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Icahn Enterprises LP (IEP)
NASDAQ:IEP
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Icahn Enterprises
(NASDAQ:IEP)
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Rating:49Neutral
Price Target:
$8.00
▲(0.00% Upside)
Action:ReiteratedDate:03/04/26
The score is held down primarily by weak financial performance—recurring net losses, compressed margins, high leverage, and a 2025 cash flow reversal. Offsetting factors include modestly improving technical momentum, strong liquidity and debt-reduction actions highlighted on the earnings call (including the planned 2026 notes redemption), and a very high dividend yield that supports valuation but also signals higher risk.
Positive Factors
Holding-company liquidity
A large holding-company cash/investment pool and growing funds cash provide a durable buffer to meet near-term obligations, fund subsidiary needs, and preserve strategic optionality. Over 2–6 months this reduces refinancing pressure and supports planned capex or opportunistic investments without immediate capital markets access.
Near-term deleveraging action
Calling and funding the full redemption of 2026 notes materially reduces near-term maturity risk and improves the debt maturity profile. This durable capital-structure action lowers rollover risk and interest exposure, providing more runway for operational recovery and strategic allocation over the medium term.
Sentry growth and deleveraging
Rapid revenue and EBITDA growth at Sentry plus meaningful deleveraging strengthens a core operating subsidiary's cash generation and resilience. This improves consolidated earnings quality, reduces consolidated leverage reliance, and creates a sustainable internal source of liquidity and value over multiple quarters.
Negative Factors
High persistent leverage
Sustained high leverage limits financial flexibility and raises sensitivity to revenue or commodity shocks. With equity declining and losses persisting, leverage amplifies downside risk, increases interest burdens, and constrains capital allocation choices, making multi-quarter recoveries harder to fund internally.
Recurring losses and margin compression
Persistent negative net income and materially compressed gross margins undermine the company's ability to generate sustainable operating profits. Over months this erodes equity, reduces retained earnings available for reinvestment, and impairs the durability of distributions and debt-reduction plans.
Volatile cash generation
A reversal to negative operating and free cash flow in 2025 signals unreliable cash conversion across cycles. This volatility increases reliance on holding-company liquidity or asset sales, complicates creditor negotiations, and makes multi-quarter planning for capex, debt paydown, and distributions uncertain.
Icahn Enterprises (IEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.17B
Dividend Yield27.59%
Average Volume (3M)805.52K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-8.45%
EPS Growth27.66%
CountryUS
Employees15,037
SectorEnergy
Sector Strength52
IndustryConglomerates
Share Statistics
EPS (TTM)0.00
Shares Outstanding637,209,500
10 Day Avg. Volume815,601
30 Day Avg. Volume805,516
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.59
Price to Sales (P/S)0.46
P/FCF Ratio-6.64
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit6.84
Enterprise Value/Ebitda10.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.68
Revenue Forecast (FY)$9.29B
Icahn Enterprises Business Overview & Revenue Model
Company DescriptionIcahn Enterprises L.P., through its subsidiaries, operates in investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. Its Investment segment invests its proprietary capital through various private investment funds. The company's Energy segment refines and markets transportation fuels; and produces and markets nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. Its Automotive segment is involved in the retail and wholesale distribution of automotive parts; and offers automotive repair and maintenance services. The company's Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used for preparing processed meat products. Its Real Estate segment is involved in the rental of retail, office, and industrial properties; construction and sale of single-family homes and residential units; and golf and club operations. This segment also engages in hotel and timeshare resort operations. The company's Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. Its Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.
How the Company Makes MoneyIcahn Enterprises generates revenue through its diverse portfolio of investments and operating businesses. Key revenue streams include income from its subsidiaries, which operate in sectors such as automotive (including a significant stake in Federal-Mogul), energy (notably through investments in various oil and gas companies), and pharmaceuticals. Additionally, IEP earns capital gains from the appreciation of its equity investments, as well as dividends from its holdings. The company's activist investment strategy often involves taking large positions in undervalued companies and pushing for changes that improve performance, leading to potential exit opportunities at higher valuations. Strategic partnerships and collaborations with other firms and stakeholders also enhance its revenue potential, particularly in high-stakes negotiations and restructuring efforts.
Icahn Enterprises Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down sales by business segment, offering insight into which areas are generating the most revenue and potential growth opportunities or risks.
Breaks down sales by business segment, offering insight into which areas are generating the most revenue and potential growth opportunities or risks.
Data provided by:
The Fly
The FlyIcahn Enterprises Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call presented a mix of material positives (strong fund performance in Q4, robust growth and deleveraging at Sentry, a sizable AEP capital plan, improved liquidity with over $1.2 billion in fund cash, and active debt reduction) alongside notable operational and segment-specific weaknesses (a $654M NAV decline, nearly 48.5% year-over-year drop in Energy adjusted EBITDA, production disruptions in fertilizer, CVI share-price weakness, and multiple segment EBITDA declines). Management’s actions on liquidity and capital allocation are constructive, but the sizable energy and operating segment headwinds temper the outlook. Overall the positives and negatives are fairly balanced, leaving a cautious but stable outlook.Q4-2025 Updates
Positive Updates
Strong Quarterly Funds Performance
Funds were up approximately 11% in Q4 2025 including refining hedges and up approximately 9% excluding refining hedges; for the full year funds were flat including hedges and up ~7% excluding hedges. Top contributors in Q4 included EchoStar, refining hedges, and Sentry.
Sentry Rapid Growth and Deleveraging
Sentry reported base revenue and EBITDA growth of 25–28% (Q3 run-rate cited), and leverage declined to mid-2x EBITDA following an equity offering, providing significant financial flexibility.
Large AEP Capital Plan and Growth Outlook
AEP disclosed a $72 billion CapEx plan driving asset base growth at a 10% CAGR and expected EPS growth at a 9% CAGR through 2030, with potential incremental projects of $5–8 billion.
Improved Liquidity and Capital Position
Holding company had $3.5 billion in cash and investment in the funds at quarter-end; subsidiaries had $913 million in cash and revolver availability. Funds cash rose from approximately $750 million at year-end to more than $1.2 billion recently (an increase of over 60%).
Debt Reduction and Capital Actions
Management has reduced IEP corporate debt and called in the remaining balance of 2026 maturities; Board declared an unchanged distribution of $0.50 per depositary unit.
EchoStar Strategic Monetization
EchoStar sold additional spectrum to SpaceX in exchange for SpaceX common equity, demonstrating spectrum value and creating potential upside tied to a SpaceX IPO.
Operational Recovery Steps at CVI and Wynnewood
Management is focused on improving capture rates at CVI to boost profitability; in December CVI reverted the RDU at the Wynnewood refinery back to hydrocarbon processing (operational change intended to improve results).
Pharma Clinical Progress
TRANSCEND trial preparation for the PAH drug is on schedule with first patient expected to be dosed in 60–90 days; physician community is reportedly enthusiastic about potential disease‑modifying designation.
Negative Updates
NAV Decline
Fourth quarter indicative net asset value decreased by $654,000,000 versus the third quarter.
Energy Segment EBITDA Drop
Energy adjusted EBITDA fell to $51 million in Q4 2025 from $99 million in Q4 2024, a decline of approximately 48.5% year-over-year.
Fertilizer Production Disruptions
Fertilizer business performance was negatively impacted by low utilization due to a planned turnaround at the Coffeyville facility and a three-week downtime at a third-party air separation plant.
CVI Share Price Weakness and Refining Headwinds
CVI experienced share price declines during the quarter; while management is optimistic on medium-term refining fundamentals, regional crack/spread pressure and market sentiment weighed on valuation.
Caesars Underperformance
Caesars was the lone large detractor in the funds during the quarter; the stock has underperformed expectations despite management believing it is undervalued (consensus implies ~20% free cash flow yield).
Segment EBITDA Declines — Food Packaging, Home Fashion, Pharma
Food Packaging adjusted EBITDA decreased by $8 million (lower volume, higher inefficiencies, restructuring headwinds); Home Fashion adjusted EBITDA decreased by $5 million (softening US retail and hospitality demand); Pharma adjusted EBITDA decreased by $4 million (generic competition in the anti-obesity market).
Automotive Revenues Slightly Down
Automotive service revenues decreased by $1 million year-over-year in Q4 2025 (though same-store sales improved +5%), indicating a mixed recovery that still requires work on product, pricing, labor and distribution.
Cautious Market Outlook
Management signaled a slightly more cautious view of the market due to sector volatility (notably AI-related swings), indicating an elevated sense of risk despite defensive positioning.
Company Guidance
The call’s guidance emphasized a cautious, liquidity‑focused stance while retaining optionality: Q4 NAV declined by $654,000,000 vs Q3, the funds were up ~11% in Q4 including refining hedges (~9% ex‑hedges) and for the year were flat including hedges (up ~7% ex‑hedges), and the Board declared an unchanged distribution of $0.50 per depositary unit. Management highlighted AEP’s $72,000,000,000 CapEx plan supporting ~10% asset‑base CAGR and ~9% EPS CAGR through 2030 (with a potential additional $5–8 billion of projects), Sentry’s Q3 base revenue and EBITDA growth of 25–28% with leverage down to mid‑2x EBITDA, IFF’s 2026 guidance for mid‑single‑digit comparable EBITDA growth, and noted Caesars trades at ~20% free cash flow yield. Liquidity and capital actions underpin the guidance: funds cash was ~$750,000,000 at year‑end (now >$1.2 billion), holding company cash/investments totaled $3,500,000,000, subsidiaries had $913,000,000 of cash and revolver availability, the company reduced corporate debt and called remaining 2026 maturities, and operating metrics included Energy adjusted EBITDA of $51,000,000 in Q4 (vs $99,000,000 prior year), Real Estate adj. EBITDA +$6,000,000 (including $9,000,000 intercompany and $3,000,000 third‑party), Food Packaging/Home Fashion/Pharma adj. EBITDA down $8,000,000/$5,000,000/$4,000,000 respectively, automotive service revenues down $1,000,000 (same‑store sales +5%), and the TRANSCEND PAH trial set to dose its first patient in 60–90 days.Icahn Enterprises Financial Statement Overview
Summary
Overall fundamentals are weak: revenues have declined in recent years, gross margin fell materially to ~9% in 2024–2025, and net results are loss-making across the period shown. The balance sheet remains highly levered (debt-to-equity ~2.4x–3.1x) with declining equity, and cash generation deteriorated in 2025 with negative operating cash flow/free cash flow despite stronger 2023–2024.Income Statement
Revenue has been volatile and is down in recent years (2025: -3.4%, 2024: -0.1%, 2023: -17.3%), indicating a weaker top-line trajectory. Profitability is also inconsistent: gross margin has compressed materially from 2021–2023 levels (about 19%/15%/16%) to ~9% in 2024–2025, and net results are loss-making every year shown (net margin negative across 2020–2025). While EBITDA remains positive in most years and improved in 2025 versus 2024, the business has not translated operating performance into bottom-line profitability, which weighs on the score.34
Negative
Balance Sheet
Leverage is high and persistent, with debt-to-equity running roughly 2.4x–3.1x across 2021–2025, limiting financial flexibility and increasing sensitivity to downturns. Equity has declined from 2022 to 2025 (about $4.65B to $2.73B), and returns on equity are consistently negative (losses relative to the equity base). Total debt has come down meaningfully since 2022, which is a positive trend, but the overall balance sheet remains highly levered for the current earnings profile.28
Negative
Cash Flow
Cash generation has been unstable. The company produced strong positive operating cash flow and free cash flow in 2023, and free cash flow was also positive in 2024, but 2025 flipped to negative operating cash flow and negative free cash flow. The relationship between cash flow and net income varies significantly (e.g., cash flow held up better than earnings in some years), but the recent deterioration in 2025 raises questions about durability and working-capital/cash conversion consistency.40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.41B | 10.17B | 11.92B | 14.42B | 12.29B |
| Gross Profit | 834.00M | 935.00M | 1.95B | 2.20B | 2.33B |
| EBITDA | 762.00M | 467.00M | 150.00M | 1.09B | 605.00M |
| Net Income | -293.00M | -436.00M | -670.00M | -179.00M | -604.00M |
Balance Sheet | |||||
| Total Assets | 14.21B | 16.28B | 20.86B | 27.91B | 27.75B |
| Cash, Cash Equivalents and Short-Term Investments | 5.67B | 5.24B | 5.95B | 4.89B | 4.44B |
| Total Debt | 6.62B | 8.71B | 11.21B | 14.07B | 13.51B |
| Total Liabilities | 10.79B | 11.66B | 14.79B | 18.36B | 18.40B |
| Stockholders Equity | 2.73B | 3.24B | 3.97B | 4.65B | 4.30B |
Cash Flow | |||||
| Free Cash Flow | -654.00M | 552.00M | 3.43B | 717.00M | 16.00M |
| Operating Cash Flow | -313.00M | 832.00M | 3.74B | 1.05B | 321.00M |
| Investing Cash Flow | -1.00B | -215.00M | -290.00M | -260.00M | 528.00M |
| Financing Cash Flow | -507.00M | -1.32B | -2.38B | -344.00M | 293.00M |
Icahn Enterprises Technical Analysis
Positive
8.00
Price Trends
7.82
Positive
7.99
Positive
8.16
Negative
Market Momentum
0.04
Negative
57.02
Neutral
84.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IEP, the sentiment is Positive. The current price of 8 is above the 20-day moving average (MA) of 7.97, above the 50-day MA of 7.82, and below the 200-day MA of 8.16, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IEP.
Icahn Enterprises Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $3.94B | 93.17 | 26.52% | 1.01% | -3.95% | -74.65% | |
57 Neutral | $4.26B | 22.30 | 7.01% | 2.76% | -57.80% | -57.40% | |
53 Neutral | $475.75M | 159.51 | 0.63% | ― | 15.71% | ― | |
52 Neutral | $738.47M | -2.77 | -13.99% | 1.90% | 32.39% | -19.35% | |
50 Neutral | $550.73M | -1.93 | -41.59% | 20.53% | -15.85% | -59.42% | |
49 Neutral | $5.17B | -13.55 | -9.85% | 27.59% | -8.45% | 27.66% |
* Energy Sector Average
IEP
Icahn Enterprises
8.22
-0.10
-1.20%
CODI
Compass Diversified Holdings
7.00
-13.12
-65.21%
GFF
Griffon
82.12
14.77
21.92%
MDU
Mdu Resources Group
20.64
4.32
26.46%
TRC
Tejon Ranch Company
17.72
2.70
17.98%
FIP
FTAI Infrastructure Incorporation
6.07
0.79
14.96%
Icahn Enterprises Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Icahn Enterprises Plans Full Redemption of 2026 Senior Notes
Positive
Jan 27, 2026
On January 27, 2026, Icahn Enterprises L.P. and Icahn Enterprises Finance Corp. announced that they have instructed the trustee to issue a notice of full redemption for all of their outstanding 6.250% Senior Notes due 2026, with the redemption scheduled to occur on February 26, 2026 at par plus accrued and unpaid interest up to, but excluding, the redemption date. The company plans to fund the transaction using cash on hand, and, if completed, the redemption will retire the entire series of 2026 Notes, eliminating this specific debt obligation from its capital structure, although the company noted there is no assurance the redemption will ultimately take place.
The most recent analyst rating on (IEP) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Icahn Enterprises stock, see the IEP Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.