performance with revenue increasing by $21 million or 6% as compared to the prior year quarter. As we fine-tune our product, pricing, labor and distribution strategies, we believe enhanced profitability will follow. We've also made significant changes to our store footprint.

During the last 12 months, we closed a total of 89 underperformers, of which 20 came subsequent to Q3 '25 and we opened 14 new locations. We will continue to analyze our footprint and close and open locations where appropriate. Subsequent to quarter end, we transferred the vast majority of our owned properties out of the Automotive segment into our Real Estate segment. We believe this move will help unlock the value of both our real estate and auto service operations. Now turning to the other operating segments. Real Estate Q3 '25 adjusted EBITDA decreased by $12 million compared to the prior year quarter.

This decrease was primarily due to the sale of our Country Club earlier this year. We expect EBITDA to increase in the second half of 2026 as we ramp up construction at our existing club and surrounding development. During the quarter, we closed on certain properties for a pretax gain of $223 million. Food Packaging's adjusted EBITDA decreased by $8 million for Q3 '25 as compared to the prior year quarter. The decrease is primarily due to lower volume, higher manufacturing inefficiencies and disruptive headwinds from the restructuring plan. We expect the restructuring plan to impact results until its completion, which is now expected to be during Q2 '26.

Home Fashions adjusted EBITDA decreased by $4 million when compared to the prior year quarter, primarily due to softening demand in our U.S. retail and hospitality business. Pharma's adjusted EBITDA decreased by $7 million when compared to the prior year quarter, primarily due to reduced sales resulting from generic competition in the anti-obesity market. We are excited about our developmental drug for PAH. We finalized our partner for the CRO and have named the trial TRANSCEND. The trial will consist of approximately 90 sites across the globe with total enrollment of 300 patients. The first patient is to be dosed during Q1 2026. If this product obtains approval, it potentially will be the first disease-modifying product for the treatment of patients suffering from PAH.

And now to our liquidity. 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 $3.4 billion and our subsidiaries had cash and revolver availability of $1.2 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 segments. Thank you. Operator, can you please open up the call for questions.

[Operator Instructions]. I will turn the call back to Andrew Teno for final comments.

Thank you very much. Thank you, everyone, for joining. And I'd like to leave with a reminder that here at Icahn Enterprises, we are intensely focused on our activism strategy. We have unique advantages, including the Icahn brand name, and a long history and willingness to waste proxy contests. It is this track record, which frequently allows us to be invited to join boards and work cooperatively with our fellow directors to make the key changes that will drive shareholder value.

Furthermore, given our balance sheet, liquidity and permanent capital structure, we have the ability to tender for entire businesses, the tool most simply do not possess. Though our returns can be lumpy and dissatisfying at times. And again, this quarter, they were quite good. We continue to focus on our activist efforts at both our Investment segment and controlled businesses, and we believe they will bear fruit for all unitholders. Speak soon.

Thank you. And with that, we conclude our conference for today. Thank you for participating, and you may now disconnect.