Icahn Enterprises Q3 2026 Earnings: Hedge Losses Turn Higher Revenue into a Net Loss

Icahn Enterprises (Nasdaq: IEP) reported Q3 2026 revenue of $3.17 billion, up about 16% from $2.73 billion a year earlier, while basic and diluted loss per LP unit was $0.31 versus income of $0.49. The quarter ended September 30 was weighed down by $522 million of refining hedge losses attributable to IEP, even as the higher value of its CVR Energy position lifted indicative net asset value.

Core Quarterly Results

IEP’s revenue requires additional context because it includes both operating revenue and investment activity. Net sales rose about 53% to $3.55 billion, but the net loss from investment activities widened to $779 million from $48 million, limiting total revenue growth to approximately $446 million.

Total expenses increased about 50% to $3.29 billion. Cost of goods sold rose to $2.73 billion from $1.69 billion, and the quarter included a $165 million impairment charge. As a result, IEP moved from pre-tax income of $538 million to a pre-tax loss of $114 million.

Adjusted EBITDA is a non-GAAP measure. IEP changed its calculation effective March 31, 2026, including the exclusion of certain unrealized Energy segment hedge, Renewable Fuel Standard, and inventory revaluation effects. The Q3 2025 figure in the current release uses exclusions that differ from IEP’s previous presentation of that quarter.

Hedge Losses and CVR Appreciation Moved Results in Opposite Directions

The most important feature of the quarter was the divergence between reported earnings and indicative net asset value. The $522 million of refining hedge losses in the Investment Funds attributable to IEP was included in both the attributable net loss and adjusted EBITDA loss. The approximately $1.7 billion increase in the value of IEP’s long position in CVR Energy was not included in either measure.

Consequently, indicative net asset value increased $865 million, or about 33%, from June 30 to $3.47 billion at September 30 despite the negative income statement results. The rise in CVR Energy’s value more than offset the decline in IEP’s interest in the Investment Funds.

The release separately valued IEP’s CVR position at approximately $4.2 billion based on CVR’s October 30 closing price of $58.37. That figure uses a later measurement date than the $3.63 billion value in the September 30 indicative NAV table.

Indicative NAV is a management valuation rather than a redemption value available to unitholders. Its movement can also differ materially from reported earnings because market-valued holdings and investment gains or losses do not necessarily flow through the same measures in the same period.

Balance Sheet and Distribution

IEP ended the quarter with higher cash and cash equivalents than at the end of 2025, while consolidated debt declined modestly. However, equity attributable to IEP fell to $746 million from $1.94 billion, and total assets declined to $11.63 billion from $14.22 billion.

IEP declared a quarterly distribution of $0.50 per depositary unit, unchanged from the prior-year quarter and representing its 86th consecutive quarterly distribution since 2005. The distribution is payable on or about December 23, 2026, to holders of record on November 16. Holders may elect cash or additional depositary units; those who do not make a timely election will be deemed to have chosen additional units.

CVR Energy’s Acquisition Adds a Major Strategic Variable

CVR Energy, IEP’s majority-owned subsidiary, announced an agreement to acquire two refineries and a marketing platform from Marathon Petroleum for a $4.2 billion purchase price. Given CVR’s increasing contribution to IEP’s indicative NAV, the transaction’s completion, financing, and subsequent operating performance will be important to IEP’s asset value and Energy exposure. The release did not provide enough information to quantify the acquisition’s future effect on IEP’s consolidated results.

Risks Investors Need to Watch

• Investment and hedge volatility: Refining hedge losses attributable to IEP reached $522 million in one quarter, demonstrating how Investment Fund positions can overwhelm changes in the operating businesses.
• Dependence on CVR Energy’s valuation: The quarterly NAV increase relied heavily on a roughly $1.7 billion rise in the CVR position. A reversal in that valuation could have a significant effect on indicative NAV.
• Debt and distribution funding: IEP had $4.42 billion of holding-company debt and $921 million of holding-company cash at September 30. The company also noted that subsidiaries are not obligated to fund parent-company debt service or distributions, and transfers may be restricted by laws or debt covenants.
• CVR transaction execution: The announced $4.2 billion acquisition could materially change CVR’s scale and IEP’s Energy exposure, while the release did not detail its financing or completion timetable.
• Reduced equity and a larger unit base: Equity attributable to IEP declined substantially from year-end, while outstanding depositary units increased. These trends are relevant when assessing leverage and per-unit financial results.

Summary

Icahn Enterprises generated higher Q3 2026 revenue and net sales, but much larger investment losses, rising costs, and an impairment charge drove a swing to a net loss. At the same time, appreciation in CVR Energy lifted indicative NAV sharply, creating a pronounced gap between reported profitability and asset-value performance. The main issues to monitor are refining hedge exposure, the durability of CVR’s valuation, the planned CVR acquisition, and IEP’s balance-sheet and distribution obligations.