Icahn Enterprises(IEP) - 2024 Q4 - Annual Results

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$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]