Icahn Enterprises (NASDAQ:IEP) executives highlighted a fourth-quarter decline in net asset value, mixed performance across controlled operating businesses, and steps taken after quarter-end to reduce corporate debt, according to management’s commentary on the company’s fourth quarter 2025 earnings call.
Net asset value declined as CVI share price weakness offset fund gains
Chief Executive Officer Andrew Teno said fourth-quarter net asset value (NAV) decreased by $654 million compared with the third quarter. He attributed the change to “excellent performance” in the company’s funds—up 11% for the quarter—being offset by declines in CVI’s share price.
Funds performance: contributors and detractors
Teno said the funds were up approximately 11% in the fourth quarter including refining hedges, and up about 9% excluding refining hedges. He cited EchoStar, refining hedges, and Centuri as the biggest contributors for the quarter, while identifying Caesars as the largest detractor.
For the full year, Teno said the funds were about flat including refining hedges and up 7% excluding refining hedges.
In discussing select positions, Teno described American Electric Power (AEP) as an electric utility positioned to benefit from the AI infrastructure build-out and referenced AEP’s disclosure on its third-quarter call of a $72 billion capital expenditure plan. Teno said the plan would drive AEP’s asset base growth at a 10% compound annual growth rate and earnings per share growth at a 9% compound annual growth rate through 2030, adding that the company has already indicated potential to add $5 billion to $8 billion of additional projects.
He also said Icahn’s funds exited Southwest Gas subsequent to quarter-end and described improvements he believes occurred during Icahn’s investment period, including progress on the Great Basin Pipeline expansion project, a “path to improve return on equity,” and a “best-in-class balance sheet.”
On EchoStar, Teno said the company sold additional spectrum to SpaceX in exchange for additional SpaceX common equity, which he said further demonstrated the value of EchoStar’s spectrum portfolio. He added that Icahn sees meaningful upside remaining and said a SpaceX IPO could serve as a “meaningful positive catalyst.”
Teno also highlighted Centuri, calling it a utility infrastructure services firm “firing on all cylinders,” and said it reported base revenue and EBITDA growth of 25% and 28% in the third quarter. He said organic growth and a recent equity offering helped reduce leverage to the “mid 2x EBITDA” level, which he said provides financial flexibility to pursue growth tied to energy infrastructure investment.
Regarding International Flavors & Fragrances (IFF), Teno said a refreshed management team “continues to impress” and noted IFF announced a formal sale process for its food ingredients business while also providing 2026 guidance for mid-single-digit comparable EBITDA growth.
On Caesars, Teno said the stock has underperformed Icahn’s expectations but maintained that the company is undervalued due to its owned real estate portfolio and a growing digital business “powered by iCasino.” He added that, using consensus estimates, Caesars trades at an approximately 20% free cash flow yield that is expected to be used for share repurchases and debt reduction.
Market positioning, cash levels, debt actions, and distribution
Teno said the firm is taking a “slightly more cautious view of the market,” referencing volatility in sectors seen as at risk from AI. He said Icahn is “happy to be in defensive names that should benefit from the AI build-out,” and emphasized the importance of having capital available to act on opportunities.
As of year-end, Teno said the funds held approximately $750 million of cash. He added that more recently the funds’ cash balance increased to greater than $1.2 billion.
He also said that subsequent to quarter-end the company took steps to reduce Icahn Enterprises’ corporate debt balance, calling the remaining balance of its 2026 maturities.
Additionally, Teno said the board declared an unchanged distribution of $0.50 per depository unit.
Operating segments: energy down; real estate up; other segments pressured
Chief Financial Officer Ted Papapostolou reviewed results across controlled operating businesses, including segment-level Adjusted EBITDA changes.
- Energy: Adjusted EBITDA was $51 million for fourth quarter 2025, compared with $99 million in fourth quarter 2024. Papapostolou said the fertilizer business was negatively impacted by low utilization tied to a turnaround at the Coffeyville fertilizer facility and a three-week downtime event caused by the facility’s third-party air separation plant. He also noted that during December, CVI completed the reversion of the RDU at the Wynnewood refinery back to hydrocarbon processing.
- Automotive: Automotive service revenues decreased by $1 million compared with the prior-year quarter. Papapostolou said same-store sales increased 5% year over year, calling it a more positive indicator. He said the company continues focusing on product, pricing, labor, and distribution strategy.
- Real Estate: Adjusted EBITDA increased by $6 million versus the prior-year quarter. Papapostolou said the increase was primarily driven by income from assets transferred from the automotive segment, including $9 million of intercompany income from the automotive segment and $3 million from third-party tenants.
- Food Packaging: Adjusted EBITDA decreased by $8 million year over year. Papapostolou attributed the decline to lower volume, higher manufacturing inefficiencies, and disruptive headwinds from a restructuring plan. He also said the company changed the CEO position in the quarter, bringing back Tom Davis, a prior CEO of Viskase, to lead the business during what management described as a transformative period.
- Home Fashion: Adjusted EBITDA decreased by $5 million versus the prior-year quarter, primarily due to softening demand in U.S. retail and hospitality. Papapostolou said tariff uncertainty has created opportunity as new business entered the bidding pipeline, and he expressed hope it could benefit the segment in 2026.
- Pharma: Adjusted EBITDA decreased by $4 million year over year, primarily due to reduced sales from generic competition in the anti-obesity market. Papapostolou said preparation for the Transcend trial for a PH drug is on schedule, with the first patient expected to be dosed in the next 60 to 90 days, and noted that the physician community is “excited” about the potential for a disease-modifying designation.
Liquidity levels at the holding company and subsidiaries
Papapostolou said the company maintains liquidity at both the holding company and operating subsidiaries to take advantage of attractive opportunities. As of quarter-end, he said the holding company had $3.5 billion of cash and investment in the funds, while subsidiaries had $913 million of cash and revolver availability. He added that management continues to focus on building asset value and maintaining liquidity to capitalize on opportunities within and outside existing operating segments.
The company did not take analyst questions on the call, and Teno closed the session by thanking participants and stating management would provide an update next quarter.
About Icahn Enterprises (NASDAQ:IEP)
Icahn Enterprises L.P. (NASDAQ: IEP) is a diversified holding company based in New York City. Controlled by veteran investor Carl C. Icahn, the partnership makes strategic investments and owns wholly or partially controlled subsidiaries across a broad range of industries. With a flexible capital structure, Icahn Enterprises seeks to generate long-term value through active ownership, asset optimization and operational improvements.
The company reports its activities through five principal business segments.
