Icahn Enterprises Swings to Q3 Loss as Investment Results Offset Energy Gains

Icahn Enterprises L.P. (Nasdaq: IEP) swung to a third-quarter loss as a sharp decline in its Investment segment outweighed stronger Energy results and a gain from the sale of Pep Boys. Indicative net asset value nevertheless increased by $865 million from the end of the previous quarter, while the transaction added $645 million in net proceeds.

For the three months ended September 30, 2026, the diversified holding company reported a net loss attributable to IEP of $225 million, or $0.31 per depositary unit. That compared with net income of $287 million, or $0.49 per unit, in the third quarter of 2025.

Adjusted EBITDA attributable to IEP was a loss of $214 million, versus positive Adjusted EBITDA of $75 million a year earlier. IEP modified its Adjusted EBITDA calculation effective March 31, 2026, including exclusions for certain Energy segment hedging, Renewable Fuel Standard and inventory-revaluation effects. The company said the non-GAAP measure should be considered supplemental to its U.S. GAAP results.

Investment losses offset Energy gains

The Investment segment recorded a $610 million net loss attributable to IEP, compared with a $16 million loss a year earlier. Its adjusted EBITDA attributable to IEP was also a negative $610 million.

The investment funds returned negative 31.3% during the quarter, or negative 5.5% excluding refining hedges. At September 30, the funds had net short notional exposure of 7%; excluding refining hedges, they had net long notional exposure of 57%. The fair value of IEP’s investment in the funds was approximately $1.4 billion.

Energy provided the largest positive contribution. Segment net sales rose to $3.28 billion from $1.95 billion, while adjusted EBITDA increased to $582 million from $180 million. Net income attributable to IEP climbed to $398 million from $258 million, and adjusted EBITDA attributable to IEP rose to $404 million from $98 million.

CVR Energy’s petroleum operations processed about 228,000 barrels per day during the quarter. Refining margin increased to $45.56 per throughput barrel from $35.65 a year earlier. In nitrogen fertilizer, the average realized gate price for urea ammonium nitrate fell 11% to $309 per ton, while the corresponding ammonia price increased 20% to $637 per ton. CVR Energy declared a quarterly cash dividend of $0.10 per share.

Pep Boys sale reshapes Automotive results

IEP completed the sale of Pep Boys – Manny Moe & Jack Holding Corp. on August 20, receiving net proceeds of $645 million and recording an estimated pretax gain of $215 million. The company retained the AAMCO Transmissions and Total Care and Precision Tune Auto Care franchise businesses.

Automotive segment net sales and other operating revenue declined to $195 million from $374 million a year earlier, reflecting the smaller business following the disposal. Adjusted EBITDA was a loss of $4 million, compared with positive $9 million in the prior-year quarter. The segment reported net income of $237 million, versus a $21 million loss, with the period including the gain associated with the Pep Boys transaction.

IEP’s other operating segments—Food Packaging, Real Estate, Home Fashion and Pharma—generated combined adjusted EBITDA attributable to IEP of $1 million, compared with an $8 million loss a year earlier. Real Estate adjusted EBITDA increased by $11 million and Food Packaging’s contribution rose by $2 million. Home Fashion was unchanged, while Pharma adjusted EBITDA decreased by $4 million. Combined net loss attributable to IEP for these businesses was $160 million, compared with net income of $182 million in the prior-year period.

Net asset value and liquidity increase

Indicative net asset value totaled approximately $3.47 billion at September 30, up from $2.60 billion at June 30. The estimated value assigned to CVR Energy increased to $3.63 billion from $1.96 billion, while the holding company’s interest in the investment funds declined to $1.37 billion from $1.98 billion. The indicated value of Icahn Automotive Group fell to $215 million from $765 million following the Pep Boys sale.

IEP cautioned that indicative net asset value is a management valuation measure and does not represent the market price of its depositary units. Certain values rely on market prices, while others use valuation methodologies and assumptions that could produce different estimates.

Total liquidity was $4.23 billion at quarter-end. That included $921 million of holding-company cash and cash equivalents, $1.35 billion invested in the funds, $1.37 billion of subsidiary cash and $582 million of subsidiary revolver availability. Holding-company debt was $4.42 billion.

IEP declared a second-quarter distribution of $0.50 per depositary unit. The presentation did not provide broader earnings guidance. The company noted that subsidiary operating results may not be sufficient to fund distributions to the parent and that legal requirements or debt covenants may restrict transfers. It also identified interest rates, geopolitical conflicts, commodity-market disruption, tariffs, sanctions and political and regulatory uncertainty among the factors that could cause future results to differ from current expectations.