Icahn Enterprises L.P. (NASDAQ:IEP) Q4 2024 Earnings Conference Call February 26, 2025 10:00 AM ET Company Participants Andrew Teno - President and CEO Ted Papapostolou - Chief Financial Officer Robert Flint - Chief Accounting Officer Conference Call Participants Andrew Berg - Post Advisory Group Operator Good morning, and welcome to the Icahn Enterprises L. P. Fourth Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. We will have Andrew Teno, President and CEO, Ted Papapo ...

Financial Performance - For Q4 2024, Icahn Enterprises reported revenues of $2.6 billion, a decrease from $2.7 billion in Q4 2023, with a net loss of $98 million compared to a net loss of $139 million in the prior year[1][4] - Adjusted EBITDA for Q4 2024 was $12 million, an increase from $9 million in Q4 2023[1][4] - The basic and diluted loss per LP unit for Q4 2024 was $0.19, an improvement from a loss of $0.33 in Q4 2023[9][4] - The net loss for Q4 2024 was $110 million, an improvement from a net loss of $205 million in Q4 2023[25] - Adjusted EBITDA for Q4 2024 was $42 million, compared to a loss of $3 million in Q4 2023, indicating a significant improvement[25] - The company reported a total depreciation and amortization expense of $129 million for Q4 2024, slightly down from $134 million in Q4 2023[25] - Restructuring costs for Q4 2024 were $3 million, consistent with the $1 million reported in Q4 2023[25] - Transformation costs for the year ended December 31, 2024 totaled $38 million, compared to $41 million in 2023[25] - The company recorded a gain on lease termination of $38 million for the year ended December 31, 2024[25] - The net loss attributable to IEP for Q4 2024 was $98 million, an improvement from a net loss of $139 million in Q4 2023[25] Asset and Liability Overview - As of December 31, 2024, the indicative net asset value was approximately $3.3 billion, down by $223 million from September 30, 2024[2][4] - Total assets decreased to $16.3 billion as of December 31, 2024, from $20.9 billion in 2023[11] - Total liabilities decreased to $11.7 billion as of December 31, 2024, from $14.8 billion in 2023[11] - The indicative net asset value as of December 31, 2024, was calculated at $3,337 million, a decrease from $3,560 million in September 30, 2024, and $4,758 million in December 31, 2023, indicating a decline of 6.3% and 29.8% respectively[22] - The Real Estate segment's GAAP equity attributable to the company as of December 31, 2024, was $447 million, which no longer reflects indicative net asset value due to an agreement to sell certain properties expected to close by the end of Q1 2025[24] Cash and Cash Equivalents - The company’s cash and cash equivalents stood at $2.6 billion as of December 31, 2024, down from $3.0 billion in 2023[11] - The company’s cash and cash equivalents as of December 31, 2024, amounted to $1,397 million, down from $1,566 million in September 30, 2024, and $1,584 million in December 31, 2023[22] Business Operations and Segments - The company operates in various sectors including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma[5] - The company modified its calculation of EBITDA effective December 31, 2023, to exclude the impact of net interest expense from the Investment segment, enhancing the clarity of performance metrics[13] - Adjusted EBITDA attributable to IEP for the year ended December 31, 2024 was $174 million, down from $361 million in 2023[25] - The company emphasizes that EBITDA and Adjusted EBITDA should not be considered as substitutes for U.S. GAAP financial measures, highlighting their limitations in reflecting cash expenditures and working capital needs[15] Changes in Valuation Methodology - Adjusted EBITDA for the Automotive Services business will now be valued using discounted cash flow and guideline public company methodologies, moving away from trailing twelve months Adjusted EBITDA starting December 31, 2024[19] - The Automotive Services business valuation methodology change reflects management's belief that trailing twelve months Adjusted EBITDA does not represent uniform performance and growth[19] Market Valuation - The company's EBITDA for December 31, 2024, was reported at $3,966 million, down from $4,281 million in September 30, 2024, and $5,264 million in December 31, 2023, reflecting a decrease of 7.3% and 24.6% respectively[22] - The total market-valued subsidiaries and investments decreased to $3,966 million as of December 31, 2024, from $4,281 million in September 30, 2024, and $5,264 million in December 31, 2023, representing a decline of 7.3% and 24.6% respectively[22] - The indicative gross asset value as of December 31, 2024, was reported at $6,639 million, a slight decrease from $6,677 million in September 30, 2024, and $8,021 million in December 31, 2023[22] Interest and Expenses - Interest expense, net increased to $83 million in Q4 2024 from $54 million in Q4 2023, reflecting higher borrowing costs[25] - The decline in indicative net asset value was primarily due to a $286 million decrease in CVR Energy and a $57 million decline in Viskase, partially offset by a $292 million increase in the Real Estate segment[2]

Group 1 - Icahn Enterprises L.P. will discuss its fourth quarter 2024 results on a webcast scheduled for February 26, 2025, at 10:00 a.m. Eastern Time [1] - The webcast will be accessible via a provided link, and viewers are encouraged to join 15 minutes early [1] - A replay of the webcast will be available for at least twelve months following the event [1] Group 2 - Icahn Enterprises L.P. is a diversified holding company operating in seven primary business segments: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma [2]

Core Points - Icahn Enterprises Holdings L.P. announced the results of its cash tender offer for up to 17,753,322 shares of CVR Energy's common stock at a price of $18.25 per share, which expired on January 8, 2025 [1] - Approximately 878,212 shares were properly tendered and not withdrawn, representing about 0.9% of CVR Energy's outstanding common stock [2][3] - IEH will accept all properly tendered shares for a total purchase price of approximately $16 million [3] Company Information - CVR Energy is a diversified holding company engaged in renewables, petroleum refining, marketing, and nitrogen fertilizer manufacturing [4] - Icahn Enterprises L.P. is a diversified holding company with subsidiaries in various sectors including investment, energy, automotive, food packaging, real estate, home fashion, and pharmaceuticals [5]

Core Points - Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P. have extended their cash tender offer for up to 17,753,322 shares of CVR Energy's common stock at a price of $18.25 per share, with the new expiration time set for January 8, 2025 [1] - As of January 6, 2025, approximately 960,479 shares have been tendered in the offer, including 700,244 shares tendered by guaranteed delivery [3] - The offer's terms and conditions remain unchanged, and there are no intentions to further extend or increase the offer price [1][2] Company Information - CVR Energy is a diversified holding company engaged in renewables, petroleum refining, marketing, and nitrogen fertilizer manufacturing through its interest in CVR Partners, LP [6] - Icahn Enterprises L.P. is a diversified holding company with subsidiaries in various sectors including investment, energy, automotive, food packaging, real estate, home fashion, and pharmaceuticals [7]

Core Viewpoint - Icahn Enterprises L.P. has announced a private placement offering of $500 million in 10.000% Senior Secured Notes due 2029, expected to close on November 20, 2024, to partially redeem existing 6.250% Senior Notes due 2026 [1] Group 1: Notes Offering Details - The offering consists of $500 million aggregate principal amount of 10.000% Senior Secured Notes due 2029 [1] - The Notes will be secured by substantially all assets owned by the Issuers and the Guarantor, with customary exceptions [1] - The net proceeds will be used to partially redeem the existing 6.250% Senior Notes due 2026 [1] Group 2: Security and Guarantees - The Notes will be guaranteed by Icahn Enterprises Holdings L.P. and secured equally with existing notes upon issuance [1] - Existing notes include 5.250% Senior Notes due 2027, 4.375% Senior Notes due 2029, 9.750% Senior Notes due 2029, and 9.000% Senior Notes due 2030 [1] Group 3: Regulatory Compliance - The Notes are being offered only to qualified institutional buyers in the U.S. and to non-U.S. persons outside the U.S. in compliance with Regulation S [2] - The Notes and related guarantees have not been registered under the Securities Act and may not be offered or sold in the U.S. without registration or an exemption [2] Group 4: Company Overview - Icahn Enterprises L.P. is a diversified holding company engaged in various sectors including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma [4]

Equity and Financial Position - Equity attributable to Icahn Enterprises decreased from $3,208 million in December 2023 to $2,645 million in September 2024[9] - Total equity decreased from $6,073 million in December 2023 to $4,827 million in September 2024[9] - Total liabilities and equity decreased from $20,858 million in December 2023 to $17,443 million in September 2024[9] - Total equity attributable to Icahn Enterprises as of September 30, 2024, was $4,827 million, with a balance of $2,645 million in limited partners' equity and $2,182 million in non-controlling interests[16] - Total assets increased from $17.443 billion in 2023 to $20.858 billion in 2024, reflecting a growth of 19.6%[149][150] - Cash and cash equivalents rose from $2.294 billion in 2023 to $2.951 billion in 2024, a 28.6% increase[149][150] - Investments grew from $2.585 billion in 2023 to $3.012 billion in 2024, up 16.5%[149][150] - Total liabilities increased from $12.616 billion in 2023 to $14.785 billion in 2024, a 17.2% rise[149][150] - Debt rose from $6.447 billion in 2023 to $7.207 billion in 2024, up 11.8%[149][150] - Equity attributable to Icahn Enterprises increased from $2.645 billion in 2023 to $3.208 billion in 2024, a 21.3% growth[149][150] - Property, plant, and equipment net value grew from $3.865 billion in 2023 to $3.969 billion in 2024, up 2.7%[149][150] - Goodwill and intangible assets net value increased from $712 million in 2023 to $754 million in 2024, up 5.9%[149][150] - Inventories net value rose from $883 million in 2023 to $1.047 billion in 2024, a 18.6% increase[149][150] - Accounts receivable net value increased from $476 million in 2023 to $485 million in 2024, up 1.9%[149][150] Revenue and Net Income - Net sales for the three months ended September 30, 2024, were $2,221 million, compared to $2,991 million for the same period in 2023[10] - Net income (loss) attributable to Icahn Enterprises for the three months ended September 30, 2024, was $58 million, compared to a loss of $24 million for the same period in 2023[10] - Basic and diluted income (loss) per LP unit for the three months ended September 30, 2024, was $0.05, compared to a loss of $0.01 for the same period in 2023[10] - Comprehensive income (loss) attributable to Icahn Enterprises for the three months ended September 30, 2024, was $28 million, compared to a loss of $12 million for the same period in 2023[12] - Net income for the period ending September 30, 2024, was $80 million, with $22 million from operations and $58 million from other sources[16] - Net income (loss) attributable to Icahn Enterprises for September 2024 was $22 million, compared to a loss of $6 million in September 2023[130] - Basic and diluted income (loss) per LP unit for September 2024 was $0.05, compared to a loss of $0.01 in September 2023[130] - Net sales for the Energy segment reached $1.834 billion, contributing significantly to the total consolidated net sales of $2.221 billion[140] - The Automotive segment reported net sales of $206 million and other revenues from operations of $168 million, totaling $374 million in revenues[140] - Net gain from investment activities was $257 million, primarily driven by the Investment segment[140] - Net income attributable to Icahn Enterprises was $22 million, with the Investment segment contributing $192 million in net income[140] - Net sales for the Energy segment were $2.522 billion, contributing significantly to the consolidated net sales of $2.991 billion[141] - The Automotive segment reported other revenues from operations of $180 million, adding to the total other revenues of $203 million[141] - Net loss from investment activities was $332 million, impacting the overall financial performance[141] - Net loss attributable to Icahn Enterprises was $6 million, with the Energy segment showing a net income of $235 million[141] - Net sales for the nine months ended September 30, 2024, were $6.827 billion, with the Energy segment contributing $5.663 billion and the Automotive segment contributing $637 million[143] - Other revenues from operations totaled $566 million, with the Automotive segment contributing $504 million and the Real Estate segment contributing $59 million[143] - Net loss from investment activities was $318 million, primarily driven by the Investment segment[143] - Net loss attributable to Icahn Enterprises was $347 million, with the Holding Company contributing a loss of $207 million and the Investment segment contributing a loss of $88 million[143] - Consolidated net sales totaled $8,433 million, with Energy contributing $7,045 million and Automotive contributing $799 million[144] - Net loss from investment activities was $(1,275) million, significantly impacting overall performance[144] - Energy segment's petroleum products revenue for the nine months ended September 30, 2024, was $5,277 million, down from $6,505 million in 2023[146] - Automotive segment's total revenue from customers for the nine months ended September 30, 2024, was $1,096 million, compared to $1,283 million in 2023[147] - Net loss attributable to Icahn Enterprises was $(545) million, driven by a $(462) million loss in the Holding Company segment[144] - The Investment segment reported revenues of $334 million for the three months ended September 30, 2024, compared to $224 million in the same period in 2023[193] - The Energy segment reported a net loss of $134 million for the three months ended September 30, 2024, compared to a net income of $342 million in the same period in 2023[193] - Consolidated net income attributable to Icahn Enterprises was $22 million for the three months ended September 30, 2024, compared to a net loss of $6 million in the same period in 2023[193] - Investment Funds' net income for the three months ended September 30, 2024, was $296 million, compared to a loss of $297 million in 2023[201] Cash Flow and Financing Activities - Net cash provided by operating activities for the nine months ended September 30, 2024, was $588 million, compared to $3,621 million for the same period in 2023[21] - Net cash used in investing activities for the nine months ended September 30, 2024, was $226 million, primarily due to capital expenditures of $192 million[21] - Net cash used in financing activities for the nine months ended September 30, 2024, was $1,573 million, including $511 million in distributions to non-controlling interests[21] - The company's cash and cash equivalents decreased by $1,212 million to $4,734 million as of September 30, 2024, compared to $6,112 million as of September 30, 2023[21] - Cash held at consolidated affiliated partnerships was $808 million as of September 30, 2024, down from $1,068 million at December 31, 2023[48] - Restricted cash balance was $1,632 million as of September 30, 2024, compared to $1,927 million at December 31, 2023[49] - The company issued $750 million in aggregate principal amount of 9.000% senior unsecured notes due 2030 in May 2024, using the proceeds to redeem the remaining 6.375% senior unsecured notes due 2025[123] - During the three months ended September 30, 2024, the company sold 233,000 depositary units, generating $4 million in gross proceeds[135] - During the nine months ended September 30, 2024, the company sold 5,806,986 depositary units, generating $102 million in gross proceeds[135] - As of September 30, 2024, the company had repurchased $269 million worth of senior notes under the Repurchase Program[136] - The company is authorized to repurchase up to an additional $500 million worth of senior notes and $500 million of depositary units under the reapproved Repurchase Program[136] - Icahn Enterprises commenced an exchange offer for $700 million in senior notes due 2029 and $750 million in senior notes due 2030, which expired on October 17, 2024[181] Segment Performance - The Investment segment had interests with a fair value of approximately $2.7 billion as of September 30, 2024, compared to $3.2 billion as of December 31, 2023[26] - CVR Energy, part of the Energy segment, held approximately 66% of the total outstanding common stock of CVR Energy as of September 30, 2024[27] - Viskase, part of the Food Packaging segment, was approximately 91% owned by the company as of September 30, 2024[30] - The Automotive segment deconsolidated Auto Plus due to bankruptcy filings on January 31, 2023, impacting the segment's operations[29] - Pharma segment operates through Vivus LLC, which has two approved therapies and four product candidates in development[33] - Energy segment had $9 million of remaining performance obligations for contracts with durations over one year, with $1 million expected to be recognized by end of 2024[53] - Energy segment's deferred revenue was $68 million as of September 30, 2024, up from $49 million at December 31, 2023[54] - Automotive segment's deferred revenue for extended warranty plans was $39 million as of September 30, 2024, down from $45 million at December 31, 2023[55] - Auto Plus bankruptcy resulted in a non-cash charge of $246 million during the nine months ended September 30, 2023[62] - Investment Funds' fair market value of investments by Mr. Icahn and affiliates was $1.5 billion as of September 30, 2024, representing 35% of assets under management[64] - $14 million and $10 million were allocated to the Investment Funds for the nine months ended September 30, 2024 and 2023, respectively, based on the expense-sharing arrangement[65] - Total lease revenues from Auto Plus for the Automotive segment were $3 million for the eight months from January 31, 2023 to September 30, 2023[68] - Total inventory purchases from Auto Plus for the Automotive segment were $4 million for the eight months from January 31, 2023 to September 30, 2023[68] - Total lease revenues from Auto Plus for the Real Estate segment were $3 million for the eight months from January 31, 2023 to September 30, 2023[69] - AEP PLC acquired $10 million of assets, mostly Aftermarket Parts inventory, during the year ended December 31, 2023[70] - Brett Icahn had net redemptions of $4 million during the nine months ended September 30, 2024, and $9 million in the same period in 2023[71] - The fair market value of Brett Icahn's investments in the Investment Funds was $17 million as of September 30, 2024, compared to $28 million as of December 31, 2023[71] - The carrying value of investments and securities sold, not yet purchased, was $2,476 million as of September 30, 2024, compared to $2,898 million as of December 31, 2023[73] - The unrealized losses related to securities still held by the Investment segment were $(229) million for the nine months ended September 30, 2024, compared to $(286) million for the same period in 2023[73] - The estimated fair value of the company's note receivable from Auto Plus was $7 million at September 30, 2024[82] - The Investment Funds' equity contracts had a long notional exposure of $1,782 million and a short notional exposure of $1,912 million as of September 30, 2024, compared to $1,882 million and $2,350 million respectively as of December 31, 2023[92] - The short notional exposure for credit default swap positions was $0.8 billion as of September 30, 2024, down from $2.5 billion as of December 31, 2023, with downside exposure limited to $0.15 billion and $0.4 billion respectively[92] - The Investment Funds' derivative assets totaled $27 million as of September 30, 2024, down from $39 million as of December 31, 2023, while derivative liabilities decreased to $678 million from $979 million over the same period[94] - CVR Energy had swap positions for crack spreads that offset to zero as of September 30, 2024, compared to 11 million barrels outstanding as of December 31, 2023[99] - CVR Energy had open fixed-price commitments to purchase a net 27 million RINs as of September 30, 2024[99] - The Energy segment's derivative liabilities with credit-risk-related contingent features had an aggregate fair value of $5 million as of September 30, 2024, with $3 million in collateral posted[102] - Gains recognized on derivatives for the Energy segment were $2 million for the three months ended September 30, 2024, compared to losses of $106 million for the same period in 2023[103] - Related party notes receivable, net decreased to $7 million as of September 30, 2024 from $19 million as of December 31, 2023, with an allowance for expected credit losses of $12 million[104] - Inventories, net decreased to $883 million as of September 30, 2024 from $1,047 million as of December 31, 2023, driven by reductions in raw materials and finished goods[105] - The company's net carrying value of goodwill and intangible assets remained stable at $289 million as of September 30, 2024 compared to $288 million as of December 31, 2023[107] - Intangible assets, net decreased from $466 million as of December 31, 2023 to $423 million as of September 30, 2024, primarily due to amortization of definite-lived intangible assets[108][109] - Operating lease right-of-use assets decreased from $526 million as of December 31, 2023 to $520 million as of September 30, 2024, while lease liabilities decreased from $531 million to $524 million[111][113] - Total debt decreased from $7,207 million as of December 31, 2023 to $6,447 million as of September 30, 2024, driven by debt repurchases and redemptions[121][124][126] - The company repurchased $177 million aggregate principal amount of senior unsecured notes in August and September 2024 for total cash paid of $168 million[124] - CVR Energy's total availability under its ABL credit facilities increased to $329 million as of September 30, 2024, up from $275 million previously[127] - Lease cost for the nine months ended September 30, 2024 was $132 million for operating leases, $6 million for amortization of financing lease right-of-use assets, and $5 million for interest expense on financing lease liabilities[116] - The Automotive segment accounted for $106 million of total lease cost for the nine months ended September 30, 2024, down from $108 million in the prior year period[117] - Revenues from operating leases in the Automotive segment were $45 million for the nine months ended September 30, 2024, up from $43 million in the prior year period[118] - The Real Estate segment's revenue from operating leases decreased to $7 million for the nine months ended September 30, 2024, down from $15 million in the prior year period[119] - The company incurred a total interest expense of $130 million, with the Holding Company segment accounting for $80 million of this expense[140] - Capital expenditures totaled $58 million, with the Energy segment accounting for $34 million of this amount[140] - Depreciation and amortization expenses were $126 million, with the Energy segment contributing $90 million[140] - The company reported a net loss of $134 million in the Energy segment, partially offset by a net income of $296 million in the Investment segment[140] - The Real Estate segment generated $6 million in net sales and $23 million in other revenues from operations, totaling $30 million in revenues[140] - The Pharma segment reported net sales of $27 million and other income of $1 million, contributing $29 million to the consolidated revenues[140] - Cost of goods sold for the Energy segment was $2.048 billion, making up a large portion of the total cost of goods sold of $2.377 billion[141] - Selling, general, and administrative expenses amounted to $209 million, with the Automotive segment accounting for $116 million[141] - Capital expenditures for the Energy segment were $50 million, contributing to the total capital expenditures of $70 million[141] - Capital expenditures totaled $192 million, with the Energy segment accounting for $124 million and the Automotive segment accounting for $40 million[143] - Depreciation and amortization expenses were $382 million, with the Energy segment accounting for $272 million and the Automotive segment accounting for $56 million[143] - Capital expenditures for the period were $201 million, with Energy accounting for $150 million[144] - Depreciation and amortization expenses totaled $384 million, with Energy contributing $269 million[144] - Selling, general, and administrative expenses were $653 million, with Automotive accounting for $362 million[144] - Investment segment's fair market value decreased from $3.2 billion in 2023 to $2.7 billion in 2024[195] - Investment Funds' returns for the three months ended September 30, 2024, were 7.6%, compared to (4.4)% in 2023

Financial Data and Key Metrics Changes - NAV decreased by $423 million from Q2 2024, with positive returns in investment funds offset by declines in CVR Energy and disappointing performance in the auto service division [7] - Investment funds were up approximately 8% for the quarter, driven by healthcare investments and refining hedges [7] - The company ended the quarter with $1.6 billion in cash and cash equivalents at the holding company and an additional $800 million at the funds [9] Business Line Data and Key Metrics Changes - Energy segment EBITDA was negative $38 million for Q3 2024, down from $347 million in Q3 2023, impacted by unplanned downtime and lower refining margins [15] - Automotive services revenues decreased by $51 million due to operational challenges, with net sales and other revenues down by $70 million compared to the prior year [16] - Real estate adjusted EBITDA decreased by $10 million, primarily due to the sale of an investment property and reduced sales of single-family homes [17] - Food Packaging adjusted EBITDA decreased by $6 million, despite increased volumes, due to a shift in product mix and lower pricing [19] - Pharma segment adjusted EBITDA improved by $2 million, mainly due to higher prescription growth [20] Market Data and Key Metrics Changes - Refining margin per throughput barrel decreased to $2.53 from $31.05 in the prior year quarter, driven by lower crack spreads [15] - Average realized gate prices for UAN increased by 3% to $229 per ton and ammonia increased by 9% to $399 per ton compared to the prior year quarter [15] Company Strategy and Development Direction - The Board reduced the quarterly distribution from $1 per depositary unit to $0.50 to maintain liquidity for investment opportunities [11] - The company is exploring the sale of a 45-acre site in Nashville, which is expected to yield proceeds exceeding current book value [17] - The management believes that the auto service division can achieve EBITDA margins in the high single digits to double digits over a multiyear period [9] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the automotive services division but noted signs of improvement following management changes [26] - The company remains optimistic about the future cash flow from CVR Energy, despite current market conditions [10] - Management emphasized the importance of maintaining liquidity to capitalize on attractive opportunities within and outside existing operating segments [20] Other Important Information - The company has received over $3 billion in dividends from its CVR investment since 2012 [10] - The company is focused on building asset value and maintaining liquidity to enable capitalizing on opportunities [20] Q&A Session Summary Question: Discussion on dividend, liquidity, and CVR - Management highlighted significant liquidity with $1.5 billion to $1.6 billion at the holding company and $800 million at hedge funds, emphasizing the attractiveness of the CVR investment [23] Question: Changes in the auto business management - Management confirmed that changes occurred around quarter-end, with significant improvements already noted post-management changes [26] Question: CapEx needs for food segment modernization - Management indicated that a capital plan is being developed, but specific CapEx needs are not yet determined [35] Question: Reconciliation of investment fund holdings - Management confirmed that a distribution during the quarter resulted in a movement from investment funds to holding company cash [40] Question: Dividend structure for Carl Icahn - Management stated that Carl has the same decision-making power regarding dividends as other shareholders [43] Question: Food Packaging segment profitability guidance - Management explained that increased volumes were offset by a lower-margin product mix and pricing competitiveness returning to pre-pandemic levels [46] Question: Industry consolidation potential - Management acknowledged the potential benefits of consolidation but noted no immediate opportunities that make sense [52]

Q3 2024 Earnings Presentation November 8, 2024 Icahn Enterprises L.P. 1 Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures 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," " ...

Financial Performance - Third quarter net income attributable to Icahn Enterprises was $22 million, an improvement of $28 million compared to the prior year quarter[1]. - Third quarter revenues were $2.8 billion, down from $3.0 billion in the same quarter last year, representing a decrease of approximately 7%[1]. - Adjusted EBITDA for the third quarter was $183 million, compared to $243 million for the prior year quarter, reflecting a decline of about 25%[1]. - For the nine months ended September 30, 2024, revenues totaled $7.5 billion, down from $8.2 billion in the same period last year, a decrease of approximately 8.5%[2]. - For the nine months ended September 30, 2024, adjusted EBITDA was $162 million, down from $352 million in the same period last year, a decrease of approximately 54%[2]. - Net income for September 2024 was $80 million, a significant improvement from a loss of $30 million in September 2023[28]. - Adjusted EBITDA before non-controlling interests for September 2024 was $291 million, slightly down from $296 million in the same period last year[28]. - Adjusted EBITDA attributable to IEP was $183 million in September 2024, down from $243 million in the same quarter last year[28]. Asset and Liability Changes - The indicative net asset value as of September 30, 2024, was approximately $3.6 billion, a decrease of $423 million compared to June 30, 2024[3]. - Total assets decreased from $20,858 million in 2023 to $17,443 million in 2024, a decline of approximately 16.5%[10]. - Total liabilities decreased from $14,785 million in 2023 to $12,616 million in 2024, a reduction of about 14.7%[10]. - Equity attributable to Icahn Enterprises decreased from $3,208 million in 2023 to $2,645 million in 2024, a decline of approximately 17.5%[10]. - Indicative net asset value decreased from $4,758 million in December 2023 to $3,560 million in September 2024, a drop of about 25.2%[21]. - Market-valued subsidiaries and investments decreased from $5,264 million in 2023 to $4,281 million in 2024, a decline of approximately 18.7%[21]. - Cash and cash equivalents decreased from $2,951 million in 2023 to $2,294 million in 2024, a reduction of about 22.2%[10]. - Debt decreased from $7,207 million in 2023 to $6,447 million in 2024, a decline of approximately 10.5%[10]. - Accounts payable decreased from $830 million in 2023 to $679 million in 2024, a reduction of about 18.2%[10]. - Accrued expenses and other liabilities increased from $1,596 million in 2023 to $1,660 million in 2024, an increase of approximately 4.0%[10]. Leadership and Operational Changes - The company has replaced senior leadership in the Automotive Services business and is seeing early signs of recovery[3]. - The company modified its calculation of EBITDA to exclude the impact of net interest expense from the Investment segment effective December 31, 2023[12]. Other Financial Metrics - The company declared a quarterly distribution of $0.50 per depositary unit, down from $1.00, reflecting a 16% annualized yield at the current share price[1]. - The decline in indicative net asset value was primarily driven by a $249 million decrease in CVI and a $193 million decline in Automotive Services[3]. - The company reported a credit loss on related party note receivable of $0 million in September 2024, compared to a loss of $23 million in September 2023[28]. - Transformation costs decreased to $8 million in September 2024 from $10 million in September 2023[28]. - Interest expense, net, increased to $63 million in September 2024 from $57 million in September 2023[28]. - The company reported a loss on deconsolidation of subsidiary of $0 million in September 2024, unchanged from the previous year[28]. - Other expenses increased to $25 million in September 2024 from $3 million in September 2023[28]. - Depreciation and amortization expenses were $83 million in September 2024, down from $88 million in September 2023[28]. - The company experienced a net income loss of $347 million attributable to IEP in September 2023, compared to a loss of $22 million in September 2024[28].