Picture supply: The Motley Idiot.
DATE
Monday, August 4, 2025 at 2:00 p.m. ET
CALL PARTICIPANTS
Chief Govt Officer — Andrew Teno
Chief Monetary Officer — Ted Papapostolou
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TAKEAWAYS
NAV Enhance: Web asset worth rose by $252 million, primarily because of positive factors in CVI shares, partially offset by declines in automotive companies.
CVI Share Efficiency: CVI share value elevated by 38% from the primary quarter, and extra share purchases totaled $32 million.
Fund Efficiency: Funding funds returned roughly -0.5%; excluding refining hedges, the return would have been a constructive 2%.
Power Section EBITDA: EBITDA was adverse $24 million, impacted by RINs mark-to-market and decrease throughput; it was $103 million within the prior-year quarter.
Automotive Income Pattern: Auto service income, after falling 5% within the first quarter, grew 1% in each Could and June and is forecast to speed up in July.
Auto Service Closures and Openings: 22 underperforming automotive places had been closed (44 year-to-date), with 16 new greenfield websites deliberate by year-end.
Pharma Section Trial Initiation: A pivotal trial was authorised for VI-0106 focusing on PAH; the primary replace is predicted in 12-18 months.
Liquidity: The holding firm ended the quarter with $1.1 billion in money and money equivalents, and $700 million was held on the funds.
Quarterly Distribution: The board maintained the quarterly distribution at $0.50 per depositary unit.
Fund Web Lengthy Place: The funds ended the quarter roughly 2% internet lengthy; adjusting for refining hedges leads to a 23% internet lengthy place.
Caesars Digital Section: Caesars digital enterprise achieved 24% income development and 100% EBITDA development.
Actual Property Exercise: Adjusted EBITDA for Actual Property decreased by $2 million; one nation membership was offered, with proceeds focused for reinvestment in a brand new Pinehurst membership.
Meals Packaging Section: Adjusted EBITDA declined by $9 million, attributed to quantity, inefficiencies, and restructuring transition.
House Style and Farmers: Each segments posted flat adjusted EBITDA in comparison with the prior-year quarter.
Complete Holding Firm Liquidity: Mixed holding firm money and funding in funds stood at $3.5 billion; subsidiaries held $1.1 billion in money and revolver availability.
SUMMARY
Icahn Enterprises L.P.(IEP 1.78%) reported no additional deliberate refinery turnarounds by means of 2026, which can positively have an effect on future money move stability. The introduced CEO transition at CVI will elevate Mark Pytosh, a present government, as Dave Lamp retires at year-end. The corporate highlighted its expectation for regulatory or authorized developments associated to an impressive $548 million RINs legal responsibility, depending on modifications in authorities coverage. The pivotal VI-0106 pharma trial has been authorised to begin and can enroll 300 sufferers, with the primary replace anticipated in roughly 12 to 18 months. Actual property technique now contains replicating a monetization playbook in new markets with recycled capital from disposed belongings.
Chief Govt Officer Teno said, “We consider our asset is exclusive, and the FDA will consider the potential of this drug to be disease-modifying,” in reference to the VIVUS PAH asset.
The corporate attributed the lower in holding firm money largely to curiosity and distribution funds, with solely a partial impression from funding in CVI shares.
Administration emphasised engaging long-term funding alternatives in regulated utilities and digital gaming.
There are not any additional deliberate refinery turnarounds or main outages scheduled by means of 2026, as explicitly confirmed by administration.
INDUSTRY GLOSSARY
RINs (Renewable Identification Numbers): Authorities-issued credit that monitor renewable gas manufacturing and are utilized by refiners to display EPA compliance below the Renewable Gas Commonplace.
Crack Unfold: The worth distinction between refined petroleum merchandise and crude oil, serving as a margin indicator for refineries.
Greenfield Pipeline: Growth plan involving new places or services in beforehand undeveloped markets, reasonably than increasing present operations.
PAH (Pulmonary Arterial Hypertension): A type of hypertension affecting arteries within the lungs and coronary heart, referenced concerning pharmaceutical trial improvement.
EBITDA: Earnings earlier than curiosity, taxes, depreciation, and amortization, used to evaluate working profitability.
Web Lengthy: An funding portfolio place wherein the worth of lengthy holdings exceeds the worth of brief positions.
Full Convention Name Transcript
Andrew Teno, our Chief Govt Officer.
Andrew Teno: Thanks, Rob, and good morning, everybody. NAV elevated $252 million from the primary quarter pushed primarily by constructive efficiency in CVI, offset by decreases, on this case, in auto service. CVI share value elevated by 38%, which when mixed with extra share purchases of $32 million, led to a rise of $561 million from the primary quarter. Crack spreads have improved, particularly diesel cracks. We’ve no extra deliberate turnarounds in 2025 and 2026. This enhanced money move profile has led to CVI just lately paying down $90 million of its beforehand issued time period mortgage.
Concerning RINs, we stay hopeful that the brand new administration could result in the decision of our excellent litigation concerning small refinery exemptions, which has the potential to take away the $548 million legal responsibility that was recorded as of 2025 and probably present readability to future years. We additionally introduced that CVI’s CEO, Dave Lamp, could be retiring as of year-end. His substitute, Mark Pytosh, is an inner promotion who has been the CEO of the fertilizer enterprise and in addition led CVI’s midstream efforts for the previous few years. The funding funds ended down roughly 0.5% for the quarter, primarily pushed by positive factors in our client cyclical sector offset by our broad market and refining hedges.
Excluding the refining hedges, fund efficiency would have been a constructive return of two%. Our auto service division stays a turnaround story. We’re inspired by the change in top-line income. After seeing first-quarter auto service income down 5% year-over-year, we noticed income enhance to 1% development in each Could and June, and it’ll speed up additional in July. In our pharma section, we’ve authorised the initiation of VIVUS’ pivotal trial for the pulmonary arterial hypertension or PAH asset VI-0106.
Briefly, this drug is supposed to serve sufferers with superior PAH who wrestle to breathe, present oxygen to the blood, and preserve mobility and/or high quality of life given a restriction of blood move of their arteries leaving the guts to the lungs. Presently, there are a number of different therapies out there. The most recent therapy is marketed below the identify Winravir. With any present PAH therapy, the affected person should still require a lung transplant and/or coronary heart transplant, which is not going to tackle the underlying reason for PAH. We consider our asset is exclusive, and the FDA will consider the potential of this drug to be disease-modifying. The trial will enroll 300 sufferers and contains distinctive analyses and medical endpoints.
Because the trial progresses, we are going to present updates with the primary one anticipated in roughly twelve to eighteen months from now. We ended the quarter with $1.1 billion of money and money equivalents on the holding firm and an extra $700 million of money on the funds. In order Carl likes to say, we’ve a big warfare chest to reap the benefits of alternatives as they come up. Lastly, the board has maintained the quarterly distribution at 50¢ per depositary unit. Now turning to our funding section. Regardless of the market volatility, we see appreciable worth creation potential in our portfolio.
At AEP, we see new administration closing its ROE hole, enhancing regulatory outcomes, solidifying its stability sheet, and benefiting from large electrical energy load development because of AI-driven information middle demand. We expect electrical utilities, notably AEP, which has operations in actual information middle hotspots of Texas, Indiana, and Ohio, are a superb solution to profit within the picks and shovels of AI. At SWICS, we see a fuel utility that’s closing its ROE hole to friends, seeing a push in direction of extra favorable price making in each Nevada and Arizona, and seeing engaging funding alternatives by means of the potential enlargement of a FERC-regulated fuel pipeline.
In the course of the second quarter, SWIX was additionally in a position to execute on two sell-downs a century, its utility companies division, getting the businesses nearer to a full separation. We consider that Century must also see a gorgeous multiyear development alternative given continued funding within the electrical and fuel grids wanted to drive all the infrastructure funding from information facilities, electrification, and reshoring. At Caesars, we’ve a superb administration crew with large owned actual property worth and a rising digital enterprise that’s deploying its higher than 15% free money move yield to repurchase shares and repay debt. We expect the digital enterprise is admittedly underappreciated.
The truth is, within the second quarter, the digital enterprise grew income 24% and EBITDA 100%. In time, we’d anticipate Caesars digital enterprise to be unlocked from its present construction as Caesars share value doesn’t replicate the large worth of the enterprise. The funds ended the quarter roughly 2% internet lengthy. Adjusting for our refining hedges, the fund was 23% internet lengthy. And now I’ll cross it on to Ted to cowl our managed companies.
Ted Papapostolou: Thanks, Andrew. I’ll begin at our power section. Power section consolidated EBITDA was adverse $24 million for Q2 2025 in comparison with $103 million in Q2 2024. CVR’s refining enterprise was negatively impacted by the unfavorable mark-to-market RINs valuation and diminished throughput volumes in reference to the turnaround that was accomplished earlier within the 12 months. This was offset partially by constructive efficiency within the fertilizer enterprise because of continued excessive costs and robust utilization. And now turning to our auto section. Q2 2025 automotive service income decreased by $8 million in comparison with the prior 12 months quarter. Identical-store revenues had been comparatively flat as in comparison with the prior 12 months quarter.
For reference, 1 / 4 in the past, the identical comparability was down 5%. The constructive trajectory is attributed to our continued funding in labor, stock, gear, services, and advertising and marketing. Whereas the highest line is enhancing, we’re seeing greater labor prices and working bills related to our continued funding. We anticipate these initiatives will enhance long-term profitability. To present a few examples, our store labor is enhancing the common ticket value by rising the variety of work order attachments, and we’re renovating our services at our top-performing shops to boost buyer expertise and drive automobile rely. In the course of the quarter, we closed 22 underperforming places, bringing the whole to 44 for 2025.
To offset retailer closures, we proceed so as to add to our greenfield pipeline in engaging markets and plan on including 16 places by the tip of the 12 months. Now turning to our different working segments. Actual Property’s Q2 2025 adjusted EBITDA decreased by $2 million in comparison with the prior 12 months quarter. In the course of the quarter, we offered considered one of our nation golf equipment. This funding has been extremely profitable over time as we had been in a position to execute our technique to construct worthwhile luxurious houses and function an unique membership, which in flip elevated the worth of each the membership and the encircling improvement.
After years of investing within the membership and promoting by means of practically all of our stock, we’ve efficiently achieved our technique and monetized the membership. We intend to redeploy this capital to reflect these leads to our just lately acquired membership in Pinehurst, and we proceed to hunt new alternatives. Meals packaging’s adjusted EBITDA decreased by $9 million for Q2 2025 as in comparison with the prior 12 months quarter. The lower is primarily because of decrease quantity, greater manufacturing inefficiencies, and interim disruptive headwinds from the restructuring plan we introduced final quarter. We anticipate continued operational inefficiencies in the course of the implementation part, which we anticipate to be considerably full by 2025.
Each House Style and Farmers adjusted EBITDA had been flat when in comparison with the prior 12 months quarter. And now turning to our liquidity. We preserve liquidity on the holding firm and at every of our working subsidiaries to reap the benefits of engaging alternatives. As of quarter-end, the holding firm had money and funding within the funds of $3.5 billion, and our subsidiaries had money and revolver availability of $1.1 billion. We proceed to concentrate on constructing asset worth and sustaining liquidity to allow us to capitalize on alternatives inside and out of doors our present working segments. Thanks.
Robert Flint: Operator, are you able to please open up the decision for questions?
Operator: Thanks. Star one in your phone and wait in your identify to be introduced. To take away your self, press 11 once more. One second please for our first query, please. It comes from Andrew Berg with Put up Advisory Group. Please proceed.
Andrew Berg: Hey. Both Andrew or Ted, only a fast query. With respect to the lower within the money stability, was most of that I am referring to money on the holding firm stage, the billion 86. Was most of that attributable to the rise within the CVR shares? Or are you able to simply assist reconcile the change from final quarter?
Ted Papapostolou: Yeah. The massive drivers of the lower are we’ve our curiosity funds of 4 of the six tranches paid within the quarter. And we additionally had two of the LP distributions paid. As a result of in Q1, you shouldn’t have one, however these are the 2 large drivers. It hits in Q2. And to an extent, the CVR repurchase, however that was, you understand, about $32 million within the quarter.
Andrew Berg: Okay. Good. Thanks.
Operator: Thanks. And I am not exhibiting any additional questions within the queue. I’ll flip it again to administration for any remaining feedback.
Andrew Teno: Alright. Nicely, thanks, everybody, for becoming a member of. We’ll discuss to you subsequent quarter.
Operator: Thanks, women and gents, for taking part in right now’s convention. You might now disconnect.
