Icahn Enterprises (IEP) Q3 2024 earnings summary

Executive summary

• Net income attributable to IEP was $22 million for Q3 2024, reversing a $6 million loss in Q3 2023, while consolidated net income was $80 million.

• Indicative net asset value as of September 30, 2024, was $3.6 billion, down $423 million from June 30, 2024.

• Investment segment posted a 7.6% return for Q3 2024, driven by gains in healthcare and utilities, offset by losses in short positions.

• The board reduced the quarterly distribution from $1.00 to $0.50 per depositary unit to preserve liquidity and fund a proposed tender offer for additional CVR shares.

• Management changes in the auto segment have led to early signs of operational improvement.

Financial highlights

• Q3 2024 revenues were $2.79 billion, down from $3.01 billion in Q3 2023; net income attributable to IEP was $22 million ($0.05 per unit).

• Adjusted EBITDA for Q3 2024 was $183 million, down from $243 million in Q3 2023.

• Energy segment EBITDA was negative $38 million for Q3 2024, down from $347 million in Q3 2023, due to unplanned downtime and lower margins.

• Automotive services revenues decreased by $51 million, and aftermarket parts revenues fell by $20 million year-over-year.

• Cash and cash equivalents at September 30, 2024, were $2.3 billion.

Outlook and guidance

• Management expects auto service division EBITDA margins to improve to high single digits or double digits over a multi-year period.

• The board will continue to evaluate the dividend each quarter, balancing liquidity, investment opportunities, and business performance.

• Management sees significant opportunities for activist investments and plans a tender offer for additional CVR shares.

• Aftermarket Parts business in Automotive segment expected to wind down by end of 2024.

• Food packaging segment will require a capital plan to modernize equipment and reduce costs.